Nomura launches US Dollar and Euro-hedged Nikkei 225 ETFs

Nomura, Asia’s global investment bank, today launched the “Nomura Nikkei 225 Euro-Hedged UCITS Exchange Traded Fund” and the “Nomura Nikkei 225 US Dollar-Hedged UCITS Exchange Traded Fund”. The ETFs are listed on the London Stock Exchange and will be available to investors in key European markets.

The investment objective of the funds is to track the performance of the recently launched Nikkei 225 Total Return US Dollar and Euro-hedged indices, which reference the most liquid equities traded on the Tokyo Stock Exchange.

Offering the ETFs in US Dollar and Eurohedged formats will allow investors to gain exposure to Japanese equities, while reducing the impact of exchange rate fluctuations.

The ETFs are part of Nomura’s NEXT FUNDS range, which offer physical replication of benchmark indices in various asset classes. Today’s launch marks the first time NEXT FUNDS will be distributed outside Japan and in UCITS format. The launch is the result of collaboration by Nomura Asset Management (“NAM”) and Nomura Alternative Investment Management Europe (“NAIM”).

NAM is the largest asset management company in Japan, with assets under management in excess of US$300 billion (as of September 30, 2014).

NAIM is an investment management company within the Nomura group.

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 of NAM and NAIM.”

Pietro Poletto, Head of Fixed Income, 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. London Stock Exchange now has over 750 ETFs listed on our markets, providing exposure to markets around the world, with continued strong demand for these products from investors.”