Regarding TOPIX Electric Appliances Exchange Traded Fund (Code:1613), it has been selected to take a procedure of challenge against termination of trust (early termination) and amendment to the basic terms and conditions of the investment trust.
- <Details of Early Termination and Amendment to the Basic Terms and Conditions of the Investment Trust of the Fund>
- (i)Amend the trust term to expire on June 16, 2020 and carry out early termination on the same day as the trust termination date.
In case of carrying out early termination, trading on Tokyo Stock Exchange will be available until June 12, 2020. - (ii)Amend to allow for early termination by cash payment.
- (i)Amend the trust term to expire on June 16, 2020 and carry out early termination on the same day as the trust termination date.
- <Reason for Early Termination and Amendment to the Basic Terms and Conditions of the Investment Trust of the Fund>
- (i)The inception date of the Fund is April, 2002, and it has been in operation for approximately 18 years. However, the asset under management has not increased, and for more than 10 years the number of units of the beneficial interest has remained below the 2,000,000 units threshold, which is one of the conditions allowing for the trust contract to be canceled and the trust may be terminated. We will carry out the early termination because we determined the asset under management will not increase.
- (ii)In order to facilitate early termination, we will make necessary amendment to the basic terms and conditions of the investment trust of the Fund.
If termination of trust (early termination) is selected, the Fund will make necessary amendment to the basic terms and conditions of the investment trust of the Fund on June 15, 2020, and carry out early termination on June 16, 2020.
If termination of trust (early termination) is not selected, the Fund will not make necessary amendment to the basic terms and conditions of the investment trust of the Fund nor carry out early termination.
In addition, a beneficial interest acquired by the application on or after February 25, 2020, does not include the right to challenge early termination or amendment to the basic terms and conditions of the investment trust of the Fund.
As a result of the procedure referred to above, if termination of trust (early termination) is carried out on June 16, 2020, we will stop accepting subscription applications on May 15, 2020.
Nomura Asset Management Co., Ltd.