Nomura, FTSE Russell announce Russell/Nomura Japan Equity Indexes’ annual reconstitution
Nomura Securities Co., Ltd. and FTSE Russell today announced that the Russell/Nomura Japan Equity Indexes’ annual reconstitution for 2022 has been implemented.
The number of constituents in the Russell/Nomura Total Market Index, which captures 98% of the float-adjusted market capitalization of the Japanese equity market, came to 1,500. The membership list has been posted on Nomura Securities Global Research Division, Financial Engineering & Technology Research Center.
The total number of firms in the Russell/Nomura Total Market Index was 1,500 as a result of 65 deletions and 72 additions. The total capitalization of the index was approximately 471 trillion yen.
The number of constituents in the Large Cap Index was 300 stocks, the same as last year. The number of stocks in the Top Cap Index and Mid Cap Index, both sub-indices of the Large Cap Index, was unchanged at 60 and 240, respectively. The Small Cap Core Index and Micro Cap Index, sub-indices of the Small Cap Index, which accounts for the bottom 15% of the Total Market Index, had 400 and 800 stocks, respectively, remaining unchanged from last year.
The Total Value Index had 86 deletions and 82 additions, while the Total Growth Index had 93 deletions and 126 additions. The capitalization turnover ratios (one-sided) for the Total Value and Growth indexes are 11.2% and 11.4%, respectively.
In terms of sector concentration, the weighting of “Information & Communication” is tilted toward Growth, while the Value weighting decreased. In the Large Cap Index, Growth weightings decreased for “Electric Appliances” and increased for “Land Transportation.” In the Small Cap Index, the weighting of “Electric Appliances” is tilted toward Value, while the weighting of “Land Transportation” and “Retail Trade” decreased in both styles.
In 1995, FTSE Russell and Nomura Securities Co., Ltd. jointly developed the Russell/Nomura Japan Equity Indexes that serve to measure performance based on various investment policies. The indexes are weighted by float-adjusted market cap and include only common stocks domiciled in Japan. All indexes are subsets of the Russell/Nomura Total Market Index, which represents approximately 98% of the investable Japan equity market.