Notice regarding possible termination of trust and amendments in basic terms and conditions due to reduction in number of units of beneficial interest in "NEXT FUNDS JPX-Nikkei 400 Leveraged Index Exchange Traded Fund (1470)"
With respect to the "NEXT FUNDS JPX-Nikkei 400 Leveraged Index Exchange Traded Fund" (hereinafter referred to as this ETF, Code: 1470) launched and managed by Nomura Asset Management Co., Ltd., we would like to announce that this ETF may fall under the conditions of redemption due to a decrease in the number of units of beneficial interest, stipulated in the basic terms and conditions, and that the trust may be terminated or delisted.
Under the terms and conditions of the trust deed of the ETF, if the number of units of beneficial interest falls below 20,000 units for 20 consecutive business days, the trust agreement will be terminated and the trust will be closed. As of April 27, 2021, the number of units of beneficial interest was 9,862 units, which means that the number of units of beneficial interest fell below 20,000 units. Today we made the decision to amend the basic terms and conditions such that the trust termination date (redemption date) will be set on June 30, 2021, if the number of units of beneficial interest continuously remains below 20,000 units from today until May 28, 2021. The amendment is scheduled to become effective on June 8, 2021. The payment of redemption proceeds will commence within 40 days from June 30, 2021.
This ETF is expected to be designated as a "security under supervision" (confirmation) by the Tokyo Stock Exchange. In addition, if the termination of the trust is decided, it is expected to be designated as a "security to be delisted". In this case, this ETF is expected to be delisted on June 29, 2021 with the final trading date on June 28, 2021.
Unless the termination of the trust is decided, the management of the ETF will continue as usual, in order to track the "JPX-Nikkei 400 Leveraged Index". If the termination of the trust is decided and it is no longer possible to manage the ETF to track the index, a separate announcement will be made. Moreover, the trust will not be terminated if the number of beneficial interests exceeds 20,000 units by May 28, 2021.
If the number of units of beneficial interest remains below 20,000 units for 20 consecutive business days from today, the schedule will be as follows.
Tuesday, April 27, 2021: Designated as security under supervision (confirmation) on TSE
Friday, May 28, 2021: Designated as security to be delisted on TSE
Tuesday, June 8, 2021: Effective date of amendment to basic terms and conditions
Monday, June 28, 2021: Final date of trading on TSE
Tuesday, June 29, 2021: Date of delisting from TSE
Wednesday, June 30, 2021: Trust termination date
By Friday, August 6, 2021 payment of redemption proceeds will begin.