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STOXX Ltd., the operator of Deutsche Boerse Group’s index business, and a global provider of innovative and tradable index concepts, today announced that the iSTOXX MUTB Japan Quality 150 Index has been licensed to Mitsubishi UFJ Kokusai Asset Management (MUKAM) to underlie an exchange-traded fund (ETF). The ETF will be listed on Tokyo Stock Exchange as of today.
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. It has been developed in collaboration with the leading Japanese trust bank Mitsubishi UFJ Trust and Banking Corp. (MUTB). 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 offers a unique opportunity to track the performance of leading Japanese companies in terms of overall quality and stability of their businesses,” said Matteo Andreetto, chief executive officer, STOXX Limited. “MUKAM already chose this index as underlying for a passive fund last year and we are very pleased that they expand their offering with an exchange-traded fund now.”
Kazuto Kanai, Deputy General Manager at Mitsubishi UFJ Kokusai Asset Management commented: “In the Japanese Equity market, the implementation of Japan Stewardship Code and the increased focus on corporate governance is driving a need for companies to enhance their corporate “quality”. The iSTOXX MUTB Japan Quality 150 Index that comprises of companies with sustainable high ROE provides a rules-based and transparent tool for both institutional and individual investors to participate in the performance of these companies.”
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.
Please visit www.stoxx.com for further information.
