Amendments to terms and conditions of the Trust Deed for the Gold-Price-Linked Exchange Traded Fund (code:1328) and notification of the date for recognition of beneficiary ownership for objection procedures.
Nomura Asset Management Co., Ltd. today issued a proposal for amendment to the terms and conditions of the Trust Deed for the Gold-Price-Linked Exchange Traded Fund (code:1328). The date for recognition of beneficiary ownership as December 4, 2018 has been fixed for objection procedures by the Fund's beneficiaries. In the event that the total number of units lodging objections does not surpass 50% of the outstanding units of the fund, the amendment is scheduled to become effective from March 27, 2019.
Please note that this ETF will continue to be listed on the Tokyo Stock Exchange and investors are able to trade it as before.
Abstract of the amendment and the reasons:
- (1)Investment management methods available to the Fund: Gold futures will be added to the current investable securities - linked bonds. By changing the investment management method, the management costs of the Fund are expected to be reduced and the tracking error is expected to decline.
- (2)The redemption method will be changed from an exchange between ETFs and securities to an exchange between ETFs and cash. Also, the subscription fee will be changed from 0.6% to 0.05%, while on redemption a fee of 0.05% will be newly charged as a fee to be retained in trust assets. Changing the method of redemption is expected to enhance the convenience for beneficiaries, while the tracking error of the fund is expected to decline as a result of implementing the investment method as described in (1).
- (3)The upper limit of the trust amount will be reduced from 2 trillion yen to 50 billion yen in consideration of the practical limit.
- (4)Conditions relating to provisions for early redemption will be changed: In cases such as the abolition of the benchmark index or in other special cases, the ETF will be redeemed early without undergoing the beneficiaries' objection procedures as currently described in the terms and conditions of the fund. This provision will be made due to potential investment management difficulties arising in the event that the managers are unable to adopt a substitute benchmark index.