Kim Eng Holdings forges links with Mitsubishi UFJ Securities of Japan

Kim Eng Holdings Ltd., a publicly-listed company in Singapore, has forged a strategic alliance with Mitsubishi UFJ Securities Co. Ltd., a unit of the world’s largest bank, the Mitsubishi UFJ Financial Group.

ATR KimEng Financial Corp. (ATRKE Financial), a publicly-listed diversified financial services company, specializing in capital markets, insurance, real estate and other investments, is a member of the Kim Eng Holdings.

Under the memorandum of understanding (MOU) signed by both parties, Kim Eng and Mitsubishi UFJ Securities said they are exploring joining forces in equity brokerage, research, asset management, and other businesses.

The parties are presently negotiating detailed terms of an agreement that they hope to finalize by the end of 2007.

The move is expected to spur a new wave of Japanese money into Southeast Asian securities.

The two institutions are looking at setting-up an asset management joint venture which aims to manage in excess of S$1 billion within the first two years.

The proposed asset management company (AMC) will invest in listed equities, primarily in Asia.

The joint venture will tap Mitsubishi UFJ Securities’ extensive distribution network in Japan to raise funds for management and Kim Eng’s expertise in investing as well as its established brokerage capabilities in the rest of Asia outside Japan.

In the Philippines, Kim Eng Holdings is a major stockholder in ATR KimEng Financial Corp. (ATRKE Financial), a publicly-listed diversified financial services company, specializing in capital markets, insurance, real estate and other investments.

“The combination of Mitsubishi UFJ Securities’ strong balance sheet and distribution networks, and Kim Eng’s proven expertise in brokerage and investment will create a powerful asset management business,” ATRKE Financial president Manuel Tordesillas quoted Kim Eng Holdings managing director Ronald Ooi.

The alliance provides another avenue for increasing ATRKE Financial’s visibility and access to business in Japan. Mitsubishi belongs to one of the largest financial conglomerates in Japan.

The company’s wholly-owned subsidiary, ATR Kim- Eng Capital Partners Inc., is the country’s largest non-bank related investment house, while its  stock brokerage arm, ATR KimEng Securities Inc., is the leading Philippine-owned securities company.

The Mutual Fund Management Co. of the Philippines, Inc. (MFMCP), a subsidiary of ATRKE Capital, manages

The MFMCP-Aizawa Trust Philippines Fund that markets Philippine equities to Japanese investors.

The Fund was launched by Japanese stockbroker Aizawa Securities Co. Ltd. and its affiliate company, Fund Creation Co. Ltd., exclusively for the Japanese retail investor market. — TPT