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Thursday, July 14, 2011|
Precidian Unveils a Nikkei 225 ETF
Precidian Investments, the Bedminster, New Jersey firm formerly known as Next Investments, has rolled out the first U.S.-listed ETF based on Japan's Nikkei 225 Index. The MAXIS Nikkei 225 Index Fund comes with an expense ratio of 50 basis points.
While this is the first time that Precidian is wearing the ETF sponsor hat, the company's principals are no strangers to the exchange-traded space, having played key roles in the development of the SPDR Gold Shares and Rydex|SGI's CurrencyShares line of products.
Predician's MAXIS Nikkei 225 Index Fund, sub-advised by Northern Trust, began trading on the NYSE Euronext yesterday. JP Morgan serves as administrator and custodian and Foreside Fund Services serves as distributor.
Precidian spotted an opportunity when it looked at the ETFs listed in the U.S. and found that there were none based on the Nikkei 225 Index, said J. Stuart Thomas, principal at Precidian.
Through a pact with Mitsubishi UFJ Asset Management, Precidian obtained an exclusive license to the Nikkei 225 in the U.S.
Precidian will initially focus its marketing efforts on the institutional market and build awarness, volume and assets before making a push into the retail space, Thomas said.
The ETF launch comes a month after the company changed its name from Next Investments to Precidian Investments. The firm was founded in 2005.
"So many financial firms have the name 'Next' in it," Thomas said. "We're getting into the sponsorship game and the name and branding are crucial elements in the overall strategy."
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