Announcement regarding the proposed amendment of the terms and conditions in the trust deed of NEXT FUNDS Nifty 50 Linked Exchange Traded Fund (Code:1678) and setting of the record date for unitholder's resolution
Nomura Asset Management Co., Ltd. has announced that we would propose a significant amendment of the terms and conditions in the trust deed of the NEXT FUNDS Nifty 50 Linked Exchange Traded Fund (hereinafter "The Fund") and that we have fixed February 9, 2018 as the record date for the written resolution by unitholders in compliance with the relevant rules. Those recorded unitholders as of the record date are entitled to vote on the resolution.
- <Brief summary of the amendment>
- The objective of The Fund is to aim at investment performance linked to the JPY-converted Nifty 50 Index.
It is stated in the terms and conditions that there are either methods to be employed for investment: One is to invest in the index linked securities (bonds), and the other is to invest in cash stocks and the stock price linked securities (bonds).
This time we would propose to amend the terms and conditions by adding another new method to utilize derivatives and other instruments, and also by implementing the combined use of these three methods, so that we can manage The Fund more efficiently. The new way of investment would include the stock index futures, foreign exchange futures, and foreign exchange forward contracts for the fund management.
- <Reasons of the amendment>
- The major reasons for the amendment include the fact that improved liquidity in the Nifty 50 Index futures has enabled us to put it in practice for the fund management, and that we could expect for more cost conscious fund management through this new way of investment.
Consequently, we expect that we could manage The Fund more efficiently and we could diminish the difference of the performance between NAV and the benchmark index.
- The details of the contents and the procedures for the amendment of the terms and conditions will be notified by March 2, 2018 by the documents sent to the recorded unitholders, who are entitled to vote on the proposed amendment.