Franklin Templeton has launched its first Japan index tracking exchange traded fund for European investors.
The Franklin FTSE Japan UCITS ETF brings the firm's total number of indexed ETFs to 22 and invests in large and mid-cap stocks in Japan.
Caroline Baron, head of ETF Distribution, EMEA, Franklin Templeton, said: “The Japanese equity market is the second largest equity market in Asia-Pacific and the largest developed market in the region.
"Following decades of deflationary tendencies, Japan’s central bank recently stated it sees a virtuous cycle between wages and prices intensifying, which should further help to bolster consumption and investments."
The fund aims to capture 90 per cent of the investable Japanese equity market universe.
It is set to list on the London Stock Exchange on Wednesday (July 31) and will also list in Germany, Austria, Denmark, Finland, France, Italy, Ireland, Luxembourg, Netherlands, Spain and Sweden.
Baron added: "The country’s strong position on the global technology supply chain, including semiconductors, along with a renewed focus on corporate governance and shareholder value should also bode well for the domestic equity market.”
The new ETF will be managed by Dina Ting, head of global index portfolio management, and Lorenzo Crosato, ETF portfolio manager.
Matthew Harrison, head of Americas (ex-US), Europe and UK at Franklin Templeton, said: “Following the launch of the Franklin FTSE Developed World UCITS ETF a few weeks ago, we are delighted to expand our offering of core equity index tracking products with the launch of this new, low-cost FTSE Japan ETF.
"With $6tn in market capitalisation and Japanese market returns expected to recover, Japanese equities can be a core equity building block option within an investor’s portfolio.”
tara.o'connor@ft.com
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