News Release

Nomura Launches Pilot Fund with Preferred Networks Leveraging
Joint Research
Tokyo, December 10, 2021—Nomura Holdings, Inc. and Nomura Asset Management Co., Ltd.,the core company within the Investment Management Division of Nomura Group, today
announced that they have launched a pilot fund with Preferred Networks, Inc. (PFN) leveraging
joint research on advanced investment methods. The three companies have been engaged in joint
research since October 2019 to develop new financial business solutions using cutting-edge
technologies.
The pilot fund combines multiple medium- to long-term investment strategies to seek stable
returns resilient to market volatility. Based on the investment performance of the fund, the threecompanies will strive to deliver products to a broad range of investors in the future.
PFN possesses great expertise in research and development and the practical application of
cutting-edge technologies, such as deep learning. The results of Nomura’s joint research with PFN
have been highly rated for their academic value, with some research papers being selected in2020 by the most prestigious conferences in the field of artificial intelligence.1The launch of the pilot fund comes as a result of discussions with PFN on the provision ofinvestment strategies using the joint research. Nomura Group and PFN will continue their joint
research toward the development of new solutions.
Over the years, Nomura Group has developed various quantitative methods to address investment
business issues based on its knowledge of financial engineering and data science. PFN develops
practical applications for machine learning, deep learning, and other advanced technologies tosolve the specific issues of various industries.
Through its partnership with PFN, Nomura will develop novel financial business solutions andservices that leverage cutting-edge technology to provide clients with new investment
opportunities and added value, and contribute to the creation of a truly affluent society.
(Reference)
Outline of Pilot Fund’s investment strategy “Pure α-type Multi-Strategy”
Investment Strategy: Generate stable returns that are resilient to market volatility through thecombination of multiple medium- to long-term strategies.
Strategy Details
Individual Selection of The fund will comprise multiple strategies aimed at generating
Investment Strategies
medium- to long-term returns. In addition to strategies developed in-Please refer to the December 21, 2020 release “Nomura’s Joint Research Papers with Preferred Networks Selected by AAAI andAAMAS. https://www.nomuraholdings.com/news/nr/holdings/20201221/20201221_a.pdf
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house by Nomura Asset Management, the fund will also adopt newstrategies, applying the joint research with PFN as appropriate.
Allocation
among Strategies

The fund will use the Risk Budgeting Model 2 that was jointly
developed by Nomura Asset Management and PFN. The model will
estimate return distribution among strategies and the overall portfolio
and optimize strategy allocation to control the range of declines andrealize effective investment.

endsNomura
Nomura is a global financial services group with an integrated network spanning over 30 countries. By connecting
markets East & West, Nomura services the needs of individuals, institutions, corporates and governments through its
three business divisions: Retail, Wholesale (Global Markets and Investment Banking), and Investment Management.
Founded in 1925, the firm is built on a tradition of disciplined entrepreneurship, serving clients with creative solutions
and considered thought leadership. For further information about Nomura, visit www.nomura.com.

2An algorithm that allocates portfolio risk among strategies to effectively generate returns.

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Disclaimer of Nomura Asset ManagementCosts Associated with Financial Products (Fees and Other Costs)
Customers pay the following expenses.
All information on this document is intended for information purpose only and does not constitute asolicitation of an offer to buy any investment product nor to enter into an investment advisory agreementwith Nomura Asset Management to any persons. The following fees and expenses are charged to investorsof our investment products. We can only provide a general description of our fee calculation formula here,
as fee rates will vary depending on the specific product characteristics or the specific contract with each ofour clients.
・As a consideration of our investment advisory services, fees equivalent to the sum of the assets undercontract multiplied by the agreed-upon percentage fee rate (%) will be charged depending on the length ofthe contract.
[Calculation formula] Assets amount under contract x fee rate (%) x length of the contract (days) / 365
・Based on mutual agreement, we may adopt a performance-based fee structure or a combination ofperformance-based fee structure and the flat fee structure mentioned above. We are unable to provide
detailed calculation nor the maximum fee for performance-based fee structure as the actual advisory feevary depending on the investment performance of the relevant strategy, and the agreed terms with eachclient. Performance-based fee structures will be negotiated individually between client and Nomura AssetManagement.
・Separate from the investment advisory fees, securities trading consignment fees and expenses related tothe custody of securities will also be deducted from the contracted assets. It is not possible to specify therate or maximum amount in advance as such fees would vary depending on the status of the investment.
・Nomura Asset Management may, based on its discretionary investment decisions, purchase investment
trust products to be included in a portfolio under a discretionary investment contract. In such cases,
expenses such as investment trust management fees, sales company and management company fees, andfees charged when converting investment trusts to cash would incur. If such cases investment trust products
are issued by our own company or one of our group companies, the investment advisory fees may be
adjusted to avoid double payment of management fees. The adjustment calculation methods are specifiedin each contract. Total investment advisory fees paid by the client shall amount to investment advisory fees
less the investment management fees associated with the purchased investment trust products.
Investment Risks Associated with Financial Products
The financial instrument transactions conducted on behalf of the client shall include investments made inshares, bonds with new share warrants, bonds issued by public corporations, and other instruments(including cases where investments are made via investment trusts and through Limited Partnerships).
Consequently, the prices of shares and other investments may decline as a result of the effects of domestic
and overseas economic variables and political circumstances, fluctuations in interest rates, and changes in
the performance and financial standing of the issuing entities, resulting in investment losses.
Financial products may also make use of derivative transactions. Such transactions utilize leverage inexcess of the margin amount, and if prices change as a result of the fluctuations in the securities and indexes
that serve as the underlying assets, it is possible that losses in excess of the amount of the margin deposited
will be incurred. Also, the leverage rates vary continuously as a result of changes in investment policies anddomestic and overseas market environments, and consequently they cannot be specified in advance.
During the terms of derivative transactions, Nomura Asset Management shall deposit margins taken fromthe contract assets in amounts that it determines to be suitable based on calculations performed by thesecurities companies with which the orders are placed.
Caution Related to Investment Trusts
The risks and expenses listed below are assumed to be general investment trusts. The rates for expenses
are the highest rates among all publicly offered investment trusts managed by Nomura Asset Management,
which are borne by investors. As the risks and expenses associated with an investment trust vary, wheninvesting in an investment trust, please refer to the explanatory document (prospectus) and the pre-contract
document carefully in advance.

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RisksInvestment trusts invest mainly in domestic and foreign stocks, public and corporate bonds, and othersecurities whose prices fluctuate, and the investment principal is not guaranteed. The price per unit ofinvestment fluctuates due to fluctuations in the market prices of the assets and in foreign exchange rates.
Therefore, losses may be incurred as the price of unit may become less than the amount invested byinvestors. Investment Trusts differ from deposits and savings. In addition, for investment trusts, the contentand nature of risks are different because the types of target assets, restrictions, trading markets, countries,etc. are different for each investment trust. Therefore, please refer to the explanatory document (prospectus)
and the pre-contract document when investing.
Expenses
The total amount of the following costs will vary depending on the period investors hold the fund, etc., andtherefore cannot be presented.
As of December, 2021
Subscription fee:
Maximum 3.85%(tax included)

It is the expense which the investor bears when purchasing a fund. The fund distributor
receives it as the cost of sales. The rate, etc. must be confirmed with the distributor.
Depending on the fund, "Redemption fee" may be required at the time of redemption(and at the time of redemption).

Trust fee:
Maximum 2.222%(tax included)

It is the cost charged based on the period the investor holds the fund. The asset
management company, the trustee company and the distributor receive it in aproportional manner. The asset management company receives the investmentcompensation, the trustee company receives the custody compensation, and thedistributor receives compensation for administrative duty including the distribution ofdividend, redemption money and investment reports*For some funds, extra fee may be charged depending on the investment performance.
*In the case of a fund of funds, with some exceptions, trust fees, etc. for funds investedby the fund are separately charged.

Investment trust reserve
expense:Maximum 0.5%

It is borne by investors upon redemption. It is charged in order for investors themselves
to bear the costs incurred in the trust property due to redemption by investors.

Other fees:

In addition to the expenses mentioned above, expenses such as "Brokeragecommissions for the purchase and sale of securities, etc.", "tax on the fund", "audit cost","Expenses for custody of assets in foreign countries", etc. are to be borne according to
the investing period, etc. The rate, maximum amount, etc. cannot be shown in advancebecause it fluctuates depending on the investment status, etc.

When subscribing fund, please make a decision by yourself after confirming the contents of the explanatory
document (prospectus) provided by the distributor.
Trade name: Nomura Asset Management Co., Ltd.
Director of Kanto Local Finance Bureau (Financial Instruments Firms) No.373
Membership: The Investment Trusts Association, Japan/ Japan Investment Advisers Association/ Type II
Financial Instruments Firms Association

About this English news release
The contents of this material are based on an English translation of a Japanese announcement made on
December 10, 2021 by Nomura Asset Management Co., Ltd. Whilst every effort has been made to translate
the Japanese document into English, the accuracy and correctness of this translation are not guaranteed,
therefore please refer to the original Japanese document.
Please note that the information contained in this document is for reference purposes only and does notconstitute an offer to sell or the solicitation of an offer to buy securities by Nomura Asset Management Co.,
Ltd. to any person in Japan and does not constitute a distribution, an offer to sell or the solicitation of an
offer to buy any securities or provide any services in any jurisdiction in which such distribution or offer is notauthorized.

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Furthermore, none of the funds in this document have been or will be registered under the United States
Securities Act of 1933, as amended (“1933 Act”), or under the securities laws of any state or politicalsubdivision of the United States of America or any of its territories, possessions or other areas subject to its
jurisdiction including the Commonwealth of Puerto Rico (the “United States”). The funds have not been andwill not be registered under the United States Investment Company Act of 1940, as amended, nor under
any other US federal laws.
Accordingly, the information in this document is not made or directed to any person in the United States andunder no circumstance shall the provision of the information on this document be deemed to constitute anoffer of securities or an offer to provide any services to any person in the United States or to any U.S. Person
as the term is defined under 1933 Act.
Furthermore, the information in this document is not made or directed to any person in the United Kingdom
and under no circumstances shall the provision of the information in this document be deemed to constitutean offer of securities or an offer to provide any services to any person in the United Kingdom.

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