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Nomura to Launch Three New ETFs Designed to Track Performance of S&P 500 Index, S&P 500 in TTM Rates JPY Hedged Index and S&P 500 ESG Index

March 11, 2021

Nomura Asset Management Co., Ltd.

Tokyo, March 11, 2021 - Nomura Asset Management Co., Ltd., the core company within the Asset Management Division of Nomura Group, today announced that it will launch three new ETFs designed to track the performance of the S&P 500 index, the S&P 500 in TTM Rates JPY Hedged Index, and the S&P 500 ESG Index, respectively. The first two ETFs will be managed at the lowest cost level in Japan, and the third will be the first ETF in Japan to track the S&P 500 ESG Index.

Code Name Index Management Fee*
2633 NEXT FUNDS S&P 500 (Unhedged)
Exchange Traded Fund
JPY converted
S&P 500 Index
0.077% annually
(0.07%, tax excluded)
2634 NEXT FUNDS S&P 500 (Yen-Hedged)
Exchange Traded Fund
S&P 500 in TTM Rates
JPY Hedged Index
0.077% annually
(0.07%, tax excluded)
2635 NEXT FUNDS S&P 500 ESG Index
Exchange Traded Fund
JPY converted
S&P 500 ESG Index
0.143% annually
(0.13%, tax excluded)

Management fee rates are as of March 29, 2021.

The ETFs were today approved for listing by the Tokyo Stock Exchange (TSE) with a listing date of March 31, 2021. From the listing date, investors will be able to trade the ETFs on the TSE through securities dealers and traders in Japan.

The minimum investment amount for each ETF is expected to be approximately 20,000 yen (per 10 units).

Nomura Asset Management listed its first ETF in Japan in May 1995. Including ETFs structured and listed overseas, the new listings will bring ETFs in Nomura's NEXT FUNDS range to a total of 61.

NEXT FUNDS

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

Disclaimer of "S&P 500 Index"
The "S&P 500 Index" is a product of S&P Dow Jones Indices LLC or its affiliates ("SPDJI"), and has been licensed for use by Nomura Asset Management Co., Ltd. Standard & Poor's® and S&P® are registered trademarks of Standard & Poor's Financial Services LLC ("S&P"); Dow Jones® is a registered trademark of Dow Jones Trademark Holdings LLC ("Dow Jones"). NEXT FUNDS S&P 500 (Unhedged) Exchange Traded Fund is not sponsored, endorsed, sold or promoted by SPDJI, Dow Jones, S&P, their respective affiliates and none of such parties make any representation regarding the advisability of investing in such product(s) nor do they have any liability for any errors, omissions, or interruptions of the S&P 500 Index.

Disclaimer of "S&P 500 in TTM Rates JPY Hedged Index"
The "S&P 500 in TTM Rates JPY Hedged Index" is a product of S&P Dow Jones Indices LLC or its affiliates ("SPDJI"), and has been licensed for use by Nomura Asset Management Co., Ltd. Standard & Poor's® and S&P® are registered trademarks of Standard & Poor's Financial Services LLC ("S&P"); Dow Jones® is a registered trademark of Dow Jones Trademark Holdings LLC ("Dow Jones"). NEXT FUNDS S&P 500 (Yen-Hedged) Exchange Traded Fund is not sponsored, endorsed, sold or promoted by SPDJI, Dow Jones, S&P, their respective affiliates and none of such parties make any representation regarding the advisability of investing in such product(s) nor do they have any liability for any errors, omissions, or interruptions of the S&P 500 in TTM Rates JPY Hedged Index.

Disclaimer of "S&P 500 ESG Index"
The "S&P 500 ESG Index" is a product of S&P Dow Jones Indices LLC or its affiliates ("SPDJI"), and has been licensed for use by Nomura Asset Management Co., Ltd. Standard & Poor's® and S&P® are registered trademarks of Standard & Poor's Financial Services LLC ("S&P"); Dow Jones® is a registered trademark of Dow Jones Trademark Holdings LLC ("Dow Jones"). NEXT FUNDS S&P 500 ESG Index Exchange Traded Fund is not sponsored, endorsed, sold or promoted by SPDJI, Dow Jones, S&P, their respective affiliates and none of such parties make any representation regarding the advisability of investing in such product(s) nor do they have any liability for any errors, omissions, or interruptions of the S&P 500 ESG Index.

Disclaimer of Nomura Asset Management
The contents of this material are based on an English translation of a Japanese announcement made on March 11, 2021 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
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
This document is issued for reference purposes to explain the outline of "NEXT FUNDS S&P 500 (Unhedged) Exchange Traded Fund", "NEXT FUNDS S&P 500 (Yen-Hedged) Exchange Traded Fund", and "NEXT FUNDS S&P 500 ESG Index Exchange Traded Fund" and does not constitute disclosure material based on the Financial Instruments and Exchange Law. Moreover, this document is not in any way intended to be an investment solicitation. Before investing in the Fund, prospective investors should carefully read the "Securities Registration Statement", "the Prospectus", and the "Document Prior to Conclusion of Contract" under your own responsibilities and based on your own judgment.

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.

Since the Fund invests primarily in securities and future 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 stock price index, a price decline in securities comprising the index, the bankruptcy of a stock issuer, or deterioration in the financial conditions of an issuer, in addition to other market factors.

AN INVESTOR'S PRINCIPAL IS THEREFORE NOT GUARANTEED.

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 (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 1.026% 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 54%* (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 in this document, 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 in this document. In addition, use of the information in this document for commercial purposes, and modification, reuse, and redistribution for provision to third parties are strictly prohibited.

Nomura

Nomura is a global financial services group with an integrated network spanning over 30 countries. By connecting markets East & West, Nomura services the needs of individuals, institutions, corporates and governments through its four business divisions: Retail, Asset Management, Wholesale (Global Markets and Investment Banking), and Merchant 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.

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