NOMURA NOMURA ASSET MANAGEMENT

Notice regarding termination of trust and amendments to basic terms and conditions of "NEXT FUNDS Russell/Nomura Fundamental Index Exchange Traded Fund (1598)" due to reduction in number of outstanding units of beneficial interest

As described in the "Notice regarding possible termination of trust and amendments in basic terms and conditions due to reduction in number of units of beneficial interest in "NEXT FUNDS Russell/Nomura Fundamental Index Exchange Traded Fund (1598)" released on July 15, 2021, the number of units of beneficial interest has fallen below 100,000 units for 20 consecutive business days from July 15, 2021 to today. This therefore constitutes grounds for the cancellation of the trust agreement as set forth in the basic terms and conditions of the trust agreement. Effective as of September 17, 2021, Nomura Asset Management will change the basic terms and conditions to set September 21, 2021 as the trust expiry date, change the basic terms and conditions governing the payment of redemption money upon early redemption, and terminate the trust (hereinafter referred to as this ETF).

This ETF is expected to be designated as a security to be delisted from the Tokyo Stock Exchange (TSE). It is scheduled to be delisted on September 17, 2021 with the final trading day being September 16, 2021.

In preparation for the early redemption, we plan to conduct full sale of all the securities held on or after September 14, 2021, in which case the NAV of the ETF will no longer track the movement of the benchmark index.

■Schedule
August 16, 2021: Designated as security to be delisted from TSE
September 16, 2021: Final date of trading on TSE
September 17, 2021: Effective date of amendments to basic terms and conditions
September 17, 2021: Date of delisting from TSE
October 29, 2021: (Planned) payment of redemption proceeds will begin

■Redemption proceeds
Redemption proceeds are scheduled to be paid to beneficiaries listed on the beneficiary registry as of September 21, 2021, the trust termination date, from October 29, 2021, in accordance with the provisions of the investment trust deed.
The redemption amount is based on the redemption price per unit calculated on the trust termination date. The redemption price per unit will be the amount obtained by dividing the total net assets of the ETF at the time of termination of the trust by the total number of units of beneficial interests, and will be announced on the NEXT FUNDS website when it is determined.

■Suspension of applications for creation and redemption
Due to the implementation of early redemption and the accompanying amendments in terms and conditions of the trust deed, applications for creation of this ETF will not be accepted after September 13, 2021, and requests for redemption will not be accepted after September 14, 2021. In addition, if it is deemed that there is an unavoidable circumstance that may hinder investment in accordance with the basic investment policy, redemption requests may not be accepted even before September 13, 2021.

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