Update : Mar. 10, 2011
[Tokyo Stock Exchange, Inc.]
Tokyo - March 10, 2011 - Nikko Asset Management Co., Ltd. (Nikko AM) and Tokyo Stock Exchange, Inc. (TSE) today announced that the "Listed Index Fund Nikkei China Related 50 (nickname: Listed China Related 50)" (code: 1556) began trading on the TSE market on Thursday, March 10.This ETF is the 20th ETF managed by Nikko AM, and is also the 100th ETF listed on TSE.
ETFs have been widely accepted by a broad range of investors, from domestic individuals to overseas institutions, as financial instruments which meet their asset management needs. TSE has focused on expanding the number of listed issues in order to further increase investor convenience. Additionally, Nikko AM has been pursuing ETFs targeting new areas of investment while developing and managing a diverse lineup. With today's listing of "Listed Index Fund Nikkei China Related 50", TSE has reached its goal of 100 ETFs. As an ETF provider, Nikko AM manages 1/5th of the TSE ETF market, with 20 issues, and 1/3rd of the assets under management for domestic ETFs (JPY 1.7 trillion as of Fubruary 28, 2011), with a balance of approximately JPY 600 billion.
In addition to the line up of the ETF market expanding, the available asset types have also rapidly grown. Things have greatly changed since the initial lineup was limited to Japanese stocks. Today's market is populated with a wide-range of ETFs, backed by foreign stocks, overseas bonds, REITs, commodities, and other assets. With this full and substantial range of products, investors are able to use ETFs to create a diversified portfolio with ease. TSE and Nikko AM will continue aiming to increase awareness of ETFs and invigorate trading, while focusing their efforts toward the further development of the Japanese ETF market.
The Listed Index Fund Nikkei China Related 50, the 100th ETF to appear on the TSE, will be managed by Nikko AM and will invest in Japanese equity with strong connections to China. The Nikkei China Related Stock 50 index, the movements of which this ETF aims to track, is comprised of 50 stocks of major listed Japanese firms actively expanding their business operations in China, and which are selected by the number of times they appear in business articles related to China in Nikkei's four major newspapers. As the activities of companies continue to reach beyond borders and expand globally, this ETF is a groundbreaking product that focuses on Japanese firms expanding into China to setup production bases or in search of lucrative markets. Investors can reap the benefits of high economic growth in China by investing in Japanese equity with strong Chinese ties.
Nikko AM launched various three ETFs for three days straight. "Listed Index Fund World Equity (MSCI ACWI) ex Japan (nickname: Listed MSCI World Equity)" (code: 1554) was listed on the TSE market on March 8, 2011, and "Listed Index Fund Australian REIT (S&P/ASX200 A-REIT) (nickname: Listed A-REIT)" (code: 1555) was listed on March 9, 2011.
Bill Wilder, President and Chief Investment Officer of the Nikko AM, commented "It is a great honor that the 100th ETF listed on the TSE is one that Nikko AM has developed and now manages. Nikko AM has taken the initiative to develop and manage ETFs in new market segments in order to meet the needs of investors. In the future, we will not only develop new funds, but we also hope to contribute to the further development of the ETF market in Japan through superior management and creative marketing activities on an ongoing basis."
Atsushi Saito, President and CEO of TSE, commented "We are very proud of listing these three ETFs from Nikko AM. With the listing of "Listed Index Fund Nikkei China Related 50", we have reached our goal of 100 ETFs listed on the TSE market. These ETFs target a wide variety of asset classes, and increase the diversity of the market. In this way, I am pleased to say that our market will be able to better meet various needs of investors."
About Nikko Asset Management Co., Ltd.
Nikko Asset Management Co., Ltd. (Nikko AM) is a leading Japan-based asset management group. Since its establishment 50 years ago, Nikko AM has been offering a full lineup of investment trusts to retail investors and high value-added advisory services to institutional investors. Its investment trusts are distributed through a network of around 200 distributor institutions including banks, securities companies, and Japan Post Bank. The firm offers investors access to both Nikko AM funds that invest mainly in Japanese equities, fixed income, and REITs and, through its independently developed "World Series Fund Platform", opportunities to strategically utilize a global range of top-performing, independent asset managers over adverse range of asset classes. The Nikko AM Group has assets totaling JPY10.3 trillion under management as of December 31, 2010, and has overseas offices in London, New York, and Singapore.
About Tokyo Stock Exchange
Tokyo Stock Exchange, Inc. (TSE) is one of the leading global exchanges and the largest securities market in the Asia-Pacific region. TSE is best known for its massive equities market, valued at JPY323 trillion (as at end of February 2011) and it also boasts the largest market for Japanese securities derivatives such as TOPIX futures and TOPIX options. Besides its dynamic market, TSE also calculates and publishes Japan's most comprehensive family of indices. Among these is TOPIX (Tokyo Stock Price Index), the main index composed of all Japanese common stocks listed on the TSE First Section, which is widely used as a benchmark for the Japanese stock market.
This material is an English translation of a Japanese announcement made on March 10, 2011. Although Nikko AM intended to faithfully translate the Japanese document into English, the accuracy and correctness of this translation are not guaranteed and thus you are encouraged to refer to the original Japanese document. Please note that you cannot purchase any products mentioned in this press release if you are not a Japanese resident or if you hold nationality of a country where there are legal restrictions on their ownership. The information referred to in this press release is for Japanese residents only. The information provided is designed for use by Japanese residents only and should not be relied on by residents of any other jurisdiction.
Tokyo Stock Exchange, Inc.
Product Development Group, Listing Department
+81 (3) 3665-2643