Asset manager Northern Trust has launched a new pooled fund aimed at institutional investors looking for broad exposure to Asian equities.

The Northern Trust All Country Asia ex-Japan Equity Index Fund aims to replicate the performance of the MSCI All Country Asia Ex-Japan Index, which is made up of two developed markets and eight emerging markets across Asia.

Unusually for an Asian index fund, the new fund will invest in Indian equities as India currently accounts for 8.4 percent of the underlying index. The other countries included are China, Hong Kong, Indonesia, South Korea, Malaysia, Philippines, Singapore, Taiwan and Thailand.

“Employing a passive investment strategy to tap Asian companies may appeal to institutional investors around the world that are seeking portfolio diversification through transparent, risk-controlled and cost-effective broad exposure to Asian equity markets,” said Wayne Bowers, chief executive officer for Europe, Middle East and Africa and Asia-Pacific asset management at Northern Trust.

Northern Trust also manages a number of other funds that offer exposure to Asia-Pacific, including the Northern Trust Pacific Ex-Japan Equity Index Fund, the Northern Trust Japan Equity Index Fund and the Northern Trust Emerging Markets Fund.

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