FTSE Russell is set to collaborate with Japan Exchange Group (JPX) subsidiary, JPX Market Innovation and Research Inc (JPXI) to align the FTSE Blossom universe with the Tokyo Stock Price Index (TOPIX).
The partnership aims to ensure indices continually facilitate ESG integration into Japan’s market, through corresponding the FTSE Blossom Japan Index and FTSE Blossom Japan Sector Relative Index with TOPIX constituent information.
The transition has been driven by customer feedback and will see the universe being renamed to the FTSE JPX Blossom Japan Index and FTSE JPX Blossom Japan Sector Relative Index.
“Since launch, the indices have been widely used by customers looking to integrate ESG risks and performance into their equity strategies,” said Fiona Bassett, chief executive of FTSE Russell.
“In response to customer feedback, this is an important product enhancement and the introduction of constituent information from TOPIX will ensure the indices continue to facilitate ESG integration into the Japanese market.”
FTSE Russell has also said that the FTSE Blossom Japan Index Series will reflect the performance of Japanese companies which choose to actively demonstrate ESG activities and aims to incorporate ESG considerations while largely maintaining the traditional market capitalisation-weighted benchmark.
Satoshi Futagi, president and chief executive of JPX Market Innovation and Research said: “Through this initiative, we expect that index investing based on indices focusing on corporate sustainability will become more widespread for Japanese stocks, leading to further development of the Japanese stock market through the strengthening of corporate sustainability initiatives.”
TOPIX serves as a market benchmark for Japanese stock prices, established both in Japan and overseas, and actively trades derivatives, such as futures at the Osaka Exchange.
The integration of TOPIX constituent information will be made effective from index rebalancing in December 2025.