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Japan's MUFG agrees to buy Guggenheim's fund administration business
July 29, 2016 / 1:46 AM / a year ago

Japan's MUFG agrees to buy Guggenheim's fund administration business

TOKYO, July 29 (Reuters) - Mitsubishi UFJ Financial Group (MUFG) has agreed to buy a fund administration business from Chicago-based investment and advisory firm Guggenheim Partners, extending a drive by Japan's biggest bank to diversify beyond traditional loan operations.

MUFG said on Friday it will buy Rydex Fund Services, a U.S. mutual fund administrator, without saying how much it will pay.

A person with direct knowledge of the matter said it the price tag was around 20 billion yen ($192 million). The person spoke on condition of anonymity because he was not authorised to discuss the matter publicly.

Fund administrators provide services such as regulatory and shareholder reporting, tax and book-keeping to money management companies such as hedge funds. The business generally provides stable income, regardless of financial market conditions.

With the acquisition of Rydex, MUFG's fund administration business will have $378 billion in global assets under administration. MUFG's target is to pass the mark of having $400 billion in overseas assets under administration by March 2018. ($1 = 104.4300 yen) (Reporting by Taiga Uranaka; Editing by Kenneth Maxwell)

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