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 Russell/Nomura Fundamental Index Exchange Traded Fund (1598)"
With respect to the "NEXT FUNDS Russell/Nomura Fundamental Index Exchange Traded Fund" (hereinafter referred to as this ETF, Code: 1598) 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 100,000 units for 20 consecutive business days, the trust agreement will be terminated and the trust will be closed. As of July 15, 2021, the number of units of beneficial interest was 55,768 units, which means that the number of units of beneficial interest fell below 100,000 units. We made the decision to amend the basic terms and conditions such that the trust termination date (redemption date) will be set on September 21, 2021, if the number of units of beneficial interest continuously remains below 100,000 units from July 15, 2021 until August 16, 2021. The amendment is scheduled to become effective on September 17, 2021. The payment of redemption proceeds will commence within 40 days from September 21, 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 September 17, 2021 with the final trading date on September 16, 2021.
Unless the termination of the trust is decided, the management of the ETF will continue as usual, in order to track the "Russell/Nomura Fundamental Prime Index (excluding dividends)". 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 100,000 units by August 16, 2021.
If the number of units of beneficial interest remains below 100,000 units for 20 consecutive business days from July 15, 2021, the schedule will be as follows.
July 15, 2021: Designated as security under supervision (confirmation) on TSE
August 16, 2021: Designated as security to be delisted on TSE
September 16, 2021: Final date of trading on TSE
September 17, 2021: Date of delisting from TSE/ Effective date of amendment to basic terms and conditions
September 21, 2021: Trust termination date
By October 29, 2021 payment of redemption proceeds will begin.