Japans largest asset management company Nomura Asset Management is to launch two new exchange traded funds (ETFs) designed to track the performances of Thai and Malaysian equity market indices.
The wholly owned subsidiary of Nomura Holdings has named the ETFs “NEXT FUNDS Thai Stock SET50 Exchange Traded Fund” and “NEXT FUNDS FTSE Bursa Malaysia KLCI Exchange Traded Fund”.
The new ETFs are approved for listing by the Tokyo Stock Exchange with a launch date of May 10 and listing date of May 12, 2011.
From the listing date, investors will be able to trade the ETFs just like ordinary stocks on the TSE through securities dealers and traders in Japan.
To achieve their investment objectives, each ETF will directly hold a portfolio maintaining a correspondence between the composition and weights of the stocks (including depositary receipts) held within the ETF assets and the stocks in their respective index.
The ETFs are designed to provide investment results that generally correspond to the price and yield performance of the respective index, where performance of both the ETF and the index are measured in Japanese yen. The funds may also periodically take minor positions in stock index futures when necessary.
The two ETFs can be subscribed to and redeemed only in cash, pursuant to the relevant Japanese tax regulations.