FTSE Group (“FTSE”) has contracted the largest trust bank in Japan, Mitsubishi UFJ Trust and Banking Corporation to use the FTSE GWA index series. This is the first time FTSE has contracted a financial institution in Japan to launch a fund based on a non-market cap weighted index. The FTSE GWA index combines the wealth weighted methodology created by Global Wealth Allocation (GWA), and FTSE’s world-class indexing skills.
The FTSE GWA Developed Index contains the same stocks as the FTSE Developed Index but the weightings are based upon company wealth, rather than on market capitalisation. The FTSE GWA Developed Index uses three variables: net profit, cash flow and book value. Analysis of the FTSE GWA Developed Index shows a 16.62% higher return over a five-year period beginning February 2002 when compared to the FTSE Developed Index over the same period.
Paul Hoff, Managing Director, FTSE Asia Pacific said, “FTSE is excited to work with Mitsubishi UFJ Trust and Banking Corporation, a leading trust bank to introduce an innovative new product to the Japan institutional investment community.”
Motohiro Maeda, General Manager, Mitsubishi UFJ Trust and Banking Corporation said, “By utilizing the FTSE GWA index, we can offer Japanese investors a variety of passive investment options.”
The FTSE GWA Index Series is also used by global pension funds, including State Street Global Advisors (SSgA) which tracks the FTSE GWA Developed Index, and AP3, the largest pension fund in Sweden. Further information about the FTSE GWA Index Series is available at www.ftse.com/gwa.
