Nomura Asset Management Co., Ltd., the core company within the Asset Management Division of the Nomura Group, today listed the ‘NEXT FUNDS Emerging Market Bond J.P. Morgan EMBI Plus (Unhedged) Exchange Traded Fund’ and the ‘NEXT FUNDS Emerging Market Equity MSCI-EM (Unhedged) Exchange Traded Fund’ on the Tokyo Stock Exchange (TSE).
Code Fund Name Index Management
2519 NEXT FUNDS Emerging Market Bond J.P. Morgan EMBI
Plus (Unhedged) Exchange Traded Fund
2520 NEXT FUNDS Emerging Market Equity MSCI-EM
(Unhedged) Exchange Traded Fund
Market Index 0.19%
The management fees above represent the annual tax-exclusive rates as of July 6, 2018. The total management fee for each ETF will vary if the ETFs engage in securities lending. For further details, please refer to the ‘Fund Expense and Taxes’ section in the prospectus. In December last year, the firm listed six ETFs including the ‘NEXT FUNDS Japan Bond NOMURA-BPI Exchange Traded Fund,’ the first domestic fixed income ETF to be issued in Japan. The firm also listed international equity, bond, and REIT ETFs to help investors build quality asset portfolios comprised only of ETFs. The new ETFs will be added to the core asset ETFs listed last December, giving investors more opportunities to invest in global stocks and bonds, including those of emerging countries. From today, investors can trade the ETFs on the TSE through securities dealers and traders in Japan.
The ETFs are part of Nomura’s NEXT FUNDS range, and bring the total to 61.
(+) ‘NEXT FUNDS’ is the brand name for the ETF product range of
Nomura Asset Management Co., Ltd., representing ‘Nomura
Exchange Traded Funds’.
Nomura is an Asia-headquartered financial services group w ith an integrated global netw ork 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, and Wholesale (Global Markets and Investment Banking), and Merchant Banking. Founded in 1925, the firm is built on a tradition of disciplined entrepreneurship, serving clients w ith creative solutions and considered thought leadership. For further information about Nomura, visit w ww.nomura.com.
Disclosures required in Japan
Registered Company Name: Nomura Asset Management Co., Ltd.
Registration Number: Director of Kanto Local Finance Bureau (Financial Instruments Firms)
Member Associations: The Investment Trusts Association, Japan; Japan Investment
Advisers Association; Type II Financial Instruments Firms Association
ETF Investment Risks
ETFs invest primarily in securities that are subject to fluctuations in price and may incur losses when the market price or index price falls because of changes in linked stock price indices, decreases in the price 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 currency exchange rates, and the index price 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 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 the costs indirectly paid by an investor during the period 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 the 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 the expenses indirectly paid by an investor 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 ‘Fund Expense and Taxes’ 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.
This article provided by NewsEdge.