China Post Global launches smart beta Japan ETF
China Post Global (UK) has launched the Market Access Japan Quality 150 Index Ucits ETF.
The ETF focuses on quality Japanese stocks and will aim to replicate the performance of the iStoxx Mutb Japan Quality 150 Index that screens the Stoxx Japan 600 index for quality companies demonstrating high profitability, low leverage and sustainable cashflow.
Criteria considered for the index are return on equity, debt to capital, cashflow generation ability and business stability, and firms must also meet a minimum liquidity requirement.
This index was developed by STOXX in partnership with Japanese trust bank Mitsubishi UFJ Trust and Banking.
This launch will be followed by that of two Chinese equity smart beta ETFs.
“We are delighted to bring to market this innovative smart beta ETF at a time when international investor interest in Japan is on the rise,” said Danny Dolan, managing director of China Post Global.
“We have been able to draw on the local expertise of MUTB and the index construction capabilities of Stoxx to develop a product that we feel really adds value for investors and responds to their needs.
“Securing €26m from seed investors reflects the very positive response to this new ETF,” he added.
The Market Access iStoxx Mutb Japan Quality 150 Index Ucits ETF is listed on Deutsche Borse. It will also be listed on Six Swiss Exchange, and registered in Austria, Germany, Italy, Netherlands, Switzerland and the UK.
China Post Global has some $23bn of assets under management.