Advising Mitsubishi UFJ Trust and Banking Corporation

17 Sep 2018

International law firm Simmons & Simmons has advised Mitsubishi UFJ Trust and Banking Corporation (the Trust Bank) on a commercial agreement (Alpha Model Services and Licence Agreement) with Aberdeen Standard Investments. The agreement relates to the development and provision of an investment model employing artificial intelligence (AI), embedding machine learning techniques in the investment process.

The innovative AI-model analyses variation patterns using factors such as ‘value’, ‘volatility’ and ‘quality’ and determines the applicable factor strategy by seeking similar patterns from historical records. The Global Equity fund adopting the investment model was launched by Aberdeen Standard Investments in Luxemburg.

the Trust Bank is a wholly owned subsidiary of Mitsubishi UFJ Financial Group, Inc. (MUFG), with total assets of 46.6tn yen as of 31 March 2018. It is one of Japan's largest trust banks. Listed on the Tokyo Stock Exchange with a market capitalisation of approximately 324.3bn yen, MUFG is the largest banking organisation in Japan and one of the world’s largest bank holding companies.

Corporate partner Jason Daniel, commented: “As a long-standing client, we were pleased to advise the Trust Bank and work in such a close team with them. The project provided another opportunity to support Japanese activity in Europe, particularly in bringing our strengths in the Asset Management & Investment Funds and Financial Institutions sectors to bear across multiple jurisdictions”.

The Simmons & Simmons international multi-disciplinary team was led by corporate partner Jason Daniel assisted by corporate associate Phoebe So, intellectual property partner Angus McLean assisted by James Agnew and financial services partner Matthew Pitman.

Simmons & Simmons has played a pioneering role within the FinTech industry for many years. As the first firm to launch a dedicated FinTech Fund which provides cost effective legal services to some of the UK’s most exciting FinTech businesses, Simmons & Simmons has shown its commitment to supporting innovation within the financial services sector. The firm is currently also the legal partner to FinTech Hive in Dubai. This latest project with the Trust Bank is a further example of how the firm’s FinTech practice continues to be at the cutting edge of developments in the sector as AI technology begins to be adopted into the mainstream.

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