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Tokyo Stock Exchange, Inc. (TSE) and State Street Global
Advisors (SSgA), the investment management arm of State Street Corporation today
announced that the ABF PAN ASIA BOND INDEX FUND (PAIF) , began trading on the
TSE market on Friday, June 19th. This product is the first bond-tracking ETF
listed on the TSE, and is also the first of its kind in Japan. This listing
offers an effective tool for asset allocation and allows institutional and
individual investors in Japan access to the Asian bond market with yen through
the TSE.
ABF
Pan Asia Bond Index Fund
PAIF is developed by the Executives' Meeting of East Asia-Pacific Central Banks (EMEAP), a group comprised of 11 Asian central banks and monetary authorities, as part of the Asian Bond Fund (ABF) Project that has aimed to promote the bond market in Asia since 2003.
PAIF tracks the iBoxx ABF Pan-Asia Index designed to measure the performance of domestic currency-denominated government and public (quasi-government) bonds in eight Asian markets - China, Hong Kong, Indonesia, Korea, Malaysia, Philippines, Singapore, and Thailand. PAIF was launched by State Street Global Advisors Singapore Limited in Singapore in June 2005, and listed on the Hong Kong Exchange in July 2005. Its total net asset value is approximately USD 1.48 billion (as of March 31, 2009).
"We are extremely pleased that the Tokyo Stock Exchange, one of the world's leading stock exchanges, has today listed PAIF as its first bond-tracking ETF," said Koji Yamamoto, President and Representative Director of State Street Global Advisors (Japan) Co., Ltd. "PAIF is an attractive option making possible diversified investment in the sovereign and public bonds of eight economies through a single investment. We are honored to be able to offer this new asset class to Japanese investors."
Mr. Atsushi Saito, President and CEO of the TSE, commented "With the listing of PAIF on the Tokyo Stock Exchange, ETFs tracking all the main types of underlying assets - securities, bonds, commodities and real estate - can be found at the TSE. It is with great pleasure that our market welcomes an ETF contributing to the Asian financial market. We hope that the TSE will act as a focal point of the financial center of Asia, and allow Japanese capital to contribute to further developing the Asian economy. In this sense, the listing of PAIF on our market is highly significant."
