NOMURA NOMURA ASSET MANAGEMENT

Notice regarding the split in beneficial interests of NEXT FUNDS Nikkei 225 Leveraged Index Exchange Traded Fund (1570)

Nomura Asset Management would like to notify you that we have made the decision to split the beneficial interests of the NEXT FUNDS Nikkei 225 Leveraged Index Exchange Traded Fund (1570).

  1. (1)Purpose of the Split

    In light of the fact that the market price per unit had reached 30,000 yen in line with the increase in the NAV of the ETF, and the unit of the bid price had become 50 yen, we have decided to conduct the split in order to improve the level of convenience for investors by reducing the amount per unit of investment through the split in beneficial interests thereby enhancing the liquidity of the ETF.

  2. (2)Outline of the Split

    The units of the beneficial interests held by the beneficiaries listed in the final beneficiary registry on April 28, 2021 shall be split at a ratio of two per unit.
    The trading unit will remain unchanged.

  3. (3)Number of Beneficial Interests as a result of the Split
    Outstanding units of beneficial interests before the split 9,840,000 units
    Additional units of beneficial interests via the split 9,840,000 units
    Outstanding units after the split 19,680,000 units
    • Note:The numbers above indicate those as of March 31, 2021, therefore the actual numbers may differ.
  4. (4)Schedule for the split

    Base date for split: April 28, 2021

    Effective date: April 30, 2021

  5. (5)Schedule for creations and partial redemptions

    We will suspend the acceptance of applications for creations and partial redemptions as follows in order to conduct the split of the beneficial interests of the ETF.

    Date Creation Partial redemption
    April 26, 2021 To be suspended To be suspended
    April 27, 2021 To be suspended To be suspended
    • *Please note that this announcement does not mean that there will be a suspension in the trading of the NEXT FUNDS Nikkei 225 Leveraged Index Exchange Traded Fund (1570) on the Tokyo Stock Exchange.

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