NOMURA ASSET MANAGEMENT

NOMURA

Notice regarding amendments to the terms and conditions of the trust deed in accordance with changes to creation unit and exchange unit for in-kind creation/ redemption ETFs

Nomura Asset Management would like to announce certain amendments to the terms and conditions of the trust deed for the ETFs in the table below, in accordance with the changes in creation unit and exchange unit.

Change details and reason for the amendments
The creation unit and exchange unit for the below ETFs will be changed as shown in the table below on the effective date listed in the Appendix Table (see the next section). There will be 2 types of creation units.

These amendments are made in consideration for the convenience of investors and to enable more efficient management.

ETF Code Creation unit Exchange unit
After
(small sized)
After
(large sized)
Before After Before
NEXT FUNDS Tokyo Stock Exchange REIT Index Exchange Traded Fund 1343 25,000 200,000 200,000 25,000 200,000
NEXT FUNDS Nomura Enterprise Value Allocation Index Exchange Traded Fund 1480 8,000 40,000 40,000 8,000 40,000
NEXT FUNDS Nomura Japan Equity High Dividend 70 Exchange Traded Fund 1577 2,500 20,000 20,000 2,500 20,000
NEXT FUNDS TOPIX Banks Exchange Traded Fund 1615 70,000 1,000,000 1,000,000 70,000 1,000,000
NEXT FUNDS TOPIX-17 FOODS ETF 1617 1,000 5,000 5,000 1,000 5,000
NEXT FUNDS TOPIX-17 ENERGY RESOURCES ETF 1618 500 10,000 1,000 500 1,000
NEXT FUNDS TOPIX-17 CONSTRUCTION & MATERIALS ETF 1619 2,000 10,000 10,000 2,000 10,000
NEXT FUNDS TOPIX-17 RAW MATERIALS & CHEMICALS ETF 1620 1,500 10,000 10,000 1,500 10,000
NEXT FUNDS TOPIX-17 PHARMACEUTICAL ETF 1621 1,500 20,000 5,000 1,500 5,000
NEXT FUNDS TOPIX-17 AUTOMOBILES & TRANSPORTATION EQUIPMENT ETF 1622 1,500 20,000 5,000 1,500 5,000
NEXT FUNDS TOPIX-17 STEEL & NONFERROUS METALS ETF 1623 1,000 5,000 5,000 1,000 5,000
NEXT FUNDS TOPIX-17 MACHINERY ETF 1624 1,500 20,000 5,000 1,500 5,000
NEXT FUNDS TOPIX-17 ELECTRIC APPLIANCES & PRECISION INSTRUMENTS ETF 1625 2,000 20,000 20,000 2,000 20,000
NEXT FUNDS TOPIX-17 IT & SERVICES, OTHERS ETF 1626 6,000 25,000 25,000 6,000 25,000
NEXT FUNDS TOPIX-17 ELECTRIC POWER & GAS ETF 1627 2,000 10,000 5,000 2,000 5,000
NEXT FUNDS TOPIX-17 TRANSPORTATION & LOGISTICS ETF 1628 2,000 10,000 10,000 2,000 10,000
NEXT FUNDS TOPIX-17 COMMERCIAL & WHOLESALE TRADE ETF 1629 1,000 5,000 5,000 1,000 5,000
NEXT FUNDS TOPIX-17 RETAIL TRADE ETF 1630 3,000 15,000 15,000 3,000 15,000
NEXT FUNDS TOPIX-17 BANKS ETF 1631 1,500 30,000 15,000 1,500 15,000
NEXT FUNDS TOPIX-17 FINANCIALS (EX BANKS) ETF 1632 1,500 5,000 5,000 1,500 5,000
NEXT FUNDS TOPIX-17 REAL ESTATE ETF 1633 500 5,000 5,000 500 5,000
NEXT FUNDS MSCI Japan Empowering Women Select Index Exchange Traded Fund 2518 90,000 500,000 500,000 90,000 500,000

Schedule for the changes
Date of amendment notification: December 24, 2021

Amendment effective dates:
December 27, 2021
NEXT FUNDS Nomura Japan Equity High Dividend 70 Exchange Traded Fund
January 19, 2022
NEXT FUNDS Nomura Enterprise Value Allocation Index Exchange Traded Fund
NEXT FUNDS MSCI Japan Empowering Women Select Index Exchange Traded Fund
March 29, 2022
NEXT FUNDS TOPIX-17 Series
March 30, 2022
NEXT FUNDS TOPIX Banks Exchange Traded Fund
April 27, 2022
NEXT FUNDS Tokyo Stock Exchange REIT Index Exchange Traded Fund

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