Japanese investment bank Nomura has launched the Nomura Asia Pacific Conviction (NOMAC) Index, an independently calculated index based on a portfolio of Asian stocks selected by Nomura's Asia Equity Strategy team.
Sean Darby, chief Asia strategist for Nomura, launched the Nomura Asia Pacific Conviction List in September 2009. Only stocks covered by Nomura’s research analysts are candidates for inclusion and the stocks are equally weighted and measured on both an absolute basis and relative basis against the MSCI AC Pacific ex Japan in US dollar terms.
The index has achieved a return of +27.88% since inception, outperforming the MSCI AC Pacific ex Japan by +5.86%.
According to Nomura, the NOMAC Index will be calculated and maintained by index provider Standard & Poor’s (S&P).
A certificate will be listed in London to track the index, in addition to a variety of OTC products made available by Nomura on a private placement basis where permitted by and in accordance with applicable local rules. These products will pay the performance of the index as calculated by the S&P.
Stewart Callaghan, managing director, head of equity research for Asia ex-Japan said investors in the index will benefit through directly leveraging Nomura’s premium research platform.
"The Asia Pacific Conviction List is compiled from Nomura’s extensive coverage of over 630 stocks throughout Asia ex-Japan and recommendations are reviewed proactively and at least on a monthly basis. We closely consider the analyst’s confidence or conviction of their calls, the upcoming catalysts and the investability and liquidity of the stocks before they are recommended as part of the portfolio," Callaghan said.