STOXX Licenses EURO STOXX 50 Index to SinoPac for Inaugural Index in Taiwan

STOXX Limited, a provider of tradable and global index concepts, has licensed its EURO STOXX 50 index to SinoPac Securities Investment Trust Company, according to a STOXX statement.

The licensing of EURO STOXX 50, one of STOXX’s flagship indices, is noteworthy in that it will underlie a passive index fund available in Taiwan for the first time. Per the licensing agreement, SinoPac SITC will sell the new fund to both institutional and retail investors, targeting a launch date of November 2015.

EURO STOXX 50 remains one of STOXX’s most actively traded funds, namely across exchanges such as Deutsche Borse, which has seen an uptick in its trading volume in September 2015. The index represents a compilation of fifty super-sector leaders across a panel of twelve Eurozone countries.

Meanwhile, SinoPac SITC is a wholly owned subsidiary of SinoPac FHC and operates as an asset management company in Taiwan. The group helps manage and distribute retail and institutional investment products such as mutual funds and discretionary management services, among others.

According to Hartmut Graf, Chief Executive Officer, STOXX Limited, in a recent statement on the licensing: “We expect international demand for financial products based on major European indices like the EURO STOXX 50 to continue to grow in Asia and other regions, as more market participants recognize the importance of gaining exposure to key Eurozone Equities Equities Equities can be characterized as stocks or shares in a company that investors can buy or sell. When you buy a stock, you are in essence buying an equity, becoming a partial owner of shares in a specific company or fund.However, equities do not pay a fixed interest rate, and as such are not considered guaranteed income. As such, equity markets are often associated with risk.When a company issues bonds, it’s taking loans from buyers. When a company offers shares, on the other hand, it’s selling pa Equities can be characterized as stocks or shares in a company that investors can buy or sell. When you buy a stock, you are in essence buying an equity, becoming a partial owner of shares in a specific company or fund.However, equities do not pay a fixed interest rate, and as such are not considered guaranteed income. As such, equity markets are often associated with risk.When a company issues bonds, it’s taking loans from buyers. When a company offers shares, on the other hand, it’s selling pa Read this Term. We are delighted to work with SinoPac SITC to expand the geographical investment offerings for Taiwanese clients.”

“SinoPac SITC has a good reputation for managing Great China equity funds, and is now planning to launch overseas index products to cater to growing demand among Taiwanese investors. The SinoPac EURO STOXX 50 Index Fund will be our second index fund for this customer group. We are glad to cooperate with STOXX Limited to introduce our first Eurozone index fund for the Taiwanese market,” added Jason Wu, president of SinoPac SITC in an accompanying statement.

Last month, STOXX made headlines after licensing another one of its indices, the iSTOXX MUTB Japan Quality 150 Index, to Mitsubishi UFJ Trust and Banking Corp. (MUTB). MUTB opted to utilize the iSTOXX MUTB Japan Quality 150 Index for one of its institutional passive funds.