Stoxx licenses Asia Pacific quality dividend index to Yuanta for ETF creation

Mar 17th, 2017 | By | Category: ETF and Index News

STOXX has licensed the iSTOXX MUTB Asia/Pacific Quality Dividend 100 Index to Taiwan’s largest mutual fund company Yuanta Securities Investment Trust Company (Yuanta SITC) to underlie a new ETF.

Stoxx licenses Asia Pacific quality dividend index to Yuanta for ETF creation

Matteo Andreetto, Chief Executive Officer, Stoxx.

Julian Liu, CEO and President of Yuanta, commented: “Licensing the iSTOXX MUTB Asia/Pacific Quality Dividend 100 index is in line with our holistic approach in offering ETFs that meet investors’ needs and provide more smart-beta solutions to the market. Yuanta has always been the pioneer in providing innovative investment solutions for Taiwan’s investors.”

This index solution represents the sixth such concept co-developed together with Mitsubishi UFJ Trust and Banking Corp. (MUTB). Yuanta and MUTB entered into a memorandum of understanding with STOXX in July 2016, to expand the smart-beta footprint in Taiwan.

“We are delighted to deepen our relationship with Yuanta and MUTB while strengthening our commitment to Asia. Together with these strong partners, we can take another step forward in leveraging our smart-beta expertise and network in Asia,” said Matteo Andreetto, Chief Executive Officer, STOXX “This is the first Asia Pacific smart beta index solution in Taiwan, following the research of the local market needs with our two partners.”

The iSTOXX MUTB Asia/Pacific Quality Dividend 100 Index selects 100 stocks from the STOXX Asia/Pacific 600 Index (representing the 600 largest companies across Australia, Hong Kong, Japan, New Zealand and Singapore) that comply with dividend quality, fundamental and price stability criteria.

The indices are price weighted based on a combined factor of the inverse of each stock’s standard deviation and the dividend amount with a 3% capping per constituent. Component selection is conducted on a semi-annually basis in June and December.

“This collaboration is a significant step in our global index business,” said Sunao Yokokawa, managing executive officer, Mitsubishi UFJ Trust and Banking Corp. “MUTB will contribute to the expansion of the smart-beta market in Taiwan, with our strong expertise in investment management. In the future, we will develop further smart-beta strategies together with STOXX.”

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