British fund manager Standard Life Investments has entered into a strategic alliance with Japan-based Chuo Mitsui Asset Trust and Banking for reciprocal asset management services.

This alliance will, for the first time, will give Standard Life Investments access to the Japanese market and give Chuo Mitsui enhanced access to the UK, European and other overseas markets.

The alliance will initially see Standard Life Investments advise on around $1.2bn of Chuo Mitsui’s global equity funds and Chuo Mitsui manage and advise on around $1bn of Standard Life Investments’ Japanese equity funds. Standard Life Investments and Chuo Mitsui will also be able to market each others investment strategies through their respective distribution networks.

Keith Skeoch, chief executive of Standard Life Investments, said: “The strategic alliance is a very important step in extending Standard Life Investments’ global franchise. It provides the opportunity for significant revenue and profit generation through access, with a partner who enjoys a strong local brand, to the second largest asset management market in the world.”

Tadashi Kawai, chairman of Chuo Mitsui, said: “This strategic alliance with Standard Life Investments is an important step for us in developing an internationally focused asset management business. Standard Life Investments will benefit from our on-the-ground local knowledge and award winning investment expertise in Japan.”