NOMURA NOMURA ASSET MANAGEMENT

Regarding TOPIX Electric Appliances Exchange Traded Fund (Code:1613), it has been selected to take a procedure of challenge against termination of trust (early termination) and amendment to the basic terms and conditions of the investment trust.

<Details of Early Termination and Amendment to the Basic Terms and Conditions of the Investment Trust of the Fund>
  • (i)Amend the trust term to expire on June 16, 2020 and carry out early termination on the same day as the trust termination date.
    In case of carrying out early termination, trading on Tokyo Stock Exchange will be available until June 12, 2020.
  • (ii)Amend to allow for early termination by cash payment.
<Reason for Early Termination and Amendment to the Basic Terms and Conditions of the Investment Trust of the Fund>
  • (i)The inception date of the Fund is April, 2002, and it has been in operation for approximately 18 years. However, the asset under management has not increased, and for more than 10 years the number of units of the beneficial interest has remained below the 2,000,000 units threshold, which is one of the conditions allowing for the trust contract to be canceled and the trust may be terminated. We will carry out the early termination because we determined the asset under management will not increase.
  • (ii)In order to facilitate early termination, we will make necessary amendment to the basic terms and conditions of the investment trust of the Fund.

If termination of trust (early termination) is selected, the Fund will make necessary amendment to the basic terms and conditions of the investment trust of the Fund on June 15, 2020, and carry out early termination on June 16, 2020.

If termination of trust (early termination) is not selected, the Fund will not make necessary amendment to the basic terms and conditions of the investment trust of the Fund nor carry out early termination.

In addition, a beneficial interest acquired by the application on or after February 25, 2020, does not include the right to challenge early termination or amendment to the basic terms and conditions of the investment trust of the Fund.

As a result of the procedure referred to above, if termination of trust (early termination) is carried out on June 16, 2020, we will stop accepting subscription applications on May 15, 2020.

Nomura Asset Management Co., Ltd.

ETF Investment Risks

ETFs invest primarily in securities that are subject to fluctuations in price and may incur losses when market prices or index prices fall because of changes in linked stock price indexes, decreases in the prices of securities included in the funds, bankruptcy or deterioration of the financial status of the companies that issued the securities included in the funds, and the effects of other market factors. Also, the securities included in the funds are subject to effects from currency exchange rates, and index prices may fall because of fluctuations in exchange rates. Consequently, the investment principal is not guaranteed. Because of the risk characteristics, investment trusts including ETFs are fundamentally different from deposits and savings.
* ETF risks are not limited to the above.
When applying to establish a trust, be sure to read the investment trust documentation (the prospectus) provided by the distributing company and to make your own investment decisions.

ETF Expenses (investors who invest in ETFs through a recognized securities exchange will incur the following expenses)

  • Trading Fee (paid at the time of transaction)
    Trading of the Fund incurs brokerage commission fees set by a first financial instruments business provider (securities firm) that handles the transaction. These commissions are separate from the actual transaction value. (Because the commissions charged by each securities firm differ, it is not possible to specify a maximum amount.)
  • Management fees (fees are charged during the trust period according to the length of the trust period)
    The total management fee is obtained by adding the amount determined in (2) below to the amount determined in (1) below.
    Management fees are paid from the trust assets, and therefore are charged indirectly according to the period that the ETF is held.
    (1) The amount obtained by multiplying the total net assets by a rate determined by the Management Company not to exceed 1.045% annually* (0.95% exclusive of taxes). * The maximum management fee of each ETF is indicated above. For Nikkei 300 Exchange Traded Fund the management fees are calculated based on the Fund‘s principal.
    (2) If the securities belonging to the trust assets have been loaned, an amount no more than 55%* (50% exclusive of taxes) of the loan fees. * The highest loan fee of the ETFs is indicated.
  • Other fees (other fees may be imposed when applicable during the trust period) ETF-related taxes, expenses necessary for trust administrative procedures (including various expenses necessary for safekeeping of overseas assets), interest on advances provided by the trustee, sales consignment fees incurred when securities included in the fund are traded, audit fees, other expenses (including expenses relating to listing of Beneficiary Interests and fees for the use of trademarks to subject indexes), and consumption taxes on these fees are incurred, when applicable, during the trust period. These expenses are paid from the trust assets and are charged indirectly during the period that the ETF is held. Other expenses will vary according to investment circumstances, and consequently, rates and maximum amounts cannot be specified in advance. For further details, please refer to the "Costs and Taxes of the Fund" section in the prospectus. Please note that the prospectus is available in Japanese only. Nomura Asset Management Co., Ltd. does not directly handle requests for ETFs from investors. To invest in an ETF, it is necessary to open an account with a nearby first financial instruments business provider (securities firm) that handles ETFs and make a request to the broker. Nomura Asset Management Co., Ltd. has attempted to provide complete information on this website, but it provides no guarantees concerning its content. Nomura Asset Management Co., Ltd. and financial instrument exchanges bear no liability whatsoever for losses incurred as a result of the information on this website. In addition, use of the information on this website for commercial purposes, and modification, reuse, and redistribution for provision to third parties are strictly prohibited.

Trade name: Nomura Asset Management Co., Ltd.
Director of Kanto Local Finance Bureau (Financial Instruments Firms) No.373
Membership: The Investment Trusts Association, Japan/ Japan Investment Advisers Association/ Type II Financial Instruments Firms Association