Morgan Stanley deepens strategic alliance with MUFG

Morgan Stanley deepens strategic alliance with MUFG
The two firms will integrate some operations and some employees will move firms as the partners shore up operations for the long term.
JUL 18, 2023
By  Bloomberg

Mitsubishi UFJ Financial Group Inc. and Morgan Stanley will merge some operations at their Japan-based joint ventures, in the first major reorganization since the two entities were formed more than a decade ago. 

The companies will integrate Japan equity sales for institutional clients, along with corporate access, research and a part of execution services, MUFG and Morgan Stanley said in a statement on Tuesday. The banks also agreed to collaborate on foreign-exchange trading. 

Japan’s largest lender invested $9 billion in the Wall Street bank at the height of the financial crisis in 2008, acquiring a 20% stake. Following the alliance, they set up two securities joint ventures in Japan in 2010. 

Morgan Stanley MUFG Securities Co. is 51% owned by the US bank, while Mitsubishi UFJ Morgan Stanley Securities Co. is 60% held by the Japanese lender. The business functions being consolidated will be transferred to the Morgan Stanley-led entity. 

Morgan Stanley Chief Executive Officer James Gorman said the initiatives are examples of how the two firms can “deepen our strategic alliance over the years to come.” 

MUFG CEO Hironori Kamezawa said the firms will collaborate to enhance their partnership “for the coming decades.”

Job cuts aren’t the purpose of the overhaul, Yuki Hasegawa, a managing director at Morgan Stanley MUFG Securities, said at a briefing in Tokyo. 

As part of the move, about 100 staff from the MUFG-led entity will move to the Morgan Stanley-led venture, said Sachiko Toyama, a spokeswoman for Mitsubishi UFJ Morgan Stanley. 

The banks plan to implement the changes in the first half of 2024, subject to regulatory approval. They will keep the two joint ventures because the structure is best suited to serve clients, said Iichiro Takahashi, a planning manager at MUFG. 

The tie-up on foreign exchange will involve MUFG’s main banking unit using the trading platform of the Morgan Stanley-led venture, while sales will remain independent at each firm.

Latest News

Maryland bars advisor over charging excessive fees to clients
Maryland bars advisor over charging excessive fees to clients

Blue Anchor Capital Management and Pickett also purchased “highly aggressive and volatile” securities, according to the order.

Wave of SEC appointments signals regulatory shift with implications for financial advisors
Wave of SEC appointments signals regulatory shift with implications for financial advisors

Reshuffle provides strong indication of where the regulator's priorities now lie.

US insurers want to take a larger slice of the retirement market through the RIA channel
US insurers want to take a larger slice of the retirement market through the RIA channel

Goldman Sachs Asset Management report reveals sharpened focus on annuities.

Why DA Davidson's wealth vice chairman still follows his dad's investment advice
Why DA Davidson's wealth vice chairman still follows his dad's investment advice

Ahead of Father's Day, InvestmentNews speaks with Andrew Crowell.

401(k) participants seek advice, but few turn to financial advisors
401(k) participants seek advice, but few turn to financial advisors

Cerulli research finds nearly two-thirds of active retirement plan participants are unadvised, opening a potential engagement opportunity.

SPONSORED RILAs bring stability, growth during volatile markets

Barely a decade old, registered index-linked annuities have quickly surged in popularity, thanks to their unique blend of protection and growth potential—an appealing option for investors looking to chart a steadier course through today’s choppy market waters, says Myles Lambert, Brighthouse Financial.

SPONSORED Beyond the dashboard: Making wealth tech human

How intelliflo aims to solve advisors' top tech headaches—without sacrificing the personal touch clients crave