, 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
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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