TOKYO: Japan’s Mizuho Financial Group has joined forces with Saudi Arabia’s Public Investment Fund to develop a Tokyo-listed exchange-traded fund (ETF) that will feature Saudi shares, thereby offering retail investors a more straightforward route to a burgeoning emerging market.
According to a report by the prominent Japanese business journal Nikkei, Asset Management One, a collaborative venture between Mizuho and Dai-ichi Life Holdings, is planning to launch an ETF this fiscal year, which will be tied to the FTSE Saudi Arabia Index.
The ETF will primarily focus on large, high-credit stocks such as banks and Saudi Aramco, making it suitable for less experienced retail investors. The minimum investment is anticipated to be in the range of thousands to tens of thousands of yen, translating to less than $1,000.
The objective is to draw capital for the ETF from a broad spectrum of investors, with PIF and Mizuho Bank serving as the key supporters. Additionally, Mizuho will assist PIF in its endeavors to secure capital abroad as it seeks to bolster its connections with the Saudi financial sector. The Japanese bank will leverage its fundraising proficiency to train personnel from the sovereign wealth fund and offer support for the nation’s shift away from oil dependency.
In April, PIF unveiled a partnership with BlackRock, the globe’s leading asset manager, wherein the fund will contribute up to $5 billion to an investment platform designed to attract funds for both domestic and international investments. Mizuho marks the first Japanese private-sector financial institution to collaborate with PIF.
Nikkei characterizes Saudi Arabia as “becoming increasingly attractive as an investment hub,” highlighting that the country’s stock market ranked eighth globally by market capitalization last year.
• This article also appears on Arab News Japan
Source link: https://www.arabnews.com
