SSgA considers tinkering with Asian enhanced product

Some Asian investors are reluctant to include Japan in a regional developed-market index.

Although State Street Global Advisors' enhanced equities strategies have been a worldwide hit, the firm is finding take-up among investors in Hong Kong and Singapore has been slow, in part because of client concerns about incorporating Japan in their regional allocation. The hurdle is proving to be the choice of countries to include in the base index.

On his recent trip to promote the product in Asia, Boston-based Theodore Gekas, principal, noticed an aversion among Asian institutions towards including Japan in their regional index. They either perceive Japanese exposure as an unnecessary drag on their base index, or don't want to combine distinct asset allocations for Japan and the rest of Asia.

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