ETF to debut on TSE on 3 August
Nikko Asset Management (Nikko AM) today announces a new exchange traded fund (ETF) linked to the
S&P 500 Index with a currency hedge for the yen. The ETF will launch on 31 July and be listed on the Tokyo
Stock Exchange on 3 August .
The "Listed Index Fund US Equity (S&P500) Currency Hedge" [Ticker: 2521] is an ETF with a yen hedge on
the US dollardenominated value of the S&P 500, a core US equity index. The new fund will be the first
Japan-listed ETF of its kind.
Nikko AM's current ETF offerings include the "Listed Index Fund US Equity (S&P500)" [Ticker: 1547], which
is linked to a yen-converted S&P 500. The new ETF was developed in response to requests from
institutional investors who want exposure to US equities that is not vulnerable to currency fluctuations.
The price fluctuations of the new ETF and that of the existing unhedged offering differ greatly. The two
funds have a low correlation*, which makes the new ETF effective for investors seeking diversification in
their investment portfolio.
Listed Index Fund US Equity (S&P500) Currency Hedge is a cash creation/cash redemption type ETF, in
which cash payments are made into the fund at its creation or time of subscription and payouts are made
at the time of redemption or cancellation. Compared to an in-kind type of ETF that pays out cash equities
at the time of creation and receives cash equities at the time of exchange, this type of instrument is
convenient for financial institutions and other institutional investors because the minimum cash
requirements at the time of creation and redemption are relatively low and there are relatively few days
when transactions can't be executed.
Nikko AM has proactively developed various types of ETFs to meet the needs of investors and will continue
to build a diversified and robust portfolio of investment products that provide clients with a broad range
of opportunities.
Fund Outline for Exchange Trading
| Product Type |
Open-Ended Fund / Overseas / Stocks/ REIT / ETF / Index Fund |
| Listed Exchange |
Tokyo Stock Exchange |
| Date Listed |
August 3, 2018 (scheduled) |
| Security code |
2521 |
| Trading Unit at the Exchange |
10 units |
| Trust Period |
Unlimited (Launch date: July 31, 2018) |
| Closing Date |
20th of January (every year) |
| Dividends |
Dividends will be distributed once a year based on a distribution
policy.
※As a general rule, the trustee will transfer dividends into the bank
account designated in advance by the beneficiary on the day specified
by the management company, which will be within 40 days of the end
of each accounting period. In addition, if the beneficiary has entered
into a revenue-sharing agreement with a separate handling company,
dividends will be distributed in accordance with that contract.) |
■S&P500 index
Copyrights to S&P 500 Index
"Standard & Poor's" and "S&P" are registered trademarks owned by Standard & Poor's Financial Services LLC.
Nikko Asset Management Co., Ltd. is licensed to use these trademarks. Standard & Poor's and its related companies
do not sponsor, recommend, sell, or promote Listed Index Fund US Equity (S&P500) Currency Hedge (hereinafter, the
"Fund"), and makes no expression, guarantee, or condition on the suitability of investment in the Fund.
The Fund are not sponsored, endorsed, sold, or promoted by Standard & Poor's Financial Services LLC and its
related companies (hereinafter, "S&P"). S&P makes no expression, condition or warranty, express or implied, as
specified to the owners of the Fund's units or any member of the public regarding the advisability of investing in
securities generally or in the Fund particularly, or in the ability of the S&P 500 Index to track the overall market.
The relationship of S&P and Nikko Asset Management Co., Ltd. is only in respect of granting the license to use the
registered trademarks S&P and the S&P 500 Index. S&P has no obligation to consider requests from Nikko Asset
Management's requests or owners of the Fund's units in determination, creation, and calculation of the S&P 500
Index. S&P has no responsibility for, or involvement in, determining the timings or prices of the Fund, or
determining or calculating how to convert units of the Fund into cash. S&P assumes no obligation regarding, nor
does it take any responsibility for, management, marketing, or trading of the Fund whatsoever.
S&P does not make any guarantee of the accuracy or completeness of the calculation or basic data of the S&P 500
Index. S&P takes no responsibility for any error, lack, or fault in the S&P 500 Index. S&P and ASX make no explicit
or implicit warranty, condition, or expression whatsoever as to the results to be obtained by Nikko Asset
Management Co., Ltd., owners of the Fund's units, or any other persons or organizations from the use of the S&P
500 Index or the data contained therein. S&P expressively disclaims all warranties or conditions of marketability
or suitability for a particular purpose or use of the S&P 500 Index or the data contained therein, and makes no
guarantee, expression, or condition, express or implied, on marketability or suitability of the Index or the data
contained therein.
Without limiting any of the foregoing, S&P is not responsible for any special, punitive, indirect, or consequential
damages (including lost profits) arising from the use of the data contained therein, even if notified of the
possibility of such damages in advance.
*
Correlation coefficient between the two linked indices (July 1, 2013 to June 29, 2018) = 0.04
– ENDS –
