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 Inverse Index Exchange Traded Fund" (1471)

January 21, 2022

With respect to the " NEXT FUNDS JPX-Nikkei 400 Inverse Index Exchange Traded Fund" (hereinafter referred to as the Fund, Code: 1471) launched and managed by Nomura Asset Management Co., Ltd., we would like to announce that the Fund 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 Fund, if the number of units of beneficial interest falls below 50,000 units for 20 consecutive business days, the trust agreement will be terminated and the trust will be closed. As of January 21, 2022, the number of units of beneficial interest was 35,000 units, which means that the number of units of beneficial interest fell below 50,000 units. We made the decision to amend the basic terms and conditions such that the trust termination date (redemption date) will be set on March 23, 2022, if the number of units of beneficial interest continuously remains below 50,000 units from January 21, 2022 until February 18, 2022. The amendment is scheduled to become effective on March 2, 2022. The payment of redemption proceeds will commence within 40 days from March 23, 2022.

The Fund 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, the Fund is expected to be delisted on March 19, 2022 with the final trading date on March 18, 2022.

Unless the termination of the trust is decided, the management of the Fund will continue as usual, in order to track the "JPX-Nikkei 400 Inverse Index". If the termination of the trust is decided and it is no longer possible to manage the Fund to track the index, a separate announcement will be made. Moreover, the trust will not be terminated if the number of beneficial interests exceeds 50,000 units by February 18, 2022.

Schedule
If the number of units of beneficial interest remains below 50,000 units for 20 consecutive business days from January 21, 2022, the schedule will be as follows.
January 21, 2022: Designated as security under supervision (confirmation) on TSE
February 18, 2022: Designated as security to be delisted on TSE
March 2, 2022: Effective date of amendment to basic terms and conditions
March 18, 2022: Final date of trading on TSE
March 19, 2022: Date of delisting from TSE
March 23, 2022: Trust termination date
By April 28, 2022, payment of redemption proceeds will begin.