STOXX Limited, has announced the launch of the iSTOXX MUTB Japan Quality 150 Index. The new index, which was developed in collaboration with Mitsubishi UFJ Trust and Banking Corp. (MUTB), the leading Japanese trust bank, aims to capture the performance of quality companies with high profitability, low leverage and sustainable cash flows in Japan…..
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Tim Edwards, Senior Director of Index Investment Strategy at S&P Dow Jones Indices
The launch of the iSTOXX MUTB Japan Quality 150 Index is the first to follow an announcement of both companies to enter into a memorandum of understanding (MOU) to create and market new smart-beta indices.
“We are excited and honored to be collaborating with an established institution like MUTB in the development of smart-beta indices which cover the Japanese market,” said Hartmut Graf, chief executive officer, STOXX Limited. “Part of the Japanese government’s efforts to stimulate the economy includes the motivation of companies to improve their return on equity. With the newly launched iSTOXX MUTB Japan Quality 150 Index we offer local as well as international market participants an innovative, rules-based tool to participate from the performance of such companies.”
Tatsuo Wakabayashi, President, Mitsubishi UFJ Trust and Banking Corporation, commented: “The iSTOXX MUTB Japan Quality 150 Index is comprised of companies able to sustain growth in corporate value, and was developed based on the experience we have built up through our active quantitative investment strategies, and STOXX’s experience in indexing. We are looking forward to continuing to develop new smart beta index strategies in collaboration with STOXX. We hope these new indices will draw interest in Japanese equities investment from both Japanese and overseas investors.”
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.