Notice regarding the NEXT FUNDS NOMURA Crude Oil Long Index Linked Exchange Traded Fund (1699)
On April 20, 2020, the crude oil futures contract for May 2020 delivery on the NYMEX commodity exchange fell to a negative settlement price for the first time ever of -37.63. Subsequently, on April 21, the new front month contract for June delivery also experienced a substantial price fall.
With regard to the above mentioned ETF, we would like to announce that we have partly rolled over the contracts from June, which the ETF would normally have held under the rules of the benchmark (the NOMURA Crude Oil Long Index), to the July, August, and December Contracts. This action was taken due to the increased risk of the new front month futures contract price falling into negative territory under the current extraordinary market environment. For this reason, the NAV of the ETF could experience a larger than expected divergence from the benchmark index.
<Futures components of the ETF as at the NYMEX close on April 21, 2020>
- CrudeOil NYMEX June 2020 4,120 contracts
- CrudeOil ICE July 2020 7,000 contracts
- CrudeOil NYMEX Aug 2020 6,500 contracts
- CrudeOil NYMEX Dec 2020 4,400 contracts