Tokyo, August 21, 2023 - Nomura Asset Management Co., Ltd. (NAM), the core company within the Investment Management Division of Nomura Group, today received approval from the Tokyo Stock Exchange to list the NEXT FUNDS Japan Growth Equity Active Exchange Traded Fund and the NEXT FUNDS Japan High Dividend Equity Active Exchange Traded Fund, the first actively managed ETFs in Japan.

Actively managed ETFs are investment products that can benefit from the added value of active management through stock selection, while providing the characteristics of existing ETFs: transparency through daily disclosure of constituent stocks, convenience of tradability at market value in real time, and generally lower costs than investment trusts.

Outside Japan, the number of actively managed ETFs has already increased to 2,075 with assets under management of approximately $583 billion¹ , and similar growth is expected in Japan. The introduction of actively managed ETFs will provide investors with more investment options at a time when the NISA scheme is scheduled to be expanded and perpetuated, and the trend from savings to asset formation is accelerating. As such, NAM applied for the listing of actively managed ETFs on June 30, 2023, when the listing rules were implemented.

The ETFs are scheduled to list on September 7, 2023. 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 both ETFs is expected to be approximately 2,000 yen (per unit).

NF Japan Growth Active ETF evaluates a company's business model, management strategy, and financial strategy based on research and analysis of individual companies, and invests mainly in stocks that are expected to achieve a high return on equity in the medium to long term. The NF Japan High Dividend Active ETF aims to achieve medium to long term total returns by capturing stable dividends (income gains) and flexible gains in stock prices (capital gains).

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

Disclaimer of Nomura Asset Management
The contents of this material are based on an English translation of a Japanese announcement made on August 21, 2023 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.

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).

(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.^*

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