STOXX Limited, has announced that the iSTOXX MUTB Japan Quality 150 Index has been licensed to Mitsubishi UFJ Trust and Banking Corp. (MUTB), the leading Japanese trust bank, to be used for an …..
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institutional passive fund. The newly launched index aims to capture the performance of quality companies with high profitability, low leverage and sustainable cash flows in Japan.
“The iSTOXX MUTB Japan Quality 150 Index has been developed in collaboration with Mitsubishi UFJ Trust and Banking Corp., and offers market participants a rules-based and transparent way to participate from the Japanese government’s efforts to stimulate the economy by motivating companies to improve their return on equity,” said Hartmut Graf, chief executive officer, STOXX Limited. “By licensing this index to MUTB for an institutional passive fund, both MUTB and STOXX are taking another step in their joint efforts to increase the foot-print of STOXX’s smart beta products in the Japanese region.”
Sunao Yokokawa, Managing Executive Officer of Mitsubishi UFJ Trust and Banking Corporation commented: ”The iSTOXX MUTB Japan Quality 150 Index focuses on the companies’ return on equity, not only on their level of it, but also on their sustainability. This new smart beta index enables investors to invest in high quality Japanese stocks with relatively low management cost. I hope this index will attract interest in Japanese equities from both domestic and foreign investors, and am looking forward to continuing the development of new smart beta indices with STOXX, exploiting both of our expertise in active and passive investment.”
The iSTOXX MUTB Japan Quality 150 Index is derived from the STOXX Japan 600 Index. For all components in the underlying index, a combined ranking of four fundamentals ratios (return on equity, debt-to-capital, cash flow generation ability and business stability), as well as a liquidity screen, is calculated. They are then ranked on the selection list according to these scores. The top 150 stocks on the selection list are eligible for inclusion in the index.
The iSTOXX MUTB Japan Quality 150 Index is weighted by free-float market cap, with a single component’s weight cap of two percent. The index is reviewed semi-annually in June and December after the review of the underlying index, and rebalanced quarterly in March, June, September and December.
The iSTOXX MUTB Japan Quality 150 Index is calculated in price, net and gross return versions and is available in EUR, JPY and USD. Daily historical data is available from Jun. 18, 2001.