Nomura launches currency-hedged Nikkei 225 ETFs on LSE

Jan 19th, 2015 | By | Category: Equities

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Nomura, a Japan-based global investment firm, has launched two exchange-traded funds on the London Stock Exchange: the Nomura Nikkei 225 Euro-Hedged UCITS ETF (NXKE LN) and the Nomura Nikkei 225 US-Dollar-Hedged UCITS ETF (NXKU LN). The ETFs provide exposure to the Nikkei 225 Index, the most widely quoted Japanese equity index, while mitigating currency risk to the euro and dollar respectively.

Nomura launch currency-hedged Nikkei 225 ETF

Nomura’s recently launched ETFs offer currency-hedged exposure to Japan’s most widely recognised equity benchmark, the Nikkei 225.

The ETFs are Nomura’s first to be listed on the LSE and are the result of a collaboration between Nomura Asset Management and Nomura Alternative Investment Management Europe.

Mike Ward, Head of Equity Sales, EMEA, at Nomura, said: “Providing access to Asia is a key differentiator for Nomura, and the launch of the US Dollar- and Euro-hedged Nikkei 225 UCITS ETFs reflects the broad level of interest in Japanese equities among our international clients. These funds are the first in a series of ETFs we plan to launch through the partnership between Nomura Asset Management and Nomura Alternative Investment Management Europe.”

Pietro Poletto, head of fixed income at the London Stock Exchange Group, said: “We’re delighted to welcome Nomura’s NEXT FUNDS as the latest ETF issuer to choose London Stock Exchange. This is the first European ETF listed by the firm on London Stock Exchange, which further demonstrates London’s position as the pre-eminent European destination for issuers and investors.”

The Nikkke 225 index is price weighted and follows the top 225 blue-chip companies with high liquidity listed on the Tokyo Stock Exchange. Owing to construction methodology, index has often been referred to as the Japanese equivalent of the Dow Jones Industrial Average.

The index includes many well-know names such as Canon, Panasonic, Sony, Nissan, Toyota, Mitsubishi, and Honda. Technology stocks currently make up over 40% of the index, while consumer goods stocks (over 20%) and materials stocks (over 15%) also play a significant role. An annual review of the constituents takes place at the start of October each year.

The funds have total expense ratios of 0.60%.

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