Actively managed ETFs are expected to debut in Tokyo next week, with one focusing on price-to-book ratio improvements, another on companies that can reduce cross-shareholdings with affiliates, and a third on companies whose CEOs have considerable ownership shares.Simplex Asset Management of Japan announced the launch of exchange-traded funds focused on discounted companies, including the first …
Actively managed ETFs are expected to debut in Tokyo next week, with one focusing on price-to-book ratio improvements, another on companies that can reduce cross-shareholdings with affiliates, and a third on companies whose CEOs have considerable ownership shares.
Simplex Asset Management of Japan announced the launch of exchange-traded funds focused on discounted companies, including the first geared at shares trading at less than book value, reflecting desire for exposure to the wave of corporate reform that is driving Japanese markets.
The asset manager’s three selections demonstrate optimism that long-awaited reform is occurring in corporate Japan, which has been notoriously resistant to prioritizing shareholder interests until recently.
Along with the return of inflation, the tailwind of a cheap yen, and foreign investors decreasing their China allocations, the change has been a significant factor in the ascent of Japanese shares to a three-decade high.
Simplex, which manages 1.3 trillion yen in assets, hopes to attract regular investors, who are looking for higher paying investments as Japan’s inflation begins to undermine the value of savings in bank deposits.
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