Nomura launches EM bond and equity ETFs on Tokyo Stock Exchange

Jul 10th, 2018 | By | Category: Alternatives / Multi-Asset

Nomura Asset Management has launched two new ETFs on Tokyo Stock Exchange, providing passively managed exposure to emerging market bonds and equities.

Nomura Asset Management

Nomura has listed two emerging market ETFs on Tokyo Stock Exchange.

The NEXT FUNDS Emerging Market Bond JP Morgan EMBI Plus ETF (2519 JP) tracks the JP Morgan Emerging Market Bond Index Plus.

The index provides exposure to US dollar-denominated government bonds issued by emerging market countries.

Securities in the index must have a minimum face value outstanding of $500 million and meet strict criteria for secondary market trading liquidity.

The largest country exposures are currently Mexico (6.1%), Indonesia (5.1%), Russia (4.1%), and China (4.0%). Bonds rated BBB make up the largest credit quality allocation with a weight of 42.6%, followed by bonds rated B (26.8%), BB (17.7%) and A (9.9%).

The index has an effective duration of 7.3 years and is currently yielding 5.8%.

The fund’s management fee is 0.19%.

The NEXT FUNDS Emerging Market Equity MSCI EM ETF (2520 JP) tracks the widely followed MSCI Emerging Market Index.

The index captures large and mid-cap representation across 24 emerging market countries. With over 1,100 constituents, the index covers approximately 85% of the free float-adjusted market capitalization of list equities in each country. It is one of the most popular underlying references for emerging market ETFs globally.

China accounts for just under a third (31.2%) of the total index weight, followed by South Korea (14.1%), Taiwan (11.8%), India (9.0%), and South Africa (6.8%).

The ETF also comes with a management fee of 0.19%.

The new launches bring the total number of ETFs within Nomura’s NEXT FUNDS range to 61.

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