- Launched in collaboration with SBI Securities Co. Ltd. and Sumitomo Mitsui Trust Asset Management
- The fund will be eligible for the government sponsored tax incentive investment program, NISA
FTSE Russell, the global index provider, today announces the launch of the first Russell 1000 index fund, My SMT Russell 1000 index, in Japan, in collaboration with SBI Securities Co. Ltd. and Sumitomo Mitsui Trust Asset Management. This is the first Japanese-domiciled fund linked to the flagship Russell index.
The Russell 1000 Index fund will be launched today and managed by Sumitomo Mitsui Trust Asset Management, and SBI Securities Co. Ltd. will ensure the fund reaches retail investors across Japan.
Celebrating its 40th anniversary last year, the Russell 1000 Index measures the performance of the large-cap segment of the US equity universe. It includes approximately 1,000 of the largest US stocks, representing 93% of investable US equities by market capitalisation. As of the end of 2023, more than US$10 trillion is benchmarked to Russell indices.
The Russell US Indexes have allowed investors to take advantage of investing in companies, soon after they IPO. Newly listed companies are reviewed and added to the Russell indexes quarterly in March, September, and December, together with the complete annual index rebalance in June. This means that major companies that power the US economy are included in a timely manner, incorporating future equity market winners up to a decade before competitor US equity indexes.
The launch is in response to demand from Japanese retail investors, looking to invest in the US equity market. The index fund will be eligible for the government sponsored tax incentive investment program, NISA (Nippon Individual Savings Account), which offers permanent tax exemption for small investments and was introduced in January 2024.
Fiona Bassett, CEO at FTSE Russell, comments: “We’re thrilled to be working with SBI Securities Co. and Sumitomo Mitsui Trust Asset Management to launch the first ever Japan domiciled Russell Index fund. The Russell 1000 Index represents the true dynamism of the US economy and is built on a rules-based and transparent methodology. This launch supports growing demand from investors in Japan looking for a new opportunity to invest in the US large-cap market.”
Masato Takamura, President and Representative Director, SBI SECURITIES Co., Ltd. Comments: “As the new NISA program enters its second year, there is an increasing need to offer a variety of investment products that meet the needs of our customers. In this context, we are very pleased to have this opportunity to offer the first Japanese domiciled index fund linked to the Russell 1000 Index. SBI SECURITIES will continue to contribute to optimal asset building for our clients by providing high-quality, low-cost investment products based on our “customer-centric” philosophy.”
Yoshio Hishida, Representative Director and President, Sumitomo Mitsui Trust Asset Management Co., Ltd. comments: “We are very pleased to offer Japanese investors for the first time a publicly offered fund of the Russell 1000 Index, a leading index of U.S. equities. One year has passed since the new NISA system started in January 2024, and index funds are attracting a great deal of attention along with the expansion of the base of individual investors. We hope that offering a new option in U.S. equity indexes, which are in high demand among such investors, will help everyone's asset building.”
