Nomura : to Launch New ETF Designed to Track Performance of Nikkei Semiconductor Stock Index on TSE

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Nomura to Launch New ETF Designed to Track Performance of Nikkei Semiconductor Stock Index on TSE

May 17, 2024

Nomura Asset Management Co., Ltd.

Tokyo, May 17, 2024 - Nomura Asset Management Co., Ltd. (NAM), the core company within the Investment Management Division of Nomura Group, today announced that it will launch a new ETF designed to track the performance of the Nikkei Semiconductor Stock Index.

The Nikkei Semiconductor Stock Index is a market value weighted index comprised of major semiconductor related stocks listed on the Tokyo Stock Exchange (TSE). It consists of the top 30 stocks by market capitalization and represents the price movement of semiconductor related stocks in Japan.

Code	Name	Index	Management Fee
200A	NEXT FUNDS Nikkei Semiconductor Stock Index Exchange Traded Fund	Nikkei Semiconductor Stock Index	0.462% annually (0.42%, tax excluded)1

The ETF was today approved for listing by the TSE with a listing date of June 4, 2024. From the listing date, investors will be able to trade the ETF on the TSE through securities dealers and traders in Japan.

The minimum investment amount for the ETF is expected to be approximately 2,000 yen (per 1 unit).

For further details on NEXT FUNDS, please refer to https://nextfunds.jp/en/.

† "NEXT FUNDS" is the brand name for the ETF product range of Nomura Asset Management Co., Ltd., representing "Nomura Exchange Traded Funds".

1 As of June 3, 2024

Disclaimer of "Nikkei Semiconductor Stock Index"
1. The Nikkei Semiconductor Stock Index is a copyrighted material calculated in a methodology independently developed and created by Nikkei Inc. and Nikkei Inc. is the sole exclusive owner of the copyright and other intellectual property rights in the Nikkei Semiconductor Stock Index itself and the methodology to calculate the Nikkei Semiconductor Stock Index;
2. The intellectual property and any other rights in the marks to indicate Nikkei and the Nikkei Semiconductor Stock Index shall be vested in Nikkei Inc.;
3. The ETF is managed exclusively at the risk of the Licensee and Nikkei Inc. shall assume no obligation or responsibility for its management and transactions of the ETF. Nikkei Inc. has - besides granting the license to the Licensee to use certain trademarks and to use the Nikkei Semiconductor Stock Index for the ETF - no connection with the ETF.
4. Nikkei Inc. shall not have the obligation to continuously announce the Nikkei Semiconductor Stock Index and shall not be liable for any error, delay, interruption, suspension or cessation of announcement thereof; and
5. Nikkei Inc. shall have the right to change the description of the stocks included in the Nikkei Semiconductor Stock Index, the calculation methodology of the Nikkei Semiconductor Stock Index or any other details of the Nikkei Semiconductor Stock Index and shall have the right to suspend or cease the publication of the Nikkei Semiconductor Stock Index without owing any liability to the Licensee or any other third party.
6. Nikkei Semiconductor Stock Index is the property of Nikkei Inc., which has contracted with S&P Opco, LLC (a subsidiary of S&P Dow Jones Indices LLC) to calculate and maintain. The Nikkei Semiconductor Stock Index is not sponsored by S&P Dow Jones Indices LLC or its affiliates or its third party licensors, including Standard & Poor's Financial Services LLC and Dow Jones Trademark Holdings LLC (collectively, "S&P Dow Jones Indices"). S&P Dow Jones Indices will not be liable for any errors or omissions in calculating the Nikkei Semiconductor Stock Index. "Calculated by S&P Dow Jones Indices" and the related stylized mark(s) are service marks of S&P Dow Jones Indices and have been licensed for use by Nikkei Inc. S&P® is a registered trademark of Standard & Poor's Financial Services LLC, and Dow Jones® is a registered trademark of Dow Jones Trademark Holdings LLC.
7. The ETF based on the Nikkei Semiconductor Stock Index is not sponsored, endorsed, sold or promoted by S&P Dow Jones Indices. S&P Dow Jones Indices does not make any representation or warranty, express or implied, to the owners of the ETF or any member of the public regarding the advisability of investing in securities generally or in the ETF particularly or the ability of the Nikkei Semiconductor Stock Index to track general market performance. S&P Dow Jones Indices' only relationship to Nikkei Inc. with respect to the Nikkei Semiconductor Stock Index is the licensing of the certain trademarks, service marks and trade names of S&P Dow Jones Indices, and the provision of the calculation services related to the Nikkei Semiconductor Stock Index. S&P Dow Jones Indices is not responsible for and has not participated in the determination of the prices and amount of the ETF or the timing of the issuance or sale of the ETF or in the determination or calculation of the equation by which the ETF may converted into cash or other redemption mechanics. S&P Dow Jones Indices has no obligation or liability in connection with the administration, marketing or trading of the ETF. S&P Dow Jones Indices LLC is not an investment advisor. Inclusion of a security within the Nikkei Semiconductor Stock Index is not a recommendation by S&P Dow Jones Indices to buy, sell, or hold such security, nor is it investment advice.
8. S&P DOW JONES INDICES DOES NOT GUARANTEE THE ADEQUACY, ACCURACY, TIMELINESS AND/OR THE COMPLETENESS OF THE NIKKEI SEMICONDUCTOR STOCK INDEX OR ANY DATA RELATED THERETO OR ANY COMMUNICATION WITH RESPECT THERETO, INCLUDING, ORAL, WRITTEN, OR ELECTRONIC COMMUNICATIONS. S&P DOW JONES INDICES SHALL NOT BE SUBJECT TO ANY DAMAGES OR LIABILITY FOR ANY ERRORS, OMISSIONS, OR DELAYS THEREIN. S&P DOW JONES INDICES MAKES NO EXPRESS OR IMPLIED WARRANTIES, AND EXPRESSLY DISCLAIMS ALL WARRANTIES, OF MERCHANTABILITY OR FITNESS FOR A PARTICULAR PURPOSE OR USE OR AS TO RESULTS TO BE OBTAINED BY Nikkei Inc., OWNERS OF THE ETF, OR ANY OTHER PERSON OR ENTITY FROM THE USE OF THE NIKKEI SEMICONDUCTOR STOCK INDEX OR WITH RESPECT TO ANY DATA RELATED THERETO. WITHOUT LIMITING ANY OF THE FOREGOING, IN NO EVENT WHATSOEVER SHALL S&P DOW JONES INDICES BE LIABLE FOR ANY INDIRECT, SPECIAL, INCIDENTAL, PUNITIVE, OR CONSEQUENTIAL DAMAGES, INCLUDING BUT NOT LIMITED TO, LOSS OF PROFITS, TRADING LOSSES, LOST TIME, OR GOODWILL, EVEN IF THEY HAVE BEEN ADVISED OF THE POSSIBILITY OF SUCH DAMAGES, WHETHER IN CONTRACT, TORT, STRICT LIABILITY, OR OTHERWISE.

Disclaimer of Nomura Asset Management
The contents of this material are based on an English translation of a Japanese announcement made on May 17, 2024 by Nomura Asset Management Co., Ltd. Whilst every effort has been made to translate the Japanese document into English, the accuracy and correctness of this translation are not guaranteed, therefore please refer to the original Japanese document.

Please note that the information contained in this document is for reference purposes only and does not constitute an offer to sell or the solicitation of an offer to buy securities by Nomura Asset Management Co., Ltd. to any person in Japan and does not constitute a distribution, an offer to sell or the solicitation of an offer to buy any securities or provide any services in any jurisdiction in which such distribution or offer is not authorized.

Furthermore, none of the shares of the Fund have been or will be registered under the United States Securities Act of 1933, as amended ("1933 Act"), or under the securities laws of any state or political subdivision of the United States of America or any of its territories, possessions or other areas subject to its jurisdiction including the Commonwealth of Puerto Rico (the "United States"). The Fund has not been and will not be registered under the United States Investment Company Act of 1940, as amended, nor under any other US federal laws.

Accordingly, the information in this document is not made or directed to any person in the United States and under no circumstance shall the provision of the information on this document be deemed to constitute an offer of securities or an offer to provide any services to any person in the United States or to any U.S. Person as the term is defined under 1933 Act.

Furthermore, the information in this document is not made or directed to any person in the United Kingdom and under no circumstances shall the provision of the information in this document be deemed to constitute an offer of securities or an offer to provide any services to any person in the United Kingdom.

Disclosures Required in Japan
ETF Investment Risks
Since the Fund invests primarily in securities and futures contracts, there is a risk that the market price of such securities or the NAV per unit of the Fund could decline and cause an investment loss due to a decline in the index, a price decline in securities comprising the index, the bankruptcy of a security issuer, or deterioration in the financial conditions of an issuer, in addition to other market factors.
Also, because some securities in the Fund are influenced by exchange rates, the NAV may fall due to fluctuations in the foreign exchange rate. An investor's principal is therefore not guaranteed.
Furthermore, investment trusts are different from deposits and savings.

ETF risks are not limited to the above.

Before investing in the Fund, prospective investors should carefully read the summary prospectus and base decisions on their own judgement.

ETF Investment Costs
An investor shall bear the following costs when investing in the Fund.

Trading Fee:
Trading of the Fund incurs brokerage commission fees set by a Type-1 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:
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 some ETFs, 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:
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.

The total amount of the above fees and expenses will vary according to investment duration, so they cannot be specified ahead of time.
For further details, please refer to the "Fund Expense and Taxes" section of the summary prospectus.

Notes
Nomura Asset Management Co., Ltd. does not directly handle order requests for the Fund from investors. To invest in the Fund it is necessary to open an account with a nearby Type-1 financial instruments business provider (securities firm) that handles ETFs and make a request to the broker.

Registered Company Name: Nomura Asset Management Co., Ltd.
Registration Number: Director of the Kanto Local Financial Bureau (Financial instruments firms) No. 373
Member Associations: The Investment Trusts Association, Japan; Japan Securities Investment Advisers Association; Type II Financial Instruments Firms Association

Nomura

Nomura is a global financial services group with an integrated network spanning approximately 30 countries and regions. By connecting markets East & West, Nomura services the needs of individuals, institutions, corporates and governments through its three business divisions: Wealth Management, Investment Management, and Wholesale (Global Markets and Investment Banking). Founded in 1925, the firm is built on a tradition of disciplined entrepreneurship, serving clients with creative solutions and considered thought leadership. For further information about Nomura, visit www.nomura.com.