Following the launch of a European Buyback Index earlier this year, Solactive has now announced the launch of the Solactive Japanese Buyback Index (BUYJP Index) which will be used as underlying by Société Générale Corporate & Investment Banking for swaps, options, warrants and certificates.
Stéphane Mattatia, head of Global Equity Flow Engineering in Paris at SG CIB, comments on the launch: “The Solactive European Buyback Index was very well received by investors as it answers a need for diversification of the sources of alpha. This new Index is adapted to the growing interest of investors for Japan – knowing furthermore that in a recent note,** SG Research highlights that the combination of US recovery and Japan’s exit from the deflationary cycle should create a favourable environment for buyback there.”
According to Solactive, the index is the first of its kind in the market. It is is composed of all stocks domiciled and listed in Japan which announced a stock buyback in the last two months.
To be eligible in the universe, stocks must have a minimum market capitalization of 100 billion JPY and an average trading value of 300 million JPY over the last three months. The number of components is capped at 25.