Japanese bank Mitsubishi UFG has bought a 10% stake in Aberdeen Asset Management.

Mitsubishi, the world’s second largest bank, will be entitled to a seat on the board if its stake reaches 15%.

Aberdeen hopes the deal will allow it to break into the lucrative Japanese pension fund market, where Mitsubishi will distribute its market equities, global equities and global fixed income to Japanese institutional investors.

It will also allow it access to Japanese investors who are increasingly looking to allocate capital outside of their home market.

Martin Gilbert, CEO of Aberdeen, said: ‘Aberdeen’s partnership with MUTB provides an exciting opportunity to enhance our global distribution and broaden our client base.

‘It accelerates a strategic objective of establishing ourselves in Japan, a key market for us. Furthermore our strong product offerings in global equities, emerging market equities and global fixed income complement the trend of Japanese investors looking to invest overseas.’