TOKYO (Reuters) - The trust banking arm of Mitsubishi UFJ Financial Group is planning to launch three funds totalling up to 100 billion yen ($670.6 million) in the 2024 financial year to provide loans to companies and other entities, the Nikkei reported on Sunday.

The loan funds are intended to meet demand for more diverse financial instruments as institutional investors increasingly look beyond traditional assets such as stocks and bonds, the Nikkei said.The funding will be solicited from insurance companies and pension funds and the loans will be used for mergers and acquisitions and infrastructure financing, the Nikkei said.

($1 = 149.1200 yen)

(Reporting by Anton Bridge; Editing by Kim Coghill)