British asset manager Ashmore said on Tuesday that Japan Post Insurance (JPI) had agreed to acquire up to a 2.9% stake in the company and also invest $1 billion in Ashmore-managed emerging market funds.
Ashmore shares gained 3% in early trading.
Specialists like Ashmore have benefited from increased appetite for emerging-market assets as investors seek higher growth and shelter from U.S. President Donald Trump’s disruptive trade policies.
Japanese financial groups have also been stepping up efforts to expand overseas and diversify away from their mature home market. The agreement follows similar tie-ups between Britain’s Legal & General and Meiji Yasuda, as well as between M&G and Dai-ichi Life.
“Emerging markets represent a strategically important and growing asset class for JPI,” said Kunio Tanigaki, President and CEO of Japan Post Insurance.
The $1 billion initial commitment is in addition to assets that the Japanese insurer currently has under management with Ashmore, with potential for additional capital allocations over time. Ashmore will serve as JPI’s strategic partner in emerging-market asset classes, the company added.
Reuters
