Mitsubishi UFJ Financial Group (MUFG) and Morgan Stanley commenced securities joint venture operations in Japan as of May 1, 2010, as part of their global strategic alliance. MUFG and Morgan Stanley, in a move that will allow them to leverage their respective strengths and networks, will cooperate through a two company structure. Those two entities are: Mitsubishi UFJ Morgan Stanley Securities (MUMSS) and Morgan Stanley MUFG Securities (MSMS).

MUFG holds a 60 percent interest in MUMSS while Morgan Stanley holds a 40 percent interest, making MUMSS a consolidated entity of MUFG. The investment banking team of former Morgan Stanley Japan Securities Co., Ltd. (MSJS) was integrated with Japanese operations of the former Mitsubishi UFJ Securities Co., Ltd.

Morgan Stanley has a 51 percent voting interest in MSMS and MUFG has 49 percent, making MSMS a consolidated Morgan Stanley entity. At the same time, MUFG will hold a 60 percent economic interest in MSMS while Morgan Stanley will hold 40 percent. MSMS comprises the sales and trading, capital markets and research businesses of former MSJS.

The goal of this venture is to create the preeminent force in the Japanese securities industry, by effectively catering to increasingly sophisticated and diverse financial needs of a broad base of clients. We will achieve that goal by combining MUFG’s comprehensive domestic financial services network and extensive client base with Morgan Stanley’s global reach and high quality products and services.

Mitsubishi UFJ Morgan Stanley Securities and Morgan Stanley MUFG Securities will combine MUFG’s broad client footprint with Morgan Stanley’s global reach to create Japan’s leading securities venture in terms of domestic market presence, global reach and, above all, customer service.