Nomura Asset Management expands ETF line-up in first engagement with Solactive, issuing
the NEXT FUNDS Solactive Japan ESG Core Index ETF

In recent years, ESG investing has rapidly increased in importance in the Land of the Rising Sun. Factors such as the implementation of the Stewardship and Corporate Governance Codes, targets to achieve carbon neutrality by 2050, and the world’s largest pension fund GPIF increasingly allocating towards ESG investments have all contributed to this megatrend. Nomura Asset Management (NAM) has always been at the forefront of responsible investing, leading the trend by incorporating comprehensive ESG elements into investment processes. As part of its initiatives, NAM has collaborated with Solactive to launch the NEXT FUNDS Solactive Japan ESG Core Index Exchange Traded Fund (Code: 2850), that tracks the Solactive Japan ESG Core Index, and was listed on the Tokyo Stock Exchange on 8 April 2022.  

Based on the Solactive GBS Japan Large & Mid Cap Index starting universe, the Solactive Japan ESG Core Index (SOLJPECP Index, DE000SL0EMP9) is built to track Japanese securities from a selected set of sectors with mid-to-long-term growth potential based on Japan’s economic activity and sustainability-related developments.

A strict and comprehensive screening method is applied such that only companies operating in accordance with market standards on ESG controversy screens are included. Those standards are based on established norms such as the United Nations Global Compact and the exclusion of significant involvement in defined sectors. In addition, the index aims to overweight exemplary ESG performers and focuses on climate-related issues by applying a decarbonization target compared to the starting universe. 

Timo Pfeiffer, Chief Markets Officer at Solactive, says: “It was a great pleasure and honor for Solactive to work with such a pioneer in sustainable finance as NAM, who shares similar visions with Solactive. It is encouraging to see a wider adoption of ESG linked strategies globally, and especially in Japan. On a broader scope, we are convinced that this opportunity reaffirms Nomura’s status as one of the strongest players in this field.”

Osamu Okuyama, Head of ETF Business Department at Nomura Asset Management, comments:
“ESG investing in Japan has been growing rapidly and we see diversified approaches increasing among investors. This ETF is designed to provide an opportunity to invest in Japanese companies that comply with established ESG standards and that are expected to have continued medium-to long-term growth. This was our first time collaborating with Solactive to launch an ETF, and we appreciate their strong support in developing the benchmark index. We truly hope that this ETF is utilized for many investors to help further sustainable investment in Japan.”