Nomura to launch Japan’s first actively managed ETFs

Nomura Asset Management, the core company within the Investment Management Division of Nomura Group, has received approval from the Tokyo Stock Exchange to list the NEXT FUNDS Japan Growth Equity Active Exchange Traded Fund and the NEXT FUNDS Japan High Dividend Equity Active Exchange Traded Fund, the first actively managed ETFs in Japan.

Actively managed ETFs are investment products that can benefit from the added value of active management through stock selection, while providing the characteristics of existing ETFs: transparency through daily disclosure of constituent stocks, convenience of tradability at market value in real time, and generally lower costs than investment trusts.

Outside Japan, active-ETFs are popular in the United States, the United Kingdom, and Australia.

The number of actively managed ETFs has already increased to 2,075 with assets under management of approximately $583 billion.

Nomura says similar growth is expected in Japan.

The introduction of actively managed ETFs will provide investors with more investment options at a time when the NISA scheme is scheduled to be expanded and perpetuated, and the trend from savings to asset formation is accelerating. As such, NAM applied for the listing of actively managed ETFs on June 30, 2023, when the listing rules were implemented.

Nomura active ETFs
Source: Nomura

The ETFs are scheduled to list on September 7, 2023. From the listing date, investors will be able to trade the ETFs on the TSE through securities dealers and traders in Japan. The minimum investment amount for both ETFs is expected to be approximately 2,000 yen (per unit).

NF Japan Growth Active ETF evaluates a company’s business model, management strategy, and financial strategy based on research and analysis of individual companies, and invests mainly in stocks that are expected to achieve a high return on equity in the medium to long term. The NF Japan High Dividend Active ETF aims to achieve medium to long term total returns by capturing stable dividends (income gains) and flexible gains in stock prices (capital gains).

Further details on the NEXT FUNDS can be found here.

This is a press release from Nomura Holdings. Asia Markets sometimes makes small edits for editorial reasons.