FTSE Russell, the global index provider, and Nomura Securities Co., Ltd., today announced that 19 new firms were added to the Russell/Nomura Japan Equity Indexes as part of its 20th annual reconstitution process on December 1. The new constituent list for the indexes, which capture 98% of the float-adjusted market capitalization of the Japanese equity market, was posted on the Nomura Securities website.
Ms Jessie Pak, Managing Director, Asia for FTSE Russell, said:
“FTSE Russell is proud to celebrate the 20th reconstitution of this important index series, alongside our partners Nomura. The Russell/Nomura Japan Equity Indexes are seen as one of the leading benchmarks in Japan, and reflect FTSE Russell’s strong offering in Asia. Over the last two decades we have enjoyed collaborating with Nomura, and look forward to develop further products over the next twenty years.”
Slight increase in market capitalization reflects rise in Japan equity markets.
Total constituents in the Russell/Nomura Total Market Index decreased by 91 to 1,400. There were 44 additions to the index, including 19 newcomers, and 135 companies were removed. Total capitalization of the index slightly increased from 362.2 trillion yen to 364.6 trillion yen (as of October 15, 2015, float-adjusted).
Total constituents for the Russell/Nomura Large Cap Index, representing the top 85% of the Russell/Nomura Total Market Index based on float-adjusted market capitalization, remained the same at 350, while the number of stocks in the Russell/Nomura Small Cap Index, representing the bottom 15% of the Total Market Index based on float-adjusted market capitalization, decreased by 90 to 1,050.
The Russell/Nomura Total Market Value Index had 80 additions and 174 deletions, while the Russell/Nomura Total Market Growth Index had 109 additions and 152 deletions. The capitalization turnover ratios for the Total Market Value and Total Market Growth Indexes are 13.1% and 13.5% respectively, higher than last year but still lower than the historical average.
Sector changes in the last year include a move toward a value-orientation for Electrical Appliances, Machinery and Transportation Equipment, whiIe Land Transportation, Information & Communications and Retail Trade are now more oriented toward Growth characteristics.
Russell/Nomura Prime Index adds 24 new companies
The Russell/Nomura Prime Index, which is a sub-index of the Russell/Nomura Total Market Index, was specifically designed for passively managed funds. The index represents all Japanese equity markets and measures the performance of Japan’s top 1,000 float-adjusted stocks. As a result of this year’s reconstitution, 24 companies entered the index for the first time.
The total market capitalization of the index increased slightly from 354.2 trillion yen to 357.4 trillion yen (as of October 15, 2015, float-adjusted). The turnover ratio was low at 1.6%, following the same trend seen in the previous years. Among the 24 additions overall, lead sectors included Retail Trade (7 stocks), Services (5 stocks) and Real Estate (4 stocks).
- Ends -
For further information:
Mark Benhard or Tim Benedict, +1 212 314 1199
Lucie Holloway or Harry Stein, +44 (0)20 7797 1222
Notes to editors:
About FTSE Russell:
FTSE Russell is a leading global provider creating and managing a wide range of indexes, data and analytic solutions to meet client needs across asset classes, style and strategies. Covering 98% of the investable market, FTSE Russell indexes offer a true picture of global markets, combined with the specialist knowledge gained from developing local benchmarks around the world.
FTSE Russell index expertise and products are used extensively by institutional and retail investors globally. More than $15 trillion is currently benchmarked to FTSE Russell indexes. For over 30 years, leading asset owners, asset managers, ETF providers and investment banks have chosen FTSE Russell indexes to benchmark their investment performance and create investment funds, ETFs, structured products and index-based derivatives. FTSE Russell indexes also provide clients with tools for asset allocation, investment strategy analysis and risk management.
A core set of universal principles guides FTSE Russell index design and management: a transparent rules-based methodology is informed by independent committees of leading market participants. FTSE Russell is focused on index innovation and customer partnership applying the highest industry standards and embracing the IOSCO Principles. FTSE Russell is wholly owned by the London Stock Exchange Group.
For more information, visit www.ftserussell.com.
© 2018 London Stock Exchange Group plc and its applicable group undertakings (the “LSE Group”). The LSE Group includes (1) FTSE International Limited (“FTSE”), (2) Frank Russell Company (“Russell”), (3) FTSE TMX Global Debt Capital Markets Inc. and FTSE TMX Global Debt Capital Markets Limited (together, “FTSE TMX”) and (4) MTSNext Limited (“MTSNext”). All rights reserved.
FTSE Russell® is a trading name of FTSE, Russell, FTSE TMX and MTS Next Limited. “FTSE®”, “Russell®”, “FTSE Russell®” “MTS®”, “FTSE TMX®”, “FTSE4Good®” and “ICB®” and all other trademarks and service marks used herein (whether registered or unregistered) are trade marks and/or service marks owned or licensed by the applicable member of the LSE Group or their respective licensors and are owned, or used under licence, by FTSE, Russell, MTSNext, or FTSE TMX.
All information is provided for information purposes only. Every effort is made to ensure that all information given in this publication is accurate, but no responsibility or liability can be accepted by any member of the LSE Group nor their respective directors, officers, employees, partners or licensors for any errors or for any loss from use of this publication or any of the information or data contained herein.
No member of the LSE Group nor their respective directors, officers, employees, partners or licensors make any claim, prediction, warranty or representation whatsoever, expressly or impliedly, either as to the results to be obtained from the use of the FTSE Russell Indexes or the fitness or suitability of the Indexes for any particular purpose to which they might be put.
No member of the LSE Group nor their respective directors, officers, employees, partners or licensors provide investment advice and nothing in this communication should be taken as constituting financial or investment advice. No member of the LSE Group nor their respective directors, officers, employees, partners or licensors make any representation regarding the advisability of investing in any asset. A decision to invest in any such asset should not be made in reliance on any information herein. Indexes cannot be invested in directly. Inclusion of an asset in an index is not a recommendation to buy, sell or hold that asset. The general information contained in this publication should not be acted upon without obtaining specific legal, tax, and investment advice from a licensed professional.
No part of this information may be reproduced, stored in a retrieval system or transmitted in any form or by any means, electronic, mechanical, photocopying, recording or otherwise, without prior written permission of the applicable member of the LSE Group. Use and distribution of the LSE Group index data and the use of their data to create financial products require a licence from FTSE, Russell, FTSE TMX, MTSNext and/or their respective licensors.