[Disclaimer]
1. This document is an English translation of the Japanese language Prospectus Issued upon Request (hereinafterreferred to as the “Prospectus”) of the NEXT FUNDS Nikkei 225 Exchange Traded Fund (hereinafter referred
to as the “Fund”).
This document is based on the Prospectus of the Fund as of September 29, 2023, except as otherwise indicatedherein. There is no guarantee that this document is or will be updated or modified even if an update or
modification to the corresponding Japanese language Prospectus occurs.
2. This English translation is not required by law or any regulation.
3. This document is offered for information purposes only and does not constitute a recommendation, offer, or
solicitation to buy or sell any securities, or to adopt any investment strategy.
4. This English translation is not an official translation. In the event of any inconsistencies between this English
translation and the official Japanese original of the Prospectus, the Japanese version shall prevail.
5. The accuracy, reliability and timeliness of this translation are not guaranteed. Should any error in translation ofthis document occur, neither Nomura Asset Management Co., Ltd., nor its translator, will be liable for the error.
6. The Fund is not registered with any applicable administrative organization other than those applicable to Japan.
The Fund is not listed on any exchanges other than those in Japan.
7. A Japanese securities registration statement for the Fund, which is required by Japanese law, is filed with theproper Japanese authorities. The statement should be referred to for the detailed information of the Fund.
8. Neither this document nor any part hereof may be (a) copied or reproduced in any form by any means, or (b)redistributed without the prior written consent of Nomura Asset Management Co., Ltd..
9. Nomura Asset Management Co., Ltd., reserves the right to change, modify, add, or remove any part of thistranslation at any time for any reason. Such changes, modification, additions or removals may be made without
notice.
10. The Net Asset Value of the Fund is subject to fluctuations in the prices of the securities in which the Fund invests.
All profits and losses arising from fund management are borne by the investors. Principal invested in the Fundby investors is therefore not guaranteed. Investors may incur a loss and the value of their investment principal
may fall below par as the result of a decline in the Net Asset Value. The investment trust differs from a savings
deposit.
11. Trading should be conducted on the investor's own judgment and responsibility. Please fully read the Japanese
language delivery prospectus, prospectus issued upon request and other documents distributed before concluding
a contract with a financial instruments business operator, etc. with sufficient understanding of the product's
attributes, trading mechanism, existence of risk, and sales commissions.

NEXT FUNDS
Nikkei 225 Exchange Traded
Fund(Nickname) NF Nikkei 225 ETF
Open-ended

Domestic Stocks ETF

Index Type

【Explanatory Booklet on the Investment Trust（Prospectus）】（ September 29, 2023）

In connection with public offering for subscription to the NEXT FUNDS Nikkei 225 Exchange Traded Fund, which
is made by way of this prospectus, Nomura Asset Management Co., Ltd. (the Management Company), the Issuer ofbeneficiary certificates of the Fund, filed a securities registration statement with the Director of the Kanto Local
Finance Bureau on September 28, 2023, pursuant to the provisions of Article 5 of the Financial Instruments andExchange Act (Act No.25 of 1948). The filing took effect on September 29, 2023.

This prospectus is prepared to be published to the investors upon request pursuant to the provisions of Article 13 of
the Financial Instruments and Exchange Act.
【Issuer Name】【T itle and Name of the Representative】【Address of Registered Headquarters】【Place for Public Inspection】

：
：
：
：

Nomura Asset Management Co., Ltd.
Hiroyasu Koike, CEO and Representative Director
2-1 Toyosu 2-chome, Koto-ku, Tokyo, JapanTokyo Stock Exchange Group, Inc.
2-1 Nihonbashi Kabutocho, Chuo-ku, Tokyo, Japan

Nomura Asset Management

Table of Contents
Table of Contents ...................................................................... 3
PART I 【Security Information】 ........................................................ 4(1)【Fund Name】 ................................................................... 4(2)【Legal Form, etc. of Domestic Investment Trust Beneficiary Certificates】 .................... 4(3)【Total Amount of Issue(Offering)】................................................... 4(4)【Issue (Offering) Price】 ........................................................... 4(5)【Application Fee】 ............................................................... 5(6)【Application Unit】 ............................................................... 5(7)【Application Period】 ............................................................. 5(8)【Place for Application】 ........................................................... 5(9)【Due Date of Payment】 ........................................................... 5(10)【Place for Payment】............................................................. 6(11)【Central Securities Depository】 .................................................... 6(12)【Other Information】............................................................. 6
PART II 【Fund Information】 .......................................................... 7
I.【Overview of Fund】 ............................................................... 7
1【Features of Fund】 .............................................................. 7
2【Investment Policy】 ............................................................ 14
3【Investment Risks】............................................................. 21
4【Fees, Charges, and Taxes】 ...................................................... 27
5【Status of Investment Management】 ............................................... 31
II.【Administration and Operation】 .................................................... 39
1【Procedures, etc. for Application and Distribution】 .................................... 39
2【Redemption Procedures, etc.】.................................................... 41
3【Overview of Asset Management, etc.】 ............................................. 45
4 【Rights, etc., of Beneficiaries】 ................................................... 50
Ⅲ.【Financial Information of Fund】 ................................................... 54
1【Financial Statements】 .......................................................... 57
2【Current Status of Fund】 ........................................................ 73
IV.【Overview of Operational Procedures related to Domestic Investment Trust Beneficiary Certificates】................................................................................. 74
PART III 【Information about Investment Trust Management Company, etc.】 .................... 76
I. 【Overview of Investment Trust Management Company, etc.】 ............................ 76
1【Overview of Investment Trust Management Company, etc.】 ............................ 76
3【Financial Information of Investment Trust Management Company, etc.】................... 78
4【Restrictions on Transactions with Interested Parties】 ................................. 117
5【Other】..................................................................... 117
Basic Terms and Conditions ............................................................ 118

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PART I 【Security Information】(1)【Fund Name】
NEXT FUNDS Nikkei 225 Exchange Traded Fund(hereinafter referred to as the “Fund”)“Nikkei 225 Exchange Traded Fund”, “Nikkei 225 Fund” or “Nikkei 225 ETF” (hereinafter referred to as the “Alias”
collectively) may also be used for the name of the Fund. The nickname of the Fund is “NF Nikkei 225 ETF”.

(2)【Legal Form, etc. of Domestic Investment Trust Beneficiary Certificates】
Open-ended Securities Investment Trust: Beneficial Interests in shares (hereinafter referred to as the “Beneficial Interests
in shares”)
Initial principal is 12,307 Yen per share.
■Credit Rating■No credit rating has been assigned or made available by a credit rating company. And no credit rating is or will beassigned or made available by a credit rating company.
All Beneficial Interests in shares of this Fund are governed by the Act on Book-Entry of Corporate Bonds, etc. (if it
becomes the “Act on Book-Entry of Corporate Bonds, Shares, etc.” after the date specified by the cabinet order, it is readas the “Act on Book-Entry of Corporate Bonds, Shares, etc.,” including “the Act on Book-Entry of Corporate Bonds,
Shares, etc.,” hereinafter referred to as the “Book-Entry Act;” the same applies hereinafter). The attribution of the
Beneficial Interests in shares shall be determined based on the statement or recording made on the book-entry transfer
account register of the Central Securities Depository set forth under “(11) Central Securities Depository” below and thatof a subordinate account management institution of the aforesaid Central Securities Depository (the “AccountManagement Institution” provided in Article 2 of the Book-Entry Act; including Central Securities Depository, hereinafterreferred to as “Central Securities Depository”). The Beneficial Interests in shares determined based on a statement orrecording made on the transfer account register are hereinafter referred to as “Transfer Beneficial Interests in shares.”
Nomura Asset Management Co., Ltd., as the Management Company of the Fund, does not issue the beneficiary certificatesthat represent Transfer Beneficial Interests in shares, except in the event of unavoidable circumstances. Furthermore,neither a bearer form nor a registered form is recognized as Transfer Beneficial Interests in shares.
(3)【Total Amount of Issue(Offering)】
Up to 20 Trillion Yen(4)【Issue (Offering) Price】
The price is the Net Asset Value* as of the acceptance day of creation application.
Please note that creation application completed, that are also accompanied by the completion of all related procedures
designated by the respective distributing company, by 3 p.m. of the acceptance day of creation application shall be deemed
to be accepted on this day. Provided that, when the creation applicant is an issuing company, etc. of component stocks in
the Nikkei 225, the time limit is 2 p.m.
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※ “ Net Asset Value (hereinafter referred to as the “NAV”)” is the amount derived by dividing total net asset value by the total number ofBeneficial Interests in shares as of the designated date. T he NAV of the Fund is indicated per 10 shares.

If you have any questions on the NAV of the Fund, please contact the Management Company at the following:
Nomura Asset Management Co., Ltd.

Support Dial: 0120-753104 (toll-free) (in Japan only)(9 a.m. - 5 p.m. on business days (Japan Standard Time))
Website: http://www.nomura-am.co.jp/(5)【Application Fee】
The application fee is an amount※ determined independently by the respective distributing company.
※Please contact the distributing company for further information.

(6)【Application Unit】
1 UNIT※ or more, available in multiple, indivisible units of 1 UNIT.
※A “ UNIT ” is comprised of the number of Beneficial Interests in shares that, when combined together in a UNIT, correspond to 1 unitof the stock portfolio which the Management Company deems will correlate to the Nikkei 225.
T he Management Company determines the details (i.e., names and numbers of the stocks that compose a UNIT ) of the actual stocks in theportfolio that correspond to 1 UNIT (hereinafter referred to as the “Designated Stock Portfolio”) as of the acceptance day of creation
application and present such details to the distributing company no later than two business days prior to this day.
1 UNIT is comprised of integer multiples of 10 shares of Beneficial Interests in shares, which are to be specified by the Management
Company on the acceptance day of creation application.

(7)【Application Period】
The application period is from September 29, 2023 to September 25, 2024.
*T he application period may be renewed by filing another securities registration statement prior to the expiration date shown above.

(8)【Place for Application】
If you have any questions regarding a place of application (hereinafter referred to as the “Distributing Company”), pleasecontact the Management Company at the following:
Nomura Asset Management Co., Ltd.
Support Dial: 0120-753104 (toll-free) (in Japan only)(9 a.m. - 5 p.m. on business days (Japan Standard Time))
Website: http://www.nomura-am.co.jp/(9)【Due Date of Payment】
An investor shall deposit the Designated Stock Portfolio to the safe custody of the Distributing Company no later than
two business days from the acceptance day of creation application.(※) In the event the market value of the Designated Stock
Portfolio falls below the fair market value of the UNIT subscribed to within the application (i.e., the fair market value
5 / 141

thereof shall be derived by multiplying the number of Beneficial Interests in shares corresponding to the UNITs subscribedto within the application by the amount of NAV per UNIT, as of the acceptance day of creation application. The same shallapply hereinafter.), the investor shall pay the amount equivalent to such difference to the Distributing Company within aperiod of two business days from the acceptance day of creation application. In addition to the above, an investor shall pay
the application fee and consumption tax, etc. thereon to the Distributing Company within a period of two business days
from the acceptance day of creation application.

＊The Distributing Company may specify the details separately. Please contact the Distributing Company forfurther details.
The shares, etc., corresponding to the aggregate issuing prices of the UNITs subscribed to within the application, as ofeach acceptance day of creation application, will be deposited by each Distributing Company into the Fund’s account,which is designated by the Trustee, on the day the additional trust is made (Monies, if included, will be deposited by theDistributing Company into the Fund’s account, designated by the Trustee, through an account designated by theManagement Company, on the day the additional trust is made.) .
(※) In the event an investor is an issuing company of a component stock within the Designated Stock Portfolio, or one of its subsidiaries(meaning a subsidiary defined in Article 2, Item 3 of the Companies Act. T he issuing company or its subsidiary is hereinafterreferred to as the “ Issuing Company, etc.”), in principle, the investor shall pay to the Distributing Company in cash (instead ofdepositing the issuing company’s stock) the amount equivalent to the aggregate market value of the issuing company’s stock in the
Designated Stock Portfolio, as well as, an amount equivalent to the expense required for the acquisition of the issuing company’s
stock for the trust property (i.e., an amount equivalent to 0.15% of the aggregate market value of such stock), within a period of
two business days from the acceptance day of creation application.

(10)【Place for Payment】
An investor shall (i) deposit the Designated Stock Portfolio to the safe custody of the Distributing Company and (ii) pay
the amount described in paragraph (9) above regarding the application fee and consumption tax, etc. thereon to theDistributing Company by the payment due date as stipulated in paragraph (9) above. If you have any questions regarding aplace of payment, please contact the Management Company at the following:
Nomura Asset Management Co., Ltd.
Support Dial: 0120-753104 (toll-free) (in Japan only)
9 a.m. - 5 p.m. on business days (Japan Standard Time))
Website: http://www.nomura-am.co.jp/(11)【Central Securities Depository】
The Central Securities Depository for the Beneficial Interests in shares of the Fund is as follows:
The Japan Securities Depository Center, Inc.

(12)【Other Information】
Not Applicable

6 / 141

PART II 【Fund Information】
I.【Overview of Fund】
1【Features of Fund】(1)【Purposes and Basic Features of the Fund】
The Fund aims at investment performance tracked to the Nikkei 225 (Benchmark Index).
The Fund is investing only in stocks that are included, or are due to be included, in the Nikkei 225. The goal of theFund is to be managed so that the proportion of the number of shares of the individual stocks in the trust assets is held ina proportion that corresponds to the proportion of the number of shares of each individual stock in the Nikkei 225, andthe Fund aims at an investment performance tracked to the Nikkei 225.
■Maximum Amount of Trust■
The maximum amount of the trust is the amount equivalent to 10 Trillion Yen; provided, however, the Management
Company may, by mutual agreement with the Trustee, alter the maximu m amount stipulated above.
This Fund is classified as a contractual open-ended stock investment trust; however, this Fund is designed with thefollowing characteristics that are different from a typical investment trust:① Beneficial Interests in shares of this Fund are listed in a financial instruments exchange
Beneficial Interests in shares of this Fund are listed in the following financial instruments exchange and are tradableat market value in the following financial instruments exchange, in the same manner as other stocks listed within
the financial instruments exchange.
Tokyo Stock Exchange
Trading unit of the Beneficial Interests in shares of this Fund is 1 UNIT or more, available in multiple, indivisible
units of 1 UNIT.
The method of trading is generally the same as that for listed stocks. Please contact a Type I Financial Instruments
Business Operator for details such as trading fees, etc.
② This Fund is Created by Means of Placing the Stock into a Trust
In principle, the Fund is created by means of placing the stock into a trust.(※)
The Management Company designates in advance the stock portfolio required for additional creation of Beneficial
Interests in shares (this stock portfolio shall be hereafter referred to as the “Designated Stock Portfolio”) to theinvestor who applies for additional creation of Beneficial Interests in shares of this Fund.
An investor acquires the Beneficial Interests in shares in the form of the Designated Stock Portfolio.
In the event the market value of the Designated Stock Portfolio falls below the fair market value of thecorresponding Beneficial Interests in shares that an investor acquires, the investor shall pay the amount equivalent
to such difference to the Distributing Company.
(※)

T he Fund is created by means of placing in trust the securities designated by the Management Company, which shall satisfy allof the following requirements (such stock is hereinafter referred to as the “T rust Eligible Securities”):

7 / 141

1 In principle, stocks that are included or are due to be included in the Nikkei 225;
2 In principle, the proportion of stocks must meet the basic investment policy of the Management Company; and3 Securities that are described in the Order for Enforcement of the Act on Investment Trusts and Investment Corporations andRegulation for Enforcement of the Act on Investment Trusts and Investment Corporations.

③ Beneficial Interests in shares are able to redeem with Stocks
A beneficiary who holds more than a specified number of Beneficial Interests in shares may redeem their Beneficial
Interests in shares with a specified amount of the actual stock portfolio existing within the trust properties, whichcorresponds to such Beneficial Interests in shares (the name and number of stocks that compose such stock portfolio
shall be designated by the Management Company, based upon the component proportion of the individual stocks
in the trust properties as of the redemption. Such stock portfolio is hereinafter referred to as the “Redemption
Basket”).
This aims to encourage the fair-price formation in the financial instruments exchange when there is a difference
between the NAV of the Beneficial Interests in shares of the Fund and the market value of the stocks composing theRedeemed Basket at the financial instruments exchange, by converging such difference through a reasonableintervening resolution.

8 / 141

＜Product Classification＞
This Fund is classified as follows, in accordance with the Guidelines for Product Classification (Shohin Bunrui ni kannsuru
Shishin) created by the Investment Trusts Association, Japan:
Please note that product classification and segmentation by attributes that apply to this Fund are designated in shade below.
（NEXT FUNDS Nikkei 225 Exchange Traded Fund）《Product Classification》
Unit Type/
Eligible Market
Open-ended Type

Eligible Investments（ Source of Income）

Domestic

Unit Type

Overseas
Open-ended Type

Domestic andOverseas

Independent
Segment

Stocks

MMF

Bonds

SupplementaryClassification

Index Type

REITs

MRF

Other Assets
（ ）

ETF

Special Type

Geographical Areas ofInvestment
GlobalIndex Followed

Multiple Assets《Segmentation by Attributes》
Eligible Investments
Timing of Accounting
PeriodStocks1 time yearly
GeneralLarge-cap
2 times yearly
Small/Mid-cap
4 times yearly
Bonds
General
6 times yearly
Public Bonds（bimonthly）
Corporate Bonds
Other Debentures
12 times yearly
Credit Attributes（monthly）
（ ）
Daily
REITs
OthersOther Assets（ ）（ ）Multiple Assets（ ）Fixed Asset Allocation
Type
Flexible Assets
Allocation TypeJapan
North America

Nikkei 225

EuropeAsia

TOPIX

Oceania
Central and South America
AfricaOthers（ ）Middle and Near East
（Middle East）
Emerging

Please refer to the following information for the definitions of product classification and segmentation by attributes mentioned
above.
Please also refer to the website of the Investment Trusts Association, Japan for definitions of product classification andsegmentation by attributes mentioned above.
《The Investment Trusts Association, Japan Website》

http://www.toushin.or.jp/
9 / 141

◆The following are the definitions of product classification and segmentation by attributes listed in the Guidelines for Product
Classification (Shohin Bunrui ni kannsuru Shishin) established by the Investment Trusts Association, Japan (as of January
19, 2023)＜Definitions of Product Classification＞［Classification of Unit Type Investment Trust and Open-ended Investment Trust］(1) Unit Type Investment Trust: A fund in which the money initially raised is placed in a trust as one unit and no additional
units are issued afterwards.
(2) Open-ended Investment Trust: A fund that issues additional units subsequent to its inception. Such additional units areinvested together with the existing trust property that was deposited within the trust at an earlier point in time.
［Classification According to the Eligible Market］(1) Domestic: A fund that has a prospectus or basic terms and conditions of the investment trust that states the majority of
the fund’s investment income from its incorporated property is substantially derived from domestic assets.
(2) Overseas: A fund that has a prospectus or basic terms and conditions of the investment trust that states the majority of
the fund’s investment income from its incorporated property is substantially derived from overseas assets.
(3) Domestic and Overseas: A fund that has a prospectus or basic terms and conditions of the investment trust that states
the majority of the fund’s investment income from its incorporated property is substantially derived from both domestic
and overseas assets.
［Classification According to the Eligible Investments］(1) Stocks: A fund that has a prospectus or basic terms and conditions of the investment trust that states the majority of thefund’s investment income from its incorporated property is substantially derived from stocks.
(2) Bonds: A fund that has a prospectus or basic terms and conditions of the investment trust that states the majority of thefund’s investment income from its incorporated property is substantially derived from bonds.
(3) Real Estate Investment Trusts (REITs): A fund that has a prospectus or basic terms and conditions of the investment
trust that states the majority of the fund’s investment income from its incorporated property is substantially derived
from beneficiary certificates of real estate investment trusts and investment securities from real estate investment
corporations.
(4) Other Assets: A fund that has a prospectus or basic terms and conditions of the investment trust that states the majorityof the fund’s investment income from its incorporated property is substantially derived from assets other than thosestated within (1) through (3) above. The prospectus or basic terms and conditions of the investment trust may note thenames of the specific assets that comprise the majority of the fund’s investment income along with its Other Assets.
(5) Multiple Assets: A fund that has a prospectus or basic terms and conditions of the investment trust that states the
majority of the fund’s investment income from its incorporated property is substantially derived from two or more
assets that are listed within (1) through (4) above.
［Independent Segment］(1) MMF (Money Management Fund): A fund classified as the MMF defined under the “Regulations on Operation of
MRF and MMF” (hereinafter referred to as the “MRF, etc., Regulations”) (MRF oyobi MMF no Un-ei ni kansuru
Kisoku).
(2) MRF (Money Reserve Fund): A fund classified as the MRF defined under the MRF, etc., Regulations.
(3) ETF: A fund classified as the Securities Investment Trust, as defined in Items 1 and 2 of Article 12 of the Order for
Enforcement of the Act on Investment Trust and Investment Corporations (Cabinet Order No. 480 of 2000) and Listed
Securities Investment Trust, as defined in Article 9-4-2 of the Act on Special Measures Concerning Taxation (Act No.
26 of 1957).
［Supplementary Classification］(1) Index Type: A fund that has a prospectus or basic terms and conditions of the investment trust that states the fund aims
at an investment performance tracked to an index.
(2) Special Type: A fund that has a prospectus or basic terms and conditions of the investment trust that states the fund isutilizing special investment structures or investment strategies, which is required to bring to the investors’ attention thecertain risks that may arise from or be associated with such structures or strategies. In the event a fund falls under thedefinition of the Conditional Management Type, as stated within the sub-classification of the segmentation by attributes
listed below, such sub-classification shall be noted in parentheses in the prospectus or the basic terms and conditions
10 / 141

of the investment trust, and in the event that a fund falls under any other items within the sub-classification of thesegmentation by attributes listed below, such sub-classification may be noted in parentheses in the prospectus or thebasic terms and conditions of the investment trust.
＜Definition of Segmentation by Attributes＞［Segmentation by Attributes According to the Eligible Investments］
Stocks(1) General: A fund of stocks that does not have attributes of Large-cap or Small/Mid-cap as described below.
(2) Large-cap: A fund that has a prospectus or basic terms and conditions of the investment trust that states the fundprimarily invests in Large-cap stocks.
(3) Small/Mid-cap: A fund that has a prospectus or basic terms and conditions of the investment trust that states the fundprimarily invests in Small/Mid-cap stocks.
Bonds(1) General: A fund of bonds that does not have attributes of Public Bonds, Corporate Bonds, or Other Debentures as
described below.
(2) Public Bonds: A fund that has a prospectus or basic terms and conditions of the investment trust that states the fundprimarily invests in government bonds (including local bonds, government guaranteed bonds, government agency
securities, and supranational bonds. The same shall apply hereinafter.) issued by the Japanese government or any othercountry’s government.
(3) Corporate Bonds: A fund that has a prospectus or basic terms and conditions of the investment trust that states the fundprimarily invests in bonds issued by private companies or corporations.
(4) Other Debentures: A fund that has a prospectus or basic terms and conditions of the investment trust that states thefund primarily invests in any bonds other than public bonds or corporate bonds.
(5) Credit Attributes: In the event any matter related to the credit status of an issuer of bonds is clearly mentioned, in
addition to the segmentation by attributes categorized by the nature of the bonds issuer listed above, in a prospectus
or basic terms and conditions of the investment trust of a fund, a description related to the issuer’s credit status (e.g.,high-grade bonds or low-grade bonds) may be mentioned in addition to the segmentation by attributes listed from (1)through (4) above.
REITs: There are no additional categories.
Other assets: The name of the assets in which a fund invests shall be written in a prospectus or the basic terms andconditions of the investment trust.
Multiple Assets: In the event a fund falls under any of the following sub-classifications, such sub-classification may be
written in a prospectus or the basic terms and conditions of the investment trust:(1) Fixed Asset Allocations Type: A fund that has a prospectus or basic terms and conditions of the investment trust thatstates the fund invests in two or more kinds of assets and the allocation ratio for each asset is fixed. In such cases, thetype of invested assets shall be written in the prospectus or the basic terms and conditions of the investment trust.
(2) Flexible Asset Allocation Type: A fund that has a prospectus or basic terms and conditions of the investment trust thatstates the fund invests in two or more kinds of assets, and (i) it also states the allocation ratio for each asset may change
flexibly from time to time or (ii) it does not state the allocation ratio for each asset is fixed. In such cases, the type ofinvested assets shall be written in the prospectus or investment trust deed. In each case, the type of invested assets shallbe written in the prospectus or the basic terms and conditions of the investment trust.
［Segmentation by Attributes According to the Timing of Accounting Period］(1) 1 Time Yearly: A fund that has a prospectus or basic terms and conditions of the investment trust that states the fundcloses its account once a year.
(2) 2 Times Yearly: A fund that has a prospectus or basic terms and conditions of the investment trust that states the fundcloses its account twice a year.
(3) 4 Times Yearly: A fund that has a prospectus or basic terms and conditions of the investment trust that states the fundcloses its account four times a year.
(4) 6 Times Yearly (Bimonthly): A fund that has a prospectus or basic terms and conditions of the investment trust thatstates the fund closes its account six times a year.
(5) 12 Times Yearly (Monthly): A fund that has a prospectus or basic terms and conditions of the investment trust that
11 / 141states the fund closes its account twelve times a year (monthly).
(6) Daily: A fund that has a prospectus or basic terms and conditions of the investment trust that states the fund closes its
account every day.
(7) Others: Any other fund that does not have the attributes of (1) through (6) above regarding the timing of its accounting
period.
［Segmentation by Attributes According to the Geographic Areas of Investment (A Fund May Fall Under Two or More
Categories Below)］(1) Global: A fund that has a prospectus or basic terms and conditions of the investment trust that states the majority of
the investment income from the fund portfolio derives from global assets; provided it shall be clearly stated whether
or not such global assets include Japanese assets.
(2) Japan: A fund that has a prospectus or basic terms and conditions of the investment trust that states the majority of theinvestment income from the fund portfolio derives from Japanese assets.
(3) North America: A fund that has a prospectus or basic terms and conditions of the investment trust that states the
majority of the investment income from the fund portfolio derives from North American assets.
(4) Europe: A fund that has a prospectus or basic terms and conditions of the investment trust that states the majority of
the investment income from the fund portfolio derives from European assets.
(5) Asia: A fund that has a prospectus or basic terms and conditions of the investment trust that states the majority of theinvestment income from the fund portfolio derives from Asian assets (this does not include Japanese assets).
(6) Oceania: A fund that has a prospectus or basic terms and conditions of the investment trust that states the majority of
the investment income from the fund portfolio derives from Oceanian assets.
(7) Central and South America: A fund that has a prospectus or basic terms and conditions of the investment trust thatstates the majority of the investment income from the fund portfolio derives from Central and South American assets.
(8) Africa: A fund that has a prospectus or basic terms and conditions of the investment trust that states the majority of
the investment income from the fund portfolio derives from African assets.
(9) Middle and Near East (Middle East): A fund that has a prospectus or basic terms and conditions of the investment trustthat states the majority of the investment income from the fund portfolio derives from Middle and Near Eastern assets.
(10) Emerging: A fund that has a prospectus or basic terms and conditions of the investment trust that states the majorityof the investment income from the fund portfolio derives from the assets of the emerging areas (emerging growthcountries (areas)).
［Segmentation by Attributes According to the Investment Form］(1) Family Fund: A fund that has a prospectus or basic terms and conditions of the investment trust that states the fundprimarily invests in the mother fund (this does not include a mother fund that only invests in the fund of funds, as
defined below).
(2) Fund of Funds: A fund of funds as defined in Article 2 of the “Regulations on Investment of Investment Trust” (Toushishintaku tou no Un-you ni kansuru Kisoku)［Segmentation by Attributes According to Currency Hedge］(1) Currency Hedging: A fund that has a prospectus or basic terms and conditions of the investment trust that states thefund is fully or partially hedged against fluctuations within currency exchange rates.
(2) Without Currency Hedging: A fund that has a prospectus or basic terms and conditions of the investment trust that (i)states the fund is not hedged against fluctuations within currency exchange rates or (ii) does not state the fund is hedged
against fluctuations within currency exchange rates.
［Segmentation by Attributes of the Index Type Fund According to the Index Followed］(1) Nikkei 225(2) TOPIX(3) Others: Any Index other than (1) and (2) above.
［Special Type］(1) Bull/Bear Type: A fund that has a prospectus or basic terms and conditions of the investment trust that states the fundutilizes derivatives not for hedging purposes, but as a means of aggressive investment, aiming at investment
performance tracked to, or inversely tracked to, a specific index or property (including, track and/or reverse track to a
specific multiple).
(2) Conditional Management Type: A fund that has a prospectus or basic terms and conditions of the investment trust thatstates the fund is investing in structured bonds or other special investment schemes; hence the performance of the fund
12 / 141(including, NAV, redemption price and/or income distribution) and the termination date of the trust will be determinedin accordance with the condition(s) which is/are to be fulfilled by a certain number/value of an index, etc.
(3) Long-Short Type/Absolute Return Target Type: A fund that has a prospectus or basic terms and conditions of theinvestment trust that states the fund seeks to generate an absolute return regardless of the direction of a specific market,
or that the fund seeks to generate a positive return by utilizing the long-short strategy.
(4) Other Type: A fund that has a prospectus or basic terms and conditions of the investment trust that states the fundutilizes a special investment strategy or scheme other than (1) through (3) above.

(2)【Fund History】
July 9, 2001:

Execution of the Fund’s trust agreement, Fund’s inception date, and commencement of Fund’s
management.

July 13, 2001:

Listing of the Fund’s beneficiary certificates on the Osaka Stock Exchange.

July 16, 2013:

Listing of the Fund’s beneficiary certificates on the Tokyo Stock Exchange following themerger of the Osaka Stock Exchange and the Tokyo Stock Exchange.

September 30, 2020:

Renaming the Fund from “Nikkei 225 Exchange Traded Fund” to “NEXT FUNDS Nikkei 225
Exchange Traded Fund.”(3)【Fund Scheme】

Fund

Management Company

Securities Investment
Trust Agreement

Trustee[Custody and Administration of the Fund][Instruction for the Fund Operations]

Agreement regarding
Offering and Distribution

Distributing Company[Dealing in Offering and Distribution, Acceptanceof Redemption Requests, Purchases of Beneficial
Interests in shares, as well as, Redemption upon
Termination of Trust]

Investor(Beneficiary)

13 / 141

Fund

NEXT FUNDS Nikkei 225 Exchange Traded FundManagement Company

Nomura Asset Management Co. Ltd.

(Trustor)
Trustee Company

Mitsubishi UFJ Trust and Banking Corporation(Trustee)(Re-trustee: The Master Trust Bank of Japan, Ltd.)■ Profile of the Management Company (as of the end of August 2023) ■・Corporate Name
Nomura Asset Management Co., Ltd.
・Capital Amount
17,180 Million Yen・History
December 1, 1959

Established as Nomura Securities Investment Trust Co., Ltd.

October 1, 1997

Merged with Nomura Investment Management Co., Ltd., an
investment management company, and changed the corporatename to “Nomura Asset Management Co., Ltd. (Nomura AssetManagement Toushin Kabushiki Kaisha)”November 1, 2000

Renamed to “Nomura Asset Management Co., Ltd. (Nomura
Asset Management Kabushiki Kaisha)”

・Major Shareholders
Name

Nomura Holdings, Inc

Address
1-13-1, Nihonbashi, Chuo-ku, Tokyo,
Japan

Number of Shares Holding
Held

Ratio

5,150,693

100％

2【Investment Policy】(1)【Investment Policy】
The Fund is investing only in stocks that are included, or are due to be included, in the Nikkei 225. The goal of the Fundis to manage it so that the proportion of the individual stocks in the trust assets are held in a proportion that corresponds
to the proportion of these individual stocks within the Nikkei 225. Additionally, the Fund aims at an investment
performance tracked to the Nikkei 225.
The Management Company may issue investment instructions to adjust the components of the trust assets in order tomeet the policy listed above:-

If the calculation method of the Nikkei 225 changes;-

If an adjustment to the divisor of the Nikkei 225 occurs;-

If any change to the selected stocks in the Nikkei 225 occurs;-

If any additional trust or redemption of this trust is made; or
14 / 141-

In other instances, if it is necessary to ensure the track to the Nikkei 225.

Stocks that are indicated for investment are stocks that are issued by corporations and included, or are due to be included,in the Nikkei 225. However, this indication is not necessary for stocks that are acquired through allotments tostockholders.
Notwithstanding the above, with the purpose of achieving identical profits and losses, as those achieved from theinvestment in stocks included within the Benchmark Index, or stocks that are due to be included within the Benchmark
Index, the Fund may make complementary purchases of stock index futures of the Benchmark Index to maintainperformance tracking to the Nikkei 225 until investing in the stocks.
Management in accordance with the investment policy described above may not be possible due to funding trends ormarket trends.

Copyright, etc. of “Nikkei Stock Average (Nikkei 225)”
1. The Nikkei Stock Average (“Index”) is a copyrighted material calculated in a methodology independently
developed and created by Nikkei Inc. and Nikkei Inc. is the sole exclusive owner of the copyright andother intellectual property rights in the Index itself and the methodology to calculate the Index;
2. The intellectual property and any other rights in the marks to indicate Nikkei and the Index shall be vested
in Nikkei Inc.;
3. Nikkei Inc. does not sponsor, support, sell or market the Investment Trust. Nikkei Inc. has - besides
granting the license to the Nomura Asset Management Co., Ltd. to use certain trademarks and to use theIndex for the Investment Trust – no connection with the Investment Trust. The license agreement between
Nikkei Inc. and the Licensee does not provide any rights to any third parties.
4. The Investment Trust is managed exclusively at the risk of the Nomura Asset Management Co., Ltd. and
Nikkei Inc. shall assume no obligation or responsibility for its management and transactions of theInvestment Trust. Nikkei Inc. is not responsible for the accuracy and the calculation of the Investment
Trust or the data contained therein.
5. Nikkei Inc. shall not have the obligation to continuously announce the Index and shall not be liable forany error, delay, interruption, suspension or cessation of announcement thereof; and6. Nikkei Inc. shall have the right to change the description of the stocks included in the Index, the calculation
methodology of the Index or any other details of the Index and shall have the right to suspend or cease theannouncement of the Index without owning any liability to the Nomura Asset Management Co., Ltd. or
any other third party.

(2)【Investment Assets】
The Fund is investing only in stocks that are included, or are due to be included, in the Nikkei 225. The goal of the Fundis to manage it so that the proportion of the individual stocks in the trust assets are held in a proportion that corresponds
to the proportion of these individual stocks within the Nikkei 225. Additionally, the Fund aims at an investment
performance tracked to the Nikkei 225.
Stocks that are indicated for investment are stocks that are issued by corporations and included, or are due to be included,in the Nikkei 225.

However, this indication is not necessary for stocks that are acquired through allotments tostockholders.
① Types of Assets as Investment Assets (Article 24 of the Basic Terms and Conditions of the Fund)
The types of assets included as investment assets under this trust (limited to the ones displayed in Japanese Yen)
are listed below:(1) Specified Assets (meaning “the Specified Assets” defined in Article 2, Paragraph 1, of the Act on Investment
15 / 141

Trusts and Investment Corporations; the same applies hereinafter.)(a) Securities(b) Rights pertaining to Derivative Transactions (meaning those provided in Article 2, Paragraph 20 of the
Financial Instruments and Exchange Act, and limited to those provided in “Item 5 of ③ Scope ofInvestment Instruction with respect to Financial Instruments and Futures Transactions” below)(c) Promissory Notes (excluding those that fall within the category of Item (a) hereof)(d) Monetary Claims (excluding those that fall within the category of Item (a) and (c) hereof)(2) Assets Other than Specified Assets listed below:(a) Bills of Exchange② Scope of Investment Instructions with Respect to Stocks (Article 25, Paragraph 1 of the Basic Terms and Conditionsof the Fund)
The Management Company shall indicate to invest the trust property in stock.
③

Scope of Investment Instruction with Respect to Financial Instruments and Futures Transactions (Article 25,
Paragraph 2 of the Basic Terms and Conditions of the Fund)
The Management Company may give instructions to manage the money belonging to the trust property through thefollowing financial instruments and futures transactions, until investing in the stocks in accordance with theinvestment policy:(1) Deposits;(2) Specified Cash Trusts (excluding those indicated by beneficiary certificates of beneficiary securities issuingtrusts prescribed in the Trust Act (Act No.108 of 2006) (provided in Article 2, Paragraph 1, Item 14 of the
Financial Instruments and Exchange Act.);(3) Call Loans;(4) Negotiable Instruments Traded on the Discount Market; or(5) Stock Price Index Futures Trading that Target the Nikkei 225 (meaning those related to stock index among
those described in Article 28, Paragraph 8, Item 3 of Financial Instruments and Exchange Act. The same
applies hereinafter.).

(3)【Organization and Framework of Investment Management】
Organization and Framework of Fund’s Investment Management are as follows:

16 / 141

Management and Analysis of Index
Data by Investment Technology
Department
Request forManagement
and Analysis ofIndex Data

Analysis of the Fund
by Investment and Research
Department

ProvideManagement andAnalysis Result

Disclose
Investment
Status and Data

ProvideAnalysis Results

Investment Management Team
ProvideInstructions for
T rading

Placement of Securities Orders
by Trading Department

The Management Company has established internal regulations regarding its fund management operations,
including regulations regarding the fund managers, as well as, regulations or guidelines regarding, for example,
swap transactions, credit risk management, debt financing, foreign exchange forward transactions, and credit
transactions.

17 / 141

The organizations that supervise the internal controls and decision making of the investment trusts (including thisFund) within the management system of the Management Company are as follows:

Executive Management Committee, etc.
Investment Policy Committee

Overseeing, Supervising, and Instructing through Development Process
and Implementation Process of Investment Strategy

Internal Audit
Department

Senior Managing Director, etc.
in Charge of Investment Management-

Reporting to Board of Directors regarding the
Execution of their Duties

Head of Investment Management
Department

Periodically Confirming and Reporting the
Implementation of Investment Management
along with Investment Management Policy--

Investment Management Team/Person

Setting up the Investment Management Plan upon the Inceptionof the Fund and Obtaining Approval from Senior Managing
Director in charge of Investment Management, as well as, Headof Investment Department
Periodically Reporting the Fund’s Investment Management
Status-(about 5-10 people)
Research and Evaluation
on Internal Controls of
Overall Business including
Investment Management,in terms of Effectivenessand Validity
Advise or Suggest
Business Improvements
based on their Evaluation
Periodically Reporting theresults of Internal Audit to
Executive
Management
Committee

Compliance Department-(about 30-40 people)
Review and Provide
Guidance on Legal
Compliance
Audit and Provide Guidance
regarding Legal Complianceand Rules for T rading
OrdersCommittee on Analyses and Evaluations etc., of Investment Product
Deliberating Analyses and Evaluations of Investment Performance≪Management Company’s System of Control Over the Corporations Involved with the Fund (This Does Not Include theDistributing Company) ≫The Management Company verifies the value of net assets held by the Trustee (or trustee company of the Trustee) on adaily basis and its account balances on a monthly basis. In addition, the Management Company periodically receives fro m
the Trustee the audit report prepared by an auditor of the Trustee (or trustee company of the Trustee) with respect to theassurance of effective internal controls of the entrusted business of the Trustee (or trustee company of the Trustee).
In the event that the Management Company outsources the investment operations, the Management Company usually
examines and confirms with the third party that entered the agreement to perform the outsourced investment operations
whether each daily transaction made by the third party is in accordance with the investment guidelines. Further, theManagement Company requires all third parties involved in outsourcing to submit compliance reports so as to receive
periodic reports regarding the internal management of the the third parties involved in the outsourcing. Furthermore, theManagement Company examines and evaluates the internal management and compliance system of the third parties andperiodically reports these examinations and evaluations to the product committee of the Management Company.
Organization and framework of the Fund’s investment management may be subject to change in the future.

18 / 141

(4)【Distribution Policy】① As a general rule, the full amount of the Dividends and Other Income generated from the trust property (meaning
the amount derived by deducting interest paid from the aggregated value of dividends received, stock dividends,
interest income, and other income; the same applies hereinafter.), after the deduction of Expenses (meaning the sumof trust fees, consumption tax, and local consumption tax on the trust fees and other costs; the same applies hereinafter.),shall be distributed. However, no distribution may be paid in some circumstances. If profits are earned from the sale
and/or purchase of stock, no distribution shall be paid.
② Dividends and Other Income arising from the trust property and reserve for distribution carried forward from theprevious calculation period shall be distributed to beneficiaries at every calculation period of the trust after deducting
the total amount of Expenses and, if the reserve for distribution carried forward from the previous calculation period
is a negative number, after including such amount in the overall figure. If, however, for the purpose of making
adjustments to the income distribution amount, a portion or all of the amount is retained within the trust property, suchamount may be put aside as reserve for distribution and be allocated to the distribution in the following calculation
period or thereafter. In the event that Expenses and a negative amount of reserve for distribution cannot be fully
deducted, the difference shall be carried forward to the following calculation period as a negative amount of reservefor distribution.
③ At the end of every calculation period, the total amount of income arising from the trust property described in Item
(1) below shall, after deducting the loss described in (2) below therefrom, and, if there is an amount of loss carriedforward, after fully including such amount to the overall figure, be carried forward to the next calculation period:(1) Gains from sale of securities, gains from trading futures transactions, etc., gains from additional trusts, and gains
from redemption;(2) Losses from sales of securities, losses from trading futures transactions, etc., losses from additional trusts, andlosses from redemption.
＊T here is no suggestion or guarantee regarding the payment or the amount of future distribution.

(5)【Investment Restrictions】①

Restriction on Percentage of Investment in Stocks (Article 26, Item 4 of the Basic Terms and Conditions of the
Fund)
There is no restriction on the percentage of investment in stocks.

②

Scope of the Stocks to be Invested In (Article 26, Item 3 of the Basic Terms and Conditions of the Fund)
Stocks that are indicated by the Management Company to be invested in are stocks which are issued by corporations
and included, or are due to be included, in the Nikkei 225. However, this indication is not necessary for stocks thatare acquired through allotments to stockholders.

③ Instruction and Scope for Lending of Stocks (Article 28 of the Basic Terms and Conditions of the Fund)(i) In order to contribute to the efficient management of the trust property, the Management Company may give
instructions to lend stocks that belong to the trust property, so long as the total market value of the loaned stocks
at the time of lending does not exceed the total market value of stocks held under the trust property.
(ii) In the event the maximum permitted amount described in (i) above is exceeded, the Management Company shallpromptly take actions to cancel such lending contract(s) whose value is equivalent to the value of such exceeds.
19 / 141

(iii) The Management Company may instruct to accept collateral when it deems necessary upon lending stocks.
④ With the purpose of achieving identical profits and losses, as those achieved from the investment in stocks included
within the Benchmark Index, or stocks that are due to be included within the Benchmark Index, the Fund may makecomplementary purchases of stock index futures of the Benchmark Index to maintain performance tracking to the
Nikkei 225 until investing in the stocks. (Article 26, Item 5 of the Basic Terms and Conditions of the Fund)⑤ Derivative transactions, etc. (meaning derivative transactions, etc., described under the rules of the Investment Trust
Association of Japan), of a value calculated by a reasonable method described under the rules of the Investment
Trust Association of Japan, that exceeds the total net asset value of the trust property, shall not be used. (Article 26,
Item 7 of the Basic Terms and Conditions of the Fund)⑥

The ratio of stock exposure, bond exposure, and derivative exposure to a person described under the rules of theInvestment Trusts Association, Japan, for the total net asset value of the trust property will not exceed 10%
respectively, or 20% in total. If such ratio exceeds such rates, the Management Company shall make adjustments
so that such ratio is within such rate in accordance with the rules of the Investment Trusts Association, Japan.
(Article 26, Item 8 of the Basic Terms and Conditions of the Fund)⑦ Restriction on Investment in Stocks issued by a Single Corporation (Article 9 of Act on Investment Trusts andInvestment Corporations)
The Management Company may not instruct the Trustee to use the trust property to acquire stocks issued by a single
corporation if this would cause the number referred to in item (i) below to exceed the number referred to in item(ii) below:(i) The total number of voting rights from stocks held by all of the Funds managed under instructions from theManagement Company;(ii) The number arrived at when the total number of voting rights from those stocks is multiplied by the rate offifty-hundredths (50/100).

20 / 141

3【Investment Risks】≪Factors that Contribute to NAV Volatility≫

The NAV of the Fund is subject to fluctuations in the prices of the securities in which the Fund invests. All profits andlosses arising from fund management are borne by the investors.
Any principal invested in the Fund by investors is therefore not guaranteed. Investors may incur a loss and the valueof their investment principal may fall below par as the result of a decline in the NAV. The investment trust differsfrom a savings deposit.
［Stock Price Fluctuation Risk］
NAV of the Fund may be influenced by stock price fluctuations since the Fund invests in stocks.
※T he factors that contribute to fluctuations in NAV of the Fund are not limited to those mentioned above.

≪Primary Factors for Discrepancies Between the Benchmark Index and NAV≫

The Fund aims at an investment performance for NAV volatility tracked to that of the Benchmark Index; however, inmanaging the investment assets, we cannot guarantee that movements will be identical to those of the Benchmark
Index primarily for the following reasons:① The Fund may incur market impact or bear costs such as brokerage commission, etc., due to the trading ofindividual stocks, such as when portfolio adjustments are made due to changes of the component stocks in the
Benchmark Index, partial redemption of actual stocks or any other causes.
② When cash remains as part of the trust assets as a result of additional creation partially made by cash, dividends
obtained from individual incorporated stocks, or rights handling, etc.
③ There may be a price spread between the sale price and the appraised value of the object stocks.
④ We cannot make individual stocks’ incorporated ratio in the Fund completely the same as the component
proportion of component stocks in the Benchmark Index.
⑤ When futures transactions are made, there may be a disparity between the prices of the futures and the Benchmark
Index.
⑥ The Fund bears certain costs, such as trust fees.
※T he factors that contribute to the discrepancy between the Benchmark Index and NAV of the Fund are not limited to thoselisted above.

≪Additional Considerations≫◆ The provisions stipulated in Article 37-6 of the Financial Instruments and Exchange Act (so-called “cooling off”) are notapplicable to transaction of the Fund.

◆There are risks that trading cannot be done at the price expected with the market condition or trading amount is restrictedbecause of temporal decline in liquidity of the incorporation property if fund for redemption is to be raised in a short time
to deal with a large number of redemption or market condition is suddenly changed in major markets. Due to these risks,
there are possibilities with adverse effect on the NAV, suspension of acceptance of application for conversion into cash,
or payment delay of converted cash, etc.
◆ Management based upon the investment policy may not be achieved depending on funding trends, market trends, etc., or
unexpected circumstances.
◆ The interest/termination amount from the issuers of the securities which are incorporated into the Fund may be delayed.
◆ Transactions pertaining to the Fund, such as an investment in securities and contracts related to such fund, may default
21 / 141

because of a bankruptcy, or other similar event, occurring to a counterparty.
◆ NAV of the Fund and the Benchmark Index may differ because of costs and other factors. It is not guaranteed that theFund’s investment performance will track or exceed the Benchmark Index.
◆ The market price of the Fund is determined based upon supply and demand, as calculated through competitive buying
and selling on the exchange. Therefore, market price of the Fund may differ from the NAV itself.
≪Risk Management System of the Management Company≫
Committee Related to Risk Management◆ Examination of the Fund Performance
The committee reports and deliberates on the results of periodic examinations (analysis/evaluation) of theinvestment trust’s asset performance results.
◆ Administration of Operational Risk
The committee identifies and manages operational risk and based on its findings, provides guidance to theappropriate divisional management and any other relevant sections regarding corrective measures for appropriate
administration.
※Liquidity risk management
The committee establishes rules on liquidity risk management, monitors liquidity risk of incorporated assets of theFund, and formulates and inspects the contingency plan. The committee on risk management supervises proper
performance and structure of liquidity risk management.
Diagram of Risk Management System

Investment Risk Management Committee

Examination of the Fund
Performance-

Monitoring the Investment Performance
Examination (Analysis/Evaluation) of theInvestment Performance.

-

ProvidingAnalysis,
Evaluations, andInstructions

Operational Risk Management

Monitoring, Examining, and Managing
Compliance with Basic Terms andConditions of the T rust
Monitoring, Examining, and Managing theCredit Risk and Liquidity Risk ofInvestment Assets

ProvidingAnalysis andReporting

Investment Trust Management Department※T he investment risk management system described above may be subject to change in the future.

22 / 141

Risk Quantitative Comparison (from the end of August 2018 to the end of July 2023, per month.)<The Fund’s annual return and the change of distribution re-investment net asset value >Fund annual return (Right Axis)
Distribution re-investment net asset value (Left Axis)

Aug. 2018

Jul. 2019

Jul. 2020

Jul. 2021

Jul. 2022

Jul. 2023* The distribution re-investment net asset value is calculated by deeming that the distribution before income taxes is reinvested. The distribution re-investment net asset value is set by indexing the net asset value as of the end of August 2018 as
10,000.
* The annual return displays the return in a single year at the end of each month for the five years from August 2018 to July2023.

23 / 141

<Comparison of return between the Fund and the major asset class>Maximum Value (The Fund)
Minimum ValueT he Fund

Maximum
Value (%)
Minimum
Value (%)
Average(%)

Maximum Value

Minimum Value (The Fund)

Average

Japanese
StocksAdvanced
Economies
StocksEmerging
Economies
StocksJapanese
Government
Bonds

The FundJapanese
Stocks56.3

42.1

Advanced
Economies
Stocks
59.8△ 10.5

△16.0

△12.4

△19.4

8.3

6.3

14.6

5.5

Advanced
Economies
Bonds

Emerging
Japanese
Economies Government
Stocks
Bonds
62.7
5.4

Emerging
Economies
Bonds

Advanced
Economies
Bonds
7.9

Emerging
Economies
Bonds
21.5

△5,5

△6.1

△9.4

△0.5

2.8

2.7

* Not all asset classes are the subject of the Fund investment.
* The above graph displays the Maximum Value, the Minimum Value and the Average of the annual return at the end of eachmonth for the five years from August 2018 to July 2023.
* The above numbers may not apply as of the accounting date.
* The Fund uses the return of the distibution re-investment net asset value.
* The distribution re-investment net asset value may occasionally differ from the actual basis price due to the distribution
being deemed re-invested before the application of income taxes.
<The index of the major asset class>○Japanese Stocks: TOPIX Total Return Index○Advanced Economies Stocks: MSCI-KOKUSAI Index (including dividend, based on Japanese Yen)
○Emerging Economies Stocks: MSCI Emerging Markets Index (including dividend, based on Japanese Yen)
○Japanese Government Bonds: NOMURA-BPI JGB○Advanced Economies Bonds: FTSE World Government Bond Index (excluding Japan, unhedged, based on Japanese Yen)
24 / 141

○Emerging Economies Bonds: JP Morgan Government Bond Index - Emerging Markets Global Diversified (based onJapanese Yen)
■Copyright, etc., for the Index of the Major Asset Class■○TOPIX Total Return Index…The TOPIX Total Return Index Value and the TOPIX Total Return Index Marks are subject
to the proprietary rights owned by JPX Market Innovation & Research, Inc. or affiliates of JPX Market Innovation & Research,
Inc. (hereinafter collectively referred to as “JPX”) and JPX owns all rights and know-how relating to TOPIX Total Return
Index such as calculation, publication, and use of the TOPIX Total Return Index Value and relating to the TOPIX Total
Return Index Marks. JPX shall not be liable for the miscalculation, incorrect publication, delayed or interrupted publicationof the TOPIX Total Return Index Value. No Licensed Product is in any way sponsored, endorsed, or promoted by JPX, and
JPX shall not be responsible for any damage resulting from the issue and sale of the Licensed Product.
○MSCI-KOKUSAI Index (including dividend, based on Japanese Yen), MSCI Emerging Markets Index (including dividend,
based on Japanese Yen)…MSCI-KOKUSAI Index (including dividend, based on Japanese Yen) and MSCI Emerging Markets
Index (including dividend, based on Japanese Yen) are the indexes developed by MSCI. Copyright, intellectual property
rights, and all other rights to these indexes belong to MSCI. In addition, MSCI also retains the right to change the contents
and to suspend the disclosure of these indexes.
○NOMURA-BPI JGB…The intellectual property rights concerning NOMURA-BPI JGB belong to Nomura Fiduciary
Research & Consulting Co., Ltd. Furthermore, Nomura Fiduciary Research & Consulting Co., Ltd. does not guarantee theaccuracy, integrity, credibility, or usefulness of the Nomura-BPI JGB, and takes no responsibility for the business activities
and services provided by Nomura Asset Management Co., Ltd. when using the NOMURA-BPI JGB.
○FTSE World Government Bond Index (excluding Japan, unhedged, based on Japanese Yen )…“FTSE World Government
Bond Index (excluding Japan, unhedged, based on Japanese Yen )” is the bond index operated by FTSE Fixed Income LLC
for the bond index comprised of the total investment profits of the government bonds of the major countries in the world,
excluding Japan, as weight-averaged by the market capitalization in each market, and FTSE World Government Bond Index(excluding Japan, unhedged, based on Japanese Yen) is the intellectual property of FTSE Fixed Income LLC, and all rights
regarding the index are retained by FTSE Fixed Income LLC.
○JP Morgan Government Bond Index -Emerging Markets Global Diversified (based on Japanese Yen)…The information
provided here regarding the “JP Morgan Government Bond Index -Emerging Markets Global Diversified (based on JapaneseYen)” (here, for the sake of convenience, referred to as the “Index”.) (said information includes the Index level, but is not
limited thereto) is used only for informative purposes, and is not intended as a solicitation for the sale and purchase of
Financial Instruments, nor does it officially confirm certain sales and purchase, nor does it define the value and price of certain
products related to the Index. Also, the Index does not legally constitute accounting advice regarding investment strategy andtax. The market price, data and other information included here are considered accurate, but JPMorgan Chase & Co. and its
subsidiary company (hereinafter referred to as “JPM”) do not guarantee completeness and accuracy. The information included
here may sometimes be changed without notice. Past performance does not suggest future return. With respect to the financial
instruments of the issuers included in this document, JPM and its employees may possess both long and short positions, may
perform sales and purchases, may perform market-making, and may also possibly be a subscriber of issuers, placement
agencies, advisers, and lenders.
The United States J.P. Morgan Securities LLC (here referred to as “JPMSLLC” and “Index sponsors” for the sake of
convenience) does not support, warrant or promote the sale of securities, financial instruments, and transactions concerning
the Index (here, referred to as the “Products” for the sake of convenience). The Index sponsors do not make any representation,
25 / 141

warranty, conveyance or suggestion regarding the promotion of an investment in securities, any financial commodity, or,especially, the Products, or regarding whether or not interlocking with the Index in investment opportunities in the financial
market, or intention to its, can be promoted. The Index sponsors are not liable for any management, marketing, or trading
regarding the Products. The Index is calculated based on information which is considered to be trustworthy, but thecompleteness, accuracy, and information accompanying the Index is not guaranteed. The Index is property of the Indexsponsors, and any property rights to the Index shall belong exclusively to the Index sponsors.
JPMSLLC is an NASD, NYSE and SIPC member. JP Morgan is name that is used when JP Morgan Chase Bank, NA, JPSI,
J.P. Morgan Securities PLC., or companies affiliated with these companies conduct investment banking business.
(Source: Nomura Research Institute, Ltd., FTSE Fixed Income LLC, etc.)

26 / 1414【Fees, Charges, and Taxes】(1)【Application Fee】
Application fee shall be set independently by the Distributing Company.** Please contact the Distributing Company for further information. When you want to know the Distributing Company, please direct
your call to “ Support Dial”.

The creation fee is collected at the time of creation to the Fund and is in consideration for the office procedures related
to the creation of the Fund.

(2)【Redemption Fee】
Upon the redemption or purchase of the Beneficial Interests in shares, the Distributing Company may charge an amountequivalent to the commission, determined independently by the Distributing Company, as well as, the consumption tax,
etc. on such commission.
Please contact the Distributing Company for further information. When you want to know the Distributing Company,
please direct your call to “Support Dial”.
The redemption commission is collected at the time of the Fund redemption, in consideration for the office procedures
related to the redemption of the Fund.

(3)【Trust Fees and Charges】
The total amount of the trust fee is the sum of the amount calculated by the method stated in ① below and the amountcalculated by the method stated in ② below; provided, however, that the sum of the amount (exclusive of taxes)
calculated by the method stated in ① below and the amount (exclusive of taxes) calculated by the method stated in ②
below shall not exceed the amount obtained by multiplying the total net asset value of the trust properties by a rate of
0.165% per annum, less the expenses pertaining to the listing of the Fund that are borne by the investors, as well as, fees
for the use of trademarks pertaining to the Benchmark Index that are also borne by the investors.
① The amount obtained by multiplying the daily total net assets of the Fund by the annual trust fee rate.
The trust fee rate and its distribution is as follows, according to the total net asset value of the Fund as of the lastbusiness day of every January and July. The trust fee rate according to the total net asset value of the Fund as ofthe last business day of July 2023 is 0.11715% (0.1065% exclusive of taxes) per annum, which is valid from
September 29, 2023 to March 27, 2024.
More than More thanMore than 1 More than 2 More than 45 trillion 8 trillion
The Total Net Assets of the
1 trillion yen trillion yen, up trillion yen, up trillion yen, up
yen, up toyen
Fundor less
to 2 trillion
to 4 trillion
to 5 trillion
8 trillion
yen
yen
yen
yen
0.1815%0.1595%0.1485%0.110%
0.088%
0.044%(0.165%(0.145%(0.135%(0.100%(0.080%(0.040%
Annual Trust Fee Rateexclusive of exclusive of exclusive of exclusive of exclusive exclusive
taxes) per
taxes) per
taxes) per
taxes) perof taxes) of taxes)
annum
annum
annum
annum
per annum per annum
The Payee Distribution (Exclusive of Taxes) and the Service Details
27 / 141

<Management Company>
Fund operations andinvestigations related to Fundoperations, instructions totrustees, preparation of legal
documents, estimating baseprice, etc.

0.10%
per annum

0.095%
per annum

0.095%
per annum

0.085%
0.07%
0.03%
per annum per annum per annum<Trustee>
The storage/management ofproperty of the Fund, executionof instructions from theManagement Company, etc.

0.065%
per annum

0.05%
per annum

0.04%
per annum

0.015%
0.01%
0.01%
per annum per annum per annum② When the Fund lends stocks, an amount obtained from no more than 44% (40% exclusive of taxes) of the rental
fee accrues on a daily basis.
The distribution shall be 80% for the Management Company and 20% for the Trustee.
The trust fee of the Fund is summed up daily, and reflected within the NAV of the Fund. Also, the total amount of thetrust fee is paid from the Fund (a) on every last day of the first six months of any calculation period and (b) every last
day of any calculation period or the termination date of the trust.

(4)【Other Fees and Charges】① Taxes relating to the Fund, various expenses required in trust administration and interest on advances made by theTrustee, shall be borne by the beneficiaries and paid from the trust property. In addition, the expenses pertaining to
the listing of the Fund and Fees for the Use of Trademarks, as well as, the amount equivalent to the consumption tax,
and other taxes and fees thereon shall be borne by the beneficiaries and may be paid from the trust property. The
Management Company is responsible for the amount that is not paid out of the trust property.
◆ Fees for the Use of Trademarks pertaining to the Benchmark Index (as of September 28, 2023)
A percentage of not more than 0.0275% (0.025% exclusive of taxes) of the Fund’s total net assets.
◆ Expenses pertaining to Listing of the Fund (as of September 28, 2023)
・Additional listing fee: 0.00825% (0.0075% exclusive of taxes) of the amount of increase upon the additional listing invalue of the total net asset value at the end of the year as compared with the larger of i) the total net asset value at thetime of the initial listing; or ii) the largest of the total net asset values at the end of each year from the year of the initiallisting and up to the year immediately prior to the fee payment year.
・Annual listing fee: Maximum of 0.00825% (0.0075% exclusive of taxes) of the total net assets at year-end.
② Brokerage commission on transactions in portfolio securities related to the Fund, the amount equivalent to theconsumption tax and other taxes and fees on such brokerage commission, and costs for futures transactions, etc.,
related to the Fund, are paid from the trust property.
③ Costs paid to auditors for Fund audits, as well as, the amount equivalent to the consumption tax and other taxes andfees on such costs are paid from the trust property upon the payment of the annual trust fee.
* T hese expenses and fees vary according to management and other conditions, so details of rates and upper limits cannot be provided aheadof time.

28 / 141

(5) 【Taxation】① Taxation on Individual Beneficiaries● Upon Sales of Beneficial Interests in shares
On sales profits (capital gains), a tax rate of 20.315% (National Tax (Income Tax and Special Reconstruction
Income Tax): 15.315%; Local Tax: 5%) shall apply in a separate self-assessment taxation. If a specified accountwith tax withheld is chosen, taxes will be withheld at a tax rate of 20.315%.
● Upon Receipt of Income Distribution
On distributions, taxes will be withheld at a tax rate of 20.315% (National Tax: 15.315%; Local Tax: 5%). Either
separate self-assessment taxation or comprehensive taxation can be chosen by the final tax return.
● Upon Redemption of Beneficial Interests in shares and Actual Stocks
Upon the redemption of Beneficial Interests in shares and actual stocks, the same taxation as described in “UponSales of Beneficial Interests in shares” above shall apply as such redemption is deemed to be a sale of Beneficial
Interests in shares.
≪Aggregation of Profits and Losses≫
Aggregation of profits and losses within the following incomes and losses is allowed. As for the dividend income of listed
stocks, etc., it should be limited to the instances where separate self-assessment taxation is chosen.
《Interest Income》
・Interest on specified bonds(*1)

・Income distribution of
publicly
offeredbondinvestment trusts《Capital Gains Income, etc. Related to Listed
Stocks, etc.》 (*2)

《Dividend Income》

・Capital Gains
・Dividends of listed stocks
・Capital Losses
・Income distribution ofof specified bonds, publicly offered bondpublicly
offeredstock
investment trusts, listed stocks, publicly
investment trusts
offered stock investment trusts(*1) “ Specified Bonds” shall be specific bonds such as government bonds, local bonds, foreign government bonds, publicly offered bonds,
listed bonds, and bonds issued before December 31, 2015 (excluding bonds issued by a family company).
(*2) Regarding capital gains income, etc., related to stocks, etc., these are classified into categories of (i) the capital gains income, etc.,
related to listed stocks and (ii) the capital gains income, etc., related to other stocks, etc., which are subject to different taxation thatis applied separately. T herefore, the aggregation of profits and losses between these categories is, in principle, not allowed.

* If you choose the Japanese version of the Individual Savings Account (known as “NISA”):“NISA” is the (Nippon) Individual Savings Account, a tax exemption structure pertaining to a listed stock or apublicly offered stock investment trust, etc. If you choose to use the NISA structure, dividend income and capitalgains income from newly purchased ETFs, etc., for investments of up to a specified amount each year, will be taxexempt for a specified term. From January 1, 2024, income gains and capital gains from newly purchased ETFs
etc., for investments of up to a specified amount each year, will be tax exempt for an indefinite term. Aggregationof profits and losses with dividend income and capital gains income accrued in a different type of account is notallowed. In order to be eligible for NISA, certain conditions, such as the requirement that the NISA account be
opened by an investor with an eligible distributing company, must be met.
In addition, from January 1, 2024, tax exemptions will be available only for financial products that meet therequirements of applicable tax laws (as of the end of July, 2023).
Investors need to make sure whether or not distribution can be received as tax-exempt, as this may depend on the
distribution payment method. Please confirm this with the distributing company for further details.

29 / 141

② Taxation of Corporate Beneficiaries● Upon Sales of Beneficial Interests in shares
The difference between the purchase price and the selling price of Beneficial Interests in shares is aggregated withother corporate income for taxation, which is the same procedure used for the sale of usual stocks.
● Upon Receipt of Income Distributions
Income distributions will be subject to the exclusion from gross revenue.
The limit of the exclusion from gross revenue for income distributions will be the same as that of stock dividends.
● Upon Redemption of Beneficial Interests in shares with Actual Stock
Upon the redemption of Beneficial Interests in shares and actual stock, the same taxation as described in “UponSales of Beneficial Interests in shares” above shall apply as such redemption is deemed to be a sale of Beneficial
Interests in shares.
We recommend that investors consult a tax or similar specialist for details of tax treatment.
*T he contents in “ (5)【Taxation】” (as of the end of July, 2023) may change in the event that tax laws are revised.

30 / 141

5【Status of Investment Management】
The following is the management status of the Fund as of July 31, 2023. The Investment Ratio is the ratio of an asset’s market
value to the total net assets of the Fund.
(1)【Status of Investment】

Type of Assets

Country/Region

StocksInvestment Ratio(%)

Total Market Value (Yen)Japan

8,853,858,256,050

98.35

-

147,989,127,453

1.64

9,001,847,383,503

100.00Cash, Deposits, Other Assets (after
deduction of liabilities)
Total (Total Net Assets)
Investment Status of Other Assets※ As detailed below, the fund utilizes futures transactions as other assets. Such futures are valued at the clearing price or the closing price,which is published by the primary exchange on the most recent date that the most up to date information became available.

Type of Assets
Stock Index
Transactions

Position

Country/Region

Futures Long
Position

Total Market Value (Yen)Japan

Investment Ratio (%)

147,341,800,000

1.63(2)【Investment Assets】①【Major Components of Investment Securities】
CountryNo.
Type/Region

Name

SectorNumber of
Securities

Book Valueper Unit(Yen)Book Value(Yen)

Valuation per
Unit
(Yen)

Valuation(Yen)

Invest
ment
Ratio
(%)

1

Japan

Stock

FAST RETAILING Retail Trade
CO., LTD.

27,135,000

34,560.20

937,791,027,000

35,560.00 964,920,600,000

10.71

2

Japan

Stock

TOKYO
ELECTRON
LIMITED

Electric
Appliances

27,135,000

20,204.53

548,249,921,550

21,245.00 576,483,075,000

6.40

3

Japan

Stock

SOFTBANKGROUP CORP.

Information &Communication

54,270,000

6,724.24

364,924,504,800

7,242.00 393,023,340,000

4.36

4

Japan

Stock

ADVANTESTElectric
CORPORATION Appliances

18,090,000

19,970.81

361,271,952,900

19,525.00 353,207,250,000

3.92

5

Japan

Stock

DAIKIN
INDUSTRIES,
LTD.

9,045,000

29,108.99

263,290,814,550

28,690.00 259,501,050,000

2.88

6

Japan

Stock

KDDI
Information &CORPORATION Communication

54,270,000

4,290.94

232,869,313,800

4,187.00 227,228,490,000

2.52

7

Japan

Stock

SHIN-ETSU
Chemicals
CHEMICAL CO.,LTD.

45,225,000

4,597.02

207,900,229,500

4,679.00 211,607,775,000

2.35

8

Japan

Stock

FANUC
Electric
CORPORATION Appliances

45,225,000

4,752.95

214,952,163,750

4,348.00 196,638,300,000

2.18Machinery

31 / 141

9

Japan

Stock

TERUMO
Precision
CORPORATION Instruments

36,180,000

4,320.99

156,333,418,200

4,651.00 168,273,180,000

1.86

10 Japan

Stock

TDK
Electric
CORPORATIOND Appliances.

27,135,000

5,409.86

146,796,551,100

5,437.00 147,532,995,000

1.63

11 Japan

Stock

KYOCERAElectric
CORPORATION Appliances

18,090,000

7,583.89

137,192,570,100

7,644.00 138,279,960,000

1.53

12 Japan

Stock

RECRUIT
Services
HOLDINGS CO.,LTD.

27,135,000

4,532.07

122,977,719,450

4,933.00 133,856,955,000

1.48

13 Japan

Stock

SONY GROUP
Electric
CORPORATION Appliances

9,045,000

13,004.62

117,626,787,900

13,315.00 120,434,175,000

1.33

14 Japan

Stock

DAIICHISANKYOCOMPANY,
LIMITED

Pharmaceutical

27,135,000

4,132.63

112,138,915,050

4,347.00 117,955,845,000

1.31

15 JapanStock

CHUGAI
Pharmaceutical
PHARMACEUTICAL CO., LTD.

27,135,000

3,906.86

106,012,646,100

4,231.00 114,808,185,000

1.27

16 Japan

Stock

TOYOTA MOTOR Transportation
CORPORATION Equipment

45,225,000

2,299.36

103,988,556,000

2,386.00 107,906,850,000

1.19

17 JapanStock

ASTELLASPHARMA INC.

45,225,000

2,060.91

93,204,654,750

2,080.50

94,090,612,500

1.04

18 JapanStock

NITTO DENKO Chemicals
CORPORATION

9,045,000

10,039.84

90,810,352,800

10,100.00

91,354,500,000

1.01

19 Japan

Stock

DENSO
Transportation
CORPORATION Equipment

9,045,000

9,568.53

86,547,353,850

9,881.00

89,373,645,000

0.99

20 JapanStock

NTT DATA
Information &GROUPCommunication
CORPORATION

45,225,000

1,922.99

86,967,222,750

1,975.50

89,341,987,500

0.99

21 JapanStock

BANDAI NAMCO Other Products
HOLDINGS INC

27,135,000

3,160.96

85,772,649,600

3,214.00

87,211,890,000

0.96

22 Japan

Stock

SECOM CO.,LTD.

9,045,000

9,468.72

85,644,572,400

9,533.00

86,225,985,000

0.95

23 JapanStock

OLYMPUS
Precision
CORPORATION Instruments

36,180,000

2,221.98

80,391,236,400

2,316.50

83,810,970,000

0.93

24 JapanStock

HONDA MOTOR Transportation
CO., LTD.
Equipment

18,090,000

4,290.82

77,620,933,800

4,513.00

81,640,170,000

0.90

25 Japan

Stock

EISAI CO., LTD. Pharmaceutical

9,045,000

9,381.19

84,852,863,550

8,976.00

81,187,920,000

0.90

26 Japan

Stock

TOYOTA
Wholesale Trade
TSUSHOCORPORATION

9,045,000

7,168.01

64,834,650,450

8,295.00

75,028,275,000

0.83

Pharmaceutical

Services

32 / 141

27 Japan

Stock

HOYA
Precision
CORPORATION Instruments

4,522,500

16,314.72

73,783,321,200

16,530.00

74,756,925,000

0.83

28 JapanStock

FUJIFILM
Chemicals
HOLDINGSCORPORATION

9,045,000

8,297.84

75,053,962,800

8,247.00

74,594,115,000

0.82

29 JapanStock

KIKKOMANFoods
CORPORATION

9,045,000

7,965.87

72,051,294,150

8,184.00

74,024,280,000

0.82

30 Japan

Stock

KONAMI GROUP Information &CORPORATION Communication

9,045,000

7,328.18

66,283,388,100

7,969.00

72,079,605,000

0.80

Investment Ratio for each Type and Sector
Type

Domestic/Overseas

Stock

Domestic Fishery, Agriculture & Forestry

SectorInvestment
Ratio (%)
0.06

Mining0.07

Construction

1.65

Foods

3.34

Textiles and Apparels

0.11

Pulp and Paper

0.07

Chemicals

6.68

Pharmaceutical

6.42

Oil and Coal Products

0.17

Rubber Products

0.75

Glass and Ceramics Products

0.77

Iron and Steel

0.08

Nonferrous Metals

0.72

Metal Products

0.02

Machinery

5.60

Electric Appliances

24.49

Transportation Equipment

4.64

Precision Instruments

3.91

Other Products

2.54

Electric Power and Gas

0.15

Land Transportation

1.33

Marine Transportation

0.34

Air Transportation

0.34

Warehousing and Harbor Transportation

0.17

33 / 141

Information & Communication

10.29

Wholesale Trade

3.29

Retail Trade

12.20

Banks

0.65

Securities and Commodities Futures

0.21

Insurance

0.85

Other Financing Business

0.75

Real Estate

1.03

Services

4.54

Total

98.35

②【Components of Real Estate Investments】
Not applicable.
③【Major Components of Other Investments】
As detailed below, the Fund utilizes futures transactions as other assets. Such futures are valued at the clearing price or
the closing price, which is published by the primary exchange on the most recent date that the most up to date
information became available.
Type

Exchange

Name

Number ofBook Value(Yen)

Position Contracts Currency

Stock Index
Osaka Nikkei 225
Long
Futures
Exchange Futures
PositionTransactions(Contract Monthof September
2023)

4,430

JPY

Valuation(Yen)

Investment
Ratio (%)

143,664,900,000 147,341,800,000

1.63(3)【Actual Performance】①【Changes in Net Assets】
The following illustrates the changes in net assets and in quoted prices at the financial instruments exchange (i) at the endof July, 2023, (ii) at the end of each month during the year leading up to the date of (i), and (iii) at the end of eachcalculation period.
Total Net Asset Value(Mil. Yen)
(excluding
distribution)(including
distribution)

Net Asset Value per Share(Yen)(excluding
distribution)(including
distribution)

Quoted Priceat Tokyo
Stock
Exchange(Yen)

13th Calculation Period (As of July 8,
2014)

1,916,575

1,941,107

15,547.3000

15,746.3000

15,56014th Calculation Period (As of July 8,
2015)

3,032,061

3,066,775

20,089.1000

20,319.1000

20,14015th Calculation Period (As of July 8,
2016)2,890,625

2,941,229

15,365.7000

15,634.7000

15,39034 / 14116th Calculation Period (As of July 8,
2017)4,594,582

4,659,239

20,323.2000

20,609.2000

20,34017th Calculation Period (As of July 8,
2018)5,563,227

5,650,756

22,245.6000

22,595.6000

22,27018th Calculation Period (As of July 8,
2019)6,054,214

6,166,766

22,000.1000

22,409.1000

22,02019th Calculation Period (As of July 8,
2020)

6,249,863

6,355,672

22,977.1000

23,366.1000

23,00020th Calculation Period (As of July 8,
2021)

7,971,820

8,072,752

28,828.5000

29,193.5000

28,83021st Calculation Period (As of July 8,
2022)

7,377,049

7,512,000

27,168.4000

27,665.4000

27,25522nd Calculation Period (As of July 8,2023)

8,807,364

8,959,710

33,299.5000

33,875.5000

33,380

As of the end of July 2022

7,710,463―

28,480.8000―

28,480

As of the end of August 2022

7,727,568―

28,789.1000―

28,795

As of the end of September 2022

7,213,752―

26,799.9000―

26,730

As of the end of October 2022

7,545,262―

28,501.2000―

28,485

As of the end of November 2022

7,623,274―

28,900.4000―

28,910

As of the end of December 2022

7,134,261―

27,003.1000―

27,000

As of the end of January 2023

7,446,650―

28,276.0000―

28,260

As of the end of February 2023

7,451,431―

28,412.9000―

28,385

As of the end of March 2023

7,674,043―

29,296.3000―

29,290

As of the end of April 2023

7,904,803―

30,147.9000―

30,140

As of the end of May 2023

8,470,817―

32,275.2000―

32,260

As of the end of June 2023

9,167,514―

34,713.0000―

34,740

As of the end of July 2023

9,001,847―

34,105.1000―

34,110※ If the accounting date is not a business day, it shows the quoted price as of the preceding business day.

②【Historical Records of Profit Distribution】
Calculation Period
13th Calculation Period

Distribution per Share

July 9, 2013 - July 8, 2014

JPY 199.0000

14th Calculation Period July 9, 2014 - July 8, 2015

JPY 230.0000

15th Calculation Period July 9, 2015 - July 8, 2016

JPY 269.0000

16th Calculation Period July 9, 2016 - July 8, 2017

JPY 286.0000

17th Calculation Period July 9, 2017 - July 8, 2018

JPY 350.0000

18th Calculation Period July 9, 2018 - July 8, 2019

JPY 409.0000

19th Calculation Period July 9, 2019 - July 8, 2020

JPY 389.0000

20th Calculation Period July 9, 2020 - July 8, 2021

JPY 365.0000
35 / 141

21st Calculation Period July 9, 2021 - July 8, 2022

JPY 497.0000

22nd Calculaiton Period

JPY 576.0000

July 9, 2022 - July 8, 2023③【Historical Records of Return Ratio】
Calculation Period

Return Ratio

13th Calculation Period July 9, 2013 - July 8, 2014

10.1%

14th Calculation Period July 9, 2014 - July 8, 201530.7%

15th Calculation Period July 9, 2015 - July 8, 2016△22.2%

16th Calculation Period July 9, 2016 - July 8, 201734.1%

17th Calculation Period July 9, 2017 - July 8, 201811.2%

18th Calculation Period July 9, 2018 - July 8, 20190.7%

19th Calculation Period July 9, 2019 - July 8, 2020

6.2%

20th Calculation Period July 9, 2020 - July 8, 2021

27.1%

21st Calculation Period

July 9, 2021 - July 8, 2022

△4.0%

22nd Calculation Period July 9, 2022 - July 8, 2023

24.7%

※Return ratio for each calculation period is derived (i) by deducting the amount of the Net Asset Value (excluding distribution) as of theend of the immediately preceding calculation period (hereinafter referred to as “ NAV as of the End of Preceding Period”) from theamount of the Net Asset Value (including distribution) as of the end of the relevant calculation period, then (ii) by dividing the amountobtained by (i) by the amount of NAV as of the End of Preceding Period, and lastly (iii) by multiplying the amount obtained by (ii) and100. Each return ratio shown above is rounded to the nearest tenth.

(4)【Historical Records of Creations and Redemptions】

Calculation Period

Number of Shares Number of Shares
CreatedRedeemed

Number of
Outstanding
Shares13th Calculation Period July 9, 2013 - July 8, 2014

46,249,390

25,355,251

123,274,254

14th Calculation Period July 9, 2014 - July 8, 2015

64,654,380

36,998,259

150,930,375

15th Calculation Period July 9, 2015 - July 8, 201687,193,230

50,002,010

188,121,595

16th Calculation Period July 9, 2016 - July 8, 2017

88,236,290

50,282,121

226,075,764

17th Calculation Period July 9, 2017 - July 8, 2018

94,207,410

70,200,861

250,082,313

18th Calculation Period July 9, 2018 - July 8, 2019

68,313,740

43,205,409

275,190,644

19th Calculation Period July 9, 2019 - July 8, 2020

39,783,640

42,969,873

272,004,411

20th Calculation Period July 9, 2020 - July 8, 2021

33,969,880

29,449,012

276,525,279

21st Calculation Period July 9, 2021 - July 8, 2022

16,958,150

21,953,065

271,530,364

22nd Calculation Period July 9, 2022 - July 8, 2023

16,179,300

23,220,297

264,489,367※T here are no historical records of creations and redemptions conducted outside of Japan.

36 / 141

(Reference Information)

Historical Performance (As of July 31, 2023)
1.

Changes in NAV/Net Assets (per day)NAV (price per 10 shares of Beneficial Interests in shares after distribution) [Left Axis]
Total net asset value [Right Axis]
Mil.Yen

Yen

Jul. 2013

2.

3.

Jul. 2015

Jul. 2017

Jul. 2019

Jul. 2021

Distribution Paid (per 10 shares, before tax)
July 2023

5,760 Yen

July 2022

4,970 Yen

July 2021

3,650 Yen

July 2020

3,890 Yen

July 2019

4,090 Yen

Cumulative since inception

50,569 Yen

Jul. 2023

Status of Major Assets
Top 10 component sharesCompany
1 FAST RETAILING CO., LTD.
2 TOKYO ELECTRON LTD.
3 SOFTBANK GROUP CORP.
4 ADVANTEST CORPORATION
5 DAIKIN INDUSTRIES, LTD
6 KDDI CORPORATION
7 SHIN-ETSU CHEMICAL CO., LTD.
8 FANUC CORPORATION
9 TERUMO CORPORATION
10 TDK CORPORATION

SectorRetail Trade
Electric Appliances
Information & Communication
Electric Appliances
Machinery
Information & Communication
ChemicalsElectric Appliances
Precision Instruments
Electric Appliances

37 / 141% of NAV
10.7
6.4
4.4
3.9
2.9
2.5
2.4
2.2
1.9
1.6

4.

Past Annual Returns(based on the calendar year)

2014

2015

2016

2017

2018

2019

2020

2021

2022

2023

-The annual rates of return are calculated with distribution reinvested (before tax).
-The figure for 2023 shows the return rate from the beginning of the year to the base date.
The performance data shown above represents historical performance, which is not a guarantee of future investment
results.



The Fund’s investment performance may be disclosed on the Management Company’s website.

38 / 141

II.【Administration and Operation】
1【Procedures, etc. for Application and Distribution】(1) Public Offerings for the Beneficial Interests in shares
Public offerings for the Beneficial Interests in shares are made each business day during the creation application period.
(2) Cut-off Time of Application
Creation application of the Beneficial Interests in shares completed by 3 p.m. on the acceptance day of creation application,that are also accompanied by the completion of all related procedures designated by the respective Distributing Company,
shall be deemed to be accepted on this day. Provided that, when the creation applicant is an Issuing Company, etc. ofcomponent stocks in the Nikkei 225, the time limit is 2 p.m.
(3) Application Blackout Period (Basic Terms and Conditions)
In principle, the Management Company shall suspend any creation application of the Beneficial Interests in shares on thefollowing days and periods: provided, however, creation application of the Beneficial Interests in shares may be accepted onor during the days and periods referred to below (except under the circumstances of Item 3) if the Management Company
determines that the impact of such creation on the trust property is minimal in view of the condition of the trust property,
funding trends, market trends, etc.
1.

For a period of two business days, beginning from one business day prior to the ex-dividend date or ex-right dateof any component stocks in the Nikkei 225.

1-2. The period, beginning from one business day prior to the delisting date of any component stocks in the Nikkei 225
due to stock exchange, merger and other reasons and ending on one business day prior to the including date of new
stock within component stocks in the Nikkei 225 as the result from the stock exchange, merger and other reasons.
2.

For a period of three business days, beginning from three business days prior to the last day of any calculation
period of the Fund specified in Article 8 on the Basic Terms and Conditions of the Fund (provided, however, that if
the accounting date is a holiday (meaning not a business day), the period shall be four business days, beginningfrom four business days prior to the accounting date.).

3.

In addition to the items above, any time the Management Company determines that unavoidable circumstances
have occurred that prevent it from making investments in accordance with the investment policies of the Fund
specified in Article 26, Item 1 of the Basic Terms and Conditions of the Fund.

※Information on Application Blackout Period can also be provided via support dial.
(4) Creation Unit
Creation unit shall be one Unit or more, available in multiple, indivisible units of one Unit.
A “Unit” is comprised of number of Beneficial Interests in shares that, when combined together in a Unit, correspond to
one unit of the stock portfolio which the Management Company deems will correlate to the Nikkei 225 (in principle, theportfolio is comprised of the individual stocks that comprise Nikkei 225, each unit of which shall be a minimum trading unit
in each financial instruments exchange.).
The number of Beneficial Interests in shares in one Unit * shall be integer multiples of 10 shares of the Beneficial Interests
in shares, with the multiplier for the 10 shares of the Beneficial Interests in shares to be specified by the Management Company
on the acceptance day of creation application.
39 / 141*

T his number of shares shall be specified separately by the Management Company based on the number of portions required for a creationof the Beneficial Interests in shares for the individual stocks, the number of which shall be an integer multiple of a basic trading unit ina financial instruments exchange (“Exchange T rading Unit”), that comprise one unit of the actual portfolio (to be announced every day,in principle) whose proportion of the individual stocks corresponds to the component proportion of the individual stocks in the trust
properties, and which the Management Company deems will correlate to the Nikkei 225.

(5) Creation Price
Creation Price of the Beneficial Interests in shares is the Net Asset Value as of acceptance day of creation application.
(6) Application Procedures
・The Management Company shall present the actual stocks in the portfolio (hereinafter referred to as the “Designated
Stock Portfolio”) of one Unit to the Distributing Company no later than two business days prior to the acceptance day ofcreation application.
・A deposit of the Designated Stock Portfolio shall be made, in the appropriate amount based upon the number of Unitsapplied for, to the safe custody of the Distributing Company within a period of 2 business days from the acceptance day ofcreation application.
・When the creation applicant is an Issuing Company, etc. of a component stock in the Nikkei 225, in principle, suchcreation applicant shall pay in cash an amount equal to the total market value of the issuing company’s individual stockincluded in the Designated Stock Portfolio, in place of such stock. The total market value of the individual stock, in this case,shall be the amount calculated by multiplying the closing price (or, if the closing price is not available, an equivalent price)at the financial instruments exchanges offering the issuing company’s stock, as of the calculation date of the NAV applied foron the acceptance day of creation application, by the number of such stock included in the Designated Stock Portfolio.
Furthermore, in this case, the creation applicant shall also pay the amount equivalent to the expense required for the acquisitionof the issuing company’s stock for the trust property (the amount of 0.15% of the total market value of the stock designatedabove).
・When the creation applicant is an Issuing Company, etc. of a component stock in the Nikkei 225, the Type I Financial
Instruments Business Company that accepted the creation application (including any case where the Type I Financial
Instruments Business Company applies for creation for its own account, if the Type I Financial Instruments Business Company
is an Issuing Company, etc. of a component stock in the Nikkei 225) shall, at the time of intermediating the creation application,
notify the Management Company to that effect.
・In the event such notification is not made at the time of intermediating the creation application, and this results in any
damage to the trust property or others, the Type I Financial Instruments Business Company shall be liable for the damage.
・If the market value of the Designated Stock Portfolio is less than the value of the Units applied for, the creation applicant
shall pay the Distributing Company the amount corresponding to the difference within a period of 2 business days from theacceptance day of creation application.
※The Distributing Company may specify the details separately. Please contact the Distributing Company for further
details.
(7) Suspension and Cancellation of Acceptance of Application
In the event of a suspension of trading on the financial instruments exchange ( meaning the Financial Instruments Exchange
described in Article 2, Paragraph 16, of the Financial Instruments and Exchange Act), of a suspension of settlement functions,or of any other unavoidable circumstances, the Management Company may suspend the acceptance of any creation application
40 / 141

of the Beneficial Interests in shares of the Fund or cancel creation application already accepted, in accordance with the terms
and conditions of the trust.
(8) Clearing Framework on Creation Application
When the distributing company applies to the Financial Instruments Clearing Organization＊ (meaning Financial
Instruments Clearing Organization provided in Article 2, paragraph 29, of the Financial Instruments and Exchange Act andhereinafter referred to as the “Clearing Organization”) for owing a debt on the delivery of the Designated Stock Portfolio to
the Management Company etc., and the Clearing Organization owes the debt, payment procedure regarding creation
application is performed between the Clearing Organization and the authorized participant through the Central Securities
Depository in accordance with the business rules of the Clearing Organization.
＊The Financial Instruments Clearing Organization to be specified is Japan Securities Clearing Corporation.
(9) Reference for Application Procedures etc.
If you have any questions on application (distribution) procedures etc., for the Fund, please contact to the following
reference.
Nomura Asset Management Co., Ltd.
Support Dial: 0120-753104 (toll-free) (in Japan only)
Opening Hours: 9 a.m. - 5 p.m. on business days (Japan Standard Time)
Website: http://www.nomura-am.co.jp/

2【Redemption Procedures, etc.】(1) Request for Redemption
A Beneficiary may not apply for a partial redemption by cash of the trust during the term of this trust with respect to the
Beneficial Interests in shares attributable to the beneficiary.
(2) Redemption of the Beneficial Interests in shares

A beneficiary may request the Management Company redeem their own Beneficial Interests in shares, whose numberof shares is an integer multiple of a certain number of shares, for the stock corresponding to their share of the Beneficial
Interests in shares in the trust properties (hereinafter referred to as the “Redemption”).
(3) Cut-off Time of Redemption

Request for Redemption that is completed by 3 p.m. of the acceptance day of redemption request shall be deemed
to be accepted on that day. Provided that, when the beneficiary who requests for the Redemption is an Issuing Company,
etc. of component stocks in the Nikkei 225, the time limit is 2 p.m.
(4) Application Blackout Period (Basic Terms and Conditions)
The Management Company will, in principle, suspend the acceptance of the application for Redemption on thefollowing days and period: provided, however, the Management Company may, even on the following days and period(except under the circumstances of Item 4), accept the Redemption application if the Management Company determinesthat the impact of such Redemption on the trust assets is minimal in view of the condition of the trust properties, funding
41 / 141

trends, market trends, etc.
1.

One business day prior to the ex-dividend date or ex-right date of any component stocks in the Nikkei 225.

2.

For a period of five business days, beginning from one business day prior to the date on which a change of thedivisor is made due to changes of the component stocks in the Nikkei 225, the number of the individual stocks thatcomprise the component stocks in the Nikkei 225, or any other cause.

2-2. The period, beginning from one business day prior to the delisting date of any component stocks in the Nikkei 225
due to stock exchange, merger and other reasons and ending on one business day prior to the including date of new
stock within component stocks in the Nikkei 225 as the result from the stock exchange, merger and other reasons.
3.

For a period of three business days, beginning from three business days prior to the last day of any calculation
period of the Fund specified in Article 8 on the Basic Terms and Conditions of the Fund. However, if the last dayof the calculation period is a holiday (meaning not a business day), the period shall be four business days, beginningfrom four business days prior to the last day of the calculation period.

4.

In addition to the period above, any time the Management Company determines that unavoidable circumstances
have occurred that prevent it from making investments in accordance with the investment policies specified in
Article 26, Item 1 of the Basic Terms and Conditions of the Fund.

※Information on Application Blackout Period can also be provided via support dial.

(5) Redemption Unit
The unit of Redemption shall be the number of shares specified by the Management Company, based on the numberof shares required to exchange the Beneficial Interests in shares for the individual stock, the number of which shall be
an integer multiple of the Exchange Trading Unit, that comprises one unit of the actual portfolio, whose proportion ofindividual stocks corresponds to the component proportion of the individual stocks in the trust properties, which theManagement Company deems willto the Nikkei 225 (hereinafter referred to as the “Minimum Redemption Shares”).
Minimum Redemption Shares shall be specified by the Management Company, which shall notify the Distributing
Company no later than two business days prior to the Exchange Application Date.
(6) Redemption Price
The price of Redemption shall be the Net Asset Value as of the acceptance day of Redemption request.
(7) Redemption Procedures
・The beneficiary shall make a request for the Redemption to the distributing company with Transfer Beneficial
Interests in shares.
・In the case where the beneficiary who requests for the Redemption is an issuing corporation of component stocks
in the Nikkei 225, etc., the Type I Financial Instruments Business Company who accepts the request for the Redemption
from the beneficiary (including the case where the Type I Financial Instruments Business Company is an issuing
corporation of component stocks in the Nikkei 225, etc., and the Type I Financial Instruments Business Company
requests for the Redemption by proprietary trading.) shall inform the Management Company to that effect uponintermediating the request for the Redemption. In the event the notification is not made at the time of intermediating theapplication for Redemption, which causes damage to the trust property or otherwise, the Type I Financial Instruments
Business Company that intermediated the request for Redemption shall be liable for the damage.
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(8) The Name and Calculation of the Number of Stocks to be Delivered Upon the Redemption
The name and number of individual stocks a beneficiary can obtain through the Redemption shall be determined based
upon the individual stocks that belong to the Fund and the number calculated based on the Net Asset Value as of the acceptance
day of Redemption request, with such number being an integer multiple of the Exchange Trading Unit (hereinafter referred
to as the “Trading lot”).
In principal, the above calculation shall be made in accordance with the following method:I.

Calculate the estimated total market value of the Redemption Shares of the trust properties as of the acceptance
day of Redemption request;

II. Calculate the number of stocks for each individual stock by multiplying the estimated total market value
calculated at I above by the component proportion of the market value of such individual stocks in the Fund,and then divide such amount by the market value of each individual share;
III. Adjust the number of stocks for each individual stock calculated at II above into the integer multiple of theTrading lot by rounding off to the nearest Trading lot (the portfolio comprised of the individual stocks adjusted
for the number of stocks shall be referred to as “Provisional Redemption Basket”);
IV. Calculate the total market value of the Provisional Redemption Basket by multiplying each individual stockcomprising the components of the Provisional Redemption Basket calculated at III above by the market valueof each such individual stock;
V. Deem the Provisional Redemption Basket as the portfolio to be redeemed (hereinafter referred to as the“Redemption Basket”) in the event that the total market value of the Provisional Redemption Basket calculated
at IV above is lower than the estimated total market value of the Redemption Shares calculated at I above.
However, if the total market value of the Provisional Redemption Basket calculated at IV above is larger thanthe estimated total market value of the Redemption Shares calculated at I above, adjust the Provisional
Redemption Basket as follows:(i)

Reduce the Trading lot by one by removing the individual stock whose rounded-up amount (which shallbe the amount calculated by multiplying the number of stocks rounded up and the market price of suchindividual stock; hereinafter referred to as the “Rounded-up Amount”) was the largest in the round-off
process at III above, from the previous Provisional Redemption Basket and deem the same as the new
Provisional Redemption Basket;(ii)

Deem the new Provisional Redemption Basket as the Redemption Basket in the event the total market
value of the new Provisional Redemption Basket is lower than the estimated total market value of the
Redemption Shares calculated at I above. However, in the event the total market value of the new
Provisional Redemption Basket is larger than the estimated total market value of the Redemption Sharescalculated at I above, reduce the Trading lot by one by removing the individual stock whose Roundedup Amount was the next largest in the round-off process at III above, from the new Provisional
Redemption Basket and deem the same as the newest Provisional Redemption Basket; and(iii)

Repeat the process of (ii) above until the Redemption Basket is determined.

VI. In principle, the name and number of stocks that comprise the Redemption Basket calculated in V above shallbe the name and number of stocks to be delivered upon the Redemption.
In the event there are multiple beneficiaries who apply for the Redemption, resulting in the total number of shares of a
specific individual stock to be redeemed become larger than the number of shares of that specific individual stock in the
Fund’s possession, due to an error in the round-off process, etc., the Redemption Basket may be adjusted by, for example,
43 / 141

reducing by one the Trading lot of the individual stock from the Redemption Basket.
* T he individual stocks to be delivered for the Redemption shall not necessarily be all name of stocks in the Nikkei 225. T he proportionof the individual stocks to be delivered to the Redemption shall not necessarily be the same as the proportion of these individual stocks
in the Nikkei 225.

(9) Fixation of the Number of Beneficial Interests in shares to be Redeemed・In the event the beneficiary requests an Redemption of their own Transfer Beneficial Interests in shares by offering
them to the Management Company and the number of shares is an integer multiple of Minimum Redemption Shares, and theManagement Company accepts the request, the Management Company shall calculate the number of individual shares thebeneficiary can obtain by exchanging the Beneficial Interests in shares whose number of shares was offered by the beneficiary,and shall fix the number of Beneficial Interests in shares required for the Redemption (In this case, where there are any
fractions less than one share, they shall be rounded up; hereinafter referred to as “Required Redemption Shares”).
・The Management Company shall give instructions to the Trustee to make Redemption of Required Redemption Sharesfor the Beneficial Interests in shares and the stocks, the number of which shall be an integer multiple of the Exchange Trading
Unit, that comprise the trust property; provided however that if the beneficiary who requested the Redemption is an IssuingCompany, etc. of a component stock in the Nikkei 225, the Management Company shall give instructions to make Redemptionof the Beneficial Interests in shares whose number of shares is equivalent to the number calculated by deducting the total
market value of the individual stocks of such issuing company from the Required Redemption Shares for the stock, the numberof which shall be an integer multiple of the Exchange Trading Unit (excluding the stock of such issuing company). The total
market value of individual stocks in this case shall be the amount calculated by multiplying the closing price (or, if the closing
price is not available, an equivalent price) at the financial instruments exchange offering the stocks as of the calculation dateof the Net Asset Value on the acceptance day of Redemption request, by the number of stocks calculated pursuant to theprevious section: Name and Calculation of the Number of Stocks to be delivered to the Redemption.
(10) Delivery of Shares Upon Redemption, etc.
In principle, upon delivery of the redeemed shares to the beneficiary, on and after the third business day from theacceptance day of the Redemption request, the beneficiary’s increased number of stock shall be stated or recorded within theaccount of a Central Securities Depository, etc.
(11) Suspension and Cancellation of Acceptance of Redemption Request
In the event of a suspension of trading on the Financial Instruments Exchange etc., of a suspension of settlement functions,or of any other unavoidable circumstances, the Management Company, at its own discretion, may suspend the acceptance ofa Redemption request or cancel a Redemption request already accepted in accordance with the terms and conditions of thetrust. When the acceptance of a Redemption request is discontinued, the beneficiary may withdraw the Redemption request
which was made before the discontinuation of the request’s acceptance. Provided, however, if the beneficiary does notwithdraw the Redemption request, such request is deemed to be accepted on the first calculation date of the NAV after the
discontinuation is cancelled.
(12) Clearing Framework on Redemption
When the distributing company applies to the Clearing Organization for owing a debt on the delivery of the Transfer
Beneficial Interests in shares to the Management Company and the Clearing Organization owes the debt, delivery procedure
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regarding Redemption is performed between the Clearing Organization and the authorized participant through the Central
Securities Depository in accordance with the business rules of the Clearing Organization.
(13) Purchase of Beneficial Interests in shares (Purchase Request System)
When receiving an application from a beneficiary, the Distributing Company shall purchase the Beneficial Interests inshares in the cases described in the following items; provided however that applications covered in Item 2 below shall bemade two business days prior to the termination date of the trust:
1 Transfer Beneficial Interests in shares of less than the Exchange Trading Unit arise as a result of Redemption.
2 If delisted in all financial instruments exchanges where the Beneficial Interests in shares were listed.
The purchase price of the Beneficial Interests in shares shall be the Net Asset Value on the day the application for purchaseis accepted.
In the event of suspension of trading at a financial instruments exchange, of suspension of settlement functions, or of any
other unavoidable circumstances, the Distributing Company may, based on discussions with the Management Company,
suspend purchase of Beneficial Interests in shares and may cancel previously-accepted applications for the purchase of the
Beneficial Interests in shares in accordance with the terms and conditions of the trust.
If the purchase of Beneficial Interests in shares is suspended, a beneficiary may withdraw the application for purchase forthe day made prior to the suspension of purchase. If, however, a beneficiary does not withdraw the application for purchase,the purchase price of the Beneficial Interests in shares shall be calculated in a manner that the application for purchase isaccepted on the first calculation date of the NAV after the removal of suspension for purchase.
(14) Reference for Redemption Procedures etc.
If you have any questions on Redemption procedures etc., for the Fund, please contact to the following reference.
Nomura Asset Management Co., Ltd.
Support Dial: 0120-753104 (toll-free) (in Japan only)
Opening Hours: 9 a.m. - 5 p.m. on business days (Japan Standard Time)
Website: http://www.nomura-am.co.jp/

3【Overview of Asset Management, etc.】(1) 【Valuation of Assets】<Calculation Method of Net Asset Value>
Net Asset Value is the amount per 10 shares, with such amount per unit being calculated by dividing (a) the amountcalculated by deducting the value of total liabilities from the value of total assets derived by assessing the value of
assets belonging to the trust property (excluding substitute securities for cash collateral) using market value or partiallyby amortized cost method in accordance with the respective laws and the rules of the Investment Trusts Association,
Japan (hereinafter referred to as the “Total Net Asset Value”) by (b) the total number of Beneficial Interests in sharesissued as of the calculation date.
The market value of the stocks belonging to the trust property (excluding those stocks which are subject to the
Redemption and which have not been transferred to the beneficiaries (after transfer to the book-entry system, whichhave not transferred to the beneficiaries’ accounts set in the Central Securities Depository, etc.)) shall be valued, inprinciple, at the closing prices (or, if the closing price is not available, an equivalent price) of the financial instruments
45 / 141exchange.
Regarding the Net Asset Value of the Fund, please contact the Management Company at the following:
N om ura Asset Management Co., Ltd.
Support Dial: 0120-753104 (toll-free) (in Japan only)(9 a. m. - 5 p.m. on business days (Japan Standard Time))
Website: http://www.nomura-am.co.jp/<Accounting for Additional Trust>(ⅰ) The amount corresponding to the additional trust shall be derived by multiplying the number of Beneficial Interests
in shares corresponding to the additional trust by the amount of the Net Asset Value as of one business day prior to
the date the additional trust is created, and adding the equivalent amount to the Expenses described in “1 Procedures,etc. for Application and Distribution” above.
(ⅱ) With regard to the amount corresponding to the additional trust, the difference between the amount corresponding
to the additional trust and the amount corresponding to the principal shall be accounted for as the difference due tothe additional trust.
<Accounting for Redemption of Beneficial Interests in shares for Stocks>
In exchanging Beneficial Interests in shares for stocks, the difference between (i) the amount obtained by multiplying
the Required Redemption Shares (if the beneficiary who requested the Redemption is an Issuing Company, etc. of acomponent stock in the Nikkei 225 and the Beneficial Interests in shares are returned, the number of shares received
after deducting the number of shares to be returned) by the Net Asset Value as of the acceptance day of Redemption
request and (ii) the amount corresponding to the principal, shall be accounted for as the difference due to redeem(redemption).

(2) 【Custody】
The attribution of the Beneficial Interests in shares of the Fund shall be determined based on the statement orrecording made on the book-entry transfer account register of a Central Securities Depository, etc., and the beneficiary
certificates shall not be issued. Therefore, the section discussing custody of the beneficiary certificates does not apply.

(3) 【Trust Period】
Unlimited (inception date: July 9, 2001)(4) 【Accounting Period】
From July 9 of each year to July 8 of the following year; provided that the last date of the final calculation period
shall be the last date of the trust term when the trust is terminated.

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(5) 【Other Information】(a) Early Termination of the Fund(i) The Management Company, (i) when the number of Beneficial Interests in shares is less than 300,000 shares byexchanging the Beneficial Interests in shares with a part of the trust property or (ii) when the Management Company
otherwise recognizing that terminating this trust is for the benefit of the beneficiaries, may, by mutual agreementwith the Trustee, cancel this trust agreement and terminate the trust. In this case, the Management Company shallnotify the regulatory authorities in advance of initiating early termination.
(ⅱ) When delisted from all financial instruments exchanges on which the Beneficial Interests in shares were listed, orwhen the Nikkei 225 itself is terminated, the Management Company shall cancel this trust agreement and terminate
the trust by mutual agreement with the Trustee. In this case, the Management Company shall notify the regulatory
authorities in advance of initiating early termination.
(b) Termination of the Trust Term(ⅰ) When terminating the trust term pursuant to “(a) Early Termination of the Fund” above, the Management Company,
for matters described in paragraphs (i) and (ii) of “(a) Early Termination of the Fund,” shall provide public
notification of its intent to cancel this trust agreement, and give notice in writing to that effect to known beneficiaries
related to this trust agreement. However, if the Management Company gives notice in writing to all beneficiaries
related to this trust agreement, public notification will not be provided, in principle.
(ⅱ) The public notification and the written notice mentioned in (i) above shall state that any beneficiaries who wantto object to the cancellation must do so within a specific period of time. The specific period of time should be atleast one month.
(ⅲ) If the total number of Beneficial Interests in shares of beneficiaries who object to the cancellation within thespecific period of time pursuant to (ii) above exceed one half of the total number of Beneficial Interests in shares,
the trust agreement is not cancelled as per paragraph (i) of “(a) Early Termination of the Fund.”(ⅳ) If the trust agreement is not cancelled, the Management Company shall provide public notification of their intent
not to cancel and its reason, and shall also provide notice in writing to that effect to known beneficiaries related tothis trust agreement. If the Management Company provides notice in writing to all beneficiaries related to the trust
agreement, public notice will not be provided, in principle.
(ⅴ) When this trust is terminated pursuant to paragraph (ii) of “(a) Early Termination of the Fund,” the provisions ofparagraphs (i) through (iv) of this “(b) Termination of the Trust Term” shall not apply. The same provisions shall not
apply if a truly unavoidable circumstance arises with respect to the condition of the trust property, and there isdifficulty in providing public notification and written notice with the specific period of at least one month asreferenced in paragraph (ii) above.
(ⅵ) When receiving an order to terminate the trust agreement from regulatory authorities, the Management Company
shall comply with such order, cancel this trust agreement and terminate the trust.
(c) Amendments to the Terms and Conditions of the Trust(ⅰ) The Management Company may, with the consent of the Trustee, amend the terms and conditions of the trust, andshall notify the regulatory authorities, in advance, of the intent to amend and of the contents of the amendment.
(ⅱ) With respect to a material amendment among the matters of amendment in paragraph (i) above, the Management
Company shall provide public notification of the intent to amend and of the contents of the amendment, and shalldeliver the document that describes those matters to the known beneficiaries in accordance with the terms andcondition of the trust. However, when the Management Company delivers this document to all beneficiaries inaccordance with the terms and condition of the trust, a public notification will not be made, in principle.
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(ⅲ) When crafting the public notice and document described in paragraph (ii) above, the Management Company shallmention that a beneficiary who objects to the amendment shall state their objection to the Management Company
within a specified period of time. This time period shall not be less than one month.
(ⅳ) When the number of Beneficial Interests in shares held by beneficiaries who object within the time period
described in paragraph (iii) above exceeds half of the total number of Beneficial Interests in shares the Management
Company shall not amend the terms and conditions of this trust pursuant to paragraph (i) above.
(ⅴ) When the Management Company decides not to amend the terms and conditions of the trust, the Management
Company shall make a public notification that no amendment will be made and the reason for its decision, and shalldeliver the document that explains those matters to known beneficiaries associated with this trust agreement.
However, in principle, when the Management Company delivers the document to all beneficiaries associated withthis trust, public notification will not be made.
(ⅵ) When making amendments to the terms and conditions of this trust based upon an order from regulatory
authorities, the Management Company shall abide by the provisions from (i) through (iv) above.
(d) Public Notification
Any public notification made by the Management Company for the beneficiaries shall be posted online on the website
below by means of electronic public notification:
http://www.nomura-am.co.jp/
If public notice by electronic means cannot be made due to an accident or any other unavoidable circumstances, public
notification shall be provided in Nihon Keizai Shimbun.
(e) Right to Demand Purchase by Objectors
When terminating this Fund’s trust agreement or making amendments to the terms and conditions of the trust, any
beneficiary who has made an objection to the Management Company within the specified period of time may request
the Trustee purchase the Beneficial Interests in shares belonging to such beneficiary with the trust property. The detailsof the right to demand purchase and matters relating to the procedures for demanding purchase will be included in the
public notification or the notice provided for in paragraph (i) of “(b) Termination of the Trust Term” above or paragraph(ii) of “(c) Amendments to the Terms and Conditions of the Trust” above.
(f) Listing on Financial Instruments ExchangeWith respect to the Beneficial Interests in shares of this trust, the Management Company shall apply for a listing on
the financial instruments exchange specified separately. Such Beneficial Interests in shares of this trust will be listed on
the financial instruments exchange after the approval of the financial instruments exchange according to the regulations
and rules promulgated by the financial instruments exchange.
When the Beneficial Interests in shares of this trust are listed, the Management Company shall comply with the rules
and regulations promulgated by the financial instruments exchange above, and shall follow any directions, such as
delisting, or suspension of sales purchase transactions, imposed on Beneficial Interests in shares by a financial
instruments exchange per its regulations and rules.
(g) Withholding of Registration, etc. and Recording etc. of Trust Property(ⅰ) With regard to trust property that can be registered or recorded for the trust, the registration or recording of trust
shall be made; provided however, that the registration or recording of trust may be withheld if the Trustee approves.
(ⅱ) Notwithstanding the provison of paragraph (i) above, registration or recording of trust shall be made if theManagement Company or Trustee deems it necessary to do so for the protection of beneficiaries.
(ⅲ) With regard to trust property for which a statement or recording of belonging to the trust property can be made,such statement or recording shall be made, and concurrently, such trust property shall be segregated by clarifying
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the accounting thereof. However, the property may simply be segregated by clarifying the accounting thereof, if theTrustee approves.
(ⅳ) Movables (excluding monies) may be segregated in the manner whereby they can be distinguished from eachother on sight or by clarifying the accounting thereof.
(h) Instructions to Sell Stock
The Management Company may give instructions to sell stock that belongs to the trust property.
(i) Instructions for Reinvestment
The Management Company may give instructions to reinvest sales proceeds of stock, liquidating dividend from stocks,
dividends from stock and other income. However, dividends shall be limited to being managed by a financial instrument
described in Items (1) through (4) of “I. Overview of Fund, 2 Investment Policy, (2) Investment Assets, ③Scope ofInstructions for Financial Instrument and Futures Transaction”.
(j) Advance of Money by Trustee
When there is an issuance of new shares or allotment of shares with respect to stocks that belong to the trust property,
the Trustee may advance funds if requested by the Management Company.
If estimates of amounts of distribution on liquidation of stocks, dividends, or any other receivables that are related tothe stock that belongs to the trust property, can be made before the date of termination of this trust, the Trustee may
advance these amounts to be incorporated into the trust property.
With regard to the settlement of advances and interest thereof, the Trustee and the Management Company shall discussand decide how to treat such settlement and interest as they arise.
(k) Cancellation of Registration of the Management Company(ⅰ) In the event the Management Company is subject to cancellation of their registration by regulatory authorities, isdissolved, or suspends its operations, the Management Company shall cancel this trust agreement and terminate thistrust.
(ⅱ) Notwithstanding the provisions of paragraph (i) above, if regulatory authorities issue an order that the operationsof the Management Company relating to this trust agreement be substituted by another investment trust managementcompany, this trust shall continue between the investment trust management company and the Trustee, with the
exception of cases that fall under the provisions of paragraph (iv) of “(c) Amendments to the Terms and Conditionsof the Trust”.
(l) Transfer and Succession of the Management Company(ⅰ) The Management Company may transfer all or part of its business, and in conjunction with this transfer, maytransfer the business concerning this trust agreement.
(ⅱ) The Management Company may cause its business to be succeeded due to a company split, and in conjunction
with this succession, its business concerning this trust agreement may be succeeded.
(m) Resignation or Removal of the Trustee
The Trustee may, with the consent of the Management Company, resign from its duties. In the event the Trustee
breaches its duties or any other critical situation arises, the Management Company or a beneficiary may apply to thecourt to have the Trustee removed. If the Trustee resigns, or the court removes the Trustee, the Management Company
shall select a new Trustee pursuant to the provisions of “(c) Amendments to the Terms and Conditions of the Trust.” In
the event the Management Company cannot select a new Trustee, the Management Company shall cancel this trust
agreement and terminate this trust.
(n) Splits and Re-splits of Beneficial Interests in shares, Content of Beneficial Interests in shares on Different Trust
Date/Time49 / 141

The Management Company shall split the Beneficial Interests in shares as of the date when the trust agreement isconcluded equally to the initial number of shares at inception. If additional trusts are made, then the Management
Company shall split the Beneficial Interests in shares attributable to the additional trusts equally into the number of
additional shares.
No variance arises as a result of differences in trust dates/time with respect to the Beneficial Interests in shares of thistrust.
(o) Doubts Concerning Trust Agreement
In the event any doubt arises regarding the interpretation of the terms and conditions of this trust, the Management
Company and the Trustee shall solve the doubt based on mutual discussion.
(p) Renewal Procedures of Agreements with Related Corporations“Agreement regarding Offering and Distribution” executed between the Management Company and the Distributing
Company shall be automatically renewed on an annual basis, in principle, unless either party expresses a different intent
to the other party at least three months prior to the then-current expiry date of such agreement.

4 【Rights, etc., of Beneficiaries】
Primary rights that Beneficiaries have are as follows:① Claims for Income Distribution and Registration(a) A person whose name, address, and individual number or corporate registration number (name and address, if aperson does not have an individual number or corporate registration number, or if a person receives income
distributions via a person in charge of handling payment, as provided for in Article 9-3-2, Paragraph 1 of the Act
on Special Measures Concerning Taxation) are registered with the Trustee as of the last day of the calculation
period shall be treated as the beneficiary as of the last day of the calculation period (“Registered Beneficiary”),
and the income distribution shall be paid to the Registered Beneficiary. Even if the Registered Beneficiary differsfrom a person who holds beneficiary certificates after transfer to the book-entry system as of the last day of thecalculation period, the Management Company shall neither be under the obligation to pay income distributions tosuch person who holds the beneficiary certificates, nor be liable for any damage caused to such holder. *Beneficiaries shall, in principle, request the abovementioned registration through a member of the financial
instruments exchange that lists the Beneficial Interests in shares of this trust (such member shall be limited to
Account Management Institution; the same applies hereinafter). In this case, such member may charge the amountequivalent to a commission that the Account Management Institution set independently and the consumption tax,
etc. on the commission. Provided, however, that securities finance companies, etc. may perform the registration
directly with the Trustee.
The registration process shall be suspended for a period of thirty days beginning the day immediately following
the last day of each calculation period. In this case, the Management Company shall provide a public notification
to that effect in advance. Provided, however, the registration process for the Beneficial Interests in shares statedor recorded in the book-entry transfer account registry of the Central Securities Depository, etc. pursuant to theBook-Entry Act, etc. shall be processed as follows, and in the event that all of the Beneficial Interests in shares ofthis trust are Transfer Beneficial Interests in shares, the public notification above shall not be provided, in principle.
(ⅰ)

The Beneficial Interests in shares shall be identified, by making a statement or recording of its number ofshares on the book-entry transfer account register of the abovementioned member, in the number of shares
stated or recorded on the book-entry transfer account registry.
50 / 141

(ⅱ)

The abovementioned member shall notify the Trustee of the personal name or entity name, address, andindividual number or corporate registration number (personal name or entity name and address, for those
who do not have an individual number or corporate registration number, or if a person receives income
distributions via a person in charge of handling payment as provided for in Article 9-3-2, Paragraph 1, of
the Act on Special Measures Concerning Taxation) of the beneficiary associated with the member, and of
the matters prescribed by the Trustee in writing by the end of the calculation period. When the contents of
the report have changed, the member shall notify the Trustee of the change based upon the request by thebeneficiary in accordance with the method prescribed by the member. *(ⅲ)

The abovementioned member shall report to the Central Securities Depository matters as of the end of

the calculation period, involving the beneficiary mentioned in (i) above related to the member, that areprescribed by the Central Securities Depository (if the member is not an Account Management Institution,
through its superior institution), and the Central Securities Depository shall notify the Trustee to that effect.
* T hese descriptions shall apply to any registration to a T rustee made after January 1, 2016. With regard to any
registration to a T rustee before that date, the provisions then in force shall be applicable. T hose who registered theirpersonal name or entity name, and address to a T rustee before January 1, 2016, shall register their individual number
or corporate registration number with a T rustee by the last day of calculation period which comes first after the dayon which 3 years has elapsed from January 1, 2016 (If a person does not have an individual number or corporate
registration number with a T rustee on the last day of such calculation period, within one month from the date theperson received, for the first time, notification of their personal number and corporate registration number under the
Act on the Use of Numbers to Identify a Specific Individual in Administrative Procedures (Act No.27 of 2013)).

The beneficiary at the time of the execution of this trust agreement and at the time of an additional trust before
January 4, 2008, shall be registered as mentioned above and be delivered the beneficiary certificates, and thebeneficiary at the time of an additional trust on or after January 4, 2008, shall be registered as mentioned aboveand be described or registered on the book-entry transfer account registry of the Central Securities Depository.
The payment of an income distribution shall be, in principle, made on the date specified by the Management
Company, which falls within forty days after the end of every calculation period, by paying the income distribution
by wire transfer to the savings account specified in advance by the beneficiary. Please note that if the Registered
Beneficiary does not specify the savings account in advance, payment of the income distribution to the Registered
Beneficiary may be delayed.
Notwithstanding the procedures listed above, if a Registered Beneficiary enters into a separate agreement
regarding the treatment of income distributions* with a member of a financial instruments exchange, the income
distribution shall be paid pursuant to such agreement.
* Please contact an abovementioned member of a financial instruments exchange for details.

(b) The Trustee shall, when there is an outstanding payable balance of income distribution after five years passed
from the first payment date, pay such outstanding amount to the Management Company.
After the payment of the income distribution has been made to the Management Company, the Trustee shall not
be held liable for the payment of the said amount to the Registered Beneficiary.
In the event that a beneficiary has not claimed any payment of income distribution for five years after the firstpayment date, the beneficiary shall lose the right to claim such payment, and such income distribution shall be
attributed to the Management Company.
②

Redemption Upon Termination of Trust

When this trust is to be terminated, the Management Company shall deliver to the beneficiary who holds more thana certain number of Beneficial Interests in shares (*), shares equivalent to the Beneficial Interests in shares in the trust
51 / 141

property, which the beneficiary possesses four business days prior to the date the trust is terminated, redeemed for theTransfer Beneficial Interests in shares stated or recorded on the transfer account registry as the Beneficial Interests inshares or redeemed for the beneficiary certificates that represents Transfer Beneficial Interests in shares.
(*)

T he unit to be redeemed upon the termination of the trust shall be the number of shares specified by the Management Company,
based on the number of shares required to redeem Beneficial Interests in shares for the individual stocks, the number of whichshall be an integer multiple of the Exchange T rading Unit, that comprise one unit of the actual portfolio whose proportion of
the individual stocks corresponds to the component proportion of the individual stocks in the trust properties, and which theManagement Company deems will correlate to the Nikkei 225 (hereinafter referred to as “Minimum Redemption Sharess upon
Termination of Trust”).

Minimum Redemption Shares Upon Termination of Trust shall be decided by the Management Company at least
five business days prior to the date of termination of trust, and notification shall be provided to the Distributing
Company.
If a beneficiary who is an Issuing Company, etc. of a component stock in the Nikkei 225 makes Redemption, theManagement Company shall give instructions to the Trustee to purchase the Beneficial Interests in shares in the number
equivalent to the individual total market value of the stock of the issuing company. The individual total market value,in this case, shall be the amount by which such stock is sold by a market order on and after the opening of the market
three business days prior to the date the trust is terminated (after deduction of commissions for sale).
The Redemption shall be done in the offices of the Distributing Company.
The name and number of the individual stocks acquired by the beneficiary shall be calculated based on the Net Asset
Value four business days prior to the date of trust termination and which shall be an integer multiple of the Exchange
Trading Unit.
The Distributing Company may charge, upon the Redemption, the amount corresponding to the commissions set
independently by the Distributing Company and the consumption tax, etc. on the commission.
The Management Company shall, after three business days prior to the date the trust is terminated, recognize thatthe same number of Beneficial Interests in shares as that of the Transfer Beneficial Interests in shares and the Beneficial
Interests in shares represented by the beneficiary certificates obtained by the trust property (including the Beneficial
Interests in shares purchased by the trust property for each Beneficial Interests in shares) to be annulled due to the
Redemption have become null and void, and the Trustee shall confirm that the Transfer Beneficial Interests in shares
relating to such Beneficial Interests in shares have been annulled on the date of book-entry of the redeemed shares.
Notwithstanding the above, if any of the following items manifest, the Distributing Company shall purchase any of
the following Beneficial Interests in shares based on the Net Asset Value at the time of the termination of this trust:1

When there is a number of shares remaining after reducing the number of shares required for the Redemption ofstock from the number of shares held by the beneficiary, such remaining number of Transfer Beneficial Interests
in shares or beneficiary certificates; and2

Transfer Beneficial Interests in shares or beneficiary certificates of less than the Minimum Redemption Shares
upon Termination of Trust (including Transfer Beneficial Interests in shares or beneficiary certificates of less thanthe Exchange Trading Unit).

The Distributing Company may, upon purchasing the Beneficial Interests in shares, charge the amount corresponding
to the commission set independently by the Distributing Company and the consumption tax, etc. on the commission.
The Redemption of stocks shall be performed, as for Transfer Beneficial Interests in shares, after the business day
following the date on which the Trustee confirms the application for the annulment of the Transfer Beneficial Interests
in shares is accepted by the Central Securities Depository, and, as for the beneficiary certificates, after the second
52 / 141

business day following the day on which the Trustee confirms the Beneficial Interests in shares to be redeemed areprovided to the Trustee.
With respect to the Beneficial Interests in shares purchased by the trust property, the payment of money shall bemade on the third business day after the date on which the individual total market value is fixed.
In the event a beneficiary has not requested Redemption for ten years from the initial date of Redemption, such
beneficiary loses the right to request Redemption, and such rights are attributed to Management Company.

53 / 141

Ⅲ.【Financial Information of Fund】
NEXT FUNDS Nikkei 225 Exchange Traded Fund
(1) The Financial Statements of the Fund are prepared in accordance with the Ordinance on Terminology, Forms andPreparation Methods of Financial Statements (Ministry of Finance Ordinance No. 59 of 1963; hereinafter referred to as“Financial Statements Regulation”) and, pursuant to the provisions of Article 2-2 of the Financial Statements Regulation,
the Ordinance on Accounting of Investment Trust Property (Cabinet Office Ordinance No. 133 of 2000) (hereinafterreferred to as “Investment Trust Assets Accounting Ordinance”). The Financial Statements are stated in Japanese Yen.
(2) Pursuant to Article 193-2, Paragraph 1 of the Financial Instruments and Exchange Act, the Fund’s Financial Statements
for the 22nd calculation period (from July 9, 2022 to July 8, 2023) have been audited by Ernst & Young ShinNihon LLC.

54 / 141

I n d e p e n d e n t A u d i t o r ’s R e p o r t
September 15, 2023
To:
The Board of Directors
Nomura Asset Management Co., Ltd.
Ernst & Young ShinNihon LLC
Tokyo Office, Japan
Designated Limit ed
Liability Partner
Engagement Partner

CertificatedPublicAccountant

Hisashi Yuhara

Audit Opinion
To provide audit certification pursuant to Article 193-2, Paragraph 1 of the Financial Instruments and Exchange Act, we haveaudited the financial statements listed in the “Financial Information of Fund,” which comprise the balance sheet, the statementof profits and losses and retained earnings and the related notes, and the supplementary schedules for the NEXT FUNDS
Nikkei 225 Exchange Traded Fund for the calculation period from July 9, 2022 to July 8, 2023.
In our opinion, the financial statements referred to above present fairly, in all material respects, the status of trust properties
as of July 8, 2023 and the status of profits and losses for the calculation period ending July 8, 2023, of the NEXT FUNDS
Nikkei 225 Exchange Traded Fund, in accordance with accounting principles generally accepted in Japan.
Basis for Audit Opinion
We conducted our audit in accordance with auditing standards generally accepted in Japan. Our responsibilities under thosestandards are further described in the Auditor’s Responsibilities for the Audit of the Financial Statements Section of our report.
We are independent of Nomura Asset Management Co., Ltd. and the Fund, in accordance with the ethical requirements thatare relevant to our audit of the financial statements in Japan, and we have fulfilled our other ethical responsibilities inaccordance with these requirements. We believe that the audit evidence we have obtained is sufficient and appropriate toprovide a basis for our opinion.
Other Information
Other information is information, apart from the financial statements and the auditor's report on them, that is contained in an
entity’s annual securities report and securities registration statement (including amended securities registration statement).
Management, or those charged with governance, is responsible for preparing and disclosing other information. Other
information is not included in the scope of our opinion on the financial statements and we do not provide our opinion on otherinformation. Our responsibilities in financial statement audit, having read the other information, are to consider whether there
is a material inconsistency between the other information and the financial statements or the auditor’s knowledge obtained in
the audit, and to pay attention to whether there is an indication that other information appears to be materially misstated otherthan such material inconsistency. When we become aware that other information appears to be materially misstated during
our audit, we shall report the fact. There is no matter for us to report on other information.
Responsibilities of Management for the Financial Statements
Management is responsible for the preparation and fair presentation of these financial statements in accordance withaccounting principles generally accepted in Japan, and for such internal control as management determines is necessary toenable the preparation of financial statements that are free from material misstatement, whether due to fraud or error.
In preparing the financial statements, management is responsible for assessing the Fund's ability to continue as a going concern
and disclosing, as required by accounting principles generally accepted in Japan, matters related to going concern.
Auditor’s Responsibilities for the Audit of the Financial Statements
Our objectives are to obtain reasonable assurance about whether the financial statements as a whole are free from material
misstatement, whether due to fraud or error, and to issue an auditor’s report that includes our opinion. Misstatements can arise
from fraud or error and are considered material if, individually or in the aggregate they could reasonably be expected toinfluence the economic decisions of users taken on the basis of these financial statements.
55 / 141

As part of an audit in accordance with auditing standards generally accepted in Japan, we exercise professional judgement
and maintain professional skepticism throughout the audit. We also:・Identify and assess the risks of material misstatement of the financial statements, whether due to fraud or error, design andperform audit procedures responsive to those risks, and obtain audit evidence that is sufficient and appropriate to provide abasis for our opinion.
・In making those risk assessments, we consider internal controls relevant to the audit in order to design audit proceduresthat are appropriate under the circumstances, while the purpose of the audit of the financial statements is not expressing an
opinion on the effectiveness of the Fund’s internal controls.
・Evaluate the appropriateness of accounting policies used and the reasonableness of accounting estimates and related
disclosures made by management.
・Conclude on the appropriateness of management’s use of the going concern basis of accounting and, based on the audit
evidence obtained, whether a material uncertainty exists related to events or conditions that may cast significant doubt on
the Fund’s ability to continue as a going concern. If we conclude that a material uncertainty exists, we are required to draw
attention in our auditor’s report to the related disclosures in the financial statements or, if such disclosures are inadequate,
to modify our opinion. Our conclusions are based on the audit evidence obtained up to the date of our auditor’s report.
However, future events or conditions may cause the Fund to cease to continue as a going concern.
・Evaluate the overall presentation, structure and content of the financial statements, including the disclosures, and whether
the financial statements represent the underlying transactions and events in a manner that achieves fair presentation inaccordance with accounting principles generally accepted in Japan.
We communicate with management regarding, among other matters, the planned scope and timing of the audit and significant
audit findings, including any significant deficiencies in internal controls that we identify during our audit.
We also provide management with a statement that we have complied with the ethical requirements regarding independence
that are relevant to our audit of the financial statements in Japan, and to communicate with them all relationships and othermatters that may reasonably be thought to bear on our independence, and where applicable, related safeguards.
Conflicts of Interest
We have no interest in Nomura Asset Management Co., Ltd. or the Fund which should be disclosed in accordance with theCertified Public Accountants Act.
(Note) 1．T he original version of the Independent Auditor’s Report is retained by us separately.
2．XBRL data is not audited.

56 / 1411【Financial Statements】(1)【Balance Sheet】（Unit：JPY）
21st Fiscal Year(As of July 8, 2022)
AssetsCurrent assets
Call loans
StocksDerivatives valuation account
Accounts receivable
Accrued dividends receivable
Accrued interest
Other accrued revenue
Customers’ margin
Total current assets
Total assets
Liabilities
Current liabilities
Derivative evaluation account
Accounts payable – other
Unpaid distribution
Trustee fee payable
Invest trust management fee
payableAccrued interest expenses
Cash received on debt credit
transaction of securities
Other accrued expenses
Total current liabilities
Total liabilities
Net assets
Principal and otherPrincipal
Surplus
Surplus (deficit) at the end of
the period（△）

259,822,860,895
7,285,903,128,320
8,828,927,100
1,036,072
179,475,268
22,396,432,501

612,887,326,637
8,662,818,839,840
437,823,575
760,577,291
9,443,705,850
32,908,438
217,549,013
9,348,381,773

7,577,131,860,156

9,295,947,112,417

7,577,131,860,156

9,295,947,112,417

4,089,939,299
6,483,770,641
134,950,590,908
1,858,450,639
5,586,083,967

177,371,250
152,345,875,392
1,370,666,781
3,809,989,677

46,05644,651,124,942

425,158
328,421,073,050

2,462,078,787

2,457,202,434

200,082,085,239

488,582,603,742

200,082,085,239

488,582,603,742

3,341,724,189,748

3,255,070,639,669

4,035,325,585,169

5,552,293,869,006

154,469,862

289,781,470

7,377,049,774,917

8,807,364,508,675

7,377,049,774,917

8,807,364,508,675

7,577,131,860,156

9,295,947,112,417(Reserve for distribution)
Total principal and otherTotal net assets
Total liabilities and net assets

22nd Fiscal Year(As of July 8, 2023)

57 / 141(2)【Statement of Income and Retained Earnings】（Unit：JPY）
21st Fiscal Year
From July 9, 2021
to July 8, 2022
Operating revenue
Dividend income
Interest income
Profit and loss on buying and selling of
securities and otherProfit and loss on trading of derivatives

22nd Fiscal Year
From July 9, 2022
to July 8, 2023

152,163,042,112
93,454△420,972,456,271

162,866,560,314
577,297
1,566,391,772,706△11,176,220,531

50,840,221,009

1,049,375,486

3,697,805,930△278,936,165,750

1,783,796,937,256
40,969,954

Trustee fee
Investment trust management fee
Other expenses△80,398,011
3,861,907,284
11,665,528,866
2,800,173,889

2,931,193,088
8,356,140,980
2,755,452,519

Total operating expenses

18,247,212,028

14,083,756,541

Operating profit (loss) （△）△297,183,377,778

1,769,713,180,715

Ordinary profit (loss) （△）△297,183,377,778

1,769,713,180,715

Profit (loss) （△）△297,183,377,778

1,769,713,180,715--

Surplus (deficit) at beginning of period（△）
Increase in surplus or decrease in deficit
Increase in surplus or decrease in deficit
from additional creation for period
Decrease in surplus or increase in deficit
Decrease in surplus or increase in deficit
from partial redemption
Distribution

4,568,624,040,998

4,035,325,585,169

273,675,962,052
273,675,962,052

284,271,625,145
284,271,625,145

374,840,449,195
374,840,449,195

384,670,646,631
384,670,646,631

134,950,590,908

152,345,875,392

Surplus (deficit) at end of period （△）

4,035,325,585,169

5,552,293,869,006

Other revenue
Total operating revenue
Operating expenses
Interest expenses

Distribution of profit (loss) from partial
redemption （△）(3)【Notes to Financial Statements】（Notes regarding Significant Accounting Policy）
1. Basis and methods of valuation for - Stocks
the assets under management
Stocks are valued at market value, in principle.

Market value is assessed by the closing price of a stock exchange on the last dayof the calculation period for the listed stocks (or the closing price of a stock
exchange on the closest day to the last day of the calculation period, if there isno closing price on the last day of the calculation period).
- Futures transactions
Futures transactions are valued at the settlement price published by a stock
exchange on the last day of the calculation period.
2. Basis of recording expenses and - Dividend income
incomeIn principle, the amount of dividend or expected dividend is recorded on exdividend date basis. With respect to investment trust beneficiary certificates, in
58 / 141

principle, the amount of income distribution is recorded on ex-income
distribution date basis.
- Profits and losses on trading of securities.
Recorded on trade date basis.
- Profits and losses on trading of derivatives
Recorded on trade date basis.
3.Supplementary
explanations The market value of financial instruments is calculated based on certain
regarding the matters concerning the assumptions, and therefore the calculated value may vary if calculation of themarketvalue
offinancial value is made based on different assumptions.
instruments
In addition, the contract amount of derivative transactions is just a notional
contract amount or notional principal amount and therefore such amount does
not directly indicate the maximum market risk of such derivative transaction.
4.Others
The calculation period of the Fund is from July 9, 2022 to July 8, 2023, in
accordance with the provisions of the basic terms and conditions of theinvestment trust.
（Notes regarding the Significant accounting estimates）
Not applicable.
（Notes to the Balance Sheet）

1.
2.

3.

21st Fiscal YearAs of July 8, 2022
Total number of Beneficial Interests in shares as of the 1.
last day of calculation period
271,530,364 shares
Amount of the Net asset per unit as of last day of2.
calculation period
Net asset per 1 share
27,168.4 yen(Net asset per 10(271,684 yen)shares)Securities loaned under lending and borrowing contracts 3.
for securities
43,223,100,520 yen

22nd Fiscal YearAs of July 8, 2023
Total number of Beneficial Interests in shares asof the last day of calculation period
264,489,367 shares
Amount of the Net asset per unit as of last day of
calculation period
Net asset per 1 share
33,299.5 yen(Net asset per 10(332,995 yen)shares)Securities loaned under lending and borrowing
contracts for securities
303,486,395,230 yen（Notes to the Statement of Profit and Loss and Retained Earnings）
21st Fiscal Year
From July 9, 2021
to July 8, 2022
1.Process for calculation of distribution
Item
Dividends and otherA
income for theperiodReserve forB
distribution
Total dividends and C=A+B
other income
MiscellaneousDexpensesPossible amount of E=C-D
profit distribution
Profit distribution
Carry forward

F
G=E-F

153,292,909,063 yen
139,761,746 yen
153,432,670,809 yen
18,327,610,039 yen
135,105,060,770 yen
134,950,590,908 yen
154,469,862 yen

22nd Fiscal Year
From July 9, 2022
to July 8, 2023
１.Process for calculation of distribution
Item
Dividends andA
166,523,973,587 yenother income forthe period
Reserve forB
154,469,862 yen
distribution
Total dividends C=A+B 166,678,443,449 yen
and other income
MiscellaneousD
14,042,786,587 yen
expensesPossible amount E=C-D 152,635,656,862 yenof profit
distribution
Profit distribution
F
152,345,875,392 yen
Carry forward
G=E-F
289,781,470 yen

59 / 141

(Reserve for
distribution)
Number of shares
H
Distribution amount I=F/H×10(per 10 shares)
2

271,530,364 shares
4,970 yen

Other expenses
2,165,325,229 yen out of other expenses is trademark
license fee for the target index.

(Reserve for
distribution)
Number of sharesH
264,489,367 shares
Distribution
I=F/H×
5,760 yenamount (per 10
10shares)2 Other expenses
2,129,543,297 yen out of other expenses istrademark license fee for the target index.

（Notes Regarding Financial Instruments）(1) Matters concerning the State of Financial Instruments
21st Fiscal Year
22nd Fiscal Year
From July 9, 2021
From July 9, 2022
to July 8, 2022
to July 8, 2023
1. Policy on Handling of Financial Instruments
1. Policy on Handling of Financial Instruments
The Fund is a Security Investment Trust as defined in
Same as on the left
Article 2, Paragraph 4 of the Act on Investment Trusts andInvestment Corporations, and aims to manage the Fund byinvesting in financial instruments such as securities inaccordance with the basic investment policy set forth in
the basic terms and condition of the investment trust.
2. Details of Financial Instruments and Risk Involved in 2. Details of Financial Instruments and Risk Involved in
Financial Instruments
Financial Instruments
The types of financial instruments invested in by the Fund Same as on the left
consist of monetary claims and monetary debts, including
securities, derivative transactions, and call loans.
The details of the financial instruments invested in by theFund are stated in the sub-section “2 Matters concerning
Securities” of the “Miscellaneous” Section below.
The financial instruments invested in by the Fund are
exposed to the market risks, such as price fluctuation
risks, credit risks, and liquidity risks.
The Fund carries out stock index futures transactions forthe purpose of contributing to the efficient management oftrust assets belonging to the Fund.
The above derivative transactions are exposed to the riskof price fluctuations related to the targeting stock index.
3. Risk Management System for Financial Instruments
3. Risk Management System for Financial Instruments
The Investment Risk Management Committee, aSame as on the leftcommittee independent from the management department,
is established to examine the Fund’s performance and to
manage investment risk.
○Market Risk Management
To manage the market risk, the Management Company isconstantly monitoring and analyzing the status of asset
allocation, to ensure the investment of the trust property isin compliance with the investment policy set forth in thebasic terms and conditions of the investment trust.
○Credit Risk Management
To manage the credit risk, the Management Company isconstantly gathering and analyzing financial informationof the issuers of securities and counterparties oftransactions, and is also complying with internal
restrictions on the incorporation of securities, which may
be applied based on credit ratings.
60 / 141

○Liquidity Risk Management
To manage the liquidity risk, the Management Company ismonitoring market liquidity status, as necessary, and ismanaging the trading volume and incorporation ratio of
each security.
(2) Matters concerning the Market Value, etc. of Financial Instruments
21st Fiscal Year
22nd Fiscal YearAs of July 8, 2022
As of July 8, 2023
1. Amount Recorded on Balance Sheet, Market Value, and 1. Amount Recorded on Balance Sheet, Market Value, andthe Difference between Themthe Difference between Them
Amounts are recorded on the balance sheet based on
Same as on the left
their market values. Therefore, there is no difference
between them.
2. Method of Calculation of Market Value
2. Method of Calculation of Market Value
StocksSame as on the left
As stated in “Notes Regarding Significant
Accounting Policy” Section above.
Derivative Evaluation AccountAs stated in the sub-section “3 Matters concerning
Derivative transactions” of the “Miscellaneous” Section
below.
Monetary Claims and Monetary Debts Including Call
Loans
The market value is determined as the book value
because these accounts will be settled in a short periodof time and the book value of these accounts
approximates their market value.
（Notes regarding transactions with related parties）
21st Fiscal Year
22nd Fiscal Year
From July 9, 2021
From July 9, 2022
to July 8, 2022
to July 8, 2023
There is no applicable item, since no transactions with
Same as on the left
related parties are made under terms and conditions
different from the general and practical terms of certaintransactions (which may be determined by taking market
prices and/or other fair prices for such transactions into
account).
（Miscellaneous）
1 Changes in principal
21st Fiscal Year
22nd Fiscal Year
From July 9, 2021
From July 9, 2022
to July 8, 2022
to July 8, 2023
Amount of Principal at theAmount of Principal at the
beginning of the calculation
3,403,196,608,653 yen beginning of the calculation 3,341,724,189,748 yen
periodperiodAmount of Principal ofAmount of Principal of
Additional Trust created
208,703,952,050 yen Additional Trust created
199,118,645,100 yen
during the calculation period
during the calculation period
Amount of Principal
Amount of Principal
redeemed during the
270,176,370,955 yen redeemed during the285,772,195,179 yen
calculation period
calculation period
61 / 141

2 Matters concerning Securities
Trading Securities
21st Fiscal Year
From July 9, 2021
to July 8, 2022

Type

22nd Fiscal Year
From July 9, 2022
to July 8, 2023

Unrealised gains or losses included in the Unrealised gains or losses included in the
profits and losses of the calculation period profits and losses of the calculation period
（yen）
（yen）

StocksTotal△435,108,857,206

1,531,746,830,126△435,108,857,206

1,531,746,830,126

3 Matters concerning Derivative Transactions
Contracted amount, market value, and unrealized gains or losses of derivative transactions
21st Fiscal Year (As of July 8, 2022)
Type

22nd Fiscal Year (As of July 8, 2023)

Contacted amount,（yen）Contacted amount
（yen）

year

than 1year

Unrealised
Market value gains orLongerlosses（yen）
than 1（yen）Market value
Longer（yen）

Unrealised
gains orlosses（yen）

Markettransaction
Stock index
futurestransactions
Long
position

93,817,190,159－

89,728,920,000 △4,089,939,299 143,726,549,875－ 143,989,200,000

260,452,325

Total

93,817,190,159－

89,728,920,000 △4,089,939,299 143,726,549,875－ 143,989,200,000

260,452,325（Note）Method of valuation of market value
１Futures transactions
Domestic futures transactions
Futures transactions are valued at the settlement price published by a stock exchange as of the last day of the calculation period.
※Hedge accounting is not applied to any of the above transactions.

(4)【Annexed Detailed Schedules】
Ⅰ. Schedule of Securities(1) Stocks (as of July 8, 2023)（Unit:JPY）

Type Currency
Stock
s

JPY

Name

Number of
SharesValuation
Unit Price

AmountRemarks

NISSUI CORPORATION

9,064,000

643.005,828,152,000 Loaned securities
7,500Shares

INPEX CORPORATION

3,625,600

1,602.00

5,808,211,200

62 / 141COMSYS HOLDINGSCORPORATION

9,064,000

2,746.50

24,894,276,000 Loaned securities
264,500Shares

TAISEI CORPORATION

1,812,800

5,014.00

9,089,379,200 Loaned securities
200Shares

OBAYASHI CORPORATION

9,064,000

1,225.50

11,107,932,000

SHIMIZU CORPORATION

9,064,000

899.608,153,974,400 Loaned securities
290,100Shares

HASEKO CORPORATION

1,812,800

1,762.50

3,195,060,000 Loaned securities
118,700Shares

KAJIMA CORPORATION

4,532,000

2,152.50

9,755,130,000 Loaned securities
2,900Shares

DAIWA HOUSE INDUSTRY CO.,LTD

9,064,000

3,697.00

33,509,608,000 Loaned securities
1,278,200Shares（45,700Shares）

SEKISUI HOUSE, LTD.

9,064,000

2,865.00

25,968,360,000 Loaned securities
5,396,400Shares

JGC HOLDINGS CORPORATION

9,064,000

1,812.00

16,423,968,000 Loaned securities
2,176,500Shares（2,176,500Shares）

NISSHIN SEIFUN GROUP INC.

9,064,000

1,695.00

15,363,480,000

MEIJI HOLDINGS CO., LTD.

3,625,600

3,266.00

11,841,209,600 Loaned securities
1,700Shares

NH FOODS LTD.

4,532,000

3,916.00

17,747,312,000

SAPPORO HOLDINGS LIMITED

1,812,800

3,611.00

6,546,020,800

ASAHI GROUP HOLDINGS, LTD.

9,064,000

5,558.00

50,377,712,000

KIRIN HOLDINGS COMPANY,
LIMITED

9,064,000

2,085.00

18,898,440,000

TAKARA HOLDINGS INC.

9,064,000

1,137.00

10,305,768,000 Loaned securities
24,600Shares

KIKKOMAN CORPORATION

9,064,000

7,966.00

72,203,824,000 Loaned securities
178,800Shares

AJINOMOTO CO., INC.

9,064,000

5,616.00

50,903,424,000 Loaned securities
415,600Shares（68,800Shares）

NICHIREI CORPORATION

4,532,000

3,052.00

13,831,664,000 Loaned securities
126,000SharesJAPAN TOBACCO INC.

9,064,000

3,096.00

28,062,144,000

TEIJIN LIMITED

1,812,800

1,476.00

2,675,692,800 Loaned securities
13,100Shares

TORAY INDUSTRIES, INC.

9,064,000

798.407,236,697,600

OJI HOLDINGS CORPORATION

9,064,000

517.404,689,713,600 Loaned securities
646,100Shares（498,000Shares）

NIPPON PAPER INDUSTRIESCO., LTD.

906,400

1,184.00

1,073,177,600 Loaned securities
16,500Shares（3,300Shares）

63 / 141

KURARAY CO., LTD.

9,064,000

1,384.00

12,544,576,000

ASAHI KASEI CORPORATIONOJI HOLDINGS CORPORATION

9,064,000

979.808,880,907,200

RESONAC HOLDINGSCORPORATION

906,400

2,285.50

2,071,577,200 Loaned securities
425,800Shares

SUMITOMO CHEMICALCOMPANY, LIMITED

9,064,000

435.703,949,184,800 Loaned securities
29,300Shares

NISSAN CHEMICALCORPORATION

9,064,000

6,117.00

55,444,488,000 Loaned securities
8,100SharesTOSOH CORPORATION

4,532,000

1,688.00

7,650,016,000 Loaned securities
22,800SharesTOKUYAMA CORPORATION

1,812,800

2,355.00

4,269,144,000

DENKA COMPANY LIMITED

1,812,800

2,692.50

4,880,964,000 Loaned securities
5,300Shares

SHIN-ETSU CHEMICAL CO.,LTD.

45,320,000

4,597.00

208,336,040,000 Loaned securities
2,629,000Shares

MITSUI CHEMICALS, INC.

1,812,800

4,128.00

7,483,238,400

MITSUBISHI CHEMICAL GROUPCORPORATION

4,532,000

851.103,857,185,200 Loaned securities
3,100Shares

UBE CORPOTATION

906,400

2,495.50

2,261,921,200 Loaned securities
700Shares

KAO CORPORATION

9,064,000

5,358.00

48,564,912,000 Loaned securities
18,900Shares

DIC CORPORATION

906,400

2,623.00

2,377,487,200 Loaned securities
49,000Shares

FUJIFILM HOLDINGSCORPORATION

9,064,000

8,298.00

75,213,072,000

SHISEIDO COMPANY, LIMITED

9,064,000

6,290.00

57,012,560,000 Loaned securities
260,900Shares

NITTO DENKO CORPORATION

9,064,000

10,040.00

91,002,560,000 Loaned securities
16,100Shares（16,100Shares）

KYOWA KIRIN CO., LTD.

9,064,000

2,624.50

23,788,468,000 Loaned securities
375,400Shares

TAKEDA PHARMACEUTICALCOMPANY LIMITED

9,064,000

4,410.00

39,972,240,000 Loaned securities
566,500Shares

ASTELLAS PHARMA INC.

45,320,000

2,061.00

93,404,520,000 Loaned securities
3,129,100Shares

SUMITOMO PHARMA CO., LTD.

9,064,000

661.905,999,461,600 Loaned securities
1,540,900Shares（645,800Shares）

SHIONOGI & CO., LTD.

9,064,000

5,919.00

53,649,816,000

CHUGAI PHARMACEUTICAL
CO., LTD.

27,192,000

3,907.00

106,239,144,000 Loaned securities
532,500Shares

EISAI CO., LTD.

9,064,000

9,382.00

85,038,448,000 Loaned securities
268,200Shares

DAIICHI SANKYO COMPANY,

27,192,000

4,133.00

112,384,536,000 Loaned securities

64 / 141

LIMITED

1,128,600SharesOTSUKA HOLDINGS CO., LTD.

9,064,000

5,216.00

47,277,824,000 Loaned securities
865,500Shares

IDEMITSU KOSAN CO., LTD.

3,625,600

2,889.00

10,474,358,400 Loaned securities
700Shares

ENEOS HOLDINGS, INC.

9,064,000

496.904,503,901,600

THE YOKOHAMA RUBBERCOMPANY, LIMITED

4,532,000

3,075.00

13,935,900,000 Loaned securities
465,200Shares（47,800Shares）

BRIDGESTONE CORPORATION

9,064,000

5,750.00

52,118,000,000

AGC INC.

1,812,800

4,959.00

8,989,675,200

NIPPON SHEET GLASSCOMPANY, LIMITED

906,400

645.00584,628,000 Loaned securities
2,200Shares

NIPPON ELECTRIC GLASS CO.,LTD.

2,719,200

2,506.50

6,815,674,800 Loaned securities
63,600Shares

SUMITOMO OSAKA CEMENT
CO., LTD.

906,400

3,646.00

3,304,734,400 Loaned securities
300Shares

TAIHEIYO CEMENTCORPORATION

906,400

2,777.00

2,517,072,800

TOKAI CARBON CO., LTD.

9,064,000

1,274.00

11,547,536,000

TOTO LTD.

4,532,000

4,197.00

19,020,804,000 Loaned securities
302,700Shares

NGK INSULATORS, LTD.

9,064,000

1,654.50

14,996,388,000

NIPPON STEEL CORPORATION

906,400

2,993.50

2,713,308,400 Loaned securities
223,700Shares（123,300Shares）

KOBE STEEL, LTD.

906,400

1,395.00

1,264,428,000

JFE HOLDINGS, INC.

906,400

1,989.50

1,803,282,800 Loaned securities
300Shares

PACIFIC METALS CO., LTD.

906,400

1,520.00

1,377,728,000 Loaned securities
364,700Shares（27,500Shares）

MITSUI MINING & SMELTING
CO., LTD.

906,400

3,248.00

2,943,987,200 Loaned securities
1,400Shares

MITSUBISHI MATERIALSCORPORATION

906,400

2,534.00

2,296,817,600

SUMITOMO METAL MINING
CO., LTD.

4,532,000

4,577.00

20,742,964,000 Loaned securities
9,700Shares

DOWA HOLDINGS CO., LTD.

1,812,800

4,516.00

8,186,604,800 Loaned securities
73,100Shares（18,800Shares）

FURUKAWA ELECTRIC CO.,LTD.

906,400

2,556.50

2,317,211,600 Loaned securities
55,300Shares（32,200Shares）

SUMITOMO ELECTRIC
INDUSTRIES, LTD.

9,064,000

1,716.00

15,553,824,000 Loaned securities
93,300Shares

65 / 141

FUJIKURA LTD.

9,064,000

1,178.00

10,677,392,000

SUMCO CORPORATION

906,400

2,000.00

1,812,800,000 Loaned securities
3,000Shares

THE JAPAN STEEL WORKS,
LTD.

1,812,800

2,989.50

5,419,365,600 Loaned securities
16,900Shares

OKUMA CORPORATION

1,812,800

7,391.00

13,398,404,800 Loaned securities
333,000Shares（48,500Shares）

AMADA CO., LTD.

9,064,000

1,385.50

12,558,172,000 Loaned securities
44,900Shares

SMC CORPORATION

906,400

76,900.00

69,702,160,000 Loaned securities
67,600Shares（5,200Shares）

KOMATSU LTD.

9,064,000

3,727.00

33,781,528,000

SUMITOMO HEAVY
INDUSTRIES, LTD.

1,812,800

3,359.00

6,089,195,200

HITACHI CONSTRUCTION
MACHINERY CO., LTD.

9,064,000

3,898.00

35,331,472,000 Loaned securities
57,800Shares

KUBOTA CORPORATION

9,064,000

2,011.50

18,232,236,000 Loaned securities
1,139,900Shares

EBARA CORPORATION

1,812,800

6,906.00

12,519,196,800

DAIKIN INDUSTRIES, LTD.

9,064,000

29,110.00

263,853,040,000 Loaned securities
360,000Shares

NSK LTD.

9,064,000

896.408,124,969,600 Loaned securities
40,000Shares

NTN CORPORATION

9,064,000

303.202,748,204,800 Loaned securities
150,300Shares

JTEKT CORPORATION

9,064,000

1,309.50

11,869,308,000 Loaned securities
36,300Shares

MITSUI E&S CO., LTD.

906,400

514.00465,889,600 Loaned securities
6,800Shares

HITACHI ZOSEN CORPORATION

1,812,800

914.001,656,899,200 Loaned securities
10,400Shares

MITSUBISHI HEAVY
INDUSTRIES, LTD.

906,400

6,627.00

6,006,712,800

IHI CORPORATION

906,400

3,891.00

3,526,802,400

KONICA MINOLTA, INC.

9,064,000

498.804,521,123,200 Loaned securities
122,500Shares（19,900Shares）

MINEBEA MITSUMI INC.

9,064,000

2,557.00

23,176,648,000 Loaned securities
1,208,600Shares（618,000Shares）

HITACHI, LTD.

1,812,800

8,825.00

15,997,960,000 Loaned securities
105,600Shares

MITSUBISHI ELECTRICCORPORATION

9,064,000

1,999.50

18,123,468,000

66 / 141

FUJI ELECTRIC CO., LTD.

1,812,800

5,985.00

10,849,608,000 Loaned securities
20,100Shares

YASKAWA ELECTRICCORPORATION

9,064,000

6,217.00

56,350,888,000 Loaned securities
1,653,400Shares（317,700Shares）

NIDEC CPRPORATION

7,251,200

7,520.00

54,529,024,000 Loaned securities
24,900Shares

OMRON CORPORATION

9,064,000

8,509.00

77,125,576,000 Loaned securities
1,800Shares

GS YUASA CORPORATION

1,812,800

2,850.00

5,166,480,000 Loaned securities
4,400Shares

NEC CORPORATION

906,400

6,942.00

6,292,228,800

FUJITSU LIMITED

906,400

18,255.00

16,546,332,000

RENESAS ELECTRONICSCORPORATION

9,064,000

2,688.50

24,368,564,000 Loaned securities
593,600Shares

SEIKO EPSON CORPORATION

18,128,000

2,196.00

39,809,088,000 Loaned securities
1,527,600Shares（899,800Shares）

PANASONIC HOLDINGSCORPORATION

9,064,000

1,719.00

15,581,016,000 Loaned securities
12,400Shares

SHARP CORPORATION

9,064,000

790.207,162,372,800 Loaned securities
7,396,000Shares（229,800Shares）

SONY GROUP CORPORATION

9,064,000

13,005.00

117,877,320,000 Loaned securities
575,700Shares

TDK CORPORATION

27,192,000

5,410.00

147,108,720,000

ALPS ALPINE CO., LTD.

9,064,000

1,221.50

11,071,676,000 Loaned securities
1,546,300Shares

YOKOGAWA ELECTRICCORPORATION

9,064,000

2,645.00

23,974,280,000

ADVANTEST CORPORATION

18,128,000

19,970.00

362,016,160,000 Loaned securities
64,600Shares

KEYENCE CORPORATION

906,400

65,970.00

59,795,208,000 Loaned securities
22,900Shares

CASIO COMPUTER CO., LTD.

9,064,000

1,171.00

10,613,944,000 Loaned securities
350,500Shares

FANUC CORPORATION

45,320,000

4,753.00

215,405,960,000 Loaned securities
1,857,000Shares

KYOCERA CORPORATION

18,128,000

7,584.00

137,482,752,000 Loaned securities
132,500Shares

TAIYO YUDEN CO., LTD.

9,064,000

4,182.00

37,905,648,000 Loaned securities
207,200Shares

MURATA MANUFACTURING
CO., LTD.

7,251,200

8,089.00

58,654,956,800 Loaned securities
68,500Shares（22,900Shares）

SCREEN HOLDINGS CO., LTD.

1,812,800

15,630.00

28,334,064,000 Loaned securities
206,900Shares（151,400Shares）

67 / 141CANON INC.

13,596,000

3,725.00

50,645,100,000

RICOH COMPANY, LTD.

9,064,000

1,216.00

11,021,824,000 Loaned securities
423,200Shares（383,800Shares）

TOKYO ELECTRON LIMITED

27,192,000

20,205.00

549,414,360,000 Loaned securities
535,400Shares

DENSO CORPORATION

9,064,000

9,569.00

86,733,416,000 Loaned securities
41,700Shares

KAWASAKI HEAVY
INDUSTRIES, LTD.

906,400

3,718.00

3,369,995,200 Loaned securities
300Shares

NISSAN MOTOR CO., LTD.

9,064,000

597.105,412,114,400 Loaned securities
2,276,600Shares

ISUZU MOTORS LIMITED

4,532,000

1,757.50

7,964,990,000

TOYOTA MOTORCORPORATION

45,320,000

2,299.50

104,213,340,000 Loaned securities
2,760,500Shares

HINO MOTORS, LTD

9,064,000

597.605,416,646,400 Loaned securities
72,600Shares

MITSUBISHI MOTORSCORPORATION

906,400

503.30456,191,120 Loaned securities
300,100Shares（10,400Shares）

MAZDA MOTOR CORPORATION

1,812,800

1,368.00

2,479,910,400

HONDA MOTOR CO., LTD.

18,128,000

4,291.00

77,787,248,000 Loaned securities
497,800Shares

SUZUKI MOTOR CORPORATION

9,064,000

5,462.00

49,507,568,000

SUBARU CORPORATION

9,064,000

2,615.50

23,706,892,000 Loaned securities
10,600Shares

YAMAHA MOTOR CO., LTD.

9,064,000

4,076.00

36,944,864,000 Loaned securities
200Shares

TERUMO CORPORATION

36,256,000

4,321.00

156,662,176,000 Loaned securities
2,455,500Shares（160,000Shares）

NIKON CORPORATION

9,064,000

1,827.00

16,559,928,000 Loaned securities
4,200Shares

OLYMPUS CORPORATION

36,256,000

2,222.00

80,560,832,000 Loaned securities
3,812,700Shares

HOYA CPRPORATION

4,532,000

16,315.00

73,939,580,000 Loaned securities
239,400Shares

CITIZEN WATCH CO., LTD.

9,064,000

880.007,976,320,000 Loaned securities
4,496,300Shares（1,299,300Shares）

BANDAI NAMCO HOLDINGS
INC.

27,192,000

3,161.00

85,953,912,000

TOPPAN INC.

4,532,000

3,099.00

14,044,668,000 Loaned securities
88,700Shares

DAI NIPPON PRINTING CO.,LTD.

4,532,000

3,966.00

17,973,912,000 Loaned securities
8,300Shares

68 / 141

YAMAHA CORPORATION

9,064,000

5,270.00

47,767,280,000 Loaned securities
88,900Shares（86,700Shares）

NINTENDO CO., LTD.

9,064,000

6,351.00

57,565,464,000 Loaned securities
506,400Shares

TOKYO ELECTRIC POWER
COMPANY HOLDINGS,
INCORPORATED

906,400

525.10475,950,640 Loaned securities
274,000Shares

CHUBU ELECTRIC POWER
COMPANY, INCORPORATED

906,400

1,717.50

1,556,742,000 Loaned securities
17,300Shares（17,300Shares）

THE KANSAI ELECTRIC POWER
COMPANY, INCORPORATED

906,400

1,781.00

1,614,298,400

TOKYO GAS CO., LTD.

1,812,800

3,115.00

5,646,872,000 Loaned securities
1,700Shares

OSAKA GAS CO., LTD.

1,812,800

2,145.50

3,889,362,400

TOBU RAILWAY CO., LTD.

1,812,800

3,657.00

6,629,409,600 Loaned securities
23,600Shares（22,200Shares）

TOKYU CORPORATION

4,532,000

1,703.00

7,717,996,000 Loaned securities
425,200Shares

ODAKYU ELECTRIC RAILWAY
CO., LTD.

4,532,000

1,872.00

8,483,904,000 Loaned securities
186,800Shares

KEIO CORPORATION

1,812,800

4,241.00

7,688,084,800 Loaned securities
167,200Shares

KEISEI ELECTRIC RAILWAY
CO., LTD.

4,532,000

5,822.00

26,385,304,000 Loaned securities
104,000Shares

EAST JAPAN RAILWAYCOMPANY

906,400

7,850.00

7,115,240,000 Loaned securities
200Shares

WEST JAPAN RAILWAYCOMPANY

906,400

5,843.00

5,296,095,200

CENTRAL JAPAN RAILWAYCOMPANY

906,400

17,730.00

16,070,472,000 Loaned securities
800Shares

YAMATO HOLDINGS CO., LTD.

9,064,000

2,601.50

23,579,996,000 Loaned securities
260,600Shares（192,000Shares）

NIPPON EXPRESS HOLDINGS,
INC.

906,400

8,070.00

7,314,648,000 Loaned securities
80,000Shares

NIPPON YUSEN KABUSHIKI
KAISHA

2,719,200

3,352.00

9,114,758,400 Loaned securities
53,300Shares（53,300Shares）

MITSUI O.S.K. LINES, LTD.

2,719,200

3,678.00

10,001,217,600 Loaned securities
284,200Shares

KAWASAKI KISEN KAISHA,LTD.

2,719,200

3,877.00

10,542,338,400 Loaned securities
66,300SharesJAPAN AIRLINES CO., LTD.

9,064,000

3,134.00

28,406,576,000

ANA HOLDINGS INC.

906,400

3,427.00

3,106,232,800 Loaned securities
151,500Shares

69 / 141MITSUBISHI LOGISTICSCORPORATION

4,532,000

3,458.00

15,671,656,000 Loaned securities
17,300Shares

NEXON CO., LTD.

18,128,000

2,583.50

46,833,688,000

Z HOLDINGS CORPORATION

3,625,600

368.601,336,396,160 Loaned securities
718,100Shares

TREND MICRO INCORPORATED

9,064,000

6,821.00

61,825,544,000 Loaned securities
1,150,500Shares（256,700Shares）

NIPPON TELEGRAPH AND
TELEPHONE CORPORATION

90,640,000

166.2015,064,368,000

KDDI CORPORATION

54,384,000

4,291.00

233,361,744,000 Loaned securities
166,800Shares

SOFTBANK CORP.

9,064,000

1,536.50

13,926,836,000 Loaned securities
3,900Shares

TOHO CO., LTD

906,400

5,370.00

4,867,368,000

NTT DATA GROUPCORPORATION

45,320,000

1,923.00

87,150,360,000 Loaned securities
600Shares

KONAMI GROUPCORPORATION

9,064,000

7,328.00

66,420,992,000 Loaned securities
611,100Shares（22,800Shares）

SOFTBANK GROUP CORP.

54,384,000

6,724.00

365,678,016,000 Loaned securities
388,700Shares

SOJITZ CORPORATION

906,400

3,193.00

2,894,135,200

ITOCHU CORPORATION

9,064,000

5,540.00

50,214,560,000 Loaned securities
48,100Shares

MARUBENI CORPORATION

9,064,000

2,400.50

21,758,132,000 Loaned securities
100Shares

TOYOTA TSUSHOCORPORATION

9,064,000

7,168.00

64,970,752,000 Loaned securities
136,800Shares

MITSUI & CO., LTD.

9,064,000

5,236.00

47,459,104,000 Loaned securities
45,600Shares

SUMITOMO CORPORATION

9,064,000

2,973.00

26,947,272,000 Loaned securities
1,600Shares

MITSUBISHI CORPORATION

9,064,000

6,832.00

61,925,248,000 Loaned securities
320,700Shares

J. FRONT RETAILING CO., LTD.

4,532,000

1,386.50

6,283,618,000 Loaned securities
104,600Shares

ISETAN MITSUKOSHIHOLDINGS LTD.

9,064,000

1,468.00

13,305,952,000

SEVEN & I HOLDINGS CO., LTD.

9,064,000

6,023.00

54,592,472,000 Loaned securities
709,000Shares

TAKASHIMAYA COMPANY,
LIMITED.

4,532,000

1,989.00

9,014,148,000 Loaned securities
355,700Shares（106,300Shares）

MARUI GROUP CO., LTD.

9,064,000

2,451.00

22,215,864,000 Loaned securities
232,500Shares

AEON CO., LTD.

9,064,000

2,960.00

26,829,440,000 Loaned securities

70 / 141

806,400Shares（169,400Shares）
FAST RETAILING CO., LTD.

27,192,000

34,560.00

SHIZUOKA FINANCIAL GROUP,
INC.

9,064,000

1,046.50

9,485,476,000

CONCORDIA FINANCIALGROUP, LTD.

9,064,000

588.705,335,976,800 Loaned securities
3,900Shares

AOZORA BANK, LTD.

906,400

2,707.50

2,454,078,000 Loaned securities
735,600Shares（102,600Shares）

MITSUBISHI UFJ FINANCIALGROUP, INC.

9,064,000

1,057.50

9,585,180,000 Loaned securities
34,200Shares

RESONA HOLDINGS, INC.

906,400

716.30649,254,320 Loaned securities
700Shares

SUMITOMO MITSUI TRUSTHOLDINGS, INC.

906,400

5,332.00

4,832,924,800

SUMITOMO MITSUI FINANCIALGROUP, INC.

906,400

6,200.00

5,619,680,000 Loaned securities
4,800Shares

THE CHIBA BANK, LTD.

9,064,000

912.908,274,525,600 Loaned securities
59,900Shares

FUKUOKA FINANCIAL GROUP,
INC.

1,812,800

3,095.00

5,610,616,000 Loaned securities
100Shares

MIZUHO FINANCIAL GROUP,
INC.

906,400

2,211.00

2,004,050,400 Loaned securities
5,200Shares

DAIWA SECURITIES GROUP
INC.

9,064,000

723.306,555,991,200 Loaned securities
16,200Shares

NOMURA HOLDINGS, INC.

9,064,000

542.204,914,500,800

MATSUI SECURITIES CO., LTD.

9,064,000

801.007,260,264,000 Loaned securities
1,836,000Shares（72,800Shares）

SOMPO HOLDINGS, INC.

1,812,800

6,556.00

11,884,716,800 Loaned securities
300Shares

MS&AD INSURANCE GROUPHOLDINGS, INC.

2,719,200

5,226.00

14,210,539,200 Loaned securities
18,500Shares

DAI-ICHI LIFE HOLDINGS, INC.

906,400

2,859.00

2,591,397,600 Loaned securities
3,400Shares

TOKIO MARINE HOLDINGS,
INC.

13,596,000

3,284.00

44,649,264,000 Loaned securities
118,800Shares

T&D HOLDINGS, INC.

1,812,800

2,242.00

4,064,297,600 Loaned securities
34,800Shares

CREDIT SAISON CO., LTD.

9,064,000

2,243.00

20,330,552,000 Loaned securities
103,200Shares

ORIX CPRPORATION

9,064,000

2,571.00

23,303,544,000

JAPAN EXCHANGE GROUP, INC.

9,064,000

2,364.00

21,427,296,000 Loaned securities
112,500Shares（112,500Shares）

71 / 141939,755,520,000 Loaned securities
1,541,300Shares（74,700Shares）

Sub
Total

TOKYU FUDOSAN HOLDINGSCORPORATION

9,064,000

815.907,395,317,600

MITSUI FUDOSAN CO., LTD.

9,064,000

2,827.50

25,628,460,000

MITSUBISHI ESTATECOMPANY, LIMITED

9,064,000

1,711.50

15,513,036,000

TOKYO TATEMONO CO., LTD.

4,532,000

1,851.50

8,390,998,000 Loaned securities
479,000Shares

SUMITOMO REALTY &DEVELOPMENT CO., LTD.

9,064,000

3,528.00

31,977,792,000 Loaned securities
131,300Shares

M3, INC.

21,753,600

3,006.00

65,391,321,600 Loaned securities
40,300Shares

DENA CO., LTD.

2,719,200

1,825.00

4,962,540,000 Loaned securities
9,200Shares

DENTSU GROUP INC.

9,064,000

4,600.00

41,694,400,000

ORIENTAL LAND CO., LTD.

9,064,000

5,569.00

50,477,416,000 Loaned securities
114,400Shares（114,400Shares）

CYBERA GENT, INC.

7,251,200

1,013.50

7,349,091,200 Loaned securities
841,800Shares

RAKUTEN GROUP, INC.

9,064,000

528.904,793,949,600 Loaned securities
4,506,300Shares

RECRUIT HOLDINGS CO., LTD.

27,192,000

4,532.00

123,234,144,000 Loaned securities
1,232,500SharesJAPAN POST HOLDINGS CO.,LTD.

9,064,000

1,043.00

9,453,752,000

SECOM CO., LTD.

9,064,000

9,469.00

85,827,016,000 Loaned securities
200Shares

Number of companies invested in：
225

8,662,818,839,840

Ratio of total market value to total
amount of trust properties ：98.4%

100.0%

Total

8,662,818,839,840(Note1) T he ratio shown on the left side indicates the ratio of total market value of the invested stocks to the amount of the net asset of thetrust properties, and the ratio shown on the right side indicates the ratio of the aggregate amount written in each cell listed under the“ Amount” column to the amount listed in the “ Total” column.
(Note2) Each figure in parentheses shown under the “ Remarks” column indicates the number of securities loaned to Nomura Securities
Co., Ltd., an interested party to the Management Company, and each number in parentheses is a part of the total number of loaned
securities listed under the “ Remarks” column for that specific company.

(2) Securities other than stocks (As of July 8, 2023)
Not applicable.
Ⅱ. Contracted Amounts of Derivatives Transactions and Forward Exchange Transactions and Market Value Status
Omitted since the information is stated in the sub-section “3 Matters concerning Derivatives Transactions” of“Miscellaneous” Section above. Please refer to such sub-section.
72 / 1412【Current Status of Fund】【Calculation of Net Assets】
As of July 31, 2023
Ⅰ Total assets

9,755,989,295,042 yen

ⅡTotal liabilities

754,141,911,539 yen

ⅢNet assets（Ⅰ－Ⅱ）

Ⅳ

Number of Outstanding Shares

263,944,078 shares

Ⅴ

Net assets per share（Ⅲ／Ⅳ）

34,105.1 yen

9,001,847,383,503 yen

73 / 141

IV.【Overview of Operational Procedures related to Domestic Investment Trust Beneficiary Certificates】(1) Procedures for Registration of Title Transfer of Beneficiary CertificatesNot applicable.
The attribution of the Beneficial Interests in shares of the Fund is determined based on the statement or recording madeon the book-entry transfer account register of the Central Securities Depository, etc., and the Management Company shallnot issue beneficiary certificates representing the Transfer Beneficial Interests in shares, except in cases where thedesignation from the competent minister as a Central Securities Depository that handles the Beneficial Interests in sharesof this trust is cancelled, or in cases where the designation is no longer in effect, by the rules of Book-Entry Act, and alsoin each case where there is no party to succeed the book-entry business of the Central Securities Depository, or when
unavoidable circumstances occur.
Furthermore, the Beneficiaries shall not request a change from bearer beneficiary certificates to registered beneficiary
certificates, a change from registered beneficiary certificates to bearer beneficiary certificates, or a reissuance of beneficiary
certificates, except in cases where the Management Company issues beneficiary certificates due to unavoidable
circumstances.
(2) Special Privileges for the Beneficiaries
Not applicable.
(3) Procedures for Transfer of the Beneficial Interests in shares①

When transferring a Beneficial Interests in shares it owns, a beneficiary must apply for book-entry transfer to a Central
Securities Depository, etc. associated with the book-entry transfer account registry, which is where the Beneficial
Interests in shares subject to the transfer is stated or recorded.

②

In the case where an application for book-entry transfer in paragraph ① above is made, the Central Securities
Depository, etc. in paragraph ① above must state or record on the book-entry transfer account registry maintained, thedecrease in the number of Beneficial Interests in shares owned by the transferor due to the transfer and the increase in
the number of Beneficial Interests in shares owned by the transferee. In the cases where the Central Securities
Depository, etc. in paragraph ① above is not the party that opened the receiving book-entry transfer account, the Central
Securities Depository, etc. must notify the Central Securities Depository, etc. that opened the receiving book-entry
transfer account of the transferee (including the superior institution of the said Central Securities Depository etc.) in
accordance with the provisions of the Book-Entry Act.

③

The Management Company may, with respect to the book-entry transfer provided in paragraph ① above, establish
dates or periods of book-entry suspension in cases where, for example, the Central Securities Depository, etc.,
associated with the book-entry transfer account registry, on which the Beneficial Interests in shares of the beneficiary
to be transferred are stated or recorded, differs from the Central Securities Depository, etc. that opened the receiving
transfer account of the transferee and when the Management Company deems it necessary to do so or determines that
there is an unavoidable circumstance.

(4) Perfection of Transfer of Beneficial Interests in shares
Any transfer of the Beneficial Interests in shares cannot be asserted duly to the Management Company or the Trustee,
unless based on the statement or recording on the book-entry transfer account registry.
(5) Re-split of Beneficial Interests in shares
The Management Company shall not re-split the Beneficial Interests in shares. However, if the Act on Book-Entry of
Corporate Bonds, Shares, etc., is enforced, the Management Company may, based on discussions with the Trustee and in
74 / 141accordance with the provisions of the above-mentioned Act, re-split the Beneficial Interests in shares equally as of anagreed-upon date.
(6) Handling of Beneficial Interests in shares Stated or Recorded on Pledge Section
Payment of income distribution, acceptance of a redemption request, delivery of redeemed shares, and payment oftermination amount, etc. relating to the Beneficial Interests in shares stated or recorded on the pledge section of the bookentry transfer account registry of Central Securities Depository, etc. shall be handled pursuant to the basic terms andconditions of the investment trust, as well as, by the Civil Code and other relevant laws and regulations.

75 / 141

PART IIII.

【Information about Investment Trust Management Company, etc.】【Overview of Investment Trust Management Company, etc.】

1【Overview of Investment Trust Management Company, etc.】(1) The Amount of Capital
As of the end of August 2023: 17,180 Million Yen
Total number of shares issued by the company: 20,000,000 shares
Total number of shares issued: 5,150,693 shares
Major changes in capital over the past five years: Not Applicable.
(2) The Organization of the Company(a) Company's Decision-Making Organization
The Management Company is a Company with Audit and Supervisory Committee and has Shareholders’ Meetings,
a Board of Directors, Representative Director, and an Audit and Supervisory Committee for its organizational
structure. The authority associated with each of these components is as follows:
Shareholders’ Meeting
The Shareholders’ Meeting consists of shareholders and is authorized to elect or dismiss directors and accounting
auditors, to approve dividends from a surplus, and to approve amendments to the articles of incorporation, mergers,
and other important matters.
Board of Directors
The Board of Directors is composed of Directors and is authorized to make decisions regarding the company’sbusiness. The Board of Directors appoint Representative Director(s), etc., and supervise the execution of the Directors’
duties.
Representative Director and Executive Director
Each Executive Director, including the Representative Director, shall perform the execution of the operation of thecompany's business. The Representative Director shall represent the company. In addition, decisions on certain
matters delegated by the Board of Directors are made by the Executive Management Committee, which consists ofthe Executive Directors, including the Representative Director. Our company introduced theExecutive Officer Systemand the members of the Executive Management Committee include Executive Officers (Senior Managing Directors).
Audit and Supervisory Committee
The Audit and Supervisory Committee shall consist of three or more Directors, the Audit and Supervisory
Committee Members (provided the majority of them shall be Outside Directors), and shall audit the legality andappropriateness of the Directors' execution of their duties. Additionally, it shall make decisions on the content ofproposals submitted at the Shareholders’ Meeting regarding the appointment, dismissal, and non-reappointment of
the Accounting Auditors and on their opinion regarding the appointment, dismissal, resignation and remunerations of
Directors, other than Directors who are Audit and Supervisory Committee Members.

76 / 141

(b) Management System for Investment Trust

Board of Directors

Executive Management Committee, etc.

Investment Policy Committee

Overseeing, Supervising, and Instructing through Development Process and
Implementation Process of Investment Strategy

Investment Management
Related Departments

Research Related
Departments

Comprehension of characteristicof investment management
products, as well as, evaluation,
maintenance and improvementof investment management
processes, etc.

Economic research,
corporate research, etc.

Overseas Offices

Research and analysis ofoverseas securities markets,
advice and manage, etc.

Trading Department
Ordering of stocks, bonds,
etc.

-

Investment
Management
Department-

Investment
Management Review
Related Departments-

Analysis and review ofmanagement strategies andperformance, risk
management, etc.

-

Internal Audit
Department

Research and Evaluation
on Internal Controls of
Overall Business including
Investment Management,in terms of Effectivenessand Validity
Advise or Suggest
Business Improvements
based on their Evaluation
Periodically Reporting theresults of Internal Audit to
Executive Management
Committee

ComplianceDepartment

Review and Provide
Guidance on Legal
Compliance
Audit and Provide
Guidance regarding Legal
Compliance and Rules for
T rading Orders

Committee on Analyses and Evaluations etc., of Investment Product
Deliberating Analyses and Evaluations of Investment Performance77 / 1412【Description of Business and Overview of Operation】
The trustor, a Settlor Company of an Investment Trust, as defined in the “Act on Investment Trusts and Investment
Corporations,” creates securities investment trusts, as well as, manages them (investment management business) as a
Financial Instruments Business Operator, as defined in the “Financial Instruments and Exchange Act.” Additionally, thetrustor contributes to a part of the Type II Financial Instruments Business and Investment Advisory Business, as definedin the “Financial Instruments and Exchange Act.”As of July 31, 2023, the securities investment trusts managed by the trustor are as follows (except for the mother fund):

Type
Open-type stock investment

Number of

Total Net Asset Value

Units(Millions of Yen)

1,012

44,968,856

188

688,05414

6,846,397

474

1,013,943

1,688

53,517,250

trust
Unit-type stock investment
trust
Open-type bond investment
trust
Unit-type bond investment
trust
Total

3【Financial Information of Investment Trust Management Company, etc.】
1．The financial statements of Nomura Asset Management Co., Ltd. (hereinafter referred to as the “Management
Company”) have been prepared based on the "Cabinet Office Order on Financial Instruments Business" (Cabinet
Office Order No. 52, August 6, 2007), in accordance with the provisions of the "Regulation on Terminology, Forms
and Preparation of Financial Statements" (Ministry of Finance Order No. 59, 1963, hereinafter referred to as"Regulations for Financial Statements") and Article 2 of the same regulation.
2． Amounts recorded in the financial statements have been rounded down to the nearest million in yen.
3． Pursuant to Article 193-2, Paragraph 1 of the Financial Instruments and Exchange Act, the Management Company
received an audit of the financial statements for the fiscal year (from April 1, 2022 to March 31, 2023) by Ernst &Young ShinNihon LLC.

78 / 141

Independent Auditor’s Report

June 9, 2023
To:
The Board of Directors
Nomura Asset Management Co., Ltd.

Ernst & Young ShinNihon LLC
Tokyo Office, Japan
Designated Limited
Liability Partner
Engagement Partner

CertifiedPublicAccountant

Hisashi Yuhara

Designated Limited
Liability Partner
Engagement Partner

CertifiedPublicAccountant

Shintaro Mizunaga

Audit Opinion
To provide audit certification pursuant to Article 193-2, Paragraph 1 of the Financial Instruments and ExchangeAct, we have audited the accompanying financial statements listed in the “Financial Information of Investment
Trust Management Company, etc.,” which comprise the balance sheet, the statement of income, the statementof changes in equity, significant accounting policies, and other notes to the financial statements of Nomura
Asset Management Co., Ltd. (the “Company") applicable to the 64th fiscal year from April 1, 2022 to March
31, 2023.
In our opinion, the financial statements referred to above present fairly, in all material respects, the financial
position of the Company as of March 31, 2023 and the results of operations of the Company applicable to thefiscal year that ended on March 31, 2023, in accordance with accounting principles generally accepted in Japan.
Basis for Audit Opinion
We conducted our audit in accordance with auditing standards generally accepted in Japan. Our responsibilities
under those standards are further described in the Auditor’s Responsibilities for the Audit of the Financial
Statements Section of our report. We are independent of the Company in accordance with the ethicalrequirements that are relevant to our audit of the financial statements in Japan, and we have fulfilled our otherethical responsibilities in accordance with these requirements. We believe that the audit evidence we haveobtained is sufficient and appropriate to provide a basis for our opinion.
Other information
Other information is information, apart from the financial statements and the auditor’s report on them, that iscontained in an entity’s annual securities report and securities registration statement (including amended
securities registration statement). We did not do any work on other information because we identified that there
79 / 141

is no other information.
Responsibilities of Management and Audit Committee for the Financial Statements
Management is responsible for the preparation and fair presentation of these financial statements in accordancewith accounting principles generally accepted in Japan, and for such internal controls as management
determines is necessary to enable the preparation of financial statements that are free from material
misstatement, whether due to fraud or error.
In preparing the financial statements, management is responsible for assessing the Company's ability tocontinue as a going concern and disclosing, as required by accounting principles generally accepted in Japan,
matters related to going concern.
The Audit and Supervisory Committee is responsible for overseeing the execution of the Directors’ duties upon
the development and operation of the Company’s financial reporting process.

Auditor’s Responsibilities for the Audit of the Financial Statements
Our objectives are to obtain reasonable assurance as to whether the financial statements, as a whole, are freefrom material misstatement, whether due to fraud or error, and to issue an auditor’s report that includes ouropinion. Misstatements can arise from fraud or error and are considered material if, individually or in theaggregate, they could reasonably be expected to influence the economic decisions of those that relied on theinformation within these financial statements.
As part of an audit in accordance with auditing standards generally accepted in Japan, we exercise professional
judgment and maintain professional skepticism throughout the audit. We also:・Identify and assess the risks of material misstatement of the financial statements, whether due to fraud or
error, design and perform audit procedures responsive to those risks, and obtain audit evidence that is
sufficient and appropriate to provide a basis for our opinion.
・In making those risk assessments, we consider internal controls relevant to the audit in order to design audit
procedures that are appropriate under the circumstances, while the purpose of the audit of the financial
statements is not expressing an opinion on the effectiveness of the Company’s internal controls.
・Evaluate the appropriateness of accounting policies used and the reasonableness of accounting estimatesand related disclosures made by management.
・Conclude on the appropriateness of management’s use of the going concern basis of accounting and, basedon the audit evidence obtained, whether a material uncertainty exists related to events or conditions that may
cast significant doubt on the Company’s ability to continue as a going concern. If we conclude that a material
uncertainty exists, we are required to draw attention in our auditor’s report to the related disclosures in thefinancial statements or, if such disclosures are inadequate, to modify our opinion. Our conclusions are basedon the audit evidence obtained up to the date of our auditor’s report. However, future events or conditions
may cause the Company to cease to continue as a going concern.
・Evaluate the overall presentation, structure and content of the financial statements, including the disclosures,and whether the financial statements represent the underlying transactions and events in a manner that
achieves fair presentation in accordance with accounting principles generally accepted in Japan.
We communicate with the Audit Committee regarding, among other matters, the planned scope and timing of
the audit and significant audit findings, including any significant deficiencies in internal controls that we
80 / 141

identify during our audit.
We provide the Audit Committee with a statement that we have complied with the ethical requirements
regarding independence that are relevant to our audit of the financial statements in Japan, and tocommunicate with them all relationships and other matters that may reasonably be thought to bear on our
independence, and where applicable, related safeguards to eliminate or mitigate obstructive factors.

Conflicts of Interest
We have no interest in the Company which should be disclosed in accordance with the Certified Public
Accountants Act.
(Notes) 1．T he original version of the Independent Auditor’s Report is stored by us separately.
2．XBRL data is not included in the scope of the audit.

81 / 141

（1）【Balance Sheet】

Division

Note
No.

Previous Fiscal Year
(March 31, 2022)

Current Fiscal Year
(March 31, 2023)

Amount (Millions of Yen)

Amount (Millions of Yen)

(Assets)
Current assets
Cash and cash equivalents
Money held in trust
Securities
Advance payments
Prepaid expenses
Accounts receivable
Accrued investment trust
management fees
Accruedinvestment
advisory fees
Short-term loans receivable
Refund of income taxes etc.
receivable
Other current assets
Allowance for doubtful
accounts
Total current assets
Fixed assets
Tangible fixed assets
Building※2
Furniture and fixtures※2
Intangible fixed assets
Software
Other fixed assets
Investments and other
Investment securities
Investment in subsidiaries
and affiliates
Long-term
guarantee
deposits
Long-term
prepaid
expenses
Prepaid pension cost
Deferred tax assets
Other
Total fixed assets
Total assets

2,006

1,865

35,894

42,10829,30021,900

11

11

454

775

694

1,775

27,176

26,116

4,002

3,780

1,835

1,001

-

2,083

57

84

△15

△15

101,417

101,486

1,744

1,335

1,219

906

525

428
5,210

5,563

5,209

5,562

0

0
16,067

16,336

2,201

1,793

9,214

10,025

443

520

13

10

1,297

1,553

2,784

2,340

112

92
23,02323,235

124,440

124,72282 / 141

Division

Note
No.

(Liabilities)
Current liabilities
Deposit Received
Accounts payable
Investment trust profit
distributions
payableInvestment
trust
redemptions payable
Accruedcommission
payableAccounts payable tosubsidiaries andAffiliates
Other accounts payable
Accrued expenses※1
Accrued income taxes
Deferred income
Accrued bonuses
Other current liabilities
Total current liabilities
Long-term liabilities
Reserveforretirement
benefits
Reserve for loss on
distribution of income
andredemption
after
expiration
Asset retirement obligations
Total long-term liabilities
Total liabilities(Net assets)
Shareholder's equity
Commonstock
Capital surplus
Capital reserve
Other capital surplus
Earned surplus
Earned surplus reserve
Other earned surplus
General reserve
Earned surplus brought
forwardValuation and translation
adjustments
Net unrealized gain on
investments
Total net assets
Total liabilities and net assets

Previous Fiscal Year
(March 31, 2022)

Current Fiscal Year
(March 31, 2023)

Amount (Millions of Yen)

Amount (Millions of Yen)

120

124

17,615

17,879

0

0

17

57

8,357

8,409

8,149

8,911

1,089

500
9,512

9,682

1,319

1,024

22

22

4,416

3,635

121

46

33,12732,414

3,194

2,940

588

595

1,123

1,123

4,905

4,659

38,03337,07486,23287,41917,18017,18013,72913,72911,72911,729

2,000

2,000
55,32256,509685

685

54,63755,82324,606

24,60630,03031,217
174

229

174

229

86,40787,648124,440

124,72283 / 141（2）【Statement of Income】
Previous Fiscal Year (from
April 1, 2021 to March 31,
2022)

Current Fiscal Year (from
April 1, 2022 to March 31,
2023)

Amount (Millions of Yen)

Amount (Millions of Yen)

115,733

113,491

17,671

18,198530331

Total operating revenue
Operating expenses

133,935

132,021

Commissions
Advertising expenses

39,087

38,684804

1,187

Division

Note
No.

Operating revenue
Investment
trust
management fees
Investment advisory fees
Other operating revenue

Public notice fees
Research expenses
Research expenses
Researchoutsourcing
expenses
Data processing outsourcing
fee
Operatingmiscellaneous
expensesCommunication expenses
Print expenses
Association fee
Sundry expenses
Total operating expenses
General and administrative
expenses
Salaries
Remunerationfor
directors
Salaries and allowances
BonusesEntertainment expenses
Donations expenses
Travel and Transportation
expenses
Taxes and dues
Rent expenses on real estates
Retirement benefit expenses
Depreciation of noncurrent
assetsSundry expenses
Total general and administrative
expenses
Operating income

0026,65029,050

4,867

6,045

21,78323,004
1,384

1,363

3,094

3,302

72

89

918

903

79

83

2,023

2,225
71,02173,587

12,033

11,316

229

226

7,375

7,752

4,427

3,337
47

78

73

115

65

283

1,049

963

1,432

1,232

1,212

829

2,525

2,409

11,116

12,43929,556

29,66933,35728,76384 / 141

Previous Fiscal Year (from
April 1, 2021 to March 31,
2022)

Division

Note
Amount (Millions of Yen)No.

Non-operating income
Dividends※1

Interest income
Net
foreigncurrencytranslation gain
Other
Total non-operating income
Non-operating expenses
Loss on investments inmoney held in trust
Provision of reserve for loss
on distribution of income
andredemption
after
expiration
Foreign exchange losses
Other

Current Fiscal Year (from
April 1, 2022 to March 31,
2023)
Amount (Millions of Yen)

3,530

7,645

10

45

-

49

1,268

637
4,809

8,377

1,387

1,736

12

10

23

-

266

8

Total non-operating expenses

1,689

1,755

Ordinary income

36,47735,385Special profits
Gain on sales of investment
securities
Gain on equity remuneration
Gain on sales of fixed assets
Differences between the asset
retirement liability balance
and the actual retirement costs
Total special profits
Special losses
Loss on sales of investment
securities
Loss on valuation of stocks
of subsidiaries and affiliates
Loss on retirement of※2
noncurrent assets
Differences between theasset retirement liability
balance and the actual
retirement costs
Office transfer expenses

26

10

53

46

9

-

141

230

57

0

16

727

-

374

52

0

-

54

-

Total special losses

1,158

69

Income before income taxes

35,54935,374

Income taxes-current

10,474

8,890

Income taxes-deferred

171

419

Net income

24,90426,06485 / 141

（3）【Statements of Changes in Equity】
Previous Fiscal Year (from April 1, 2021 to March 31, 2022)(Millions of Yen)
Shareholder's equity
Capital reserve

Earned surplus
Other earned surplus

CommonAdditional

Other

Total

Earnedstock

paid-in

capitalcapitalsurpluscapitalsurplusreserve

reserve

Earned

Total

Generalsurplusearnedreservebrought

surplus

Total
shareholder's equity

forwardBalanceatbeginning of

17,18011,7292,000

13,729685

24,606

31,39556,68687,596△26,268△26,268△26,268

24,90424,90424,904year
Change in theterm
Dividends
of surplus
Net income
Change in
the term
apart fromshareholder's equity(Net)
Total change

－

－

－

－

－

－

△1,364△1,364△1,364

17,18011,7292,000

13,729685

24,60630,03055,322

86,232in the term
Balance at theend of year

(Millions of Yen)
Valuation and translation adjustments

Balance at beginning of

Net unrealized
gain onTotal valuation andtranslation

investments

adjustments

57

Total net assets

57

87,654year
Change in the term
△26,268

Dividends of surplus

24,904

Net income
Change in the term
apart

from

shareholder'sequity

116

116

(Net)

86 / 141

116

Total change in the term

116

116

△1,247

Balance at the end of year

174

174

86,40787 / 141

Current Fiscal Year (from April 1, 2022 to March 31, 2023)(Millions of Yen)
Shareholder's equity
Capital reserve

Earned surplus
Other earned surplus

CommonAdditional

Other

stock

paid-in

capitalcapitalsurplus

Total capitalreserve

EarnedEarnedTotal

surplusGeneralsurplusearnedreserve

reservebrought

surplus

Total
shareholder's equity

forwardBalanceatbeginning of

17,18011,7292,000

13,729685

24,60630,03055,322

86,232△24,877△24,877△24,877

26,06426,06426,064year
Change in theterm
Dividends
of surplus
Net
incomeChange in
the term
apart fromshareholde
r's equity(Net)
Total change

－

－

－

－

－

－

1,186

1,186

1,186

17,18011,7292,000

13,729685

24,606

31,21756,50987,419in the term
Balance at theend of year

(Millions of Yen)
Valuation and translation adjustments

Balance at beginning ofyear

Net unrealized
gain oninvestments

Total valuation andtranslation
adjustments

Total net assets

174

174

86,407

Change in the term
△24,877

Dividends of surplus

26,064

Net income
Change in the term
apart

from

shareholder'sequity

54

54

(Net)

88 / 141

54

Total change in the term

54

54

1,240

Balance at the end of year

229

229

87,64889 / 141

[Significant Accounting Policies]
1. Basis and methods of valuation
for financial instruments(1) Stocks of subsidiaries and affiliates …Recorded at cost using themoving average method(2) Other securities
Other securities than Sharesetc., without market price…

Recorded at market value

Shares etc., without market
price…

Recorded at cost using the moving
average method

2. Basis and method of valuation
for money held in trust

Recorded at market value

3. Basis and method of valuation
for derivative transactions

Recorded at market value(The cost of sale is calculated using
the moving average method and alldifferences invaluation arerecognized directly into net assets.)

4. Basis for translation of foreign Foreign currency monetary claims and debts are translated into Japanesecurrency assets and liabilities into yen in accordance with the spot exchange rate on the closing date.
Japanese currency
Exchange differences are treated as profit or loss.
5. Depreciation and amortization
Methods of Fixed Assets(1) Depreciation of tangible fixed assets
Tangible fixed assets are depreciated by the declining-balancemethod, except for buildings (excluding equipment attached to thebuildings) acquired on or after April 1, 1998 and equipment
attached to the buildings and structures acquired on or after April 1,
2016, which are depreciated by the straight-line method.
Major useful lives are as follows.
Buildings
6 years
Equipment attached to
6～15 years
the buildings
Furniture and Fixtures
4～15 years(2) Amortization of intangible assets, investments and other assets
Intangible assets, investments and other assets are amortized overtheir estimated useful lives primarily on the straight-line method.
The useful lives of the software for in-house use are based on thestraight-line method based on the period of its internal availability(five years).

6. Basis of Allowances(1) Allowance for doubtful accounts
General claims are assessed at the historical default rate of
uncollected accounts, and specific claims, such as those withdoubtful accounts, are assessed individually for collectability andestimated uncollectible amounts are recorded.
(2) Accrued bonuses
To provide for bonus payments, accrual is recorded at the estimatedamount to be paid as future bonuses.
(3) Reserve for retirement benefits
Allowance for retirement benefits is provided for future paymentsof retirement benefits to employees at an estimated amount basedon the retirement benefit obligation and the estimated value of thepension plan assets at the end of this fiscal year.
① Method for attributing the estimated future payment for
90 / 141

retirement benefits
The benefit formula method is used for attributing the estimatedfuture payments to the amount of allowance for retirement benefits
to the end of this fiscal year.
② Method for dealing with Actuarial Differences and Prior
Service Costs
Any actuarial differences arising from the defined-benefit corporate
pension plan are amortized, from the following fiscal year when the
differences arose, by the straight-line method over a period within
the average remaining years of service of the eligible employees,
while those differences arising from the lump-sum payment plan are
fully expensed in the following fiscal year when the differencesarose.
Prior service costs arising from the lump-sum payment plan anddefined-benefit corporate pension plan are amortized by the straightline method over a period within the average remaining years ofservice of the eligible employees from the fiscal year when they wereincurred.
(4) Reserve for loss on distribution of income and termination after
expiration of the statute of limitations
To provide for investment trust profit distributions and investment
trust termination amount recognized as revenue due to the expiry of
the statute of limitations, the estimated amount of payments in the
future is recorded, based on actual payments.
7. Basis for recognition of
The Company earns investment trust management fees andrevenues and expenses
investment advisory fees from asset management services. These may
include success fees.
① Investment trust management fees
The investment trust management fee is recognized as a certain
percentage of the daily total net assets based on the basic terms
and conditions of the investment trust, and the vested fee isreceived by the investment trust mainly four times a year or twicea year. The fees are recognized as income over the investment
trust management period based on the assumption that theperformance obligations are satisfied over the period.
② Investment advisory fees
Investment advisory fees are recognized as a percentage of thetotal net assets during the contract period based on the investment
advisory agreement, and vested fees are received mainly fourtimes a year or twice a year by the advisory account. The fees arerecognized as income over the investment period of the advisoryaccount based on the assumption that performance obligations
will be satisfied over the period.
③ Success fees
Success fees are recognized as a percentage of excess investment
profits above a specific benchmark or other performance target ofthe underlying investment trust or advisory account. The fees arerecognized as income when the right to receive the success fees isvested.
［Notes related to accounting estimates］
Not applicable.

91 / 141

[Change in accounting principle]（Application of Accounting Standard for Market Value Measurement）
The Company has applied the “Implementation Guidance on Accounting Standard for Market Value
Measurement” (ASBJ Guidance No.31 June 17, 2021. Hereinafter referred to as "Market Value AccountingStandards Implementation Guidance".), etc. from the beginning of the current fiscal year, and inaccordance with the transitional treatment set forth in paragraph 27-2 of the Market Value AccountingStandards Implementation Guidance the new accounting principle set forth in the Market Value AccountingStandards Implementation Guidance have been applied in the future.
In addition, in the “Notes Related to Financial Instruments”, matters related to the breakdowns of themarket value of financial instruments by level are stated. The notes on investment trust for the previous
fiscal year, in the “Notes Related to Financial Instruments”, matters related to the breakdowns of the market
value of financial instruments by level, are omitted in accordance with paragraph 27-3of the Market Value
Accounting Standards Implementation Guidance.

［Unapplied Accounting Standards]
Not applicable.

[Notes]◇

Notes Related to Balance SheetAt the End of Previous Fiscal YearAt the End of Current Fiscal Year
(March 31, 2022)(March 31, 2023)※1.Assets and Liabilities in connection with ※1. Assets and Liabilities in connection with
Subsidiaries and Affiliates
Subsidiaries and Affiliates
Items included in each account title, other thanItems included in each account title, other thanthose listed separately, are as follows:
those listed separately, are as follows:
Accrued expenses
1,223 Million Yen
Accrued expenses
1,350 Million Yen※2. Accumulated Depreciation deducted from
Tangible Fixed Assets
Buildings
589 Million Yen
Furniture and618
fixtures
Total
1,207

◇

※2. Accumulated Depreciation deducted from
Tangible Fixed Assets
Buildings
901 Million Yen
Furniture657
and fixtures
Total
1,559

Notes Related to Statement of Income

Previous Fiscal Year
Current Fiscal Year(from April 1, 2021 to March 31, 2022)(from April 1, 2022 to March 31, 2023)※1. Notes relating to Subsidiaries and Affiliates※1. Notes relating to Subsidiaries and Affiliates
Items related to subsidiaries and affiliates, otherItems related to subsidiaries and affiliates, otherthan those listed separately, are as follows:than those listed separately, are as follows:
Dividends
3,525 Million Yen
Dividends
7,634 Million Yen※2. Loss on retirement of fixed assets
Buildings
346 Million Yen
Furniture and28
fixtures
SoftwareTotal
374※2. Loss on retirement of fixed assets
Buildings
0 Million Yen
Furniture and0
fixtures
Software
52
Total
52
92 / 141◇

Notes Related to Statements of Changes in Equity
Previous Fiscal Year (from April 1, 2021 to March 31, 2022)
1. Matters Related to the Type and Number of Shares Issued
Increase in the
Number of shares atnumber of shares
Type ofthe beginning of theduring the current
sharescurrent fiscal year
fiscal year
Commonstock
5,150,693－(shares)Number of shares
decreased in thecurrent fiscal year－

Number of sharesat the end of thecurrent fiscal year
5,150,693

2. Matters Related to Dividends of Surplus（1）In Cases Where the Dividend Property is Cash, the Total Amount of Such Cash
The Board of Directors, on May 14, 2021, resolved the following:
Matters Related to Dividends on Common Stock
Total amount
Dividendsof

26,268 Million Yen

Source of Dividends

Earned Surplus

Dividends per Share

5,100 Yen

Base Date

March 31, 2021

Effective Date

June 30, 2021

（2） Dividends with its Base Date in the Current Fiscal Year, but with an Effective Date of the dividends in the
Following Fiscal Year
The Board of Directors, on May 18, 2022, resolved the following:
Matters Related to Dividends on Common Stock
Total amount
Dividends

of

24,877 Million Yen

Source of Dividends

Earned Surplus

Dividends per Share

4,830 Yen

Base Date
Effective Date

March 31, 2022
June 30, 2022

93 / 141

Current Fiscal Year (from April 1, 2022 to March 31, 2023)
1. Matters Related to the Type and Number of Shares Issued
Increase in the
Number of shares atnumber of shares
Type ofthe beginning of theduring the current
sharescurrent fiscal year
fiscal year
Commonstock
5,150,693－(shares)Number of shares
decreased in thecurrent fiscal year－

Number of sharesat the end of thecurrent fiscal year
5,150,693

2. Matters Related to Dividends of Surplus(1) In Cases Where the Dividend Property is cash, the Total Amount of Such Cash
The Board of Directors, on May 18, 2022, resolved the following:
Matters Related to Dividends on Common Stock
Total Amount
Dividends

of

24,877 Million Yen

Source of Dividends

Earned Surplus

Dividends per Share

4,830 Yen

Base Date

March 31, 2022

Effective Date

June 30, 2022

(2) Dividends with a Base Date in the Current Fiscal Year, but with an Effective Date of the dividends in the Following
Fiscal Year
The Board of Directors, on May 23, 2023, resolved the following:
Matters Related to Dividends on Common Stock
Total Amount
Dividendsof

55,782 Million Yen

Source of Dividends

Earned Surplus

Dividends per Share

10,830 Yen

Base Date
Effective Date

March 31, 2023
June 30, 2023

94 / 141◇ Matters concerning Financial Instruments
Previous Fiscal Year（From April 1, 2021 to March 31, 2022）
1. Matters Related to the Status of Financial Instruments(1) Policy on Management of Financial Instruments
The Management Company conducts investment trust management as its business and holds the investment trusts
through Specified Trust of Money other than Money Trust for the purpose of maintaining the quality and liquidityof investment trusts managed by the Management Company. It is the Management Company’s policy that derivativetransactions being conducted through Specified Trust of Money other than Money Trust will be conducted not for
speculative purposes, but only for the purpose of mitigating the foreign exchange risk and price fluctuation risk inconnection with investment trusts, and therefore such derivative transactions will only be conducted within thebalance of the created investment trusts managed by the Management Company.
It is also the policy to invest surplus funds of the Management Company only in financial assets with a higher
degree of safety, including negotiable certificates of deposit, and to raise funds by short-term loans from Nomura
Holdings, Inc., a Parent Company of the Management Company, and other financial institutions.
(2) Details of Financial Instruments, their Related Risks and the Risk Management System
Most of the investment trusts held through the Specified Trust of Money other than Money Trust are duly hedged
through derivative transactions, including forward exchange contracts, stock index futures and bond futures,
although such investment trusts are exposed to the foreign exchange risk and price fluctuation risk. Stocks held by
the Management Company, as a cross-shareholding or for the purpose of maintaining business relationships, areexposed to the price fluctuation risk. The finance department is in charge of the management of securities,
investment securities, and money trust that the Management Company holds, and is regularly monitoring the market
value and the financial conditions of the issuers and reports the results to management.
The finance department and the investment department are in charge of execution and management of thederivative transactions. Credit risk of the counterparty of derivative transactions is hardly recognized because theManagement Company conducts derivative transactions only with financial institutions with a high credit rating.
The finance department provides a financial report, including details of the derivative transactions, to the executive
management committee on a monthly basis.
Credit risk associated with the accrued investment trust management fee, which consists of operating receivables
for the Management Company, is also hardly recognized, because such management fee is the outstanding balanceof management fees to be paid from the trust properties to the Management Company under the basic terms andconditions of the investment trust, and the trust properties are separately managed by the Trustee. The accrued
investment advisory fee, which also consists of operating receivables for the Management Company, is theoutstanding balance of fees payable to the Management Company under the investment advisory agreement. In
cases where the accrued investment advisory fee is paid from the trust properties, the credit risk associated withsuch a fee is hardly recognized because trust properties are separately managed by the Trustee. On the other hand,in cases where the accrued investment advisory fee is paid directly from a client of the Management Company, suchfee is exposed to the credit risk of the client. However, in such cases, the Management Company effectively manages
the settlement date and unsettled balances depending on the respective client’s credibility status, to ensure themitigation of our clients’ credit risk and early recognition of our clients’ credit uncertainty (if any).
95 / 141

2. Matters Related to the Market Value of Financial Instruments
The following is the recorded value on the balance sheet, market values, and the differences between them as ofMarch 31, 2022.
(Millions of Yen)
Amount Recorded on theMarket Value

Difference

Balance Sheet(1) Money held in trust
Total assets

35,89435,894-35,89435,894

-

121

121

-

121

121

-

(2) Others (derivative transactions)
Total liabilities

Note 1: Cash and Deposit, Accrued investment trust management fee, Accrued investment advisory fee, Securities, Short-term loans receivable,
Accounts payable, Expenses payable, Income taxes payable are omitted because these accounts will be settled in a short period of time
and the market value of these accounts approximates their book value.
Note 2: Investment securities and shares of affiliated companies are not included in the table above, since they are shares, etc. with no market
price and investments in partnerships, etc. The recorded value of such financial investments on the balance sheet are as follows.

Segment

Previous fiscal year
(Millions of Yen)

Shares, etc. with no market price(※) 1, 2

9,529

Investments in partnerships, etc.

1,886
11,415

Total
(※) 1
(※) 2

Shares, etc. with no market price include unlisted stocks.
An impairment loss of 727 Million Yen was recorded for unlisted stocks during the previous fiscal year.

Note 3: T he scheduled amount of terminations after the recorded date of financial statements for monetary claims and securities that have amaturity dateWithin 1 Year

(Millions of Yen)
More than
5 Years andOver 10Within 10
Years
Years

More than 1
Year andWithin 5
Years

Deposit

2,006

-

-

-

Money held in trust

35,894

-

-

-

-

-

-

4,002

-

-

-

29,300

-

-

-

-

-

-

Accrued investment trust management
fees
Accrued investment advisory fee

27,176

Securities and Investment Securities
Other securities
Short-term loans receivable
Total

1,835
100,215

3. Notes on the breakdowns by level of market values of financial instruments
The market values of financial instruments are classified into the following three levels according to the
96 / 141

observability and significance of the inputs used to calculate the market values.
The market values of Level 1: the market value calculated by the (unadjusted) market price in an active market ofthe same assets or liabilities
The market values of Level 2: the market value calculated using directly or indirectly observable inputs other thanused for Level 1
The market values of Level 3: the market value calculated using significant unobservable inputs
If multiple inputs that have a significant impact on the calculation of market value are used, the market value isclassified at the lowest priority level for the calculation of market value among the levels to which the inputs belong.

Division
Money held in trust (Purpose ofinvestment and others) (※)
Total assets
Derivative transactions (Currencyrelated)

Amounts recorded on balance sheet (Millions of Yen)
Level 1
Level 2
Level 3
Total
1,736
1,736

Total liabilities

-

1,736
121

-

1,736
121

-

121

-

121

(※) T ransitional measures have been applied in accordance with Paragraph 26 of the Implementation Guidance on Accounting Standard
for Market Value Measurement, 34,157 Million Yen of money held in trust, of which the main component is investment trusts, are
not included in the table.

Note: Explanation of valuation techniques and inputs used to calculate market value
Money Held in Trust
The trust properties mainly consist of investment trusts, derivative transactions, and other assets (including, callloans and Customers’ margin, etc.).
With regard to the market values of the financial instruments constituting the trust properties, (i) the market valueof the investment trust is determined based on net asset value, (ii) the market value of listed derivative transactions
is determined based upon the market price at the stock exchanges, (iii) the market value of forward exchange
contracts is determined based on forward exchange rates, and (iv) the market value of OTC derivative transactions
is determined based on the prices provided by the correspondent financial institution. In addition, for the other assets,
the market value is represented by their recorded values because these assets are usually settled in a short period oftime and their market value is nearly equal to the recorded book value.
Derivative Transactions
Market value is determined based on the prices provided by the correspondent financial institution and classified as themarket values of Level 2.

97 / 141

Current Fiscal Year（From April 1, 2022 to March 31, 2023）
1. Matters Related to the Status of Financial Instruments(1) Policy on Management of Financial Instruments
The Management Company conducts investment trust management as its business and holds the investment trusts
through Specified Trust of Money other than Money Trust for the purpose of maintaining the quality and liquidityof investment trusts managed by the Management Company. It is the Management Company’s policy that derivativetransactions being conducted through Specified Trust of Money other than Money Trust will be conducted not for
speculative purposes, but only for the purpose of mitigating the foreign exchange risk and price fluctuation risk inconnection with investment trusts, and therefore such derivative transactions will only be conducted within thebalance of the created investment trusts managed by the Management Company.
It is also the policy to invest surplus funds of the Management Company only in financial assets with a higher
degree of safety, including negotiable certificates of deposit, and to raise funds by short-term loans from Nomura
Holdings, Inc., a Parent Company of the Management Company, and other financial institutions.
(2) Details of Financial Instruments, their Related Risks and the Risk Management System
Most of the investment trusts held through the Specified Trust of Money other than Money Trust are duly hedged
through derivative transactions, including forward exchange contracts, stock index futures and bond futures,
although such investment trusts are exposed to the foreign exchange risk and price fluctuation risk. Stocks held by
the Management Company, as a cross-shareholding or for the purpose of maintaining business relationships, areexposed to the price fluctuation risk. The finance department is in charge of the management of securities,
investment securities, and money trust that the Management Company holds, and is regularly monitoring the market
value and the financial conditions of the issuers and reports the results to management.
The finance department and the investment department are in charge of execution and management of thederivative transactions. Credit risk of the counterparty of derivative transactions is hardly recognized because theManagement Company conducts derivative transactions only with financial institutions with a high credit rating.
The finance department provides a financial report, including details of the derivative transactions, to the executive
management committee on a monthly basis.
Credit risk associated with the accrued investment trust management fee, which consists of operating receivables
for the Management Company, is also hardly recognized, because such management fee is the outstanding balanceof management fees to be paid from the trust properties to the Management Company under the basic terms andconditions of the investment trust, and the trust properties are separately managed by the Trustee. The accrued
investment advisory fee, which also consists of operating receivables for the Management Company, is theoutstanding balance of fees payable to the Management Company under the investment advisory agreement. In
cases where the accrued investment advisory fee is paid from the trust properties, the credit risk associated withsuch a fee is hardly recognized because trust properties are separately managed by the Trustee. On the other hand,in cases where the accrued investment advisory fee is paid directly from a client of the Management Company, suchfee is exposed to the credit risk of the client. However, in such cases, the Management Company effectively manages
the settlement date and unsettled balances depending on the respective client’s credibility status, to ensure themitigation of our clients’ credit risk and early recognition of our clients’ credit uncertainty (if any).

98 / 141

2. Matters Related to the Market Value of Financial Instruments
The following is the recorded value on the balance sheet, market values, and the differences between them as ofMarch 31, 2023.
(Millions of Yen)
Amount Recorded on theMarket Value

Difference

Balance Sheet(1) Money held in trust
Total assets

42,10842,108-42,10842,108

-

46

46

-

46

46

-

(2) Others (derivative transactions)
Total liabilities

Note 1: Cash and Deposit, Accrued investment trust management fee, Accrued investment advisory fee, Securities, Short-term loans receivable,
Accounts payable, Expenses payable, Income taxes payable are omitted because these accounts will be settled in a short period of time
and the market value of these accounts approximates their book value.
Note 2: Investment securities and shares of affiliated companies are not included in the table above, since they are shares, etc. with no market
price and investments in partnerships, etc. The recorded value of such financial investments on the balance sheet are as follows.

Segment

Current fiscal year
(Millions of Yen)

10,261

Shares, etc. with no market price(※)
Investments in partnerships, etc.

1,557
11,819

Total(※)

Shares, etc. with no market price include unlisted stocks.

Note 3: T he scheduled amount of terminations after the recorded date of financial statements for monetary claims and securities that have amaturity dateWithin 1 Year

(Millions of Yen)
More thanOver 10
5 Years andYearsWithin 10
Years

More than 1
Year andWithin 5
Years

Deposit

1,865

-

-

-

Money held in trust

42,108

-

-

-

-

-

-

3,780

-

-

-

21,900

-

-

-

-

-

-

Accrued investment trust management
fees
Accrued investment advisory fee

26,116

Securities and Investment Securities
Other securities
Short-term loans receivable

1,001

Total

96,77299 / 141

3. Notes on the breakdowns by level of market values of financial instruments
The market values of financial instruments are classified into the following three levels according to theobservability and significance of the inputs used to calculate the market values.
The market values of Level 1: the market value calculated by the (unadjusted) market price in an active market ofthe same assets or liabilities
The market values of Level 2: the market value calculated using directly or indirectly observable inputs other thanused for Level 1
The market values of Level 3: the market value calculated using significant unobservable inputs
If multiple inputs that have a significant impact on the calculation of market value are used, the market value isclassified at the lowest priority level for the calculation of market value among the levels to which the inputs belong.

Division
Money held in trust (Purpose ofinvestment and others)
Total assets
Derivative transactions (Currencyrelated)

Amounts recorded on balance sheet (Millions of Yen)
Level 1
Level 2
Level 3
Total
42,10842,108

Total liabilities-

42,108
46-

42,108
46

-

46

-

46

Note: Explanation of valuation techniques and inputs used to calculate market value
Money Held in Trust
The trust properties mainly consist of investment trusts, derivative transactions, and other assets (including, callloans and Customers’ margin, etc.).
With regard to the market values of the financial instruments constituting the trust properties, (i) the market valueof the investment trust is determined based on net asset value, (ii) the market value of listed derivative transactions
is determined based upon the market price at the stock exchanges, (iii) the market value of forward exchange
contracts is determined based on forward exchange rates, and (iv) the market value of OTC derivative transactions
is determined based on the prices provided by the correspondent financial institution. In addition, for the other assets,
the market value is represented by their recorded values because these assets are usually settled in a short period oftime and their market value is nearly equal to the recorded book value. It is classified as the market values of Level
2 based on level of the constituent.
Derivative Transactions
Market value is determined based on the prices provided by the correspondent financial institution and classified as themarket values of Level 2.

1 00 / 1 4 1

Matters concerning Securities◇

Previous Fiscal Year （From April 1, 2021 to March 31, 2022）
1. Trading Securities (As of March 31, 2022)
Not applicable.
2. Held-to-Maturity Bonds (As of March 31, 2022)
Not applicable.
3. Stocks of Subsidiaries and Affiliated Companies (As of March 31, 2022)
The amount recorded on the balance sheet of stocks of subsidiaries and affiliated companies that it is difficult to get its
market value.

Previous Fiscal Year
(Millions of Yen)
9,107
106

Division
Stocks of Subsidiaries
Stocks of Affiliated Companies

4. Other Securities (As of March 31, 2022)

Division

Items for which theAmount recorded on
the balance sheet
exceeds
theacquisition cost
StocksSubtotal
Items for which theAmount recorded on
the balance sheet
does not exceed theacquisition cost
Negotiablecertificatesof
deposit
Subtotal
Total

AmountRecorded on Acquisition
Difference
the Balance
Cost(Millions of
Sheet(Millions of
Yen)(Millions of
Yen)

Yen)

-

-

-

-

-

-

29,30029,300-29,30029,300-29,30029,300-※Shares, etc. with no market price (315 million yen recorded on the balance sheet) and investments in partnership, etc. (1,886
million yen recorded on the balance sheet) are not listed.
5. Other Securities Sold During the Fiscal Year (From April 1, 2021 to March 31, 2022）
Not applicable.

1 01 / 1 4 1

Current Fiscal Year（From April 1, 2022 to March 31, 2023）
1. Trading Securities (As of March 31, 2023)
Not applicable.
2. Held-to-Maturity Bonds (As of March 31, 2023)
Not applicable.
3. Stocks of Subsidiaries and Affiliated Companies (As of March 31, 2023)
The amount recorded on the balance sheet of shares, etc. with no market price.
Current Fiscal Year
(Millions of Yen)
9,919
106

Division
Stocks of Subsidiaries
Stocks of Affiliated Companies

4．Other Securities (As of March 31, 2023)

Division

Items for which theAmount recorded on
the balance sheet
exceeds
theacquisition cost
StocksSubtotal
Items for which theAmount recorded on
the balance sheet
does not exceed theacquisition cost
Negotiablecertificatesof
deposit

Subtotal

AmountRecorded on Acquisition
the Balance
Cost(Millions of
Sheet(Millions of
yen)

Yen)

Difference(Millions of
Yen)

-

-

-

-

-

-

21,90021,900-21,90021,900-Total
21,90021,900※Shares, etc. with no market price (235 million yen recorded on the balance sheet) and investments in partnership etc., (1,557
million yen recorded on the balance sheet) are not listed.
5. Other Securities Sold During the Fiscal Year (From April 1, 2022 to March 31, 2023）
Division

Sales Amount(Millions of Yen)

Total Amount of Profit(Millions of Yen)

Total Amount of Loss
(Millions of Yen)

Shares

66

-

16

Total

66

-

16

1 02 / 1 4 1

◇Matters concerning Derivative Transactions

1. Matters Related to Derivative transactions which hedge accounting does not apply to.
(1) Currency-Related
Previous Fiscal Year（From April 1, 2021 to March 31, 2022）

DivisionT rade othermarket trading

Types of tradethan

Forward exchangetransaction
Short position
USD

Amount morethan one year out
Profit or loss
Contract valueMarket valueof contracted
from valuation(Millions of(Millions of(Millions of
value
Yen)
Yen)
(Millions of
Yen)
Yen)
1,714

-

△121

△121

Current Fiscal Year（From April 1, 2022 to March 31, 2023）

DivisionT rade othermarket trading

Types of tradethan

Forward exchangetransaction
Short position
USD

Amount morethan one year out
Profit or loss
Contract valueMarket valueof contracted
from valuation(Millions of(Millions of(Millions of
value
Yen)
Yen)
(Millions of
Yen)
Yen)
952

-

1 03 / 1 4 1

△46

△46

◇

Matters concerning Retirement Benefits
Previous Fiscal Year（From April 1, 2021 to March 31, 2022）
1. Overview of adopted retirement benefits plan
The Company adopted a defined-benefit corporate pension plan and a lump-sum
retirement payment plan, as the defined benefit pension plan, and also adopted a definedcontribution pension plan as the defined contribution plan.
2. Defined benefit plan
(1) Adjustment sheet of the difference between the beginning balance and the endingbalance of the company’s projected benefit obligation
Beginning balance of projected benefit
obligation
Service cost
Interest cost
Amount of actuarial difference accrued
Amount of paid retirement benefits
Other
Ending balance of projected benefit obligation

23,270961
176△1,521Million
Yen

△904
△14
21,967(2) Adjustment sheet of the difference between the beginning balance and the endingbalance of the pension assets

19,349Beginning balance of pension assets
Expected return on assets
Amount of actuarial difference accrued

454
△258

Contributions from the employer
Amount of paid retirement benefits
Ending balance of pension assets

814
△672
19,687

MillionYen(3) Adjustment sheet of the relationship between (i) the ending balances of the projected
benefit obligation and the pension assets, and (ii) the amount of accrued retirement
benefits and prepaid pension costs recorded on the balance sheet
Projected benefit obligation of reserve-type plan
Pension assets
Projected benefit obligation of non-reserve-type
plan
Unreserved projected benefit obligation
Unrecognized amount of actuarial difference
Unrecognized amount of past service cost
Net liabilities recorded on balance sheet
Accrued retirement benefit

Prepaid pension cost

Net liabilities recorded on balance sheet(4) Detailed retirement benefit costService cost

18,807

MillionYen△19,687
△879
3,159
2,279
△489
106
1,896
3,194
△1,2971,896
961 Million
Yen

1 04 / 1 4 1

Interest cost
Expected return on assets
Amount of actuarial difference recorded as coston the balance sheet
Amount of past service cost recorded as cost on
the balance sheet
Retirement benefit cost regarding defined
benefit pension plan

176
△454
322
△45
959

(5) Matters related to pension assets① Major components included in the pension assets
The ratio of the amount of each major component included in the pension assets tothe total pension assets is as follows:
Bonds
51%
Stocks32%
Life insurance general account
10%
Life insurance special account
6%
Other
1%
Total
100%
② Setting method of expected long-term rate of return
To determine an expected long-term rate of return for pension assets, current andexpected future allocation of pension assets and the current and expected long-term
rate of return for the various assets included in the pension assets, are taken into
consideration.
(6) Matters related to the basis of actuarial calculation

Major basis of actuarial calculation as of the end of the current fiscal year
Discount rate applied to the defined-benefit
0.9%
corporate pension plan
Discount rate applied to the lump-sum retirement
0.6%
payment plan
Expected long-term rate of return
2.35%

3. Defined contribution plan
Required amount of contribution to the company’s defined contribution plan is 197
Million Yen.

Current Fiscal Year（From April 1, 2022 to March 31, 2023）
1. Overview of adopted retirement benefits plan
The Company adopted a defined-benefit corporate pension plan and a lump-sum
retirement payment plan, as the defined benefit pension plan, and also adopted a definedcontribution pension plan as the defined contribution plan.
2. Defined benefit plan
(1) Adjustment sheet of the difference between the beginning balance and the endingbalance of the company’s projected benefit obligation
Beginning balance of projected benefit
obligation
Service cost
Interest cost
Amount of actuarial difference accrued
Amount of paid retirement benefits
Other
Ending balance of projected benefit obligation
1 05 / 1 4 1

21,967853
188△1,476△1,133△83
20,314

MillionYen

(2) Adjustment sheet of the difference between the beginning balance and the endingbalance of the pension assets

19,687

Beginning balance of pension assets
Expected return on assets
Amount of actuarial difference accrued
Contributions from the employer
Amount of paid retirement benefits
Ending balance of pension assets

462
△716
819
△874
19,378MillionYen(3) Adjustment sheet of the relationship between (i) the ending balances of the projected
benefit obligation and the pension assets, and (ii) the amount of accrued retirement
benefits and prepaid pension costs recorded on the balance sheet
Projected benefit obligation of reserve-type plan
Pension assets
Projected benefit obligation of non-reserve-type
plan
Unreserved projected benefit obligation
Unrecognized amount of actuarial difference
Unrecognized amount of past service cost
Net liabilities recorded on balance sheet
Accrued retirement benefit

Prepaid pension cost

Net liabilities recorded on balance sheet(4) Detailed retirement benefit costService cost

17,386

MillionYen△19,378△1,991
2,927
935
398
53
1,387
2,940
△1,553
1,387
853 Million

Interest cost
Expected return on assets
Amount of actuarial difference recorded as coston the balance sheet
Amount of past service cost recorded as cost on
the balance sheet
Retirement benefit cost regarding defined
benefit pension plan

188
△462
127

Yen

△52
653

(5) Matters related to pension assets① Major components included in the pension assets
The ratio of the amount of each major component included in the pension assets tothe total pension assets is as follows:
Bonds
34%
Stocks27%Life insurance general account
11%
Life insurance special account
7%
Other
21%
Total
100%
① Setting method of expected long-term rate of return
To determine an expected long-term rate of return for pension assets, current andexpected future allocation of pension assets and the current and expected long-term
rate of return for the various assets included in the pension assets, are taken into
consideration.
(6) Matters related to the basis of actuarial calculation

1 06 / 1 4 1

Major basis of actuarial calculation as of the end of the current fiscal year
Discount rate applied to the defined-benefit
1.4%
corporate pension plan
Discount rate applied to the lump-sum retirement
1.1%
payment plan
Expected long-term rate of return
2.35%
3. Defined contribution plan
Required amount of contribution to the company’s defined contribution plan is 202
Million Yen.

1 07 / 1 4 1

◇ Tax Effect Accounting
1. Details of major components of deferred tax assets and deferred tax liabilities by their origins
As of the End of Previous Fiscal YearAs of the End of Current Fiscal Year
（March 31, 2022）（March 31, 2023）
1. Details of major components of deferred tax assets and 1. Details of major components of deferred tax assets anddeferred tax liabilities by their origins
deferred tax liabilities by their origins
Millions ofMillions ofDeferred tax assets
Deferred tax assets
Yen
Yen
Provision for bonuses
1,381
Provision for bonuses
1,138
Reserve for retirement benefits
Reserve for retirement benefits
990
911
Loss on valuation of stocks ofLoss on valuation of stocks of
1,010
1,010
affiliated companies
affiliated companies
Accrued enterprise taxes
285
Accrued enterprise taxes
227
Loss on valuation of investment
Loss on valuation of investment
110
11securities
securities
Excess depreciation
272
Excess depreciation
331
Reserve for loss income distribution
Reserve for loss income distribution
and redemption after extinctive
182
and redemption after extinctive
184
prescription
prescription
Loss on sales of stocks of affiliated
Loss on sales of stocks of affiliated505
505
companies
companies
Loss on valuation of golf club
Loss on valuation of golf club
92
78
membership
membership
Asset retirement obligation
348
Asset retirement obligation
348
Social insurance premium payable
114
Social insurance premium payable
85
Other
84
Other
44
Deferred tax assets subtotal
5,376
Deferred tax assets subtotal
4,878△1,795△1,696
Valuation allowance
Valuation allowance
Total deferred tax assets
Total deferred tax assets
3,581
3,181
Deferred tax liabilities
Deferred tax liabilities
Retirement costs on asset retirement
Retirement costs on asset retirement
△233
△171
obligations
obligations
Gain on valuation of stocks ofGain on valuation of stocks of△81△84
affiliated companies
affiliated companies△78△102
Unrealized gain on other securities
Unrealized gain on other securities
△402
△481
Prepaid pension cost
Prepaid pension cost
Total deferred tax liabilities△796
Total deferred tax liabilities△840
Net deferred tax assets
2,784
Net deferred tax assets
2,340
2.

Details of major components which caused 2. Details of major components which caused
discrepancy between the normal statutory income tax
discrepancy between the normal statutory income tax
rate and the effective income tax rate after adoption ofrate and the effective income tax rate after adoption oftax-effective accounting
tax-effective accounting
Effective statutory tax rate
Effective statutory tax rate
31.0％
31.0％
(Adjustment)(Adjustment)
Items not permanently recorded as
Items not permanently recorded as
0.0％
0.3％
losses in the statement of income,losses in the statement of income,including social expenses
including social expenses
Items not permanently recorded as
Items not permanently recorded as
taxable income in the statement of
taxable income in the statement of
△2.9％
△6.4％
income, including dividends
income, including dividends
Taxation of tax haven subsidiaries
Taxation of tax haven subsidiaries
1.8％
2.1％
Foreign tax credit
Foreign tax credit
△0.5％
△0.6％
Foreign withholding tax levied on
Foreign withholding tax levied on
dividends received from foreign
dividends received from foreign
0.4％
0.7％
subsidiaries
subsidiaries
Other
Other
0.1％
△0.8％
Effective tax rate after adoption of taxEffective tax rate after adoption of tax29.9％
26.3％
effect accounting
effect accounting
1 08 / 1 4 1

2. Accounting for corporate tax, local corporate tax and relevant tax effect accounting
The Company applies the group tax sharing system from the beginning of this fiscal year. Additionally, the Company
performs the accounting and disclosure for corporate tax, local corporate tax and relevant tax effect accounting inaccordance with the ”Practical Solution on the Accounting and Disclosure Under the Group Tax Sharing System” (ASBJ
PITF No. 42 August 12, 2021).

◇Notes Related to Asset retirement obligations
Asset retirement obligations recorded on balance sheet
1. Overview of the asset retirement obligations
Obligations for restoring the head office of the Management Company to its original state due to the real estate leaseagreement.
2. Calculation method of the asset retirement obligations
The asset retirement obligations are calculated based on that the estimated period of use is the relevant real estate lease
contract period, and that the discount rate is 0.0%.
3. Changes of the total amount of asset retirement obligations（Millions of Yen）

Balance at the beginning of the year
Adjustment due to increase inacquisition of Tangible fixed assets
Adjustment due to decrease withperformance of asset retirement
obligation
Balance at the end of the year

Previous Fiscal Year
Current Fiscal Year
From April 1, 2021
From April 1, 2022
To March 31, 2022
To March 31, 2023
1,371
1,123
48

-

△296

-

1,123

1,123

1 09 / 1 4 1

◇Notes Related to Revenue Recognition
1. Information that breaks down the revenue generated from the contracts with a customer
Previous Fiscal Year（From April 1, 2021 to March 31, 2022）

Division
Investment trust management fees
Investment advisory fees
Success fees (※)
Other operating revenue
Total

Previous Fiscal Year
（From April 1, 2021 toMarch 31, 2022）
115,670 Million Yen
16,675 Million Yen
1,058 Million Yen
530 Million Yen
133,935 Million Yen(※) Success fees are included in investment trust management fees or Investment advisory fees in the statement of income.

Current Fiscal Year（From April 1, 2022 to March 31, 2023）

Division
Investment trust management fees
Investment advisory fees
Success fees (※)
Other operating revenue
Total

Current Fiscal Year
（From April 1, 2022 toMarch 31, 2023）
113,491 Million Yen
17,245 Million Yen
952 Million Yen
331 Million Yen
132,021 Million Yen(※) Success fees are included in investment trust management fees or Investment advisory fees in the statement of income.

2. Information that forms the basis for understanding the revenue generated from the contracts with a customer
As stated in [Significant Accounting Policies] 7, Basis for recognition of revenues and expenses.
3. Information on the relationship between fulfillment of performance obligations under contracts with customers
and cash flows arising from such contracts, and the amount and timing of income expected to be recognized after
the last day of the current fiscal year from contracts with customers existing at the end of the current fiscal year
It is omitted due to less importance of its nature.

1 10 / 1 4 1

◇ Segment Information
Previous Fiscal Year（From April 1, 2021 to March 31, 2022）
1. Segment Information
Disclosures on segment information is omitted since the Company is an operator of an investment managementbusiness comprising a single segment.
2. Related Information(1)

Information for Each Product or Service
Information for each product or service is omitted since the Company classifies the segment for each product orservice in the same manner as it classifies the components of operating revenue indicated on the Company’s profit
and loss statement.

(2)

Information for Each Region① Revenue
Detailed information on regional operating revenue is omitted since over 90% of total operating revenue fromexternal customers recorded on the Company’s profit and loss statement is related only to domestic customers.
② Tangible Fixed Assets
Detailed information on tangible fixed assets located in each region is omitted since over 90% of the amount oftangible fixed assets recorded on the Company’s balance sheet is related only to the tangible fixed assets locatedin Japan.

(3)

Information for Each Major Customer
Detailed information on the amount of operating revenue gained from each major customer is omitted since no
individual external customer provides 10% or more of the total operating revenue recorded on the Company’s profit
and loss statement.

1 11 / 1 4 1

Current Fiscal Year（From April 1, 2022 to March 31, 2023）
1. Segment Information
Disclosure on segment information is omitted since the Company is an operator of an investment managementbusiness comprising a single segment.
2. Related Information(1)

Information for Each Product or Service
Information for each product or service is omitted since the Company classifies the segment for each product orservice in the same manner as it classifies the components of operating revenue indicated on the Company’s profit
and loss statement.

(2)

Information for Each Region① Revenue
Detailed information on regional operating revenue is omitted since over 90% of the total operating revenue fromexternal customers recorded on the Company’s profit and loss statement is related only to domestic customers.
② Tangible Fixed Assets
Detailed information on tangible fixed assets located in each region is omitted since over 90% of the amount oftangible fixed assets recorded on the Company’s balance sheet is related only to the tangible fixed assets locatedin Japan.

(3) Information for Each Major Customer
Detailed information on the amount of operating revenue gained from each major customer is omitted since no
individual external customer provides 10% or more of the total operating revenue recorded on the Company’s profit
and loss statement.

1 12 / 1 4 1

◇ Information on Related Parties
Previous Fiscal Year（From April 1, 2021 to March 31, 2022）
1. Transaction with Related Parties（a）Parent Company, Major Institutional Shareholders, etc.
Not applicable.
（b）Subsidiary

Type

Share
Company
Location
CapitalName

NomuraSubsidiary am finance, Cayman
INC.

Proportion
Company’s
T ransaction
EndingBalanceof VotingBusiness
Relationship T ransaction Volume
Balance
Sheet
Rightswith Related
Details(Millions
Involved(Millions
Holding (orAccount
Partiesof Yen)of Yen)Held) (%)
Shortterm
3,427
1,835
Financingloans
receivable

Fund
2,500
(USD) management

Direct100％

Leasing ofassetsRepaymentof fund1,709

Interest onloan

9

Accruedinterest

4

Balance
Sheet
Account

EndingBalance(Millions ofYen)（c）Affiliated Company
Type

Proportion
Company’s
T ransactionof VotingShare Business
Relationship T ransaction Volume
Company
Location
Rightswith Related(Millions
Capital Involved
Details
Name
Holding (orPartiesof Yen)Held) (%)

Subsidiary
Nomuraof theSecurities
ParentCo., Ltd.
Company

Chuo- 10,000
Securities(Millionku,
Business
Tokyo Yen)－

Dealing inoffering andsecondary
distributionof theinvestment
trustsmanaged bytheCompany
andprovidingoutsourcing
services forinvestment
trustsmanaged bytheCompany.
Interlocking
Directorates

1 13 / 1 4 1

Payment ofcommission
foroutsourcing
services
concerninginvestment
trusts（*1）

Accrued29,119 commission
payable6,013

(d) Officers and Major Individual Shareholders
Not applicable.
Note 1: Each amount shown in the “ transaction volume” column above does not include the amount of consumption taxes. However, eachamount shown in the “ Ending balance” column includes the amount of consumption taxes.
Note 2: T ransaction terms and conditions and policy for determining transaction terms(*1) Commission for outsourcing services concerning investment trusts is comprehensively determined by taking into account themerchantability of the products and other factors.

2．Notes Regarding Parent Company and Important Affiliated Companies(1) Information Regarding Parent Company
Nomura Holdings, Inc. (Nomura Holdings, Inc. is listed on the Tokyo Stock Exchange, Nagoya Stock
Exchange, Singapore Exchange (SGX), and New York Stock Exchange (NYSE))(2) Summary of Financial Statements of Important Affiliated Companies
Not applicable.

1 14 / 1 4 1

Current Fiscal Year（From April 1, 2022 to March 31, 2023）
1. Transaction with Related Parties（a）Parent Company, Major Institutional Shareholders, etc.
Not applicable.
（b）Subsidiary

Type

Share
Company
Location
CapitalName

NomuraSubsidiary am finance, Cayman
INC.

Proportion
Company’s
T ransaction
EndingBalanceof VotingBusiness
Relationship T ransaction Volume
Balance
Sheet
Rightswith Related
Details(Millions
Involved(Millions
Holding (orAccount
Partiesof Yen)of Yen)Held) (%)
Shortterm
5,736
1,001
Financingloans
receivable

Fund
2,500
(USD) management

Direct100％

Leasing ofassetsRepaymentof fund6,489

Interest on
loan

44

Accruedinterest

11

Balance
Sheet
Account

EndingBalance(Millions ofYen)（c）Affiliated Company
Type

Proportion
Company’s
T ransactionof VotingShare Business
Relationship T ransaction Volume
Company
Location
Rightswith Related(Millions
Capital Involved
Details
Name
Holding (orPartiesof Yen)Held) (%)

Subsidiary
Nomuraof theSecurities
ParentCo., Ltd.
Company

Chuo- 10,000
Securities(Millionku,
Business
Tokyo Yen)－

Dealing inoffering andsecondary
distributionof theinvestment
trustsmanaged bytheCompany
andprovidingoutsourcing
services forinvestment
trustsmanaged bytheCompany.
Interlocking
Directorates

1 15 / 1 4 1

Payment ofcommission
foroutsourcing
services
concerninginvestment
trusts（*1）

Accrued27,180 commission
payable5,773

(d) Officers and Major Individual Shareholders
Not applicable.
Note 1: Each amount shown in the “ transaction volume” column above does not include the amount of consumption taxes. However, eachamount shown in the “ Ending balance” column includes the amount of consumption taxes.
Note 2: T ransaction terms and conditions and policy for determining transaction terms(*1) Commission for outsourcing services concerning investment trusts is comprehensively determined by taking into account themerchantability of the products and other factors.

2．Notes Regarding Parent Company and Important Affiliated Companies(1) Information Regarding Parent Company
Nomura Holdings, Inc. (Nomura Holdings, Inc. is listed on the Tokyo Stock Exchange, Nagoya Stock
Exchange, Singapore Exchange (SGX), and New York Stock Exchange (NYSE))(2) Summary of Financial Statements of Important Affiliated Companies
Not applicable.

◇ Per-Share Information
Previous Fiscal Year
（From April 1, 2021 to March 31, 2022）
Net assets per share
Earnings per share

Current Fiscal Year
（From April 1, 2022 to March 31, 2023）

16,775.81 Yen Net assets per share
4,835.10 Yen Earnings per share

17,016.74 Yen
5,060.34 Yen

Diluted earnings per share is not mentioned since Diluted earnings per share is not mentioned since
there are no dilutive shares.
there are no dilutive shares.
The basis of calculating earnings per share
The basis of calculating earnings per share
Net profit recorded on profit and24,904
Net profit recorded on profit and26,064
loss statement
Million Yen
loss statement
Million Yen
Net profit attributed to common
24,904
Net profit attributed to common
26,064stocksMillion Yen
stocksMillion Yen
Major components of net profit not attributed to
Major components of net profit not attributed tocommon stocks
common stocks
Not applicableNot applicable
Average number of shares
Average number of sharesof common stock
5,150,693 sharesof common stock
5,150,693 shares
outstanding
outstanding

1 16 / 1 4 1

4【Restrictions on Transactions with Interested Parties】
Pursuant to provisions of the Financial Instruments and Exchange Act, the Management Company is prohibited fromconducting the following acts with interested parties:①Making an investment intended to conduct a transaction with itself, any director, or executive officer thereof (provided,
however, those specified by the Cabinet Office Ordinance, as acts not likely to result in insufficient protection of
investors, harm the fairness of transactions, or cause a loss of confidence in the financial instruments business, shall be
excluded);②Making an investment intended to conduct a transaction between investment properties (provided, however, thosespecified by the Cabinet Office Ordinance, as acts not likely to result in insufficient protection of investors, harm thefairness of transactions, or cause a loss of confidence in the financial instruments business, shall be excluded);③Conducting sales and purchases or other transactions of securities or over-the-counter transactions of derivatives with
the Parent Juridical Person, etc. (meaning a person that falls under the category of juridical person or other organizationthat satisfies the requirement that the juridical person or other organization holds the majority of the voting rights heldby all the shareholders, etc. of the Management Company, or other requirements specified by a Cabinet Order, as thoseregarded as having a close relationship with the Management Company: the same shall apply in ④ and ⑤ below) or
Subsidiary Juridical Person, etc. (meaning a person that falls under the category of juridical person or any otherorganization that satisfies the requirement that the Management Company holds the majority of voting rights held by all
shareholders, etc. of the juridical person or other organization, etc., or other requirements specified by a Cabinet Order,
as those regarded as having a close relationship with the Management Company: the same shall apply hereafter) of theManagement Company under terms and conditions that are different from ordinary terms and conditions and detrimental
to the fairness of transactions;④Making an investment intended to conduct a transaction with regard to its investment management business that is
unnecessary in light of the policy of the investment, the amount of investment property, or the market conditions, for the
purpose of securing the interest of the Parent Juridical Person, etc. or Subsidiary Juridical Person, etc. of the Management
Company; and⑤In addition to what is listed in the preceding paragraphs ③ and ④ above, any of the acts involving the Parent Juridical
Person, etc. or Subsidiary Juridical Person, etc. of the Management Company that is specified by a Cabinet Office
Ordinance, as being likely to result in insufficient protection of investors, harm the fairness of transactions, or cause aloss of confidence in the financial instruments business.

5【Other】(1) Amendments to the Articles of Incorporation
An amendment to the articles of incorporation of the Management Company requires a resolution at a shareholders’meeting.
(2) Lawsuits and Other Significant Matters
There are no lawsuits or any other matters that significantly affected the Management Company or the Fund, or that is
likely to affect the Management Company or the Fund.

1 17 / 1 4 1

Basic Terms and Conditions

1 18 / 1 4 1

Open-ended Securities Investment Trust
NEXT FUNDS Nikkei 225 Exchange Traded Fund
Terms and Conditions
Article 1 (Type of Trust, Management Company, and Trustee)
1This trust is a securities investment trust. The Management Company is Nomura Asset Management Co., Ltd, and theTrustee is Mitsubishi UFJ Trust and Banking Corporation.

2

This trust is subject to the Trust Act (Act No. 62 of 1922) (hereinafter, the “Trust Act”, unless otherwise noted), except
for the articles regarding the requirements for perfection concerning property that belongs to trust property.

3

The Trustee may conclude a trust agreement with, and delegate a part of its trust administration to, any financial
institution authorized under Article 1, paragraph 1, of the Act on the Concurrent Undertaking of Trust Business by
Financial Institutions (including any interested persons described in Article 29, paragraph 2, item 1 of the Trust BusinessAct as applied mutatis mutandis pursuant to Concurrent Undertaking of Trust Business by Financial Institutions. The
same shall apply hereinafter in this Article), and delegate a part of the trust administration to such financial institution,
as a delegation of the trust administration based on Article 26, paragraph 1 of the Trust Act.

4

Any delegation to an interested person based on the preceding paragraph can be done where such delegation will notinterfere with the protection of the beneficiaries.

Article 2 (The Purpose of the Trust and the Amount)
1

The Management Company shall place in trust securities designated by the Management Company (hereinafter, “Trust
Eligible Securities”) equivalent to the amount of not more than 10 million times larger than the closing price (rounded
up to the nearest 1 yen) of the Nikkei Stock Average (hereinafter, “Nikkei 225”) of the business day previous to the day
when the trust agreement is concluded, for the purpose of earning profits for the beneficiaries, and the Trustee shallundertake these securities.

2

The Trust Eligible Securities described in the preceding paragraph must be securities satisfying all the following
requirements:(1) In principle, stocks that are included or are due to be included in the Nikkei 225;(2) In principle, the proportion of stocks must meet the basic investment policy described in Article 26, paragraph 1,
herein; and(3) Securities that are described in the Order for Enforcement of the Act on Investment Trusts and Investment
Corporations and Regulation for Enforcement of the Act on Investment Trusts and Investment Corporations.

Article 3 (The Maximum Amount of Additional Trust)
1

The Management Company may, by mutual agreement with the Trustee, add trust funds up to the equivalent value of 10
trillion yen of the Trust Eligible Securities.

2

In cases where a trust fund is added, the Trustee shall deliver a document certifying the creation for such a trust to theManagement Company.
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3The Management Company may, by mutual agreement with the Trustee, alter the maximum amount stipulated inparagraph 1 of this Article.

Article 4 (Trust Term)
This trust shall have an unlimited trust term, provided that the trust may be terminated pursuant to Article 11, Article 54,
paragraph 1, Article 55, paragraph 1, and Article 57, paragraph 2 herein.
Article 5 (Listing on Financial Instruments Exchange)
1

With respect to the Beneficial Interests in shares (represented by beneficiary certificates before January 4, 2008; the same
shall apply hereinafter in this Article) of this trust, the Management Company shall apply for a listing on the financial
instruments exchange specified separately (the Financial Instruments Exchange described in Article 2, paragraph 16, of
the Financial Instruments and Exchange Act; the same applies hereinafter). Such Beneficial Interests in shares of thistrust will be listed on the financial instruments exchange after the approval of the financial instruments exchange
according to the regulations and rules promulgated by the financial instruments exchange.

2

When the Beneficial Interests in shares of this trust are listed, the Management Company shall comply with the rules
and regulations promulgated by the financial instruments exchange in the preceding paragraph, and shall follow any
directions, such as delisting, or suspension of sales purchase transactions, imposed on Beneficial Interests in shares by afinancial instruments exchange as per its regulations and rules.

Article 6 (Definitions)
In this terms and conditions, the following definitions shall apply:(1) “Total Net Asset Value” is the amount calculated by deducting the value of total liabilities from the value of total
assets derived by assessing the value of assets that belong to the trust property (excluding substitute securities forcash collateral) in a market value or partly by amortized cost method in accordance with the respective laws and therules of The Investment Trusts Association, Japan.
(2) “Net Asset Value” is the amount derived by dividing Total Net Asset Value by the total number of Beneficial Interests
in shares as of the calculation date.
(3) “Dividend and Other Income” is the amount derived by deducting interest paid from the aggregated value of dividends
received, stock dividends, interest income, and other income.
(4) “Expense” is the sum of trust fees, consumption tax and local consumption tax on the trust fees (hereinafter referred
to as the “Consumption Tax, etc.”), and other costs.
Article 7 (Type of Solicitation of Creation Application for Beneficial Interests in shares)
The solicitation of an creation application for a Beneficial Interests in shares relating to this trust falls under Article 2,paragraph 3, item (i), of the Financial Instruments and Exchange Act, and must be made by means of a public offering
described in Article 2, paragraph 8, of the Act on Investment Trusts and Investment Corporations.
Article 8 (Calculation Period of Trust)
The calculation period of this trust shall be the period from July 9 of each year to July 8 of the following year; provided thatthe end date of the final calculation period shall be the last date of the trust term at the time the trust is terminated under the
1 20 / 1 4 1

proviso of Article 4 hereof.
Article 9 (Attribution of Income and Loss)Any income and loss to the trust property as a result of acts based on instructions of the Management Company shall belong
to the beneficiaries.
Article 10 (Redemption during the Trust Term)
A Beneficiary may not apply for a partial redemption of the trust during the term of this trust with respect to the Beneficial
Interests in shares attributable to the beneficiary.
Article 11 (Early Termination of Trust Agreement)
1 The Management Company, (i) when the number of Beneficial Interests in shares is less than a certain amount, which shallbe determined separately, by exchanging the Beneficial Interests in shares with a part of the trust property or (ii) when
the Management Company otherwise recognizing that terminating this trust is for the benefit of the beneficiaries, may,by mutual agreement with the Trustee, cancel this trust agreement and terminate the trust. In this case, the Management
Company shall notify the regulatory authorities in advance of its intent for early termination.
2 When delisted from all financial instruments exchanges on which the Beneficial Interests in shares were listed based on
the provisions of Article 5, or when the Nikkei 225 itself is terminated, the Management Company may cancel this trust
agreement and terminate the trust by mutual agreement with the Trustee. In this case, the Management Company shallnotify the regulatory authorities in advance of its intent for early termination.
3 For the preceding two paragraphs, the Management Company shall provide public notification of its intent to cancel thistrust agreement, and give notice in writing to that effect to known beneficiaries relating to this trust agreement. However,if the Management Company gives notice in writing to all beneficiaries relating to this trust agreement, public notification
will not be provided, in principle.
4 The public notification and the written notice mentioned in the previous paragraph shall state that any beneficiaries whowant to state an objection to the cancellation must do so within a specific period. The specific period should be at least
one month.
5

If the total number of Beneficial Interests in shares of beneficiaries who object to the cancellation exceed one half of thetotal number of Beneficial Interests in shares, the trust agreement is not cancelled as per paragraph 1 hereof.

6 If the trust agreement is not cancelled, the Management Company shall provide public notification of their intent not tocancel and its reason, and shall also give notice in writing to that effect to known beneficiaries relating to this trust
agreement. If the Management Company gives notice in writing to all beneficiaries relating to the trust agreement, public
notice will not be provided, in principle.
7 When this trust is terminated pursuant to the provisions of paragraph 2 hereof, the provisions of paragraph 4 through theimmediately preceding paragraph shall not apply. The same provisions shall not apply if a truly unavoidable circumstancearises with respect to the condition of the trust property, and there is difficulty in providing public notification and written
notice with the specific period of at least one month as referenced in paragraph 4.
Article 12 (Application for Unit of Beneficial Interests in shares and its Price)1

The distributing company (meaning Type I Financial Instruments Business Company (a company who engages in the
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Type I Financial Instruments Business as prescribed in Article 28, paragraph 1, of the Financial Instruments andExchange Act. The same shall apply hereinafter) designated by the Management Company) shall accept creation
application of Beneficial Interests in shares, whose number of shares is an integer multiple of a certain number of shares
specified by the Management Company, to be split pursuant to the provisions of Article 13, as long as the applicants
apply by a time limit, specified separately by Management Company, of the acceptance day of creation application. In
this case, the creation application shall be for the Trust Eligible Securities specified separately by the Management
Company. However, if the value of the Trust Eligible Securities is less than the value of Beneficial Interests in shares,
whose number of shares is an integer multiple of the certain number of shares, the amount corresponding to the difference
will be charged.
2

The value of Beneficial Interests in shares referred to in the preceding paragraph above is the Net Asset Value as of theacceptance day of creation application. The distributing company may charge an amount equivalent to the commission
individually defined by the distributing company, and the Consumption Tax, etc. on the commission from the creation
applicant.

3 The certain number designated in paragraph 1 shall be specified separately by the Management Company based on thenumber of portions required for a creation of Beneficial Interests in shares for the individual stocks, the number of whichshall be an integer multiple of a basic trading unit in a financial instruments exchange (“Exchange Trading Unit”), thatcomprise 1 unit of the actual portfolio (announced every day, in principle) whose proportion of the individual stocks
corresponds to the component proportion of the individual stocks in the trust properties, and which the Management
Company deems will correlate to the Nikkei 225.
4

Notwithstanding the provisions of paragraph 1, the Management Company shall suspend any creation application ofBeneficial Interests in shares on the following days and periods; provided, however, the Management Company may
accept creation application of Beneficial Interests in shares for the days and periods in the following items (except for
the item 3 below) if the Management Company determines that the impact of such creation on the trust property is
minimal in view of the condition of the trust property, funding trends, market trends, etc.
(1) For a period of two business days, beginning from one business day prior to the ex-dividend date or ex-right dateof any component stocks in the Nikkei 225.
(1-2) The period, beginning from one business day prior to the delisting date of any component stocks in the Nikkei 225
due to stock exchange, merger and other reasons and ending on one business day prior to the including date of new
stock within component stocks in the Nikkei 225 as the result from the stock exchange, merger and other reasons.
(2) For a period of three business days, beginning from three business days prior to the last day of any calculation
period described in Article 8 (provided, however, if the accounting day is a holiday (meaning not a business day),the period shall be four business days, beginning from four business days prior to the accounting day).
(3) In addition to the items above, any time the Management Company determines that unavoidable circumstances
occur that prevent it from making investments in accordance with the investment policies provided in Article 26,
item 1.

5

When the creation applicant in paragraph 1 is an issuing company of component stocks in the Nikkei 225, or one of its
subsidiaries (meaning the subsidiary defined in Article 2, item 3, of the Companies Act. The issuing company or its
subsidiary shall be referred to as the “Issuing Company”), the Management Company may accept creation applicationin cash in an amount equal to the total market value of the individual stocks issued by such issuing company. The total
market value of the individual stocks, in this case, shall be the amount derived by multiplying the closing price (or, if the
1 22 / 1 4 1

closing price is not available, an equivalent price) at the financial instruments exchanges of the stocks of the issuing
company as of the calculation date of the Net Asset Value of the acceptance day of creation application, by the numberof the stocks within the Trust Eligible Securities in case of the creation application applied by other party than the IssuingCompany. Furthermore, the Management Company may charge the amount equivalent to the Expense required for theacquisition of the stocks of the issuing company for the trust property.
6 When the creation applicant is an Issuing Company of component stocks in the Nikkei 225, the Type I Financial Instruments
Business Company who accepted creation application (including any case where the Type I Financial Instruments
Business Company applies for creation for its own account if the Type I Financial Instruments Business Company is a
Issuing Company of component stocks in the Nikkei 225; the same shall apply in the following item) shall, at the timeof intermediating the creation application, notify the Management Company to the effect.
7 In the event the notification in the preceding paragraph is not made at the time of intermediating the creation application,and this results in damages to the trust property or others, the Type I Financial Instruments Business Company shall be
liable for the damage.
8

The creation applicant in the paragraph 1 above shall present to the distributing company, at the time of creation
application or in advance, an account with a Central Securities Depository, etc., opened for the creation applicant tobook-entry transfer to make a book-entry for Beneficial Interests in shares for the trust, and the increase in the numberof shares relating to the creation application is stated or recorded on the account. The distributing company may state orrecord the increase in the number of shares relating to the creation applicant to the account in exchange for the deliveryof the Trust Eligible Securities (including an amount corresponding to the total market value of the individual stocks andrequired Expense in paragraph 5; the same applies hereinafter in this paragraph) or payment required for the creation
application. When the distributing company who accepted the creation application applies to the Financial Instruments
Clearing Organization specified separately (the Financial Instruments Clearing Organization described in Article 2,paragraph 29, of the Financial Instruments and Exchange Act; hereinafter referred to as the “Clearing Organization”) for
owing a debt on the delivery of the Trust Eligible Securities to the Management Company or payment arising from theacceptance of the creation application and the Clearing Organization owes the debt in accordance with the business rulesof the Clearing Organization, the increase in the number of shares is stated or recorded in the accounts in the Clearin g
Organization’s name of the Central Securities Depository, etc. The increase in the number of shares in an account witha Central Securities Depository, etc., opened for the creation applicant to book-entry transfer to make a book-entry for
Beneficial Interests in shares for the trusts shall be stated or recorded by the Clearing Organization and the distributing
company (including a Financial Instruments Business Operator or Registered Financial Institution when a Financial
Instruments Business Operator or Registered Financial Institution conducts Broking for the Clearing of Securities, etc.,
described in Article 2, paragraph 27, of the Financial Instruments and Exchange Act under entrustment by the distributing
company for the distributing company’s application to Cleaning Organization for owing a debt) through the Central
Securities Depository, etc.

9 Notwithstanding the provisions of paragraph 4, in the event of a suspension of trading on the financial instruments exchange,of a suspension of settlement functions, or of any other unavoidable circumstance, the Management Company may
suspend the acceptance of any creation application of Beneficial Interests in shares or cancel creation application
accepted.
Article 13 (Split of Beneficial Interests in shares)
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1 The Management Company shall split the Beneficial Interests in shares as provided in Article 2 hereof equally to not morethan 10 million shares. If additional trusts are made, then the Management Company shall split the Beneficial Interests
in shares attributable to the additional trusts to the number of additional shares under Article 33 equally.
2

The Management Company shall not re-split the Beneficial Interests in shares. However, if the Act on Book-Entry of
Corporate Bonds, Shares, etc., is enforced, the Management Company may, based on discussions with the Trustee, resplit the Beneficial Interests in shares equally as of an agreed-upon date.

Article 14 (Initial Beneficiary)
The initial beneficiary as of the day this trust agreement and that of additional trust shall be the creation applicant designatedby the Management Company. Any Beneficial Interests in shares split conducted as described in the preceding Article shallbelong to the creation applicant proportionally to the number requested by them. Provided that, when the distributing company
who accepted the creation application provided in Article 12 hereof applies to the Clearing Organization for owing a debt on
the delivery of the Trust Eligible Securities to the Management Company or payment arising from the acceptance of thecreation application and the Clearing Organization owes the debt in accordance with the business rules provided in Article 12,
paragraph 8 hereof, the initial beneficiary of additional trust shall be the Clearing Organization.
Article 15 (Content of Beneficial Interests in shares on Different Trust Date/Time)No variance arises as a result of differences in trust dates/time with respect to the Beneficial Interests in shares of this trust.
Article16 (Attribution of Beneficial Interests in shares and Non-Issuance of Beneficiary Certificates)
1

All Beneficial Interests in shares of this trust are governed by the Act on Book-Entry of Corporate Bonds, etc. (if it
becomes the “Act on Book-Entry of Corporate Bonds, Shares, etc.” after the date specified by the cabinet order, it is readas the “Act on Book-Entry of Corporate Bonds, Shares, etc.”; including “the Act on Book-Entry of Corporate Bonds,
Shares, etc.”, hereinafter referred to as the “Book-Entry Act”; the same applies hereinafter), on and after January 4, 2008.
The attribution of the Beneficial Interests in shares additionally entrusted on and after January 4, 2008 shall be determinedbased on the statement or recording made on the book-entry transfer account register of the Central Securities Depository
to which the Management Company had given its consent to handle the Beneficial Interests in shares of this investment
trust (the “Central Securities Depository” provided in Article 2 of the Book-Entry Act, and hereinafter referred to as“Central Securities Depository”), and that of a subordinate account management institution of the aforesaid Central
Securities Depository (the “Account Management Institution” provided in Article 2 of the Book-Entry Act; including
Central Securities Depository, hereinafter referred to as “Central Securities Depository, etc.”). The Beneficial Interests inshares determined based on a statement or recording made on the book-entry transfer account register are hereafterreferred to as “Transfer Beneficial Interests in shares.”

2

The Management Company shall not issue the beneficiary certificates that represent Transfer Beneficial Interests inshares in cases where the designation from the competent minister as a Central Securities Depository that handles theBeneficial Interests in shares of this trust is cancelled, or in cases where the designation is no longer in effect, by therules of Book-Entry Act, and also in each case where there is no party to succeed the book-entry business of the Central
Securities Depository, or when there are unavoidable circumstances occurred. Beneficiaries shall not request a change
from bearer beneficiary certificates to registered beneficiary certificates, a change from registered beneficiary certificatesto bearer beneficiary certificates, or a reissuance of beneficiary certificates, except in cases where the Management
1 24 / 1 4 1

Company issues beneficiary certificates due to an avoidable circumstance.
3

When the Beneficial Interests in shares are split pursuant to the provisions of Article 13, the Management Company shallnotify the Central Securities Depository of matters provided for in the Book-Entry Act to newly state or record on thebook-entry transfer account register of Central Securities Depository, etc. When the notification from the Management
Company is made to the Central Securities Depository, the Central Securities Depository, etc., shall newly state or recordon the book-entry transfer account register maintained, in accordance with the provisions of the Book Entry Act.

4

The Management Company may apply for a stating or recording of the Beneficial Interests in shares of this trust in thebook-entry transfer receipts register on behalf of beneficiaries, and to the extent possible shall apply on behalf ofbeneficiaries for a recording of all of the Beneficial Interests in shares of this trust as of December 28, 2007 (including
the Beneficial Interests in shares with respect to which the exchange of the trust property has been already recorded andthe delivery date of shares in respect of such exchange is on and after January 4, 2008) in the book-entry transfer receipts
register on January 4, 2008. However, with respect to the Beneficial Interests in shares in relation to the beneficiary
certificates that are not stated or recorded in the register of participant accounts under the depository and book-entry
system, and those in relation to the beneficiary certificates that are not deposited for safekeeping, the Management
Company shall make such an application after the Management Company confirms the beneficiary certificates during
the trust term. Beneficiary certificates of the Beneficial Interests in shares that are stated or recorded in the book-entry
transfer receipt register will become ineffective, and such Beneficial Interests in shares will become Transfer Beneficial
Interests in shares by such stating or recording. Upon the application for stating or recording the Beneficial Interests inshares of this trust on behalf of the beneficiary in the book-entry transfer receipt register, the Management Company
may delegate the distributing company or a member of the financial instruments exchange which is the AccountManagement Institution.

Article 17 (Notification by Trustee Concerning Creation of Beneficial Interests in shares)
When receiving a notification on receipt or book-entry executed with regard to the Trust Eligible Securities relating to
additional trust (including the amount equivalent to the total market value of the individual stocks and the required Expense
stipulated to in Article 12, item 5), the Trustee shall notify the Central Securities Depository to the effect that the additional
trust was placed. Provided that, when the Clearing Organization owes the debt on the delivery of the Trust Eligible Securities
to the Management Company or payment in accordance with the business rules provided in Article 12, paragraph 8 hereof,
the Trustee shall notify the Central Securities Depository to the effect that the additional trust was placed based upon theManagement Company’s instruction regardless of a notification on receipt or book-entry executed with regard to the Trust
Eligible Securities.
Article 18 (Statement or Recording Concerning Transfer of Beneficial Interests in shares)
1 When transferring a Beneficial Interests in shares it owns, a beneficiary must apply for book-entry transfer to a Central
Securities Depository, etc., relating to the book-entry transfer account registry on which the Beneficial Interests in sharessubject to the transfer is stated or recorded.
2

In the case where an application for book-entry transfer in the preceding paragraph is made, the Central Securities
Depository, etc., in the preceding paragraph must state or record on the book-entry transfer account registry maintained,
the decrease in the number of Beneficial Interests in shares owned by the transferor relating to the transfer and theincrease in the number of Beneficial Interests in shares owned by the transferee. In the cases where the Central Securities
1 25 / 1 4 1

Depository, etc., in the preceding paragraph is not the party that opened the receiving book-entry transfer account, theCentral Securities Depository, etc., must notify another Central Securities Depository, etc., that opened the receiving
book-entry transfer account of the transferee (including the superior institution of the said Central Securities Depository,etc.) in accordance with the provisions of the Book-Entry Act.
3 The Management Company may, with respect to the book-entry transfer provided in paragraph 1 above, establish dates or
period of book-entry suspension in cases where, for example, the Central Securities Depository, etc., relating to the bookentry transfer account registry on which the Beneficial Interests in shares of the beneficiary to be transferred are statedor recorded differs from the Central Securities Depository, etc., that opened the receiving transfer account of thetransferee and when the Management Company deems it necessary to do so or determines that there is an unavoidable
circumstance.
Article 19 (Perfection of Transfer of Beneficial Interests in shares)
Any transfer of Beneficial Interests in shares cannot be asserted duly to the Management Company and the Trustee unlessbased on the statement or recording on the book-entry transfer account registry provided in the preceding Article.
Article 20 (Deleted.)
Article 21 (Deleted.)
Article 22 (Deleted.)
Article 23 (Deleted.)
Article 24 (Types of Assets as Investment Objectives)
The types of assets as investment objectives under this trust (limited to the Japanese yen display) shall be those listed below:(1) Specified Assets (meaning “the Specified Assets” defined in Article 2, paragraph 1, of the Act on Investment Trusts
and Investment Corporations; the same applies hereinafter.)(a) Securities(b) Rights pertaining to Derivative Transactions (meaning those provided in Article 2, paragraph 20 of the Financial
Instruments and Exchange Act, and limited to those provided in Article 25, paragraph 2, item 5 hereof)(c) Promissory Notes (excluding those fall under the category of item (a) hereof)(d) Monetary Claims (excluding those fall under the category of item (a) and (c) hereof)(2) Assets other than Specified Assets listed below:(a) (Deleted)(b) Bills of Exchange
Article 25 (Scope of Investment Instructions)
1 The Management Company shall indicate to invest the trust property in stocks.
2 The Management Company may give instructions to manage the money belonging to the trust property as follows, until
investing in the stocks in accordance with investment policy in following Article:
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(1) Deposits;(2) Specified Cash Trusts (excluding those to be indicated by beneficiary certificates of beneficiary securities issuingtrusts prescribed in the Trust Act (Act No.108 of 2006) (provided in Article 2, paragraph 1, item 14 of the Financial
Instruments and Exchange Act.);(3) Call Loans;(4) Negotiable Instruments traded on the Discount Market;(5) Stock Price Index Futures Trading targeting Nikkei 225 (meaning those related to stock index among those describedin Article28, paragraph8, item3 (b) of Financial Instruments and Exchange Act.).
Article 26 (Investment Policy)
For managing the trust property, the Management Company shall give instructions in accordance with the following
investment policy:(1) This trust is investing only in stocks that are included or are due to be included in the Nikkei 225. The Management
Company shall manage the trust property so that the proportion of the individual stocks in the trust assets are held ina proportion that corresponds to the proportion of these individual stocks in the Nikkei 225 and aims at investment
performance tracked to the Nikkei 225.
(2) The Management Company may issue investment instructions to adjust the component of the trust assets to meet
policy (1) above if:(a) the calculation method of the Nikkei 225 is changed;(b) adjustments to the divisor of the Nikkei 225 are made;(c) interchanges in the selected stocks in the Nikkei 225 are made;(d) an addition or redemption of this trust is made; or(e) necessary to ensure track to the Nikkei 225.
(3) Stocks that are indicated to be invested are stocks which are issued by the issuing corporations whose issued stocks
are included or are due to be included in the Nikkei 225. However, this indication is not necessary for stocks that are
acquired through allotments to stockholders.
(4) There is no restriction on the percentage of investment in stocks.
(5) Notwithstanding item1 above, the Management Company may make complementary purchases of stock index futuresconnected with the Nikkei 225 to achieve the same profit and loss that would be achieved in the case of investing
only in stocks that are included or are due to be included in the Nikkei 225 in order to keep the performance tracked
to the Nikkei 225 until investing in the stocks.
(6) Investment in the manner described above may not be achieved due to capital trends, market trends, etc.
(7) The derivative transactions, etc. (meaning the derivative transactions, etc., described by the rules of the Investment
Trust Association of Japan), the value of which calculated by a reasonable method described by the rules of theInvestment Trust Association of Japan will exceed the Total Net Asset Value of the trust property, shall not be used.
(8) The ratio of stock exposure, bond exposure, and derivative exposure to a person described by rules of the Investment
Trusts Association, Japan, to the Total Net Asset Value of the trust property will not exceed 10% respectively, or 20%
in total. If such ratio exceeds such rates, the Management Company shall make adjustments so that such ratio iswithin such rate in accordance with the rules of the Investment Trusts Association, Japan.
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Article 27 (Income Distribution Policy)
1

As a general rule, the full amount of dividend income generated from the trust property after deduction of Expense shallbe distributed. However, no distribution may be paid in some circumstances.

2

If profits are gained from the sales and purchase of stocks, no distribution shall be paid.

Article 28 (Instruction and Scope for Lending of Stocks)
1

In order to contribute to the efficient management of the trust property, the Management Company may give instructions
to lend stocks that belong to the trust property so long as the total market value of the lent stocks at the time of lending
does not exceed the total market value of stocks held under the trust property.

2

In the event the maximum value described in the preceding paragraph will be exceeded, the Management Company shallpromptly take actions to cancel such lending contract whose value is equivalent to the value of such exceeds.

3

The Management Company may instruct to accept collateral when it deems necessary upon lending stocks.

Article 29 (Withholding of Registration, etc. and Recording etc. of Trust Property)
1With regard to trust property that can be registered or recorded, the registration or recording of trust shall be made;provided however, that the registration or recording of trust may be withheld if the Trustee approves.

2

Notwithstanding the proviso of the preceding paragraph, register or record of trust shall be made if the Management
Company or Trustee deems it necessary to do so for the protection of beneficiaries.

3

With regard to trust property for which a statement or recording to belong to the trust property can be made, suchstatement or recording shall be made, and concurrently, such trust property shall be segregated by clarifying theaccounting thereof. However, the property may simply be segregated by clarifying the accounting thereof, if the Trustee
approves.

4

Movables (excluding monies) may be segregated in the manner whereby they can be distinguished from each other onsight or by clarifying the accounting thereof.

Article 30 (Instructions to Sell Stock)
The Management Company may give instructions to sell stocks that belong to the trust property.
Article 31 (Instructions for Reinvestment)
The Management Company may give instructions to reinvest sales proceeds of preceding article, liquidating dividend fromstocks , dividends from stocks and other income. However, dividends shall be limited to be managed in accordance with
Article25, paragraph 2, item (1) through (4) hereof.
Article 32 (Deleted)
Article 32-2 (Delegation of Fiduciary Services)
1 When the Trustee delegates a part of its fiduciary business described in Article 22, paragraph 1 of the Trust Business Act,after the consultation with the Management Company, the Trustee shall only select entities that fall under all of thefollowing standards (including interested persons as described in Article 29, paragraph 2, item 1 of the Trust BusinessAct as applied mutatis mutandis pursuant to Concurrent Undertaking of Trust Business by Financial Institutions; The
1 28 / 1 4 1

same shall apply hereinafter in this Article) as its delegees:(1) Entities for which there are no concerns with conducting delegated business continuously, considering their
creditworthiness;(2) Entities that are deemed to be able to surely process the delegated business in light of their past results and otherfactors relating to the delegated functions;(3) Entities that have already arranged a system for the separate management of assets belonging to the delegated trust
property and their own assets; and(4) Entities that have already arranged a system for the appropriate conduct of operations relating to internal management.
2

When selecting the delegees referred to the preceding paragraph, the Trustee shall confirm that each of the prospective
delegees falls under the standards set out in the preceding paragraph.

3

Notwithstanding the preceding two paragraphs, the Trustee may delegate operations (limited to operations that do not
require discretion) set out in the following items to any person or entity (including an interested party of the Trustee)
deemed appropriate by both the Trustee and the Management Company:(1) Operations relating to custody of the trust property;(2) Operations for utilisation or improvement of the trust property to the extent that the characteristics of the trust property
will not be changed;(3) Operations relating to acts necessary for disposal of the trust property and achievement of other trust purposes only
under instructions of the Management Company; and(4) Acts which have supplementary functions for the Trustee’s conduct of operations.

Article 33(The Amount of Additional Trust)
The amount corresponding to the additional trust shall be derived by multiplying the number of Beneficial Interests in sharescorresponding to the additional trust by the amount of the Net Asset Value as of one business day prior to the date the additional
trust is created, and adding the amount equivalent to the Expenses described in Article 12, paragraph 5.
Article 34 (Accounting for Additional Trust)With regard to the amount corresponding to the additional trust, the amount of difference between the amount corresponding
to the additional trust and the amount corresponding to the principal shall be accounted for as the difference on additional
trust.
Article 35 (Accounting for Redemption of Beneficial Interests in shares for Stocks)
In exchanging Beneficial Interests in shares for stocks as described in Article 45, the amount of difference between (i) theamount obtained by multiplying the Net Asset Value on the acceptance day of redemption request, by the number of sharesobtained after deducting the number of shares to be returned as per the proviso of Article 46, paragraph 2, from the Required
Redemption Shares defined in Article 46, paragraph 1, and (ii) the amount corresponding to the principal, shall be accounted
for as the difference on redemption.
Article 36 (Mark-to-Market Valuation of Stocks)
The market value of the stocks belonging to the trust property (excluding those stocks which are subject to the Redemption
and which have not been issued to the beneficiaries (after transfer to the book-entry system, which have not transferred in the
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accounts of beneficiary set in the Central Securities Depository, etc.)) shall be valued, in principle, at the closing prices (or, if
the closing price is not available, an equivalent price) of the financial instruments exchange.
Article 37(Advance of Money by Trustee)
1 When there is an issuance of new shares or allotment of shares with respect to stocks that belong to the trust property, theTrustee may advance funds if requested by the Management Company.
2 If estimates of amounts of distribution on liquidation of stocks, dividends, or any other receivables that are related to thestocks that belong to the trust property, can be made before the date of termination of this trust, the Trustee may advancethese amounts to be incorporated in the trust property.
3With regard to the settlement of advances in the preceding two paragraphs and interest thereof, the Trustee and theManagement Company shall discuss and decide how to treat such settlement and interest as they arise.

Article 38 (Expenses Concerning Trust Administration and Audit Expenses)
1

Taxes relating to the trust property, various expenses required in trust administration and interest on advances made by
the Trustee, shall be borne by the beneficiaries and paid from the trust property. In addition, the expenses pertaining to
the listing of Beneficial Interests in shares and the fees for the use of trademarks pertaining to the Nikkei 225 (including
any trademarks similar thereto) (hereinafter, “Fees for Use of Trademarks”) as well as the amount equivalent to theConsumption Tax, etc., on such expenses pertaining to the listing and on such Fees for Use of Trademarks shall be borneby the beneficiaries and may be paid from the trust property.

2 Audit expenses in connection with the trust property and Consumption Tax, etc. on such audit expenses, shall be paid fromthe trust property on the last date of the first six months of every calculation period, and at the end of every calculation
period or at the time of termination of this trust.
Article 39 (Total Amount of Trust Fees)
1 The total amount of trust fees for the Management Company and the Trustee shall be the sum of the amount calculated by
the method stated in item (1) below and the amount calculated by the method stated in item (2) below, every day
throughout the calculation period provided in Article 8 hereof; provided, however, during each calculation period
provided in Article 8 hereof, the total of the amount calculated by the method stated in item (1) below and the amountcalculated by the method stated in item (2) below shall not exceed the amount derived by deducting the amount borneby beneficiaries in both expenses pertaining to the listing of Beneficial Interests in shares and the Fees for Use ofTrademarks mentioned in paragraph 1 of the preceding Article from the amount obtained by multiplying the Total Net
Asset Value of the trust property by a ratio of 16.5/10,000 per annum.
(1) The amount obtained by multiplying the Total Net Asset Value of the trust property by a ratio designated by theManagement Company, which is no larger than 16.5/10,000 per annum.
(2) When any stock is lent pursuant to Article 28, an amount obtained from no more than 40% of the rental fee which
accrues on a daily basis.
2 The trust fees in the preceding paragraph shall be paid from the trust property on the last day of the first six months ofevery calculation period and the end of every calculation period or at the time of termination of this trust. The distribution
between the Management Company and the Trustee shall be separately provided.
3 The amount equivalent to the Consumption Tax, etc. on the trust fees in the first paragraph shall be paid from the trust
1 30 / 1 4 1

property at the time of paying the trust fees.
Article 40 (Report on Trust Property)
1 The Trustee shall calculate income and loss at the end of every calculation period, prepare a report on the trust property,
and submit the report to the Management Company.
2 The Trustee shall perform the final calculation upon termination of the trust, prepare a report on the trust property, andsubmit the report to the Management Company.
Article 41 (Method for Income Distribution)
1

Dividend and Other Income arising from the trust property and reserve for distribution carried forward from the previous
calculation period shall be distributed to beneficiaries at every calculation period of the trust after deducting the total
amount of Expense and, if the reserve for distribution carried forward from the previous calculation period is negative
number, after compensating such amount. If, however, for the purposes of making adjustments to the income distribution
amount, a part or all of the amount is retained within the trust property, such amount may be put aside as reserve for
distribution and be appropriated to the distribution in the following calculation period or thereafter. In the event thatExpense and negative amount of reserve for distribution cannot be fully deducted, the difference shall be carried forward
to the following calculation period as negative amount of reserve for distribution.

2

At the end of every calculation period, the total amount of income arising from the trust property described in item 1
below shall, after deducting the loss described in 2 below therefrom, and, if there is the amount of loss carried forward,
after fully compensating such amount, be carried forward to the next calculation period:(1) Gain on sale of securities, gain on trading futures transactions, etc., gain on additional trust, and gain on redemption;(2) Loss on sales of securities, loss on trading futures transactions, etc., loss on additional trust, and loss on redemption.

Article 42 (Registration and Payment of Income Distribution Amount)
1 A person whose name, address, and individual number or corporate registration number (name and address, if a person
who does not have any individual number or corporate registration number or if a person who receives income
distribution amount via a person in charge of handling payment as provided for in Article 9-3-2, paragraph 1 of the Act
on Special Measures Concerning Taxation) are registered at the Trustee as of the last day of calculation period shall betreated as the beneficiary as of the last day of the calculation period (“Registered Beneficiary”), and the income
distribution amount shall be paid to the Registered Beneficiary. Even if the Registered Beneficiary differs from a person
who holds beneficiary certificates even after transfer to the book-entry system as of the last day of the financial period,
the Management Company shall neither be under the obligation to pay income distribution to such person who holds
beneficiary certificates nor be liable to any damage caused to such holder.
2

Beneficiaries shall, in principle, request the registration provided in preceding paragraph through a member of thefinancial instruments exchange on which the Beneficial Interests in shares of this trust are listed (such member shall belimited to Account Management Institution; the same applies hereinafter). In this case, such member may charge theamount equivalent to the commission that the Account Management Institution set by their own and the Consumption
Tax, etc. on the commission. Provided, however, that securities finance companies, etc. may perform the registration
provided in the preceding paragraph directly with the Trustee.

3

The registration provided in paragraph 1 hereof shall be suspended for a period of thirty days after the day immediately
1 31 / 1 4 1

following the last day of each calculation period provided in Article 8 hereof. In this case, the Management Company
shall give a public notification to that effect in advance. Provided, however, the registration process for the Beneficial
Interests in shares stated or recorded in book-entry transfer account registry of the Central Securities Depository, etc.
pursuant to the Book-Entry Act etc. shall be provided separately. Furthermore, in the event that all of the Beneficial
Interests in shares of this trust are Transfer Beneficial Interests in shares, the public notification above shall not be given,in principle.
4

The beneficiary at the time of the execution of this trust agreement and at the time of the additional trust before January
4, 2008 shall be registered as set forth in paragraph 1 hereof and be delivered to the beneficiary certificates, and thebeneficiary at the time of the additional trust on or after January 4, 2008 shall be registered as set forth in paragraph 1
hereof and be described or registered on the book-entry transfer account registry of the Central Securities Depository,etc.

5

The payment of income distribution amount provided in paragraph 1 above shall be, in principle, made at the day
specified by the Management Company, which falls within forty days after the end of every calculation period, by paying
the income distribution amount by wire transfer to the savings account specified in advance by the Registered Beneficiary.
If the Registered Beneficiary separately enters into an agreement regarding the treatment of income distribution amountwith a member of the financial instruments exchange provided in paragraph 2 hereof, the income distribution amountshall be paid pursuant to such agreement.

Article 43 (Exemption from Responsibility of Trustee Regarding Issuance and Payment of Income Distribution
Amount to the Management Company)
1

The Trustee shall, when there is an outstanding payable balance of income distribution amount after five years havepassed from the first payment date, pay such outstanding amount to the Management Company.

2

After the payment of the income distribution amount has been made to the Management Company pursuant to theprovisions of the preceding paragraph, the Trustee shall not be held liable for the payment of the said amount to theRegistered Beneficiary.

Article 44 (Prescriptions concerning Income Distribution Amount)In the event that a beneficiary has not claim any payment of income distribution amount for five years after the first payment
date, the beneficiary shall lose the right to claim such payment, and such income distribution amount shall be attributed to theManagement Company.
Article 45 (Application for Redemption Request)
1

A beneficiary may request, after September 1, 2001, the Management Company to redeem their own Beneficial Interests
in shares, whose number of shares is an integer multiple of a certain number of shares, for the stocks corresponding totheir share of the Beneficial Interests in shares in the trust properties (hereinafter referred to as the “Redemption”) by thetime specified by the Management Company on the acceptance day of Redemption request.

2

Notwithstanding the preceding paragraph, the Management Company will, in principle, suspend the application forredemption request on the following days and period; provided, however, the Management Company may, even on thefollowing days and period (except for the day or period provided in item 4 below), accept the application for redemption
request if the Management Company determines that the impact of such creation/redemption on the trust assets is
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minimal in view of the condition of the trust properties, funding trends, market trends, etc.
(1) One business day prior to the ex-dividend date or ex-right date of any component stocks in the Nikkei 225.
(2) For a period of five business days, beginning from one business day prior to the date on which a change of the divisor
is made due to changes of the component stocks in the Nikkei 225, the number of the individual stocks that comprisethe component stocks in the Nikkei 225, or any other cause.
(2-2) The period, beginning from one business day prior to the delisting date of any component stocks in the Nikkei 225
due to stock exchange, merger and other reasons and ending on one business day prior to the including date of new
stock within component stocks in the Nikkei 225 as the result from the stock exchange, merger and other reasons.
(3) For a period of three business days, beginning from three business days prior to the last day of any calculation period
stipulated in Article 8 hereof. However, if the last day of the calculation period is a holiday (meaning not a businessday), the period shall be four business days, beginning from four business days prior to the last day of the calculation
period.
(4) In addition to the period above, any time the Management Company determines that unavoidable circumstances occurthat prevent it from making investments in accordance with the investment policies stipulated in Article 26, item1
hereof.
3

A certain number of shares provided in paragraph 1 above shall be the number specified by the Management Company,
based on the number of portions required to redeem Beneficial Interests in shares for the individual stocks, the numberof which shall be an integer multiple of the Exchange Trading Unit, that comprise one unit of the actual portfolio whose
proportion of the individual stocks corresponds to the component proportion of the individual stocks in the trust
properties, and which the Management Company deems will correlate to the Nikkei 225 (hereinafter referred to as“Minimum Redemption Shares”).

4

The beneficiary shall make a request for the Redemption described in paragraph 1 above to the distributing company
with Transfer Beneficial Interests in shares. Provided, however, the request for the Redemption in which the redeemedshares are delivered to the beneficiaries on and after January 4, 2008 (or, after transfer to the book-entry system, theincrease is described or registered in the accounts of the Central Securities Depository, etc.) and which is executed before
January 4, 2008 shall be made with the beneficiary certificates that are sure to become the Transfer Beneficial Interests
in shares.

5

The distributing company, provided in the preceding paragraph, shall perform the procedure for elimination of theTransfer Beneficial Interests in shares pursuant to the way that the Central Securities Depository provided. When the
distributing company applies to the Clearing Organization for owing a debt on the delivery of the Transfer Beneficial
Interests in shares to the Management Company and the Clearing Organization owes the debt in accordance with thebusiness rules provided in Article 12, paragraph 8 hereof, the Clearing Organization shall perform the procedure for
elimination of the Transfer Beneficial Interests in shares. After such elimination procedure and book-entry transfer
request for the redeemed shares described in Article 46, paragraph 3 hereof have been made, the Central Securities
Depository shall eliminate the Transfer Beneficial Interests in shares, which shares are equivalent to the number ofBeneficial Interests in shares to be redeemed described in Article 46, paragraph 2 hereof, and the decrease of the numberof shares shall be stated or recorded on the account of the Central Securities Depository, etc. in accordance with theprovisions of the Book-Entry Act.

6

With regard to the Transfer Beneficial Interests in shares to be redeemed, the Trustee shall deem that the Transfer
Beneficial Interests in shares have been received and the procedure for elimination has been completed pursuant to the
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instruction for Redemption of the Management Company in Article 46, paragraph 2 hereof by taking the procedure for
elimination on the book-entry transfer account registry and confirming the elimination provided in Article 47, paragraph
2 hereof.
7

The number of individual stocks the beneficiary can obtain by the redemption shall be the number calculated based on
the Net Asset Value on the acceptance day of redemption request, which shall be an integer multiple of the Exchange
Trading Unit.

8

Upon the Redemption, the distributing company may charge the amount equivalent to the commission that the
distributing company set by its own and the Consumption Tax, etc. on the commission.

9

When the acceptance of request for the redemption request is suspended as per paragraph 2 above, the beneficiary may
withdraw the request for redemption request which was made before the suspension of the acceptance of request.
Provided, however, if the beneficiary does not withdraw the request for Redemption, such request is deemed to be
accepted at the first calculation date of Net Asset Value after the suspension is cancelled, and the Redemption is deemed
to be calculated according to paragraphs 7 and 8 above.

10

In case where the beneficiary who requests for the Redemption is an issuing corporation of component stocks in the
Nikkei 225, etc., the Type I Financial Instruments Business Company who accepts the request for the Redemption fro m
the beneficiary (including the case where the Type I Financial Instruments Business Company is an issuing corporationof component stocks in the Nikkei 225, etc., and the Type I Financial Instruments Business Company requests for the
Redemption by proprietary trading; the same applies in the following paragraph) shall inform the Management Company
to that effect upon intermediating the request for the Redemption.

11

In the event the notification in the preceding paragraph is not made at the time of intermediating the application for
Redemption, which causes damage to the trust property or otherwise, the Type I Financial Instruments BusinessCompany that intermediated the request for Redemption shall be liable for the damage.

Article 46 (Instruction for Redemption)
1

In the event that the beneficiary requests to redeem their own Transfer Beneficial Interests in shares and the number ofshares is an integer multiple of Minimum Redemption Shares pursuant to the paragraph 1 of the preceding Article, andthe Management Company receives the request, the Management Company shall calculate the number of individual
stocks that the beneficiary can obtain by exchanging the Beneficial Interests in shares whose number of shares was
suggested by the beneficiary, and shall fix the number of shares required for the Redemption (In this case, where there
are any fractions less than one share, they shall be rounded up; hereinafter referred to as “Required Redemption Shares” ).

2

The Management Company shall give instructions to the Trustee to make Redemption of Required Redemption Sharesfor the Beneficial Interests in shares and the stocks, the number of which shall be an integer multiple of the Exchange
Trading Unit, that comprise the trust property, provided however that if the beneficiary who requested the Redemption
is an Issuing Company of component stocks in the Nikkei 225, etc., the Management Company shall give instructions
to make Redemption of the Beneficial Interests in shares whose number of shares is equivalent to the number derived bydeducting the total market value of the individual stocks of such Issuing Company from the Required Redemption Sharesfor the stock, the number of which shall be an integer multiple of the Exchange Trading Unit (excluding the stock ofsuch Issuing Company). The total market value of individual stocks in this case shall be the amount derived bymultiplying the closing price (or, if the closing price is not available, an equivalent price) at the financial instruments
exchange of the stocks as of the calculation date of the Net Asset Value in paragraph 7 of the preceding Article, by the
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number of stocks calculated pursuant to paragraph 7 of the preceding Article.
3

The Trustee shall, when confirming that the procedure described in paragraph 5 of the preceding Article has been made,make a book-entry transfer request for the redeemed shares comprised of trust property by the way specified by theCentral Securities Depository in accordance with instructions of the Management Company. Provided that, when the
distributing company who accepted the application for redemption request provided in paragraph 5 of the preceding
Article applies to the Clearing Organization for owing a debt on the delivery of the Transfer Beneficial Interests in sharesto the Management Company and the Clearing Organization owes the debt in accordance with the business rules provided
in Article 12, paragraph 8 hereof, the Trustee shall make a book-entry transfer request for the redeemed shares comprisedof trust property by the way specified by the Central Securities Depository in accordance with instructions of theManagement Company regardless of the procedure described in paragraph 5 of the preceding Article. Upon the deliveryof the redeemed shares to the beneficiary, the increased number of stocks that the beneficiary who requested theRedemption in paragraph 1 of the preceding Article shall be stated or recorded to the account of a Central Securities
Depository, etc., from the third business day from the acceptance day of Redemption request.

Article 47 (Handling of Redeemed Beneficial Interests in shares)
1(Deleted.)

2

The Management Company shall, on the business day following the acceptance day of Redemption request and thereafter,
recognize that the same number of Beneficial Interests in shares as that of the Transfer Beneficial Interests in shares tobe annulled through Redemption has become null and void, and the Trustee shall confirm that the Transfer Beneficial
Interests in shares relating to such Beneficial Interests in shares have been annulled on the date of book-entry of theredeemed shares.

3

The Management Company may, in the event of a trading suspension by a financial instruments exchange, of suspensionof settlement functions, or of any other unavoidable circumstances, suspend accepting the application for the redemption
request pursuant to Articles 45 and 46, and cancel previously-accepted applications for the redemption request, despiteof creation of Article 45, paragraph 2.

4

When the acceptance of applications for the redemption request has been suspended pursuant to the preceding paragraph,
Article 45, paragraph 9 shall apply mutatis mutandis.

Article 48 (Purchase of Beneficial Interests in shares)
1 The distributing company shall purchase the Beneficial Interests in shares in the cases described in the following items,
and when receiving an application from a beneficiary, provided that the application for the case in item 2 below shall bemade two business days prior to the date of termination of trust:(1) Transfer Beneficial Interests in shares of less than the Exchange Trading Unit arise as a result of Redemption.
(2) If delisted in all financial instruments exchanges where the Beneficial Interests in shares were listed based on theprovisions of Article 5.
2 The purchase price in the preceding paragraph shall be the Net Asset Value on the day the application for purchase isaccepted.
3

The distributing company may, when purchasing Beneficial Interests in shares pursuant to the provisions of the preceding
two paragraphs, charge the amount corresponding to the commission set independently by the distributing company andthe Consumption Tax, etc., relating to the commission.
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4The distributing company may, in the event of suspension of trading at a financial instruments exchange, of suspensionof settlement functions, or of any other unavoidable circumstance, suspend purchase of Beneficial Interests in shares inparagraph 1, based on discussions with the Management Company, and may cancel previously-accepted applications of
the purchase of the Beneficial Interests in shares.

5

If, based on the provisions of the preceding paragraph, the purchase of Beneficial Interests in shares is suspended, abeneficiary may withdraw the application for purchase for the day made prior to the suspension of purchase. If, however,a beneficiary does not withdraw the application for purchase, the purchase price of the Beneficial Interests in shares shallbe calculated in accordance with the provisions of paragraphs 2 and 3 above assuming that the application for purchase
was accepted on the first calculation date of Net Asset Value after the removal of suspension for purchase.

Article 49 (Redemption upon Termination of Trust)1

When this trust is to be terminated, the Management Company shall deliver to the beneficiary who holds more than acertain number of Beneficial Interests in shares set by the Management Company, shares equivalent to the Beneficial
Interests in shares in the trust property which the beneficiary holds at four business days prior to the day the trust is
terminated, redeemed for the Transfer Beneficial Interests in shares stated or recorded on the book-entry transfer accountregistry as the Beneficial Interests in shares or redeemed for the beneficiary certificates that represent Transfer Beneficial
Interests in shares.

2

The Redemption provided in the preceding paragraph shall be done in the offices of the distributing company.

3

The number of the individual stocks acquired by the beneficiary according to paragraph 1 above shall be calculated basedon the Net Asset Value on four business days prior to the date of trust termination and which is an integer multiple of the
Exchange Trading Unit.

4

The distributing company may charge, upon the Redemption pursuant to paragraph 1 above, the amount corresponding
to the commissions set independently by the distributing company and the Consumption Tax, etc., on the commission.

5

If a beneficiary who is an Issuing Company of component stocks in the Nikkei 225 makes Redemption pursuant toparagraph 1, the Management Company shall give instructions to the Trustee to purchase the Beneficial Interests inshares in the number equivalent to the individual total market value of the stock of the Issuing Company. The individual
total market value, in this case, shall be the amount by which such stocks are sold by a market order on and after the
opening of day of three business days prior to the day the trust is terminated (after deduction of commission for sale).

6

The Management Company shall, after three business days prior to the day the trust is terminated, recognize that thesame number of Beneficial Interests in shares as that of the Transfer Beneficial Interests in shares and the Beneficial
Interests in shares represented by the beneficiary certificates obtained by the trust property (including the Beneficial
Interests in shares purchased by the beneficial property pursuant to the preceding paragraph as for each Beneficial
Interests in shares) to be annulled through Redemption has become null and void, and the Trustee shall confirm that theTransfer Beneficial Interests in shares relating to such Beneficial Interests in shares have been annulled on the date ofbook-entry of the redeemed shares.

7

Notwithstanding the provisions of paragraphs 1 and 3 above, if any of the following items manifest, the distributing
company shall purchase any of the following Beneficial Interests in shares based on the Net Asset Value at the time of
the termination of this trust:(1) In the case of paragraph 1 above, when there is a number of shares remaining after deducting the number of sharesrequired for the Redemption to the stocks from the number of shares held by the beneficiary, such remaining number
1 36 / 1 4 1

of Transfer Beneficial Interests in shares or beneficiary certificates; and(2) Transfer Beneficial Interests in shares or beneficiary certificates of less than a certain number of shares in the case ofparagraph 1 above (including Transfer Beneficial Interests in shares or beneficiary certificates of less than the
Exchange Trading Unit).
8

The distributing company may, upon purchasing the Beneficial Interests in shares as per the preceding paragraph, charge
the amount corresponding to the commission set individually by the distributing company and Consumption Tax, etc.,
on the commission.

9

The Redemption of stocks provided in paragraph 1 above shall be performed, as for Transfer Beneficial Interests inshares, after the business day following the day on which the Trustee confirms that the application for the annulment of
the Transfer Beneficial Interests in shares is accepted by the Central Securities Depository, and, as for the beneficiary
certificates, after the second business day following the day on which the Trustee confirms that the Beneficial Interests
in shares to be redeemed are provided to the Trustee.

10With respect to the Beneficial Interests in shares purchased by the trust property pursuant to paragraph 5, the paymentof money shall be made on the third business day after the day on which the individual total market value provided inparagraph 5 is fixed.

11(deleted.)

Article 50 (Time Limitations of the Redemption)
In the event a beneficiary has not requested for the Redemption in Article 49, paragraph 1 for ten years from the initial dateof Redemption, such beneficiary loses the right to request Redemption, and such rights are attributed to Management Company.
Article 51 (Public Notification)
1 Any public notification made by the Management Company for the beneficiaries shall be posted online on the website
below by means of electronic public notification:
http://www.nomura-am.co.jp/
2 If public notice by means of electronic public notice provided in the preceding paragraph cannot be made due to an accident
or any other unavoidable circumstance, public notification shall be given in Nihon Keizai Shimbun.
Article 52 (Amendments to the Terms and Conditions of the Trust)
1

The Management Company may, with the consent with the Trustee, amend these terms and conditions hereof, and shallnotify the regulatory authorities in advance of the intention to amend and of the contents of the amendment.

2With respect to a material amendment among the matters of amendment in the preceding paragraph, the Management
Company shall make public notification of the intention to amendment and of the contents of the amendment, and shalldeliver the document that described those matters to the known beneficiaries relating to this terms and condition of thetrust. However, when the Management Company delivers the preceding document to the all beneficiaries relating to thistrust, a public notification will not be made, in principle.

3

When crafting the public notice and document described in preceding paragraph, the Management Company shallmention that the beneficiary who has objection to the amendment shall state objection to the Management Company ina certain time period. This time period shall not be less than one month.

4

When the number of Beneficial Interests in shares held by the beneficiaries who state an objection within the time period
1 37 / 1 4 1

described in the preceding paragraph exceeds half of the total number of Beneficial Interests in shares, the Management
Company shall not amend the terms and conditions of the trust pursuant to paragraph 1.
5

When the Management Company decides not to amend the terms and conditions of the trust, the Management Company
shall make a public notification that no amendment will be made and its reasons, and shall deliver the document that
described those matters to known beneficiaries relating to this trust agreement. However, when the Management
Company delivers the document to the all beneficiaries relating to this trust, public notification will not be made, in
principle.

Article 53 (Right to Demand Purchase by Objectors)
When terminating this trust agreement under Article 11, or making amendments to these terms and conditions hereof under
the preceding Article, any beneficiary who has made an objection to the Management Company in a certain time period
pursuant to Article 11, paragraph 4, or paragraph 3 of the preceding Article may request the Trustee to purchase the Beneficial
Interests in shares that belong to such beneficiary by the trust property. The details of the right to demand purchase and mattersrelating to procedures for the demand for purchase will be added in the notice provided for in Article 11, paragraph 3, orparagraph 2 of the preceding Article.
Article 54 (Order from Regulatory Authorities Concerning Trust Agreement)
1

When receiving an order to terminate the trust agreement from regulatory authorities, the Management Company shallcomply with such order, cancel this trust agreement and terminate the trust.

2

When making amendments to these terms and conditions of this trust based on the order from the regulatory authorities,
the Management Company shall abide by the provisions of Article 52.

Article 55 (Cancellation of Registration of the Management Company, etc.)
1

In the event the Management Company is subject to cancellation of their registration by regulatory authorities, isdissolved, or suspends its operations, the Management Company shall cancel this trust agreement and terminate this trust.

2

Notwithstanding the provisions of the preceding paragraph, if regulatory authorities issue an order that the operations of
the Management Company relating to this trust agreement be substituted by another investment trust managementcompany, this trust shall continue between the investment trust management company and the Trustee, with the exceptionof case falls under the provisions of Article 52, paragraph 4.

Article 56 (Transfer and Succession of the Management Company)
1

The Management Company may transfer all or part of its business, and in conjunction with this transfer, may transfer
the business concerning this trust agreement.

2

The Management Company may make its business to be succeeded due to the company split, and in conjunction withthis transfer, may its business concerning this trust agreement to be succeeded.

Article 57 (Resignation or Removal of the Trustee)
1

The Trustee may, with the consent of the Management Company, resign from its duties. In the event the Trustee breaches
its duty or any other critical situation arises, the Management Company or a beneficiary may apply to the court to havethe Trustee removed. If the Trustee resigns, or the court has removed the Trustee, the Management Company shall select
1 38 / 1 4 1

a new Trustee pursuant to the provisions of Article 52.
2

In the event the Management Company cannot select a new Trustee, the Management Company shall cancel this trust
agreement and terminate this trust.

Article 57-2 (Handling of Beneficial Interests in shares Stated or Recorded on Pledge Section)
Payment of income distribution, acceptance of applications for redemption request, delivery of redeemed shares, andtermination amount relating to the Beneficial Interests in shares stated or recorded on the pledge section of the book-entry
transfer account registry of Central Securities Depository etc., shall be handled pursuant to these terms and conditions herein
as well as by the Civil Code and other relevant laws and regulations.
Article 58 (Doubts Concerning Trust Agreement)
In the event any doubt arises regarding the interpretation of these terms and conditions of the trust herein, the Management
Company and the Trustee shall solve the doubt based on mutual discussion.

(Supplementary Provisions)
Article 1
The provisions of Article 16 (Issuance and Type of Beneficiary Certificates) through Article 23 (Expense for Redelivery ofBeneficiary Certificates) of these terms and conditions of the trust as of December 28, 2007, and the provisions related to thebeneficiary certificates, in which “beneficiary certificates” are to be read as “Beneficial Interests in shares,” will remain
effective if the Management Company issues beneficiary certificates for unavoidable reasons.
Article 2
1

The provision of Article 42, paragraph 1, and the attachment item 4 ② of the terms and conditions of the trust shall apply
to any registration of a Trustee made after January 1, 2016. With regard to any registration of a Trustee before that date,
the provisions then in force shall be applicable.

2

Those who registered their personal name or entity name, and address to a Trustee before January 1, 2016, shall register
their individual number or corporate registration number to a Trustee by the last day of calculation period which comes
first after the day on which 3 years has elapsed from January 1, 2016 (If a person does not have an individual number or
corporate registration number to a Trustee at the last day of such calculation period, by the day on which one month has
elapsed from the day when they first received the notification of their personal number and corporate registration number
under the Act on the Use of Numbers to Identify a Specific Individual in Administrative Procedures (Act No.27 of 2013)).

IN WITNESS WHEREOF, the parties hereto have executed the trust agreement.
July 9, 2001 (Date of conclusion of the trust agreement)

Management Company:
Nomura Asset Management Co., Ltd
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2-2-1, Toyosu, Koto-ku, Tokyo, Japan
Trustee:
Mitsubishi UFJ Trust and Banking Corporation
1-4-5, Marunouchi, Chiyoda-ku, Tokyo, Japan

1 40 / 1 4 1

1

The financial instruments exchange to be specified separately mentioned in Article 5, paragraph 1, of the terms andconditions of the trust is the following:
Tokyo Stock Exchange.

2 The number of shares to be specified separately mentioned in Article 11, paragraph 1, of the terms and conditions of thetrust is 300,000.
3

The time limit to be specified separately mentioned in Article 12, paragraph 1, of the terms and conditions of the trust is
3 p.m. Provided that, when the creation applicant is an issuing corporation of component stocks in the Nikkei 225, etc.,
the time limit is 2 p.m.

4

The Financial Instruments Clearing Organization to be specified separately mentioned in Article 12, paragraph 8, of theterms and conditions of the trust is Japan Securities Clearing Corporation.

5

The process to be specified separately mentioned in Article 42, paragraph 3, of the terms and conditions of the trust is
the following:(1) The Beneficial Interests in shares mentioned in Article 42, paragraph 3, of the terms and conditions of the trust mustbe identified by making a statement or recording of its number of shares on the book-entry transfer account register ofthe member mentioned in Article 42, paragraph 2, of the terms and conditions of the trust in the number of shares statedor recorded on the book-entry transfer account registry.
(2) The member mentioned in Article 42, paragraph 2, of the terms and conditions of the trust, shall notify the Trusteeof the personal name or entity name, address, and individual number or corporate registration number (personal name orentity name and address, for those who do not have any individual number or corporate registration number, or if aperson who receives income distribution amount via a person in charge of handling payment as provided for in Article
9-3-2, paragraph 1, of the Act on Special Measures Concerning Taxation) of the beneficiary of item 1 above related tothe member, and of the matters prescribed by the Trustee in writing by the end of the calculation period.
When the contents of the report have changed, the member shall notify the Trustee of the change based on the request
by the beneficiary in accordance with the method prescribed by the member.
(3) The member mentioned in Article 42, paragraph 2, of the terms and conditions of the trust shall report Central
Securities Depository the matters of beneficiary mentioned in item 1 above related to the member as of the end of thecalculation period, which matters are prescribed by Central Securities Depository (if the member is not an AccountManagement Institution, through its superior institution), and the Central Securities Depository shall notify the Trustee
to that effect.

6 The time limit to be specified separately mentioned in Article 45, paragraph 1, of the terms and conditions of the trust is 3
p.m. Provided that, when the beneficiary who requests for the Redemption is an issuing corporation of component stocks
in the Nikkei 225, etc., the time limit is 2 p.m.

1 41 / 1 4 1