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- Improved risk/reward potential for Japanese institutional investors
- Based on FTSE Developed ex Japan Index and FTSE EDHEC weightings
FTSE Group (“FTSE”), the global index provider, today announces the licensing of the FTSE EDHEC Risk Efficient Developed ex Japan Index to Nikko Asset Management Co., Ltd. to create the first risk-efficient index fund for Japanese investors.
The FTSE-EDHEC Risk Efficient International Developed Countries Index Fund aims to offer Japanese institutional investors a transparent means of capturing equity market returns with the potential for improved risk/reward efficiency. The universe derives from the FTSE Developed ex Japan (FTSE Kaigai) index.
Yuji Ogino, Director, Japan, FTSE Group said, “FTSE is a leader in the provision of alternatively weighted indices and has an established record working with Japanese institutions who were early adopters of these strategies. We are delighted to be working with Nikko Asset Management to provide an expanded range of options in order to support the needs of investors in this market.”
Charles Beazley, Chairman, President and CEO, Nikko Asset Management Co., Ltd. commented, “As the first firm in Japan to deliver a risk efficient index fund, Nikko Asset Management continues to prove its commitment to developing product solutions that best meet the needs of our sophisticated investors in the Japanese market. We believe that FTSE Group’s product experience is the perfect complement for Nikko AM’s expertise in Asian and emerging market assets.”
The FTSE EDHEC Risk Efficient Index Series was developed in association with EDHEC Risk Institute and systematically weights portfolio constituents to maximize the Sharpe ratio and achieve the highest possible reward-to-risk efficiency. The index series incorporates FTSE’s award winning methodology and is managed in accordance with transparent index rules as well as FTSE’s strong, independent Governance processes.
