Notice regarding termination of trust and amendments to basic terms and conditions of "NEXT FUNDS JPX-Nikkei 400 Leveraged Index Exchange Traded Fund (1470)" due to reduction in number of outstanding units of beneficial interest
As described in the "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)"" released on April 27, 2021, the number of units of beneficial interest has fallen below 20,000 units for 20 consecutive business days from April 27, 2021 to today. This therefore constitutes grounds for the cancellation of the trust agreement as set forth in the basic terms and conditions of the trust agreement. Effective as of June 8, 2021, Nomura Asset Management will change the basic terms and conditions to set June 30, 2021 as the trust expiry date, change the basic terms and conditions governing the payment of redemption money upon early redemption, and terminate the trust (hereinafter referred to as this ETF).
This ETF is expected to be designated as a security to be delisted from the Tokyo Stock Exchange (TSE). It is scheduled to be delisted on June 29, 2021 with the final trading day being June 28, 2021.
In preparation for the early redemption, we plan to conduct full settlement of all stock index futures held on or after June 24, 2021, in which case the NAV of the ETF will no longer track the movement of the benchmark index.
Friday, May 28, 2021: Designated as security to be delisted from TSE
Tuesday, June 8, 2021: Effective date of amendments 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
Friday, August 6, 2021: (Planned) payment of redemption proceeds will begin
Redemption proceeds are scheduled to be paid to beneficiaries listed on the beneficiary registry as of June 30, 2021, the trust termination date, from August 6, 2021, in accordance with the provisions of the investment trust deed.
The redemption amount is based on the redemption price per unit calculated on the trust termination date. The redemption price per unit will be the amount obtained by dividing the total net assets of the ETF at the time of termination of the trust by the total number of units of beneficial interests, and will be announced on the NEXT FUNDS website when it is determined.
■Suspension of applications for creation and redemption
Due to the implementation of early redemption and the accompanying amendments in terms and conditions of the trust deed, applications for creation of this ETF will not be accepted after June 23, 2021, and requests for redemption will not be accepted after June 29, 2021. In addition, if it is deemed that there is an unavoidable circumstance that may hinder investment in accordance with the basic investment policy, redemption requests may not be accepted even before June 28, 2021.