Published On: Fri, Jun 20th, 2014

Euro Stoxx 50 Hedged JPY Index Licensed To Nomura Asset Management

Hartmut Graf, chief executive officer, STOXX

Hartmut Graf, chief executive officer, STOXX

STOXX Limited, a leading provider of innovative, tradable and global index concepts, announced on 20 June that the EURO STOXX 50 Hedged JPY Index has been licensed to Nomura Asset Management to be used in passive funds that will be used by Japanese institutional investors. The EURO STOXX 50 Hedged JPY Index is a currency hedged strategy benchmark aimed at investors seeking exposure to the well-known EURO STOXX 50 Index, while at the same time looking to reduce the risk of currency fluctuations.

“The EURO STOXX 50 Hedged JPY Index is an innovative and rules-based tool which enables market participants to follow the performance of Europe’s most successful blue-chip index, the EURO STOXX 50, while at the same time limiting the risks of currency fluctuations,” said Hartmut Graf, chief executive officer, STOXX Limited. “By licensing this index to Nomura Asset Management, institutional investors in Japan will be able to participate from this index concept.”

The EURO STOXX 50 Hedged JPY Index replicates a hypothetical investment portfolio that is designed to represent the returns of the EURO STOXX 50 Index while hedging the currency risk of Japanese yen, but not the underlying constituent risk. Market participants who employ a currency-hedged investment strategy are generally willing to forgo potential currency gains in exchange for the reduction in the risks associated with foreign exchange fluctuations. To achieve this, the index combines the performance of the underlying EURO STOXX 50 Index with a hypothetical, rolling investment into one-month foreign exchange forward contracts.

The underlying EURO STOXX 50 Index is reviewed annually in September. Daily history is available back to Dec. 31, 1986.

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