JPX Market Innovation & Research (JPXI) began distributing index values for the TSE Currency Denominated Index Series on Thursday, adding non-hedged, foreign-currency benchmarks to its existing suite of hedged TOPIX products.
The series covers six indices across major currencies. Four went live on Thursday: the TOPIX Total Return Index (CHF), the TOPIX Net Total Return Index (USD), the TOPIX Net Total Return Index (GBP), and the TOPIX Net Total Return Index (EUR). Two further indices, the TOPIX Net Total Return Index (SGD) and the TOPIX 100 Net Total Return Index (AUD), will follow on March 30, according to the company’s release.
The AUD product is the only one in the set linked to TOPIX 100 rather than the broader TOPIX benchmark.
What the series does
JPXI already distributes the TSE Currency Hedged Index Series, which strips out yen fluctuation risk using forward exchange contracts. The new non-hedged series takes the opposite approach: it lets users track the performance of Japanese equities in a foreign currency while retaining full exposure to JPY exchange rate movements.
For international allocators and ETF issuers, that separation provides a benchmark for those who prefer to manage currency overlays independently or who want FX exposure as part of their return profile, without absorbing the hedging costs that arise from interest rate differentials between JPY and foreign currencies.
The index values are commercial data products, distributed for a fee via professional data feeds. QUICK Corp. handles the calculation and provision of the data under an outsourcing agreement with JPXI.
The launch is part of a broader index expansion at JPXI. Earlier this week, the company began distributing the JPX Startup Acceleration 100 Index, a free-float adjusted market-cap-weighted benchmark tracking 100 high-growth Japanese startups.
