China Post Global (UK) has launched its Market Access Japan Quality 150 Index UCITS ETF. The new ETF focuses on quality Japanese stocks.
The fund will aim to replicate the performance of the iSTOXX MUTB Japan Quality 150 Index which screens the STOXX Japan 600 index for quality companies that demonstrate high profitability, low leverage and sustainable cashflow.
This index was developed by STOXX Ltd, together with Mitsubishi UFJ Trust and Banking, the Japanese trust bank.
The launch is the first since the Market Access ETF business spun out of the Royal Bank of Scotland last year, and will be followed by two Chinese Equity smart beta ETFs.
China Post Global believes that the quality-factor approach to the Japanese equity market is well suited to investors looking to capitalise on the positive developments in the country’s economy and the ongoing stimulus and reform programme of Prime Minister Shinzo Abe.
“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,” says Danny Dolan, (pictured) 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 EUR26 million from seed investors reflects the very positive response to this new ETF.”
