STOXX Limited, has announced that the iSTOXX MUTB Japan Quality 150 Index has been licensed by Mitsubishi UFJ Kokusai Asset Management (MUKAM) to underlie a passive index fund. The new fund will be …
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geared toward retail investors and expected to launch in November 2015.
Developed with input from leading Japanese trust bank Mitsubishi UFJ Trust and Banking Corp. (MUTB), the iSTOXX MUTB Japan Quality 150 Index aims to capture the performance of quality companies with high profitability, low leverage and sustainable cash flows in Japan. MUKAM is part of the Mitsubishi UFJ Financial Group (MUFG) and represents the investment trust business that focuses on meeting a wide range of client asset management needs.
“The iSTOXX MUTB Japan Quality 150 Index measures leading Japanese companies based on key fundamental criteria that indicate the overall quality and stability of their businesses,” said Hartmut Graf, chief executive officer, STOXX Limited. “By licensing this index for a new passive fund, we are very pleased to work together with MUKAM and further expand our footprint in the Japanese retail market.”
Hideo Shirota, Director of Mitsubishi UFJ Kokusai Asset Management commented: “As a smart beta index for Japanese equities, the iSTOXX MUTB Japan Quality 150 index focuses on ROE and is highly appealing. We expect positive needs from our clients for this kind of product, as a result we plan to introduce a fund linked to this index.”
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 2% weighting cap for individual components. 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 index level data is available from Jun. 18, 2001.