Nikko Asset Management to List Japanese Equity ETF Invested in Firms Engaged in Physical and Human Capital Investment

Press Release

16 May 2016

Physical and Human Capital Focused ETF to be Listed on TSE on May 25

Nikko Asset Management is launching an ETF that tracks a Japanese equity index consisting of firms that take proactive and efficient measures with their investment in capital expenditure and human capital. The ETF will be launched on May 24 and listed on the Tokyo Stock Exchange on May 25.

The new ETF will track the JPX/S&P CAPEX & Human Capital Index by investing in its constituent stocks. The index was developed jointly by Japan Exchange Group, Inc., Tokyo Stock Exchange, Inc. ("JPX Group") and S&P Dow Jones Indices.

The JPX/S&P CAPEX & Human Capital Index consists of firms actively and efficiently engaged in capital expenditure and human capital investment. Specifically, the top 200 stocks are selected to be used in the index by first screening TOPIX constituents in terms of "liquidity", "creditworthiness", and "stability", and then assessing and ranking the remaining candidates based on three factors "capital expenditures growth", "capital expenditures efficiency" and "adequacy of human capital investment".

Firms that take a proactive stance on capital expenditure and human capital investment are in line with the direction of Abenomics and expected to benefit from the potential economic growth in Japan. Moreover, the Bank of Japan announced in December that it would provide support to companies that are "proactively making investment in physical and human capital" by spending JPY 300 billion a year in purchasing ETFs that track such companies. The Listed Index Fund Japanese Economy Contributor Stocks will invest in the constituent stocks of the JPX/S&P CAPEX & Human Capital Index, which is in congruence with the Bank of Japan's supplemental measure.

Having taken the initiative in creating a range of ETFs for different types of investors, Nikko Asset Management continues to develop products that provide a broad range of investment opportunities.

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Note: This material is an English translation of a Japanese announcement made on May 6, 2016. Although Nikko AM intended to faithfully translate the Japanese document into English, the accuracy and correctness of this translation are not guaranteed and thus you are encouraged to refer to the original Japanese document. Please note that you cannot purchase any products mentioned in this press release if you are not a Japanese resident or if you hold nationality of a country where there are legal restrictions on their ownership. The information referred to in this press release is for Japanese residents only. The information provided is designed for use by Japanese residents only and should not be relied on by residents of any other jurisdiction.

About Nikko Asset Management

With USD203.9 billion* under management, Nikko Asset Management is one of Asia’s largest asset managers, providing high-conviction, active fund management across a range of equity, fixed income, multi-asset and alternative strategies. In addition, its complementary range of passive strategies covers more than 20 indices and includes some of Asia’s leading exchange-traded funds (ETFs).

Headquartered in Asia since 1959, Nikko Asset Management and its subsidiaries employ personnel representing around 30 nationalities, including approximately 200 investment professionals**. The firm has a presence through subsidiaries or affiliates in a total of 11 countries and regions. More than 400 banks, brokers, financial advisors and life insurance companies around the world distribute the firm’s products.

The investment teams benefit from a unique global perspective complemented by the firm's historic Asian DNA, striving to deliver consistent excellence in performance. The firm also prides itself on its progressive, solution-driven approach, which has led to many innovative funds launched for its clients.

For more information about Nikko Asset Management and to access its investment insights, please visit the firm’s homepage.

* Consolidated assets under management and sub-advisory of Nikko Asset Management and its subsidiaries as of .
** Including employees of Nikko Asset Management and its subsidiaries as of .

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New Zealand: Nikko Asset Management New Zealand Limited (Company No. 606057, FSP22562) holds Managed Investment Scheme Manager licence in New Zealand and is part of the Nikko AM Group. This material is for information purposes only. It is NOT intended for or directed towards retail investors but is for the use of researchers, financial advisers and wholesale investors. It has been prepared without taking into account a potential investor's objectives, financial situation or needs and is not intended to constitute financial advice, and must not be relied on as such. A reader must not rely on the information as an alternate to expert and customised advice from their trusted financial/legal adviser.

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