Nikko AM to launch themed ETF in Japan

Added 11th May 2016

Nikko Asset Management will launch an exchange-traded fund that tracks Japanese companies investing in physical and human capital.

Nikko AM to launch themed ETF in Japan

The Listed Index Fund Japanese Economy Contributor Stocks ETF is structured based on the Bank of Japan’s new initiative, a firm's spokeswoman said. It will be launched on May 25.

In December, the BoJ decided to increase the capacity of its ETF buying programme by JPY 300bn ($2.8bn) per year. Specifically, it will invest in Japanese companies that are proactive in engaging in physical and human capital investment.

The aim is to encourage firms to invest in human and physical capital to support an increase in wages and domestic consumption, eventually boosting the Japanese economy as a whole.

Last week, the BoJ named Nikko's planned ETF and two others as products that fit its investment initiative.

The other two ETFs are the Daiwa ETF MSCI Japan Human and Physical Investment Index, which tracks the MSCI Japan Human and Physical Investment Index, and the Next Funds Nomura Enterprise Value Allocation Index ETF, a product that tracks the Nomura Enterprise Value Allocation Index. Both will be listed on May 19.

Nikko's ETF will become the first to track the JPX/S&P Capex & Human Capital Index, which has been jointly developed by the Japan Exchange Group, the Tokyo Stock Exchange and the S&P Dow Jones Indices.

The product targets institutional investors, the spokeswoman added.

To date, Nikko AM has 21 listed ETFs in Japan and two in Singapore.

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