Solactive is pleased to expand its collaboration with KB Asset Management. The KB RISE Japan Samurai Sector TOP4 Plus ETF aims to track the Solactive Japan Samurai Sector TOP4 Plus Index, offering investors strategic exposure to leading Japanese securities across a range of high-performing sectors.
The Japanese equity market continues to show resilient performance driven by strong earnings growth, technological advances, and robust economic policies. Owing to favorable macroeconomic conditions and supportive government policies, Japan’s economy has experienced moderate recovery and the return of sustainable inflation after years of stagnation, which allows companies to raise prices and improve profit margins. Moreover, against the backdrop of current economic and corporate governance reforms[1], there has been an increased focus on the efficient use of capital and profitability by Japanese corporations. This can further improve optimism about Japanese investment markets.
The Solactive Japan Samurai Sector TOP4 Plus Index tracks the performance of the four leading sectors and other outstanding companies in Japan. The top four sectors are selected based on their growth and momentum factors to ensure that only the most dynamic and high-potential large-to-mid-cap companies are included. These leading sectors can make up to 80% of the index, allowing investors to gain concentrated exposure to potential high-upside industries. While the index aims to select four stocks per leading sector to increase further diversification, the remaining weight is composed of the top-ranked stocks by free-float market capitalization in sectors other than the leading four. Final index constituents are then also weighted by free-float market capitalization.
The KB RISE Japan Samurai Sector TOP4 Plus ETF listed on 20th August 2024 on the Korea Stock Exchange with the ticker code 488480. KS.
Timo Pfeiffer, Chief Markets Officer at Solactive, commented:“We are delighted to extend our relationship with KB Asset Management. This partnership allows investors to capitalize on the growth potential of Japan’s leading sectors that benefited from structural reforms and accommodative policies. By adopting a flexible high-conviction approach, it enables us to draw from a spectrum of investment opportunities in the Japanese equity market. Furthermore, implementing such an innovative approach also reinforces our commitment to meeting the evolving needs of global investors.”
Soojin Lee, Head of ETF Product Division at KB Asset Management commented: “We are now able to offer a wider range of investment opportunities in Japanese equities, which were previously limited to benchmark indices and semiconductor themes in the Korean ETF market. With the RISE Japan Sector TOP4Plus ETF, investors can seize long-term investment opportunities in Japan’s leading sectors and prominent companies poised for growth.”
