At a glance
- The launch followed Nomura's first mutual fund-to-ETF conversions: the Nomura Smid Cap Core Fund and the Nomura Strategic Income Fund became ETFs on Monday.
- For advisors, NJPN adds an active, nondiversified Japan sleeve that generally holds at least 85 stocks but may concentrate in fewer, with yen exposure the manager can hedge with derivatives.
- NJPN charges a 0.49% unitary management fee, according to the prospectus, covering most fund expenses including payments to the subadvisor.
Nomura Asset Management launched the Nomura Japan Equity ETF (NJPN) on Thursday, an actively managed fund charging 0.49% and listing on NYSE Arca.
The launch followed Nomura's first mutual fund-to-ETF conversions: the Nomura Smid Cap Core Fund and the Nomura Strategic Income Fund became ETFs on Monday. Nomura tied the moves to growing U.S. investor preference for the ETF structure. Nomura's investment management division, part of Nomura Holdings (NMR), managed $971.7 billion as of Sept. 30. The firm says it is Japan's largest asset manager and ETF manager.
For advisors, NJPN adds an active, nondiversified Japan sleeve that generally holds at least 85 stocks but may concentrate in fewer, with yen exposure the manager can hedge with derivatives. At least 80% of net assets go to Japanese companies, per the prospectus. Nomura says the fund marks the first time its Japan equity process has been available to U.S. investors.
NJPN charges a 0.49% unitary management fee, according to the prospectus, covering most fund expenses including payments to the subadvisor. Its starting universe is the largest stocks in the Tokyo Stock Price Index, which had about 1,600 members as of Aug. 31.
A Tokyo model portfolio, traded in New York
Nomura Asset Management Co., the Tokyo-based affiliate, is subadvisor and sends a model portfolio to the fund's manager, which makes the trades. Sector weights are set top-down from market cycles, earnings trends and economic forecasts; stock selection then draws on valuation history and fundamental research.
"Japan is back on the radar for global investors," said Shawn Lytle, CEO of Nomura Asset Management International. Hiroyasu Koike, head of investment management at Nomura Holdings, said the ETF offers "meaningful international exposure for US-overweight portfolios."
Japan is back on the radar for global investors.Shawn Lytle, CEO of Nomura Asset Management International
Reported by the Launches desk from ETF Trends. Published . Corrections