Lyxor AM, Société Générale's wholly owned subsidiary, has listed a 'UCITS III compliant' Japan-based ETF on Borsa Italiana.
Lyxor ETF Japan (TOPIX), which was launched on 17 November 2005, has been admitted to continuous trading on Borsa Italiana as an equity, carries no entry/exit/performance fee and the annual management fee is 0.5%. Lyxor describes Lyxor ETF Japan (TOPIX), as 'the most cost-effective and diversified in the world'.
The new ETF replicates the performance of the TOPIX index, composed of 1,692 securities listed on the Tokyo Stock Exchange (TSE) First Section. In terms of number of securities, Lyxor says the TOPIX index is the most representative of the Japanese economy since it offers a much broader diversification compared to the other indices: the Nikkei comprises 225 securities, while the MSCI Japan index covers approximately 370. 'The TOPIX index is widely used as key benchmark by institutional investors throughout the world, for measuring the performance of the Japanese economy', said Isabelle Bourcier, ETF global Co-ordinator for Lyxor AM.
Taizo Nishimuro, Chairman & CEO of Tokyo Stock Exchange (TSE), Inc said: 'TSE warmly welcomes the listing of an ETF based on the TOPIX index published and calculated by the TSE on the Borsa Italiana, allowing Italian investors better access to the Japanese equity based ETF. We firmly believe that through our good business relationship, the cross-border flow of capital between Europe and Japan will be further enhanced'.
Lyxor stated: 'The high number of securities included in the index enables a strong effective diversification of the portfolio. The top 10 securities according to capitalization in fact represent approximately 20% of the basket's entire value and the top 20, less than 30%. The TOPIX index sectors with most weight are cyclical consumer goods (25%), financials (over 23%) and industrials (approximately 20%). Exposure to the more volatile sectors is low: energy and technology account for, respectively, 1% and 4.4%'.
With the Japanese ETF, Lyxor enhances its range of equity ETFs, which already offered the possibility to invest in the key European (including the only ETF on the Italian S&P/MIB index) and American equity asset classes and those of the emerging Countries (China and Eastern Europe), through global and style instruments (growth, value, small cap).
Lyxor also offers a wide range of bond ETFs that allow investors to take positions in Government Securities issued by the Eurozone Countries with various fixed durations (1-3 years, 3-5 years, 10-15 years, global) or inflation-linked.
Lyxor AM is the market leader for ETFs in Europe and Italy. Its market share in Europe amounts to 23.4% in terms of assets (corresponding to USD 12.85 billion, source Morgan Stanley as at 31/12/2005) while its market share on Borsa Italiana, in terms of turnover, amounts to 43% (year 2005, data elaborated by Bloomberg and Reuters).
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