Japanese investment firm Nikko has signed a deal to distribute fixed income products from UK-based Legal & General Investment Management.

The Asia-focused asset manager will target Japanese banks and insurers with LGIM’s products, a statement said on Wednesday, with the first funds set to be launched in mid-2016.

LGIM has also agreed to market and sell Nikko Asset Management’s products in the UK and other countries.

The UK investment manager first launched a business in Asia Pacific in 2012.

Since then it has also signed a co-operation agreement with the third largest insurance company in Japan.

Last year Meiji Yasuda Life Insurance and its subsidiary, Meiji Yasuda Asset Management, began using LGIM’s global fixed income service to create products for Japanese public and corporate pension funds.

“Japan is a key part of our strategy as we continue to build out our global asset management business,” said Mark Zinkula, chief executive of LGIM.

“We look forward to providing Nikko Asset Management’s clients with access to our high quality range of fixed income products and services.”

Takumi Shibata, president & chief executive of Nikko Asset Management, added: “We are sure that this collaboration will truly benefit our clients through the provision of differentiated fixed income investment solutions offered by LGIM.”