<Disclaimer for the English Translation of the Full
Prospectus of Listed Index Fund JPX-Nikkei Index 400>
This document is an English translation of the Japanese “Prospectus Issued upon Request”(the “Full Prospectus”) of Listed Index Fund JPX-Nikkei Index 400 (the “Fund”).

The

Japanese Full Prospectus is the offering document. This English translation is not required bylaw or any regulation.
While every effort has been made to ensure the accuracy or completeness of this translation,
Nikko Asset Management Co., Ltd. cannot guarantee this translation is accurate or complete
as differences of interpretation may arise between the English and Japanese language.

Inthe event of any inconsistency between this English translation and the Japanese version, theJapanese version shall prevail, except to the extent prohibited by the applicable law of any
jurisdiction where the units of the Fund are sold.
Except as otherwise indicated herein, this material is based on the Japanese version dated asof April 9, 2024.

In case of any update to or modification of the Japanese version of the terms

and conditions, there is no guarantee that a corresponding update or modification will be madeto this English translation.
This translation of the Full Prospectus has been prepared by Nikko Asset Management Co.,
Ltd. for English speaking investors for information purposes.

Investors should not subscribe

for these securities solely relying on this document, as this is a translation of the original Full
Prospectus.

As the English translation may differ from the Japanese Full Prospectus as

explained above, this document does not contain or constitute, and should not be relied uponas an offer or invitation to make an offer for the purchase of these securities (including units of
the Fund) to any person or entity in any jurisdiction.
Neither this material nor any part hereof may be reproduced, transmitted, reprinted, or
redistributed without the prior written authorization of Nikko Asset Management Co., Ltd.

Explanatory Booklet on
Investment Trust

April 9, 2024

Listed Index FundJPX-Nikkei Index 400

Nickname: “JoJo JPX-Nikkei 400”
Open-end Investment Trust/Domestic/Equities/ETF/Index Type◆In connection with the invitation for subscription to the “Listed Index Fund JPX-Nikkei Index 400”, which isextended by way of this prospectus, the Management Company filed a securities registration statement with
the Director－General of the Kanto Local Finance Bureau on April 8, 2024 pursuant to the provisions of Article
5 of the Financial Instruments and Exchange Act. The registration became effective on April 9, 2024.
Securities registration statement filing
date:
Issuer:Title and Name of the Representative:
Address of the Head Office:Location where a copy of the securities
registration statement (including its
registered supplements) may be inspected:

April 8, 2024
Nikko Asset Management Co., Ltd.
Stefanie Drews, Representative Director, President and COO
7-1 Akasaka 9-chome, Minato-ku, Tokyo

Tokyo Stock Exchange Group, Inc.
2-1, Nihonbashi Kabutocho, Chuo-ku, Tokyo

Established and managed by

Nikko Asset Management Co., Ltd.

This prospectus is based on Article 13 of the Financial Instruments and Exchange Act (Act No. 25 of 1948).

Investment trusts are different from deposits with financial institutions or insurance policies.
●

Investment trusts are not protected by the Deposit Insurance Corporation of Japan or the
Insurance Policyholders Protection Corporation of Japan. Furthermore, purchasing investment
trust units at a registered financial institution, such as a bank, exempts you from being eligible
for payments from the Investor Protection Fund.

●

Investment trusts offer no guarantee of principal or yields.

●

Investors who purchase units in an investment trust bear the risk of a decline in the value ofthe invested assets.

- Contents Page No.
PART I.

Information on Securities ··················································· 4PART II.

Information on the Fund ···················································· 6

I. Description of the Fund ···················································· 6
II. Administration and Operation ·········································· 41
III. Financial Condition of the Fund ········································ 49
IV. Outline of Administration of Domestic Investment Trust Beneficiary
Certificates ··································································· 70
PART III. Information on the Management Company ····························· 72
Trust Deed ··················································································· 73

PART I.

Information on Securities(1) Fund Name
• Listed Index Fund JPX-Nikkei Index 400 (hereinafter referred to as the “Fund”).
• “JoJo JPX-Nikkei 400” may be used as a nickname.
(2) Form, Etc. of the Domestic Investment Trust Beneficiary Certificates• Units of an open-end securities investment trust (hereinafter referred to as the “Units”).
• No credit rating has been or will be assigned or made available by a credit rating company.
* The provisions of the “Act on Book-Entry Transfer of Company Bonds, Shares, etc.” apply to
the Fund’s Units. Attribution of the Units is determined by means of being recorded in thebook-entry account of the transfer institution as set forth under “(11) Matters Concerning theBook-Entry Transfer Institution” below, and in the transfer account of the management
institutions subordinate to such institutions (such account management institutions shallmean the “account management institutions” as set forth in Article 2 of the “Act on Book-Entry
Transfer of Company Bonds, Shares, etc.”; and together with the book-entry transfer
institution, are hereinafter collectively referred to as the “Book-Entry Transfer Institutions”).
(Such Units of which ownership is determined either by means of being recorded in a bookentry transfer account book are hereinafter referred to as the “Book-Entry Transfer Units.”)
Except for when there is an unavoidable reason, the Management Company shall not issue
beneficiary certificates that indicate that the Units are Book-Entry Transfer Units.
Furthermore, neither a bearer form nor a registered form is recognized for the Book-Entry
Transfer Units.
(3) Total Issue (Offering) AmountUp to 30 trillion yen(4) Issue (Offering) Price
The issue price is the Net Asset Value per Unit on the day an application for subscription of theUnits is accepted.
• Please contact a Distributor or the contact information referred to in “(8) Place of Subscription”
below for questions concerning the Net Asset Value per Unit.
(5) Subscription Fee
The Distributors are authorized to collect from those applying for subscription a fee that isdetermined independently by the respective Distributor, as well as an amount equivalent to theconsumption taxes levied on such fee.
* Please contact your Distributor for further information.
(6) Subscription Unit
Units to be determined by the distributors starting at no less than 1,000.
* Please contact a Distributor for further information.

4(7) Subscription Period
April 9, 2024 to October 8, 2024
• The subscription period can be renewed by filing another securities registration statement prior
to the expiration date shown above.
(8) Place of Subscription
To find a Distributor, please contact the Management Company.
<Management Company>
Nikko Asset Management Co., Ltd.
Website: www.nikkoam.com/
Call Center telephone number: +81(0)3-6447-6653
9 a.m. – 5 p.m., excluding weekends, public holidays, and nonbusiness days
(9) Payment Date
• An applicant pays the subscription amount to the Distributor no later than the due day
designated by the Distributor.
• The total issue amount (i.e. total creation amount) for each of the days subscriptions are accepted
during the subscription period is deposited by the Distributor in the fund account that isdesignated by the Trustee Company through an account designated by the Management
Company. Such deposit shall be made on the day additional Units are created.
(10) Place of Payment
An applicant pays the subscription amount to the Distributor.
(11) Matters Concerning the Book-Entry Transfer Institution
The Japan Securities Depository Center, Inc. is the Book-Entry Transfer Institution.
(12) Other
N/A

5

PART II. Information on the FundI.

Description of the Fund

1.

Nature of the Fund

(1) Objective and Basic Nature of the Fundi)

Objective of the Fund
The Fund seeks to achieve a Net Asset Value per Unit that closely correlates with the
movement of the JPX-Nikkei Index 400 by investing in shares of the component stocks of
the JPX-Nikkei Index 400, and building and maintaining, in principle, a portfolio
constructed consistent with the calculation method of the JPX-Nikkei Index 400.
*The JPX-Nikkei Index 400 is a stock index of the top 400 stocks selected from among
ordinary shares listed on the Tokyo Stock Exchange's Prime Market, Standard Market and
Growth Market. Selection of constituent stocks is based on 1) screening of eligibility
criteria and market liquidity indicators, 2) quantitative indicator-based scoring (3 year
average ROE, 3 year cumulative operating profit, market capitalization), and 3) qualitative
factor-based scoring (appointment of independent outside directors, IFRS adoption,
disclosure of earnings in English). The calculation method employs the closing price ofAugust 30, 2013 as its base date, assigns a value of 10,000 as that day's market
capitalization, and indexes market capitalization thereafter.
Market capitalization of index
at the time of calculation (JPY)JPX-Nikkei Index 400=
×10,000
Base date market capitalization(JPY)
Note: Market capitalization of index at the time of calculation is a total of the market value
based on the number of shares of index for each issue.
Copyright and Other Rights of the “JPX-Nikkei Index 400”
 THE JPX-NIKKEI INDEX 400 WILL BE MANAGED VIA A PROPRIETARYCALCULATION METHOD THAT WAS CO-DEVELOPED BY JPX MARKETINNOVATION & RESEARCH, INC. (HEREINAFTER, “JPX SOKEN”) AND NIKKEI
INC. (HEREINAFTER, “NIKKEI”). “JPX SOKEN” AND THE “NIKKEI” HOLD THE
COPYRIGHTS AND ALL INTELLECTUAL PROPERTY RIGHTS FOR THE
CALCULATION METHODS OF THE “JPX-NIKKEI INDEX 400” ITSELF AND THE“JPX-NIKKEI INDEX 400 INDEX”.
“JPX SOKEN”, JAPAN EXCHANGE GROUP, INC. AND THE “NIKKEI” HOLD ALL
TRADEMARKRIGHTSANDINTELLECTUAL
PROPERTY
RIGHTS
CONCERNING THE LOGO OF THE “JPX-NIKKEI INDEX 400”.

 THE MANAGEMENT OF THE FUND IS THE RESPONSIBILITY OF INVESTMENT
TRUST AND MANAGEMENT COMPANIES. “JPX SOKEN” AND THE “NIKKEI”
BEAR NO RESPONSIBILITY IN REGARD TO THE MANAGEMENT AND
TRADING OF THE FUND.
“JPX SOKEN” AND THE “NIKKEI” HAVE NO OBLIGATION TO CONTINUE TO
PUBLISH THE “JPX-NIKKEI INDEX 400” AND THE TWO PARTIES ARE NOTRESPONSIBLE FOR ANY MISTAKES, DELAYS OR SUSPENSIONS IN THEIR
PUBLICATIONS.

6

 “JPX SOKEN” AND THE “NIKKEI” HOLD THE RIGHT TO CHANGE THE
COMPONENT SHARES, CALCULATION METHOD AND OTHER ASPECTS OF
THE “JPX-NIKKEI INDEX 400” AND TO SUSPEND ITS PUBLICATION.
ii)

Basic Nature of the Fund

1) Product Classification
Unit Type
Investment Trust

GeographicalInvestment Assets

Independent

Supplementaryand Open-end

Region Invested In(Revenue source)

Segment

Classification

Investment Trust
Equities
Domestic

MMF

Unit type

Bonds

investment trust

Index type

Real estate

Overseas

investment trust

MRF

Open-end
investment trust

Special type

Other assets(

Domestic and)overseas

ETF

Asset allocation

Note: Product categories that apply to the Fund are shown in shaded boxes.
 Open-end investment trust
An open-end investment trust is a fund that issues additional units subsequent to its
inception. Such additional units are invested together with assets in trust that are
accepted earlier.
 Domestic
A fund is classified as a domestic fund when either its prospectus or its investment
trust deed states that the major part of the investment income from the fund portfolio
is sourced from domestic assets.
 Eqities
A fund is classified as a equity fund when either its prospectus or its investment trust
deed states that the major part of the investment income from the fund portfolio issourced from equities.
 ETF
ETFs consist of securities investment trusts, as defined in Items 1 and 2 of Article 12of the Order for Enforcement of the Act on Investment Trusts and Investment

7

Corporations (Order No. 480 of 2000) and listed securities investment trusts, as definedin Article 9-4-2 of the Act on Special Measures Concerning Taxation (Act No. 26 of 1957).
 Index type
A fund is classified as an index type fund when either its prospectus or its investment
trust deed states that the fund aims to achieve investment results that track the
performance of an index.
2) Segmentation by Attributes
GeographicalAreas ofInvestment

Investment Assets Accounting Period
Equities
GeneralLarge-cap
Medium- andsmall-cap

AnnualGlobalSemi-annual

Japan

Quarterly
North America
Bonds
General
6 times per year
Europe(Every other month)
Government
bonds
Corporate bonds
Asia
Other debenture 12 times per year
(Monthly)
Credit attriOceania
butes
(
)
Daily
Latin America
Real estate
investment trusts
Other
Africa()
Other assets()
Middle and Near
East
(Middle East)
Composite assets()
Emerging
Fixed asset
allocations
Variable asset
allocations

Index
Followed

Nikkei 225

TOPIX

Other
(JPX-Nikkei
Index 400)

Note: The attribute segments that apply to the Fund are shown in shaded boxes.
 Stocks – General
The Fund invests in stocks. The “Stocks – General” category contains all stocks that do
not have the attributes of large-cap, medium-cap or small-cap stocks.
 Semi-annual
This shall mean where it is stated in the prospectus or the investment trust deed thatbooks are closed semi-annually.
 JapanThis shall mean where it is stated in the prospectus or the investment trust deed thatinvestment income from the fund portfolio is sourced from Japanese assets.
The foregoing descriptions are made in accordance with the classification method established by
The Investment Trusts Association, Japan. See the Association’s website for definitions of8

additional product classes and those of attribute segments: https://www.toushin.or.jp/.
iii) Characteristics of the Fund
1) The Fund aims to achieve investment returns linked to the performance of the JPX-Nikkei
Index 400.
●

The Fund aims for the net assets per trust asset unit to track the changes of the “JPXNikkei Index 400”, and in principle invests in the equities that comprise the “JPXNikkei Index 400” (including depositary receipts).

*

The investment management described above may not be carried out due to market
and financial conditions.

2) Units are listed on the Tokyo Stock Exchange and can be traded at any time during trading
hours.
●

Units may be traded in blocks of 1 unit (as of the date when the securities registration
statement was filed).

●

The handling companies determine trading commissions.

●

The method of trading is generally the same as that for stocks.

*

Please contact your respective handling company for further information.

3) Units are subscribed for with cash.
●

Units are subscribed using the Net Asset Value per Unit on the day the subscriptionis accepted.

4) Units may be redeemed for cash before maturity with a request for redemption.
●

Units may be redeemed by the Net Asset Value per Unit on the day redemption is
accepted.

5) Units may not be exchanged for stocks.
Principal Investment Restrictions●

There is no restriction on the proportion of investment in stocks.

●

There is no restriction on the investment proportion for assets denominated in foreign
currencies.

Distribution Policy●

As a general rule, the full amount of dividends and other income arising from the trust
assets is distributed after deduction of expenses.
* There is no guarantee for the amount and payment of dividends in the future.

iv) Maximum Amount of Trusted Money● Trust money up to a maximum amount of 5 trillion yen may be added.
● The Management Company may change the maximum amount with the consent of theTrustee Company.

9(2) Fund History
January 27, 2014:- Execution of the trust deed of the Fund and commencement of management.
January 28, 2014:- Listing of the Fund’s Units on the Tokyo Stock Exchange.
(3) Structure of the Fundi)

Structure of the Fund
Fund
Listed Index Fund JPX-Nikkei Index 400

Management Company
Nikko Asset Management Co., Ltd.


Instructions regarding investment of trust
assets
Preparation of the prospectus, etc.

*2
A securities
investment
trust deed

Trustee Company
Sumitomo Mitsui Trust Bank, Limited.

(Delegated Trustee Company: Custody Bank ofJapan, Ltd.)




*1
An agreement on thehandling of offerings, etc.

Management and custody of trust assets
Calculation of trust assets
Payment of dividends and redemption money,
etc.

Distributors


Handling of offerings and sales
Services relating to cancellation and buybacks, etc.

Investors (Unitholders)*1

An agreement between the Management Company and Distributors regarding the rules on thesale of the investment trust. It encompasses matters such as stipulations on the scope of businessregarding the handling of offerings, redemptions and buybacks by the Distributors.

*2

An agreement between the Management Company and Trustee Company regarding the rules on
managing the investment trust. It includes matters such as stipulations on the basic
management policy, assets to be invested in, restrictions on investment, trust fees, unitholders’rights, and the offering method.
ii)

Profile of the Management Company (as of the end of January, 2024)

1) Capital
17,363 million yen
2) History
1959: Established as Nikko Securities Investment Trust Management Co., Ltd.

10

1999: Merged with Nikko Kokusai Investment Management Co., Ltd., and changed thecorporate name to “Nikko Asset Management Co., Ltd.”
3) Major Shareholders
Name
Sumitomo Mitsui TrustHoldings, Inc,

2.

Address

Number of
Shares Held

Holding
Ratio

192,211,000

97.562%

1-4-1, Marunouchi, Chiyoda-ku, Tokyo

Investment Policy(1) Investment Policy
 The Fund aims so that the net assets per trust asset unit tracks the changes of that of the JPXNikkei Index 400 and invests in the equities that comprise the JPX-Nikkei Index 400 (including
DR (depositary receipts)).
 Instructions to adjust the composition of trust assets may be issued in the following events:i)

There is a change in the method of computing the JPX-Nikkei Index 400;

ii)

An adjustment is made to the market capitalization of the respective stocks thatcomprise the JPX-Nikkei Index 400 as the result of a change in the stocks that comprise
the JPX-Nikkei Index 400 or a change in capital, etc.;iii) Instructions are issued for additional trust creations and a partial redemption; oriv) Other cases where the Management Company deems necessary in order to maintainliquidity.
 To realize the same gains and losses similar to holding the underlying assets, the Fund may, in
response to fund movements, take part in transactions such as futures trading in securities
indices as set forth in the trust deed for the purpose of bringing the Fund’s performance closer
to that of the JPX-Nikkei Index 400.
 However, the management described above may not be possible upon occurrence of market
turmoil or in the event that the remaining trust term or the remaining principal reaches a pointthat interferes with management or other unavoidable circumstances.
(2) Investment Assets
The Fund invests mainly in the shares of stocks that comprise the JPX-Nikkei Index 400(including DR (depository receipts)).
i)

ii)

The types of assets that the Fund invests in are as follows:

1) Securities;
2) Interest in derivatives transactions (as defined in Article 2, Paragraph 20 of the
Financial Instruments and Exchange Act but limited to those provided for in Articles
24, 25 and 26 of the Trust Deed);3) Monetary claims;
4) Promissory notes; and
5) Bills of exchange.
The Fund may invest in the following securities (excluding rights deemed as securities
under Article 2, Paragraph 2 of the Financial Instruments and Exchange Act and set
forth in each Item of the same Paragraph):
1)
2)
3)
4)

Equities (share certificates) or subscription warrants of shares;
Government securities;
Municipal securities;
Debt instruments issued by corporations pursuant to special laws;115) Corporate bonds (excluding subscription warrants of corporate bonds with
subscription warrants which comprises subscription warrants and corporate bonds(hereinafter referred to as “Corporate Bonds with Detachable Subscription
Warrants”));
6) Specified corporate bonds (which refer to those specified in Article 2, Paragraph 1,
Item 4 of the Financial Instruments and Exchange Act);
7) Commercial papers;
8) Subscription warrants (including subscription warrants of the Corporate Bonds with
Detachable Subscription Warrants; the same shall apply hereinafter) andsubscription rights;
9) Securities or instruments issued by a foreign country or a foreign person which havethe nature of the securities or instruments set forth in 1) to 8);10) Beneficiary certificates of an investment trust or a foreign investment trust (whichrefer to those specified in Article 2, Paragraph 1, Item 10 of the Financial
Instruments and Exchange Act);
11) Investment securities or foreign investment securities (which refer to those specified
in Article 2, Paragraph 1, Item 11 of the Financial Instruments and Exchange Act;
hereinafter the same) other than those set forth in 12);12) Investment corporation bonds(which refer to those specified in Article 2,
Paragraph 1, Item 11 of the Financial Instruments and Exchange Act; hereinafter
the same) or foreign investment securities similar to investment corporation bonds;
13) Trust beneficiary certificates on foreign loan claims (which refer to those specified in
Article 2, Paragraph 1, Item 18 of the Financial Instruments and Exchange Act);
14) Securities or instruments evidencing options (which refer to those specified in Article
2, Paragraph 1, Item 19 of the Financial Instruments and Exchange Act, but limited
to those with respect to securities);
15) Depository receipts (which refer to those specified in Article 2, Paragraph 1, Item 20of the Financial Instruments and Exchange Act);
16) Negotiable certificates of deposit issued by a foreign corporation;17) Beneficiary certificates of designated money trusts (limited to the beneficiary
certificates of the trusts issuing beneficiary certificates specified in Article 2,
Paragraph 1, Item 14 of the Financial Instruments and Exchange Act);
18) Trust beneficial interests on loan claims which should be classified as the beneficiary
certificates of the trusts issuing beneficiary certificates specified in Article 2,
Paragraph 1, Item 14 of the Financial Instruments and Exchange Act;19) Interests in a foreign person which have the nature of the securities set forth in 18iii) The Fund may be managed through the financial instruments (including rights deemedas securities under Article 2, Paragraph 2 of the Financial Instruments and Exchange
Act and set forth in each Item of the same Paragraph) listed below:
1) Deposits;2) Designated money trusts (excluding the trusts issuing beneficiary certificates as
defined in Article 2, Paragraph 1, Item 14 of the Financial Instruments andExchange Act);
3) Call loans;4) Notes traded in a discounted notes market;
5) Trust beneficial interests on loan claims specified in Article 2, Paragraph 2, Item 1of the Financial Instruments and Exchange Act;
6) Interests in a foreign person which have the nature of the interests set forth in 5).
iv) The following transactions may be effected:
1) Margin tradings;
2) Futures trading, etc.
3) Swap transactions;
4) Forward rate agreements;
5) Forward exchange agreements;126) Lending of securities;7) Short selling of bonds and debentures;
8) Borrowing of bonds and debentures;
9) Forward foreign exchange transactions; and
10) Borrowing of funds.

13

(3) Management System The Management Company’s management system is as follows:
Chief Investment Officer (CIO)
Chief Operating Officer (COOI)
Macro & Micro
Research andAnalysis
Department

Equity FundManagement
Department

Fixed Income
Fund Management
Department

Alternative
Investment FundManagement
Department

Passive FundManagement
Department

Trading Department

Sub-Advised FundManagement
Department

Portfolio
Control
Department

Investment
Support &Planning
Department

Sustainable Investment
Department

 The organization that supervises internal control and decision making within the management systemof the Management Company is as follows:
Board of Directors, etc.

■
Formulation of Management Policies
Investment Committee(Formulation of basic policies)

Determines domestic and overseas
economic forecasts, market outlook andbasic policies for asset allocations

Management Departments(Formulation of management
policies)

Formulate specific management policies
concerning individual assets and asset
allocation strategies, based on thedecisions of the Investment Committee

 Execution of FundManagement
Fund Managers of Respective
Management Departments(Construction and management of
portfolios)

Constructs and manages portfolios inline with the guidelines andmanagement policies of individual fundsTrading Department(Execution of trades)

Deliberates on the fundmanagement status, including
the evaluation and analysis of
the investment performance, etc.

Selects ordering outsourcecompanies that are deemed to be
the most qualified in terms of
their ability to provide
information and execution
ability, and decides ordering
policies, etc.

Executes trades in accordance with the
optimum execution process, based on thedecisions of the Order Policy Committee

Management Risk Meeting

Ordering Policy Committee

Internal Audit-related Department(Approximately 5 persons)
Verifies and evaluates theappropriateness of the internal
control system over thecompany’s operations,
including investment
Furnishes the Board of
Directors with reports of audit
results and follows up on the

Risk Management/Compliancerelated Departments(Approximately 65 persons)Controls and monitors credit
risks and administrative risks
relating to investment
activities

Evaluates and analyzes
investment performanceManages compliance withlaws, regulations and rules,
etc.

Management Risk Committee

Efficiently keeps track of andmonitors the management statuspertaining to management risk,
etc.

Management Company’s System of Control over the Corporations Involved with the Fund (except for Distributors)
The Management Company verifies the value of net assets held by the Trustee Company on a daily basis and the accountbalances on a monthly basis. In addition, an independent audit corporation conducts audits of the trustee operations inaccordance with established procedures. The audit corporation furnishes the Management Company with a periodic
audit report, assuring that effective internal controls are in place.

14

* The system shown above is current as of the end of January 2024, and may be subject to change
in the future.

15

(4)

Distribution Policyi)Income Distribution Policy

1) The full amount of dividends and other income arising from the trust assets (which equals
the sum of dividends, interest, fees on securities lent and other similar income less interestpaid) and a distribution reserve that has been carried over from the preceding period are
distributed to the unitholders at the end of each calculation period after deductions are
made for expenses, trust fees stipulated in the trust deed and an amount equal toconsumption taxes levied on the trust fees, and after the full amount of a negative
distribution reserve carried over from the preceding period, if any, is offset. However, partor all of such money may be retained in the trust assets for the purpose of adjusting theamounts of income distribution. In such a case, the retained income is added to the
distribution reserve and can be applied toward distributions in the subsequent periods.
When there is insufficient income to deduct the full amounts of expenses, trust fees
stipulated in the trust deed and consumption taxes levied on the trust fees, and also offset

a negative distribution reserve, the shortfall is reported as a negative distribution reserveand carried forward to the next period.

2) The sum of the profits referred to in the following subparagraph a) that arise from thetrust assets at the end of each calculation period is carried forward to the following period
after deductions are made for losses referred to in subparagraph b) and the full amount ofloss brought forward, if any, is offset.

ii)

a)

Gains on trading of securities (including their unrealized gains), gains on trading of
futures, etc. (including their unrealized gains), gains on additional trust creations andgains on redemptions.

b)

Losses on sales of securities (including their unrealized losses), losses on the tradingof futures, etc. (including their unrealized losses), losses on additional trust creations
and losses on redemptions.

Payment of Income Distribution
As a general rule, the Trustee Company pays each unitholder his or her income distribution
by depositing it on the day specified by the Management Company but within 40 days of theend of each calculation period in the deposit account designated in advance by the unitholder.
When a unitholder has signed a separate agreement with his handling company inconnection with the handling of income distribution, the payment is made pursuant to theprovisions of such agreement.

(5) Investment Restrictionsi)

Investment Restrictions Set Forth in the Trust Deed1) There is no restriction on the proportions of investment in stocks.
2) The stocks, subscription warrants and subscription rights that the Fund intends to invest
in are stocks, etc. issued by companies whose stocks are listed on a market established bya financial instruments exchange (including cases where they are traded on markets, etc.

that are equivalent to a market established by financial instruments exchange;
hereinafter the same). However, stocks, subscription warrants and subscription rightsthat are acquired through shareholder allotments or corporate bondholder allotments are
exempted from this rule. The Management Company may also give instructions to invest
in stocks, subscription warrants and subscription rights that are scheduled to be listed if
such listing can be confirmed in the prospectus and other materials.

163) The proportion of investment in investment trust securities (excluding listed investment
trust securities) may not exceed 5% of the total value of the trust assets.
4) There is no restriction on the proportion of investment in assets denominated in foreign
currencies.
5) For efficient management of the trust assets, the Management Company may give
instructions to sell shares on margin. The instructions for margin tradings shall be suchthat the aggregate market value of the unsettled position of such sale is within the extent
of the Total Net Asset Value of the trust assets.
6) To realize the same gains and losses similar to holding the underlying assets, and to avoid
price fluctuation risk, the Management Company may give instructions to execute
securities futures tradings (which refer to those specified in Article 28, Paragraph 8, Item
3 of the Financial Instruments and Exchange Act), securities index, etc. futures tradings(which refer to those specified in Article 28, Paragraph 8, Item 3-b of the Financial
Instruments and Exchange Act) and securities option tradings (which refer to thosespecified in Article 28, Paragraph 8, Item 3-c of the Financial Instruments and ExchangeAct) on financial instruments exchanges in Japan as well as any trading similar thereto
on foreign financial instruments exchanges; provided that puts and calls shall be included
in option tradings.
7) To realize the same gains and losses similar to holding the underlying assets, and to avoid
currency fluctuation risk, the Management Company may give instructions to execute
currency futures tradings on financial instruments exchanges in Japan as well as currency
futures tradings and option tradings on foreign financial instruments exchanges.
8) To realize the same gains and losses similar to holding the underlying assets, and to avoid
price fluctuation risk, the Management Company may give instructions to execute interest
rate futures tradings and option tradings on financial instruments exchanges in Japan aswell as any trading similar thereto on foreign financial instruments exchanges.
9)

To realize the same gains and losses similar to holding the underlying assets, and to avoid
price fluctuation risk and currency fluctuation risk, the Management Company may give
instructions to execute tradings which swap different currencies, different coupons or
different coupons plus their principals under certain conditions (hereinafter referred to as“Swap Tradings”). Upon giving instructions for Swap Tradings, the term of such trading
shall not in principle exceed the trust term of the Fund, except for the cases where suchtrading may be wholly redeemed within such trust term.

10) To realize the same gains and losses similar to holding the underlying assets, and to avoid
price fluctuation risk and currency fluctuation risk, the Management Company may give
instructions to execute forward rate agreements and forward exchange agreements. Upon
giving instructions as to forward rate agreements and forward exchange agreements, thesettlement date of such agreement shall not be later than the termination date of the trust
term of the Fund, except for the cases where such agreement may be wholly redeemedwithin such term.
11) For efficient management of the trust assets, the Management Company may give
instructions for lending of any equities, bonds and debentures, as well as listed investment
trust securities attributable to the trust assets to the extent specified in the following:A) As for lending of equities, the aggregate market value of such lent equities as at suchlending shall not exceed the aggregate market value of the equities held in the trust;17B) As for lending of bonds and debentures, the aggregate nominal amount of such lentbonds and debentures as at such lending shall not exceed the aggregate nominal
amount of the bonds and debentures held in the trust;C) As for lending of listed investment trust securities, the aggregate market value of such
lent listed investment trust securities as at such lending shall not exceed the aggregate
market value of the listed investment trust securities held in the trust.
12) For efficient management of the trust assets, the Management Company may give
instructions to sell any bonds and debentures which are not attributable to the trust assets
on the account of the trust assets. The instructions for sale shall be such that the aggregate
market value of the bonds and debentures to be sold is within the extent of the total net
asset value of the trust assets.
13) For efficient management of the trust assets, the Management Company may give
instructions to borrow any bonds and debentures. The instructions for borrowing of bonds
and debentures shall be such that the aggregate market value of the bonds and debentures
to be borrowed is within the extent of the total net asset value of the trust assets.
14) To realize the same gains and losses similar to holding the underlying assets, and to avoid
currency fluctuation risk , the Management Company may give instructions to enter into
foreign exchange forward contracts. Instructions for foreign exchange forward contracts
shall be such that the Japanese yen equivalent of the difference between the total amountof the purchase contracts of foreign exchange forward contracts for the trust assets andthe total amount of the selling contract thereof does not exceed the total net asset value ofthe trust assets. However, this would not apply to instructions to engage in foreignexchange forward contracts entered into for the purpose of avoiding foreign currency riskin regards trust assets that are denominated in foreign currencies.
15) For efficient management of the trust assets and stability of management, theManagement Company may give instructions to borrow funds (including borrowing
through the call market) in order to finance payments associated with redemption(including repayment of the funds borrowed to finance such payment of redemption). Suchborrowings shall not be used for the investment management of securities. The amount of
the funds to be borrowed and the borrowing period shall be within the extent of thefollowing requirements:
A) For financing redemption payments, the amount borrowed is within an amountdetermined to be received from sale or redemption of securities for the purpose offinancing redemption payment.;B) The amount borrowed is within the net asset value of trust assets on the day theborrowing instructions are given.
C) The borrowing period in order to finance redemption payments shall be the period fromthe date on which payment of redemption money to unitholders is commenced to thedate on which proceeds from the sale of the securities, etc. held in the trust assets aredelivered, or otherwise the period from the date on which payment of redemption
money to unitholders is commenced to the date on which redemption money of the
securities, etc. held in the trust assets are paid, or otherwise the period from the dateon which payment of redemption money to unitholders is commenced to the date on
which redemption money of the securities held in the trust assets are paid, whicheveris five business days or shorter.

1816) The derivative transactions shall be such that the amount calculated in a reasonable
manner pursuant to the rules of the Investment Trusts Association, Japan does not exceed
the total net asset value of the trust asset.
17) Equity, debt, and derivative are the categories of exposures prescribed in the rules of The
Investment Trusts Association, Japan. With regard to the exposures, in principle, theindividual category’s exposure to a certain interest counterparty, the kind of acounterparty prescribed in the rule, shall not exceed 10% of the total net asset value of thetrust assets. And all the categories’ exposure to a certain counterparty shall not exceed
20%. If the ratio exceeds the limit, the Management Company shall carry out adjustment
to keep within the limit pursuant to the rules of The Investment Trusts Association, Japan.
ii)

Statutory Restrictions on Investment
Investment in shares issued by one corporation (pursuant to the Act on Investment Trusts
and Investment Corporations)
The Management Company does not engage in transactions that would cause the total
number of one corporation’s shares that are held in the investment trusts that it manages
to represent more than half of the voting rights of the corporation’s stock.

3.

Investment Risks(1) Risks of the Fund
Investment in the Fund involves certain risks, including major risks listed below. Whensubscribing the Units, the investor is requested to fully evaluate the risks pertaining to the Fundand make careful determination on investment.
• There is no guarantee of the investors’ investment principal and a decrease in the Net Asset
Value per Unit may result in losses or the investment principal falling below par. Any profit
and loss resulting from the management of the Fund will be attributed to the investors(unitholders). Furthermore, please note that the Fund differs from deposits and savings.
• The Fund primarily invests in stocks (including depositary receipts; hereinafter the same). It
is therefore possible that factors such as a decline in stock prices or deterioration of the financial
conditions or performance of the issuer of the stock will cause the Net Asset Value per Unit tofall and result in a loss. Additionally, when investing in assets denominated in foreign
currencies, the Fund may suffer losses as a result of exchange rate fluctuations.
Major risks of the Fund are as follows:i)

Price Fluctuation Risk
In general, stock prices fluctuate as they are affected by corporate information regarding
the growth and profitability of a company and the change of such information. Furthermore,they also fluctuate due to factors such as economic and political conditions in Japan andabroad. There is a risk that the Fund will suffer material losses if unexpected changes occur
in stock price movements or liquidity.

ii)

Liquidity Risk
When the sizes of the market or trading volumes are small, the trading value at the time ofacquisition or sale of securities may be influenced by the size of trading volumes. Thus, there
is a risk that the securities cannot be traded at prices that are expected in light of theprevailing market trend, a risk that the securities cannot be sold at the appraised price, and19

a risk that the trading volume may be restricted regardless of how high or low the price is,and there is therefore a risk that unanticipated losses will be incurred.
iii) Credit Risk
• There is a general risk that the Fund will incur material losses in the event of a serious crisis
that directly or indirectly affects the business of a corporation in which the Fund invests.
Concerns over default and bankruptcies may result in a significant decline in the prices of theissuer’s stocks (the price may drop to zero) and cause a decline in the Fund’s Net Asset Valueper Unit. Additionally, delisting of stocks may occur when falling short of certain standards
stipulated by the financial instruments exchange and fear for delisting or occurrence ofdelisting may cause the price of stocks of the issuer to fall. There is therefore a risk that material
losses will result in the Fund.
• The Fund may invest in short-term financial assets such as call loans or negotiable certificatesof deposit and losses may be incurred as a result of a default by the party from whom theypurchase. Such cases may cause a decline in the Net Asset Value per Unit.
iv) Foreign Exchange Rate Fluctuation Risk
In the case of assets denominated in foreign currencies, a decline in the Net Asset Value per
Unit may occur if, in general, the yen becomes stronger than the currency of the asset.
v)

Security-lending Risk
Acts such as lending of securities is accompanied by counterparty risks (i.e. risk of nonperformance or cancellation of the loan agreement due to bankruptcy of the counterparties)
and it is therefore possible that unanticipated losses will be incurred. When in response to
non-performance or cancellation of the loan agreement liquidation procedures are
implemented by using the collateral that is set aside in the loan agreement, the procurement
cost of buying back the securities can surpass the collateral value, due to price fluctuationsin the market. The Fund’s payment of such shortfalls may cause the Fund to incur losses.

Major Reasons for Disparity between the JPX-Nikkei Index 400 and the Net Asset Value per
Unit
Whereas the Fund seeks to match the rate of change of the Net Asset Value per Unit withthat of the JPX-Nikkei Index 400, it does not guarantee movements that are identical to thoseof the index for the following reasons:• The Fund may be subjected to a market impact when buying or selling individual stocks as it
adjusts its portfolio in response to changes in the stocks that comprise the JPX-Nikkei Index
400 and capital changes among corporations. In addition, the Fund incurs various expenses,
including trust fees, brokerage commissions and audit fees.
• Dividends may be paid by stocks in the portfolio and fees may be earned for securities lending.
• When derivative transactions such as futures trading are employed, the price change of suchtransaction and that of a part or all of the stocks that comprise the JPX-Nikkei Index 400
may not be identical.


Disparity between the market prices at which stocks are traded at financial instruments
exchanges and the Net Asset Value per Unit
The Fund is listed in the Tokyo Stock Exchange and the Units are traded on suchexchange. The market price of the Units is affected primarily by the size of demand for
the Fund, its performance, and how attractive it is to investors in comparison with theirother investment alternatives. It is therefore not possible to predict whether the Units
will sell in the market above or below the Net Asset Value per Unit.

20

Additional Considerations• Matters concerning systemic risks and market risks
The securities markets and foreign exchange markets may shut down for various reasons,
including a sudden change in the global economic conditions, a natural calamity, politicalturmoil, a change in economic conditions or a policy change in the country in which themarkets operate, or an unexpected failure of a computer network. Such a shutdown may
prevent the Fund from investing in accordance with its investment policy, and subscriptions.
In the event of the above or where the computation of the Net Asset Value per Unit becomesdifficult due to other matters, purchase and redemptions may temporarily be suspended at
the discretion of the Management Company.
• Matters concerning movements in the Net Asset Value per Unit due to financial outflows fromthe Fund as a result of redemptions
If a large number of redemptions occur at once, the Fund may sell a large number of the
securities it holds for the purpose of covering such redemptions all at once. This may cause adisparity between the appraised value and the actual trading value and the Fund’s Net Asset
Value per Unit may be subject to significant change.
• Matters concerning suspension of purchase and redemptions when there arises doubts as to thevalidity of the Net Asset Value per Unit
When there is a disparity between the appraised value used in calculating the Fund’s Net
Asset Value per Unit and the actual trading value or other such cases that give rise doubts
as to the validity of the Net Asset Value per Unit, purchase and redemptions may be
temporarily suspended at the discretion of the Management Company.
• Matters concerning restrictions on management and regulatory restrictions
Transactions are occasionally subject to restrictions under relevant laws and regulations orinternal policies. For example, if the Management Company or an affiliate thereof receives
undisclosed information regarding a particular stock, trading of the stock can be restricted.
Additionally, transactions may also be restricted in connection with investments or otherinvestment business engaged in by the Management Company or affiliates thereof. It istherefore possible that these restrictions will affect the Fund’s management performance andcause a disparity between the index and the Net Asset Value per Unit.
• Matters concerning changes in laws, regulations, taxation systems, and accounting policies
Laws, regulations, taxation systems, accounting policies and such like that are applicable to
the Fund may be subject to change in the future.

21

(2) Risk Control System
Board of Directors
ReportOverall Risk Management
Compliance Monitoring
Committee

Risk Monitoring Committee

Monitoring/
improvement
policyMonitoring/
providingcorrective
guidance

Reporting/offering
proposalReporting/offering
proposal

Department Responsible for Risk Management/Compliance Business
Monitoring of the status ofcompliance with laws, etc.

Evaluation/analysis of risk
performance and risk management

Evaluation, analysis,
etc.
Monitoring andproviding corrective
guidance, etc.

Management Risk
Meeting
Providing feedback,improvement policies, etc.

Fund management departments

 Overall Risk Management
The Risk Management/Compliance Business Departments of Nikko Asset Management havebeen established as independent organizations, separate from fund management
departments or sales departments, and aim to centrally monitor and guide company-widerisk control activities. The Compliance Department, through the Compliance Monitoring
Committee for which the department serves as its administrative office, provides thecompany’s top management with reports on compliance with laws and regulations. And the
Risk Management Department, through the Risk Monitoring Committee, provides thecompany’s top management with reports regarding risk status. In addition, the reports are
submitted to the board of directors at least once a year on the status of overall activities. Both
Committees and the related segmental meetings endeavor to respond to serious problems andvarious risks, to establish preventive measures and to support constructing methods ofcontrol that can lead to reduced risks, in addition to monitoring laws and regulation
compliance status, monitoring and reporting on various risks (including management risks(including liquidity risks), market risks, counterparty risks, operational risks (including
administrative risks) and so on).

22

■Evaluation and Analysis of the Investment and the Investment Risk Management
The investment status of the fund assets is evaluated and analyzed. The investment risk
management status (including liquidity risks) is also monitored. The results of the evaluationand of the analyses on the investment performance and the investment risks are reported to
the Management Risk Meeting and the investment risk management status (including
liquidity risks) is reported to the Risk Monitoring Committee, and measures are taken to
determine the cause of problems and to establish improvement strategies. Additionally, theoutsourced fund management department administers the management of the funds
managed by sub-managers and monitors whether investments of such funds are being madein accordance with investment policies.
 Monitoring of Compliance with Laws and Regulations
Compliance related departments are responsible for ensuring that the investment iscompliant with investment management laws, regulations and trust deeds. Any issues arereported to the compliance related committees, which adopt appropriate management andsupervisory procedures to instruct fund management departments to rectify such problems
when necessary.
* The system described above is current as of the end of January 2024, and may be subject tochange in the future.

23

（Reference information）
Comparison of fluctuations the fund with other

Changes in annual fluctuations and Dividend-included

representative asset classes

NAV of the fundFebruary 2019～January 2024

25,000

80%

MAX
AVE

40%
20%

<

80%

15,00060%

10,000

40%

5,000

20%

0

0%

0%
-20%

100%

Fund's Return YoY (Right Axis)
Dividend-included NAV (Left Axis)

20,000

MIN

60%

-40%

February 2019～January 2024

(JPY)

100%

-5,000The FundJapanese
EquityDeveloped
Country
EquityEmerging Japanese Developed
Country Government Country
EquityBond
Bond-10,000

Emerging
Country
Bond

Feb-19Average, annual Maximum, and Minimum
fluctuations of this fund and other representative
assets (%) >The

Japanese Develope Emerging Japanese Develope Emerging

Fund

EquityEquityent bond

Bond

Feb-20Feb-21

Feb-22

Feb-23-40%※NAV is the price per 10 units after management fees
(trust fees) have been deducted.
※Dividend-included NAV is calculated based on the NAV as ofthe end of February 2019.
※The fund's Dividend-included NAV and fluctuations in
the percentage (the last year's fluctuations in the percentage
at the end of each month) are theoretical data calculated withdividends reinvested (before tax) and may differ from the data
calculated based on NAV.

d Country Country Governm d Country Country
Equity

-20%

Bond

AVG
9.4%
9.1% 16.8%
7.6% -0.7%
3.9%
5.2%
MAX 42.8% 42.1% 59.8% 62.7%
5.4% 14.8% 21.5%
MIN -10.9% -11.4% -12.4% -19.4% -5.5% -6.1% -8.8%※The above is compiled to compare the fund to representative
asset classes quantitatively.
※All asset class may not be investments in the fund.
※The above is the Maximum, Minimum ,and Average of the last
year's fluctuations in the percentage at the end of each monthfor five years from February 2019 to January 2024 for the fundand other representative asset classes. This fund's fluctuationsin the percentage are theoretical data calculated with dividends
reinvested (before tax) and may differ from the data calculated
based on NAV.

<Indices of each asset class>Japanese Equity:
Tokyo Stock Price Index(TOPIX, Total return)Developed Country Equity:
MSCI Kokusai Index(Total return, Yen based)
Emerging Country Equity:
MSCI Emerging Markets Index(Total return, Yen based)※Indices of foreign assets are calculated in JPY with no currency
hedge.

Japanese Government bond:Nomura BPI Government
Developed Country Bond:FTSE WGBI (ex-Japan, Yen based)
Emerging Country Bond:JPM GBI-EM Global Diversified Index(Non-hedge, Yen based)<The Index of Each Asset Class>Japan Equity ----- TOPIX (Tokyo Stock Price Index andJapan Government Bond ----- NOMURA Bond Performance

Average, dividends included))Index (government bonds)

Developed Countries’ Equity ----- MSCI-KOKUSAI Index

Developed Countries’ Government Bond ----- FTSE World(dividends included, yen basis)

Government Bond Index (excludes Japan, yen basis)

Emerging Countries’ Equity ----- MSCI Emerging Market

Emerging Countries’ Government Bond ----- JPMorgan

Index (dividends included, yen basis)

Government

Bond

Index-Emerging

Markets

Diversified (without yen hedging, yen basis)* The overseas’ indices were converted to yen, assuming the investments are without currency hedging.

24

Global○Indices to Compare Representative Asset Classes with Fluctuation Rate
TOPIX (Tokyo Stock Price Index) dividends included
This index, which covers Japanese stock market widely, is a market benchmark having a function as aninvestment target and considers dividends. JPX Market Innovation & Research, Inc. or its affiliates own
the intellectual property rights such as the copyright on the index and any other rights associated with
the index.
MSCI-KOKUSAI Index (dividends included, yen basis)
Developed by MSCI Inc. This index calculates developed countries' equities except Japan and considers
dividends. MSCI Inc. owns the intellectual property rights such as the copyright on the index and anyother rights associated with the index.
MSCI Emerging Market Index (dividends included, yen basis)
Developed by MSCI Inc. This index calculates emerging countries' equities and considers dividends.
MSCI Inc. owns the intellectual property rights such as the copyright on the index and any other rights
associated with the index.
NOMURA BPI Government Bonds
Published by Nomura Fiduciary Research & Consulting Co., Ltd. (hereinafter,"NFRC") , which owns its
intellectual property rights. NFRC makes no guarantee of the accurancy, completeness, reliability or
usefulness of the index, and takes no responsibility whatsoever for the business activities or services
performed by Nikko Asset Management Co., Ltd. based on its use of the index.
FTSE World Government Bond Index (ex Japan, yen basis)
This index is a bond index operated by FTSE Fixed Income LLC. This index is an intellectual propertyof FTSE Fixed Income LLC and all rights are owned by FTSE Fixed Income LLC.
JPMorgan Government Bond Index-Emerging Markets Global Diversified (without yen hedging, yenbasis)
Calculated and published by J.P. Morgan Securities LLC. This index calculates local currency
denominated bonds issued by emerging countries. J.P. Morgan Securities LLC owns the intellectual
property rights such as the copyright on the index and any other rights associated with the index.

25

4.

Fees and Taxes(1) Subscription Fee
Distributors may collect from applicants a fee that is determined independently by theDistributors together with an amount equal to the consumption taxes levied on such a fee.
* Please contact your Distributor for further information.
* The subscription fee is the fee for describing the products, for describing the related
investment environments, for providing the information, and for the administration activities
related to the purchase.
(2) Redemption Feei)Redemption Fee
A Distributor may collect from a unitholder a fee that is determined independently by theDistributor together with an amount equal to the consumption taxes levied on such a fee inthe event that the unitholder makes a request for redemption or Units are bought back.
* Please contact your Distributor for further information.
* The redemption fee is the fee for the administration activities related to the redemption.

ii)

Amount Retained in Trust AssetNone(3) Trust Fee.
i)

Trust Fee
The total amount of the trust fee is the amount equal to the total net asset value of thetrust assets times the annual percentage rate not to exceed 0.11% (or 0.1% without tax),
accumulated daily throughout the calculation period.

ii)

Allocation of the Trust Fee
The trust fee is allocated as follows when the Fund’s trust fee is 0.1% without tax (annualrate), as was the case on the date the securities registration statement was filed.
Trust fee=The constant value of investment time horizon ×
Trust Fee Rate (Annual Rate)
Total

Management Company

Trustee Company

0.10%

0.07%

0.03%

Management
Company
TrusteeCompany

Commission fee of the fund management
Fee for managing investment properties, and forexecuting the Management Company’s instructions*The rate in the table is without tax. Consumption tax is separately charged.
iii) Time of Payment
The trust fee (and an amount equal to consumption taxes levied on the trust fee) is daily

recorded and paid out of the trust assets at the end of each calculation period or upon
termination of the trust.
(4) Other Fees.

The Management Company pays the following expenses and any amounts equal to consumption
taxes levied thereon on behalf of the Fund and may receive payment up to the total amount of

26

the Fund’s daily total net asset value times the annual percentage rate of 0.1% throughout thetrust term from the trust assets (hereinafter referred to as “Actual Expense Method”).
Furthermore, when the Management Company delegates businesses that fall under i) to vii)
below, the expenses for delegation shall be included. Additionally, instead of receiving paymentof the actual expenses, the Management Company may receive from the trust assets an amountthat has been obtained by reasonably estimating such actual expenses in advance andcalculating the estimated rate based on such estimated amount and multiplying the estimatedrate by the total net asset value of the trust assets in which case such amount will be deemed tobe the total amount of expenses (hereinafter referred to as “Estimated Method”). However,taking into consideration the size of the trust assets, the Management Company may review theestimated rate of such expenses and change it up to an annual rate of 0.1% at the time of creationor during the term of the trust. The Management Company may reconsider whether to use theActual Expense Method or the Estimated Method at any time during the trust term. These
expenses are paid from the trust assets at the time determined by the Management Company.
i)

Expense for the Fund’s accounting (e.g. creation and redemption handling, contract
processing, calculation of Net Asset Value per Unit, financial closing) and any businessincidental thereto (e.g. management of statutory books, statutory reports);

ii)

Expense concerning the Book-Entry Transfer Units as well as expense for issuance andmanagement in the case where beneficiary certificates are issued due to unavoidable
circumstances;iii) Expense for preparation, printing and filing of securities registration statements (yûkashôken todokede-sho), annual securities reports (yûka-shôken hôkoku-sho) and current
reports (rinji hôkoku-sho);iv) Expense for preparation, printing and delivery of prospectuses and preliminary
prospectuses (including the corrections thereof, and including expense for filing with thesupervisory authorities, if applicable);v)

Expense for preparation, printing and delivery of the Trust Deed (including expense forfiling with the supervisory authorities, if applicable);vi) Expense for preparation, printing and delivery of disclosure documents such as investment
reports and statements of accounts (including expense for filing with the supervisory
authorities, if applicable);vii) Expense for public notices to the unitholders of the Fund as well as expense for preparation,
printing and delivery of documents containing matters regarding amendment to or
termination of the Trust Deed;viii) Expense required for obtaining ratings;ix) Fees and expenses payable to the auditors, legal advisers and tax advisers of the Fund;x)

Expense for listing of the Units; andxi) Royalties for the “JPX-Nikkei Index 400” and other similar trademarks.
The following expenses/fees and any amounts equal to consumption taxes levied thereon areborne by unitholders and paid out of the trust assets:i)

Brokerage commissions associated with the trading of securities in the portfolio, andexpenses associated with futures and options trading;ii)

Taxes on the trust assets, various expenses required for the administrative work for thetrust, expenses necessary for the custody of the assets denominated in foreign currencies,

27

interest on borrowed money for the purpose of securing funds to be paid upon redemption
and interest on monies advanced by the Trustee Company;iii) In the event that securities are loaned, fees related to securities loaned calculated by m
ultiplying the lending commissions received as consideration for such loan by a multiplier
not to exceed 0.55* (or 0.5 without tax). Such multiplier shall be 0.55* (or 0.5 without tax)
as of the date the securities registration statement was filed. Allocation of such fees to theManagement Company and Trustee Company is 1:1 and paid at the same as the trust fees;and* Audit fees are the fee for auditing the fund such as audit companies' fees.
* Brokerage commissions cannot be shown as they vary depending on the holding lengths andinvestment status, and thus cannot be estimated in advance.
The total amount of fees and other expenses to be borne by investors varies, depending on theholding lengths and investment status, and thus cannot be shown.
(5) Tax Treatment
The Fund is treated as a listed securities investment trust (jojo shoken toushi-shintaku) for tax
purposes.
・ Publicly offered stock investment trusts are eligible for the Nippon Individual Savings
Account (NISA) if they meet certain requirements under the tax law.
・The Fund is eligible for the "Growth Quota (Specific Tax Exemption Management Account)"
under the NISA, but the handling may differ depending on the distributor. Please contact your
distributor for details.
i)

Individual Unitholders
1) Taxation upon sale of Units
Gains on sale (transfer gains) are deemed to be transfer income and a tax return will haveto be filed as the gains need to be declared for separate taxation at 20.315% (15.315%
income tax and 5% local tax). When a unitholder has chosen a designated account withtax withheld (an account with tax withheld at the taxpayer’s option), tax is withheld atsource at a tax rate of 20.315% (15.315% income tax and 5% local tax). (As a general rule,tax filing is not necessary.)2) Taxation upon receipt of income distributions
Income distributions are deemed to be dividend income and tax will be withheld at source
at a tax rate of 20.315% (15.315% income tax and 5% local tax). (As a general rule, tax
filing is not necessary.) You can also file a tax return, and choose either separated
taxation upon declaration or consolidated taxation (to which tax credits do not apply).
3) Taxation on redemption money

Gains upon redemption (transfer gains) are deemed to be transfer income and a tax return
will have to be filed as the gains need to be declared for separate taxation at 20.315%(15.315% income tax and 5% local tax). When a unitholder has chosen a designatedaccount with tax withheld (an account with tax withheld at the taxpayer’s option), tax iswithheld at source at a tax rate of 20.315% (15.315% income tax and 5% local tax). (As ageneral rule, tax filing is not necessary.)*By filing a tax return, you can offset losses upon sale (capital losses) against capital gains
from listed stocks, dividends etc. from listed stocks, and interest income from public and28corporate bonds and such like (as long as separated taxation has been chosen upon declaration).
In addition, gains on sale (capital gains), income distributions, and interest income from publicand corporate bonds etc. (if separated taxation has been chosen upon declaration) can be offset
against capital losses from listed stocks and such like.
*When investing through the Nippon Individual Savings Account (NISA), dividend income andtransfer income from newly purchased publicly offered equity investment trusts are exempt
from taxation for an unlimited period up to a certain amount each year. The tax exemption isavailable only to those who meet certain conditions, such as opening a tax-exempt account witha distributor, and who purchase products that meet the requirements of the tax law. For details,
please contact the distributor.
ii)

Corporate Unitholders

1) Taxation upon sale of Units
The difference between the sales price of the Units and their purchase cost is combinedwith other corporate income and taxed.
2) Taxation upon receipt of income distributions
Income distributions are deemed to be dividend income and tax will be withheld at source
at a tax rate of 15.315% (income tax only). The distributions are taxed together with othercorporate income.
3) Taxation on redemption money
The difference between the redemption price of the Units and the purchase cost is
combined with other corporate income and is taxed.
4) Application of the exclusion from gross revenue
The exclusion from gross revenue does not apply.
* Please contact your Distributor for information on taxation on redemptions due tobuyback requests.
* In cases of being applied to the foreign tax deduction, tax on distributions may differ fromthe aforementioned descriptions.
* The above information is current as of April 8, 2024 Tax rates and other tax treatment may
change in the event that tax laws are revised.
It is recommended that you consult with a professional tax advisor for details regarding tax
treatment.

29

5.

Status of Investment Portfolio

Listed Index Fund JPX-Nikkei Index 400
The following investment status was current as of January 31, 2024:
 The investment ratio of an asset is its ratio to the total net assets of the Fund, valued at market
price.
(1) Investment Status
Type of Invested Assets

Country/Region

StocksJapan

Call loans, etc. and other assets (after
deduction for liabilities)―

Total Market Value(in yen)Total (Total Net Assets)

Investment Ratio(%)

388,864,516,930

99.81

739,010,436

0.19

389,603,527,366

100.00Investment Status of Other Assets
Type of Invested Assets

Type

Country/Region

Stock Price Index
Futures Trading

Long
PositionJapan

Total Market Value(in yen)Investment Ratio(%)

736,092,500

0.19

Note: Futures trading are valued at either the clearing price or the closing price, published by the primary exchange.

(2) Invested Assetsi)

Major Securities Investmenta.

Details of Securities with the Highest Market Values

Country/Type
RegionStock

Industry

Japan

Stock

TOKYO ELECTRON
LIMITED

Electric
Appliances

Japan

Stock

SHIN-ETSU CHEMICAL
CO.,LTD.

Chemicals

Japan

Stock

TOYOTA MOTORCORPORATIONJapan

Stock HITACHI,LTD.

Electric
AppliancesJapan

Stock ITOCHU CORPORATION

Wholesale
Trade

Japan

Stock

RECRUIT HOLDINGS
CO.,LTD.

Services

Japan

Stock

MITSUBISHI UFJ
FINANCIAL GROUP,INC.

Banks

Japan

Stock NINTENDO CO.,LTD.

Japan

Stock

SUMITOMO MITSUIFINANCIAL GROUP,INC.

Transportation
Equipment

Qty. or Total Unit Book
Book Value (yen)Par Value Price (yen)258,000 24,120.00

Unit
Market Value
Market(yen)
Value (yen)Invest
ment
Ratio
(%)

6,222,960,000 27,865.00

7,189,170,000

1.85

1,213,800

5,637.00

6,842,190,600

5,875.00

7,131,075,000

1.83

2,297,900

2,701.50

6,207,776,850

3,000.00

6,893,700,000

1.77

6,038,403,000 11,675.00

6,881,245,000

1.77

589,400 10,245.00
1,017,700

5,878.00

5,982,040,600

6,752.00

6,871,510,400

1.76

1,148,500

5,818.00

6,681,973,000

5,927.00

6,807,159,500

1.75

4,843,900

1,258.00

6,093,626,200

1,395.00

6,757,240,500

1.73

810,900

7,223.00

5,857,130,700

8,310.00

6,738,579,000

1.73

838,100

7,161.00

6,001,634,100

7,700.00

6,453,370,000

1.66

Other
Products
Banks

30

JapanStock

MITSUBISHICORPORATION

WholesaleTrade2,488,000

2,353.00

5,854,264,000

2,565.00

6,381,720,000

1.64

Japan

Stock MITSUI & CO.,LTD.

WholesaleTrade1,040,900

5,443.00

5,665,618,700

6,031.00

6,277,667,900

1.61

Japan

Stock HONDA MOTOR CO.,LTD.

Transportation
Equipment

3,666,300

1,530.00

5,609,439,000

1,675.50

6,142,885,650

1.58

Japan

Stock

SONY GROUPCORPORATIONElectric
Appliances

5,389,164,000 14,695.00

6,013,194,000

1.54

Japan

Stock

TOKIO MARINEHOLDINGS,INC.

InsuranceJapan

Stock KDDI CORPORATION

Information &Communicatio
n

Japan

Stock HOYA CORPORATION

Precision
Instruments

Japan

Stock

Japan

NIPPON TELEGRAPH
Stock AND TELEPHONECORPORATIONJapan

Stock KEYENCE CORPORATIONElectric
Appliances

Japan

Stock

DAIICHI SANKYOCOMPANY,LIMITED

Pharmaceutica
l

Japan

TAKEDA
Stock PHARMACEUTICALCOMPANY LIMITED

Pharmaceutica
l

Japan

Japan

Stock SOFTBANK CORP.

Japan

Stock

DAIKIN
INDUSTRIES,LTD.

MachineryJapan

MURATA
Stock MANUFACTURING
CO.,LTD.

Electric
AppliancesJapan

Stock SMC CORPORATION

Machinery

Japan

Stock

Japan
Japan

Japan

MIZUHO FINANCIALGROUP,INC.

BanksInformation &Communicatio
n409,200 13,170.00
1,469,100

3,555.00

5,222,650,500

3,930.00

5,773,563,000

1.48

1,169,600

4,594.00

5,373,142,400

4,897.00

5,727,531,200

1.47

4,868,925,500 18,945.00

5,469,421,500

1.40

288,700 16,865.00
2,006,200

2,548.00

5,111,797,600

2,702.00

5,420,752,400

1.39

28,892,600

173.905,024,423,140

186.305,382,691,380

1.38

4,702,166,000 66,580.00

5,206,556,000

1.34

78,200 60,130.00
1,165,900

4,031.00

4,699,742,900

4,423.00

5,156,775,700

1.32

1,171,900

4,288.00

5,025,107,200

4,362.00

5,111,827,800

1.31

Information &Stock SOFTBANK GROUP CORP. Communicatio
n746,600

6,080.00

4,539,328,000

6,460.00

4,823,036,000

1.24

Information &Communication2,435,800

1,811.00

4,411,233,800

1,963.50

4,782,693,300

1.23

4,124,575,000 23,885.00

4,330,350,500

1.11

3,991,997,500

3,015.00

4,139,595,000

1.06

3,420,000,000 82,910.00

3,780,696,000

0.97

MITSUBISHI ELECTRICCORPORATION

181,300 22,750.00
1,373,000

2,907.50

45,600 75,000.00

Electric
Appliances

1,696,500

2,029.50

3,443,046,750

2,203.00

3,737,389,500

0.96

Stock JAPAN TOBACCO INC.

Foods

903,000

3,757.00

3,392,571,000

3,895.00

3,517,185,000

0.90

Stock

MARUBENICORPORATION

WholesaleTrade1,331,200

2,291.00

3,049,779,200

2,541.50

3,383,244,800

0.87

SUMITOMOCORPORATION(SUMITOMO SHOJI
KAISHA,LTD.)

WholesaleTrade966,300

3,147.00

3,040,946,100

3,415.00

3,299,914,500

0.85

Stock

31

b.

Investment Ratios by Type and Industry
Type

Domestic/International

Stock

Domestic

Industry

Investment
Ratio(%)

Fishery, Agriculture & Forestry

0.04

Mining

0.42

Construction

2.20

Foods

3.64

Textiles and Apparels

0.26

Pulp and Paper

0.13

Chemicals

6.75

Pharmaceutical

5.56

Oil and Coal Products

0.62

Rubber Products

0.92

Glass and Ceramics Products

0.62

Iron and Steel

0.98

Nonferrous Metals

0.63

Metal Products

0.32

Machinery

6.24

Electric Appliances

17.72

Transportation Equipment

6.63

Precision Instruments

2.93

Other Products

2.21

Electric Power and Gas

1.20

Land Transportation

0.47

Marine Transportation

1.25

Warehousing and Harbor Transportation
Service

0.02

Information & Communication

8.70

Wholesale Trade

8.17

Retail Trade

3.88

Banks

6.07

Securities and Commodities Futures

1.06

Insurance

3.06

Other Financing Business

1.45

Real Estate

2.29

Services

3.40

Total

99.81

ii) Real Estate Properties Invested In
N/A32iii) Other Major Assets Invested In
Type ofInvested Stock Exchange
AssetsStock Osaka
Price Exchange
Index
Futures
Trading

Stock NameJPX-Nikkei
Index 400
2024-03

Type

Qty. CurrencyLong
319 JPY
positionContract Value,Etc. (yen)728,868,405

Market Value(yen)
736,092,500

Investment
Ratio (%)
0.19

Note: Futures trading are valued at either the clearing price or the closing price, published by the primary exchange.

33

(3)

Past Performancei)

Changes in Net Assets
Total Net Assets(million yen)
PeriodNet Asset Value per
Unit (yen)Ex-dividend With dividend Ex-dividend

With
dividend

TSE Quoted
Price (yen)As of the end of the 1st calculation
period (July 8, 2014)

18,28818,393

1,047.3

1,053.3

1,052

As of the end of the 2nd calculation
period (January 8, 2015)

29,29629,4781,130.5

1,137.5

1,135

As of the end of the 3rd calculation
period (July 8, 2015)

59,74760,162

1,297.9

1,306.9

1,301

As of the end of the 4th calculation
period (January 8, 2016)

56,06756,5881,183.1

1,194.1

1,187

As of the end of the 5th calculation
period (July 8, 2016)

65,947

66,613

989.8

999.8

990

As of the end of the 6th calculation
period (January 8, 2017)

99,07899,781

1,268.4

1,277.4

1,269

As of the end of the 7th calculation
period (July 8, 2017)

122,158

123,375

1,305.2

1,318.2

1,305

As of the end of the 8th calculation
period (January 8, 2018)

149,413150,592

1,520.2

1,532.2

1,518

As of the end of the 9th calculation
period (July 8, 2018)

162,473

164,135

1,368.9

1,382.9

1,369

As of the end of the 10th calculation
period (January 8, 2019)

168,371

170,154

1,227.7

1,240.7

1,228

As of the end of the 11th calculation
period (July 8, 2019)

189,074

191,436

1,280.9

1,296.9

1,282

As of the end of the 12th calculation
period (January 8, 2020)

222,793

225,038

1,389.0

1,403.0

1,388

As of the end of the 13th calculation
period (July 8, 2020)

221,949

224,539

1,285.6

1,300.6

1,287

As of the end of the 14th calculation
period (January 8, 2021)

279,006

281,178

1,541.2

1,553.2

1,539

As of the end of the 15th calculation
period (July 8, 2021)

291,517294,647

1,583.4

1,600.4

1,586

As of the end of the 16th calculation
period (January 8, 2022)

308,492

311,487

1,648.3

1,664.3

1,677

As of the end of the 17th calculation
period (July 8, 2022)

288,312292,204

1,555.9

1,576.9

1,545

As of the end of the 18th calculation
period (January 8, 2023)

287,864

291,587

1,546.2

1,566.2

1,545

As of the end of the 19th calculation
period (July 8, 2023)

341,362

345,374

1,871.8

1,893.8

1,871

365,114368,985

1,980.5

2,001.5

1,980

As of the end of the 20th calculation
period (January 8, 2024)34

As of the end of January 2023

300,325―

1,629.5―

1,628

As of the end of February 2023

303,204―

1,645.1―

1,645

As of the end of March 2023

307,667―

1,672.8―

1,672

As of the end of April 2023

315,096―

1,715.4―

1,715

As of the end of May 2023

328,686―

1,791.0―

1,791

As of the end of June 2023

351,282―

1,926.2―

1,924

As of the end of July 2023

351,236―

1,929.1―

1,927

As of the end of August 2023

350,735―

1,932.8―

1,933

As of the end of September 2023

353,670―

1,935.3―

1,935

As of the end of October 2023

344,100―

1,867.8―

1,869

As of the end of November 2023

365,481―

1,984.6―

1,983

As of the end of December 2023

365,292―

1,981.4―

1,978

As of the end of January 2024

389,603―

2,114.5―

2,117

Note: When the last day of a calculation period fell on a day when the Tokyo Stock Exchange (TSE) was closed, theclosing price on the exchange’s business day immediately preceding the closed day is shown as the TSE Quoted
Price.

35ii) Dividends Paid
Calculation Period

PeriodDividend per Unit (yen)1stJan. 27, 2014 – Jul. 8, 2014

6.0000

2nd

Jul. 9, 2014 – Jan. 8, 2015

7.00003rd

Jan. 9, 2015 – Jul. 8, 2015

9.0000

4th

Jul. 9, 2015 – Jan. 8, 2016

11.0000

5th

Jan. 9, 2016 – Jul. 8 2016

10.0000

6th

Jul. 9, 2016 – Jan. 8, 2017

9.0000

7th

Jan. 9, 2017 – Jul. 8 201713.0000

8th

Jul. 9, 2017 – Jan. 8, 201812.0000

9th

Jan. 9, 2018 – Jul. 8 201814.0000

10th

Jul. 9, 2018 – Jan. 8, 201913.0000

11th

Jan. 9, 2019 – Jul. 8, 201916.0000

12th

Jul. 9, 2019 – Jan. 8, 2020

14.0000

13th

Jan. 9, 2020 – Jul. 8 2020

15.0000

14th

Jul. 9, 2020– Jan. 8, 2021

12.0000

15th

Jan. 9, 2021 – Jul. 8 2021

17.0000

16th

Jul. 9, 2021– Jan. 8, 2022

16.0000

17th

Jan. 9, 2022 – Jul. 8 2022

21.0000

18th

Jul. 9, 2022– Jan. 8, 2023

20.0000

19th

Jan. 9, 2023 – Jul. 8 2023

22.0000

20th

Jul. 9, 2023– Jan. 8, 2024

21.0000iii) Past Returns
Calculation Period

PeriodReturns (%)

1stJan. 27, 2014 – Jul. 8, 2014

5.33

2nd

Jul. 9, 2014 – Jan. 8, 2015

8.61

3rd

Jan. 9, 2015 – Jul. 8, 2015

15.60

4th

Jul. 9, 2015 – Jan. 8, 2016

(8.00)

5th

Jan. 9, 2016 – Jul. 8 2016(15.49)6th

Jul. 9, 2016 – Jan. 8, 2017

29.06

7th

Jan. 9, 2017 – Jul. 8 2017

3.93

8th

Jul. 9, 2017 – Jan. 8, 2018

17.39

9th

Jan. 9, 2018 – Jul. 8 2018(9.03)

10th

Jul. 9, 2018 – Jan. 8, 2019(9.37)

11th

Jan. 9, 2019 – Jul. 8 2019

5.64

36

12th

Jul. 9, 2019 – Jan. 8, 2020

9.53

13th

Jan. 9, 2020 – Jul. 8 2020

(6.36)

14th

Jul. 9, 2020 – Jan. 8, 2021

20.82

15th

Jan. 9, 2021 – Jul. 8 2021

3.84

16th

Jul. 9, 2021 – Jan. 8, 2022

5.11

17th

Jan. 9, 2022 – Jul. 8 2022

(4.33)

18th

Jul. 9, 2022 – Jan. 8, 2023

0.66

19th

Jan. 9, 2023 – Jul. 8 2023

22.48

20th

Jul. 9, 2023– Jan. 8, 2024

6.93

Note: The returns for each calculation period were obtained by first adding the Net Asset Value per Unit (ex dividends)
as of the end of the calculation period and the dividends for the relevant calculation period and then deducting
the Net Asset Value per Unit as of the end of the calculation period immediately preceding the relevant
calculation period (ex dividends; hereinafter referred to as the “the Net Asset Value per Unit as of the end of
the preceding calculation period”), and then dividing the difference by the Net Asset Value per Unit as of theend of the preceding calculation period, and multiplying the result by 100.

iv) Past Creation and Cancellation
Calculation Period

Number of Units
Created(Units)PeriodNumber of Units
Cancelled(Units)

1st

Jan. 27, 2014 – Jul. 8, 2014

18,102,000

640,000

2nd

Jul. 9, 2014 – Jan. 8, 2015

9,760,000

1,305,900

3rdJan. 9, 2015 – Jul. 8, 2015

46,910,000

26,793,136

4thJul. 9, 2015 – Jan. 8, 2016

16,565,000

15,207,830

5thJan. 9, 2016 – Jul. 8 2016

20,558,000

1,322,000

6thJul. 9, 2016 – Jan. 8, 2017

26,569,351

15,080,224

7th

Jan. 9, 2017 – Jul. 8 2017

19,900,594

4,418,796

8thJul. 9, 2017 – Jan. 8, 201816,934,159

12,245,000

9thJan. 9, 2018 – Jul. 8 201823,783,934

3,383,000

10th

Jul. 9, 2018 – Jan. 8, 2019

31,002,948

12,546,000

11thJan. 9, 2019 – Jul. 8 2019

20,090,823

9,620,020

12thJul. 9, 2019 – Jan. 8, 2020

17,486,196

4,701,625

13thJan. 9, 2020 – Jul. 8 2020

21,481,901

9,242,620

14thJul. 9, 2020 – Jan. 8, 2021

13,990,717

5,603,000

15thJan. 9, 2021 – Jul. 8 2021

6,931,160

3,849,000

16th

Jul. 9, 2021 – Jan. 8, 2022

3,713,956

662,468

17th

Jan. 9, 2022 – Jul. 8 2022

1,580,000

3,431,274

37

Note:

18th

Jul. 9, 2022 – Jan. 8, 2023

1,910,000

1,044,558

19thJan. 9, 2023 – Jul. 8 2023

725,000

4,529,218

20thJul. 9, 2023– Jan. 8, 2024

3,353,230

1,365,808”Number of Creation Unit” of the 1st calculation period includes inception units.

38

(Reference Material)

Past Performance

As of January 31, 2024

 Changes in NAV/Net Assets(End-January 2014 ～ End-January 31, 2024)（Yen）

30,00030,000Net Assets (Right Axis)
NAV (Left Axis)
Dividend-included NAV (Left Axis)

25,00025,00020,00020,00015,00015,00010,000（100
MillionYen）
10,000

5,000

5,000

0
Jan-14Jan-16

Jan-18Jan-20Jan-220
Jan-24

NAV………..……¥ 21,145
Net Assets………¥ 389.603 billion*NAV is the price per 10 units after management fees (trust fees) have been deducted.
*Dividend-included NAV is calculated based on the NAV as of the end of January, 2014.
*Please be aware that the dividend-included NAV is a theoretical value calculated with dividends reinvested (before tax) for the
past 10 years if there are dividends.

 Dividends Paid (per 10 Units, before tax)
Jan-22
JPY 160

Jul-22
JPY 210Jan-23
JPY 200

Jul-23
JPY 220

 Status of Major Assets<Component and Breakdown>
Asset Types%

Equity99.81％

Futures

0.19％

Cash and Others

0.19％*As percentage of net assets

39

Jan-24
JPY 210

Cumulative
JPY 2,780

<Top10 Component Shares>
Name

Sector%Electric Appliances

1.85％

1

TOKYO ELECTRON LIMITED2

SHIN-ETSU CHEMICAL CO.,LTD.

Chemicals

1.83％

3

TOYOTA MOTOR CORPORATION

Transportation Equipment

1.77％

4

HITACHI,LTD.

Electric Appliances

1.77％

5

ITOCHU CORPORATION

Wholesale Trade

1.76％

6

RECRUIT HOLDINGS CO.,LTD.

Services

1.75％

7

MITSUBISHI UFJ FINANCIAL GROUP,INC.

Banks

1.73％

8

NINTENDO CO.,LTD.

Other Products

1.73％

9

SUMITOMO MITSUI FINANCIAL GROUP,INC.

Banks

1.66％

Wholesale Trade

1.64％

10 MITSUBISHI CORPORATION*As percentage of net assets

 Past Annual Returns
（％）

40

28.5％
20.4％

20

18.8％

11.2％

8.7％

12.3％

7.8％

0
△0.4％

△2.8％

△20

△15.8％

△40

2015

2016

2017

2018

2019

2020

2021

2022

2023

2024

*The annual rates of return are calculated with dividends reinvested (before tax).
* The figure for 2024 shows fluctuations in the percentage up until the end of January 2024.

*The above graph represents past performance and does not guarantee future investment results.
*Investment performance of the Fund will be disclosed on the Management Company website.

40

II.
1.

Administration and Operation
Procedures for Subscription (Sale), Etc.
i)

Subscription Method
Investors wishing to purchase Units may do so in accordance with the method specified by
the respective Distributors. Investors also pay fees that are set independently by theDistributors, as well as an amount equal to the consumption taxes levied on such fees at
the time of applying for subscription.
The Fund is listed on the Tokyo Stock Exchange. The Management Company complies withall rules established by the Exchange, and subjects itself to any disciplinary action takenby the Exchange in accordance with its own rules, including suspension of trading ordelisting from the Exchange.

ii)

Acceptance of Applications
Applications are accepted on the days Distributors are open for business.

iii) Service Hours
As a general rule, applications that are complete in accordance with the procedures
established by the Distributors by 2 p.m. are deemed to have been accepted on the day. Any
applications after the above time will be handled on the following business day.
iv) Non-acceptance Days for Subscriptions
Even on days when distributors are open, if the subscription day falls within two businessdays, beginning two business days before the last day of each calculation period (if the last
day of the calculation period is a holiday, then within three business days, beginning threebusiness days before the last day of each calculation period), applications for subscription
will not, in principle, be accepted. Please contact a Distributor for details.
v)

Subscription AmountThe subscription amount is the Net Asset Value per Unit on the day the subscription is
accepted times the number of units subscribed for plus the subscription fee and amountequal to the consumption taxes levied on such fees.

vi) Subscription Units
Units to be determined by the distributors starting at no less than 1,000.
* Please contact a Distributor for further information.
vii) Payment of Subscription AmountThe applicant must pay the subscription amount to the Distributor by the day designatedby the Distributor.
viii) Suspension and Cancellation of Acceptance
The Management Company may suspend the acceptance of applications or cancel theaccepted applications when there are causes beyond its control, including the suspension of
trading on a financial instruments exchange*, suspension of foreign exchange transactions
and halting of settlement functions.
* Financial instruments exchange as defined in Article 2, Paragraph 16 of the Financial
Instruments and Exchange Act, and foreign financial instruments markets as defined in
Article 2, Paragraph 8, Item 3-b of the Financial Instruments and Exchange Act.

41

2 Redemption Procedures<Redemption due to Redemption Request>i)

Acceptance of Redemptions

Redemptions are accepted on the days Distributors are open for business.
ii)

Service Hours
As a general rule, applications that are completed in accordance with the procedures
established by the Distributors by 2 p.m. are deemed to have been accepted on the day. Any
applications after such time will be handled on the following business day.

iii) Non-acceptance Days for Redemption Requests
Even on days when distributors are open, if the redemption day falls within two businessdays, beginning two business days before the last day of each calculation period (if the last
day of the calculation period is a holiday, then within three business days, beginning threebusiness days before the last day of each calculation period), applications for redemption
will not, in principle, be accepted. Please contact a Distributor for details.
iv) Restrictions on Redemptions
Due to the size and nature of the Fund, there may be cases where large-scale redemptions
are subject to restrictions in terms of acceptance hours and amount so as not to interferewith the management of the Fund. Please contact a Distributor for details.
v)

Redemption Price
The redemption price is the Net Asset Value per Unit on the day the redemption request is
accepted.
* Please contact a Distributor or the Management Company for information on the Net
Asset Value per Unit.
<Management Company>
Nikko Asset Management Co., Ltd.
Website: www.nikkoam.com/
Call Center telephone number: +81(0)3-6447-6653

9 a.m. – 5 p.m., excluding weekends, public holidays, and nonbusiness daysvi) Redemption Fees
Unitholders pay fees that are set independently by the Distributors, as well as an amountequal to the consumption taxes levied on such fees at the time of redemption.
vii) Redemption Units
One unit of at least 1,000 Fund units* Distributors may have different redemption units. Please contact your respective
Distributors for details.
viii) Payment of Redemption Proceeds
As a general rule, redemption proceeds shall be paid from the fourth business day from the
day the request for the redemption has been accepted.
ix) Suspension and Cancellation of Acceptance
The Management Company may suspend the acceptance of cancellation requests or cancel
the accepted cancellation requests when there are causes beyond its control, including42

the suspension of trading on a stock exchange, suspension of foreign exchangetransactions and halting of settlement functions.
In the event that acceptance of a redemption request is suspended, unitholders may
withdraw the redemption request that they submit on the day the acceptance issuspended. If unitholders do not withdraw their cancellation requests, however, therequests are treated as if they were accepted on the first day that the Net Asset Valueper Unit is calculated following the lifting of the acceptance suspension (or if thiscalculation day is one where cancellation requests are not accepted, the first day on
which cancellation requests are accepted following this calculation day).
<Redemptions due to Buyback Requests>i)

A unitholder may request a Distributor to buy back his or her Units if the total number ofUnits he or she owns is less than the minimum trading lot for the Units established by thefinancial instruments exchange.

ii)

As a general rule, requests that are complete in accordance with the procedures establishedby the Distributors by 2 p.m. are deemed to have been accepted on the day. Any applications
after the above time will be handled on the following business day.

iii) The buyback price of the Units is the Net Asset Value per Unit effective as of the day thebuyback request is accepted.
iv) At the time of a buyback, a unitholder pays his or her Distributor fees that are set
independently by the Distributor, as well as an amount equal to the consumption taxes
levied on such fees.
v)

The Distributors may suspend the buybacks or cancel the accepted buybacks upon
consultation with the Management Company when there are causes beyond its control,
including the suspension of trading on a stock exchange, suspension of foreign exchangetransactions and halting of settlement functions.

vi ) In the event that acceptance of requests for buybacks is suspended, unitholders may
withdraw their requests for buybacks that they submit on the day the acceptance issuspended. If unitholders do not withdraw their requests for buybacks, however, therequests are treated as if they were accepted on the first day that the Net Asset Value per
Unit is calculated following the lifting of the acceptance suspension.

43

3

Overview of Asset Management(1) Valuation of Assetsi)

Calculation of the Net Asset Value per UnitThe Net Asset Value per Unit is computed on every business day of the Management
Company.



The Net Asset Value per Unit means an amount obtained by first calculating the total
value of the trust assets by valuing individual assets that comprise the trust assets(excluding securities received in place of cash collateral and borrowed securities),
deducting total liabilities from the total value, and finally dividing the difference(which is the total net assets) by the total number of Units outstanding on the datethe calculation is made. Furthermore, the Fund may be shown in amounts that havebeen calculated per 10 units.

<Calculation of the Net Asset Value per Unit>(a)Total value of the trust assets = Allof the securities, etc. included in theFund, valued at market priceTotal net assets = (a) total value ofthe trust assets, less (b) total
liabilities (expenses and other costs
required for managing the Fund)(b) Total liabilities(a) Total valueof the trust
assetsTotal net
assetsNet Asset Value per
Unit = Total net
assets divided by
the total number ofUnits as of thecalculation date
Net Asset
Value perUnit(a) −(b)ii)

Basis of Securities Evaluation
The assets that are in the trust assets are marked to market in accordance with laws andregulations, as well as the rules of The Investment Trusts Association, Japan.
<Valuation Method of Major Assets>


Listed Domestic Stocks
As a general rule, these stocks are valued at their closing prices on the financial
instruments exchanges of Japan on the day the Net Asset Value per Unit is calculated.
The yen equivalents for assets denominated in foreign currencies (securities, deposits
and other assets expressed in foreign currencies) are, in principle, calculated basedon the mean of the rates vis-à-vis customers as of the calculation day in Japan.

44iii) Inquiries regarding the Net Asset Value per Unit
Please contact a Distributor or the Management Company.
<Management Company>
Nikko Asset Management Co., Ltd.
Website: www.nikkoam.com/
Call Center telephone number: +81(0)3-6447-6653

9 a.m. – 5 p.m., excluding weekends, public holidays, and nonbusiness days

(2) Custody
N/A(3) Trust Term
The trust term is unlimited. (The inception occurred on January 27, 2014.) However, the trust
may be terminated upon terminated of the trust deed pursuant to the provisions of the trust
deed.
(4) Calculation Period
Each calculation period shall run from January 9 to July 8 of a given year, and July 9 of suchgiven year to January 8 of the following year.
(5) Otheri)

Termination of the Trust (Early Termination)
1) The Management Company may, with the consent of the Trustee Company, terminate thetrust deed and redeem the Units prior to their maturity in any of the following cases.
a)

The total net asset value falls below 500 million yen;b)

The Management Company determines that redeeming the Units prior to theirmaturity is advantageous to the unitholders; orc)Unavoidable circumstances arise.

2) In such an event, the Management Company conducts a written resolution (hereinafterreferred to as “Written Resolution”) (Please see “Written Resolution” below).
3) The Management Company terminates the trust deed and redeems the Units prior to theirmaturity in any of the following cases without following the provisions in “Written
Resolution” below. .
a)

The Units are delisted from all the financial instruments exchanges on which they
have been listed;b)

The JPX-Nikkei Index 400 is abolished;c)

Any amendment to the trust deed deemed necessary by the Management Company
or the Trustee Company as a result of a change in the calculation method, etc. of the
JPX-Nikkei Index 400 does not satisfy the provisions of the Written Resolution andsuch amendment to the trust deed is not made;d)There are truly unavoidable circumstances in view of the status of the trust assets
and a Written Resolution is difficult;e)

The Management Company receives an order from the supervisory authorities toterminate the trust deed;

45

f)

The Management Company’s license is revoked by the supervisory authorities or if
the Management Company is liquidated or discontinues its business (In the eventthat the supervisory authorities order that the business of the Management Company
under the trust deed be transferred to another management company, the trust deed
and the Units will continue if a Written Resolution to that effect is adopted); org)

The Trustee Company resigns from its duties by obtaining approval from theManagement Company or is removed for breach of its duties and the Management
Company fails to appoint a new trustee company.

Regarding a) above, if the Units are delisted from all the financial instruments exchanges
on which they have been listed, the procedures for terminating the trust shall becommenced on the day of such delisting.
4) Prior to the actual early termination, the Management Company must notify thesupervisory authorities of its intent to so do.
ii)

Redemption Money
The Trustee Company or the handling company will in principle make a bank transfer tothe deposit account that the unitholder designates in advance by the date designated by theManagement Company which falls within 40 days from the termination of the trust.
iii) Amendments to the Trust Deed, etc.
1) If it is deemed necessary for the benefit of the unitholders or if unavoidable circumstancesarise, the Management Company may, upon agreement with the Trustee Company, amend
the trust deed or merge the Fund with another fund (hereinafter referred to as“Consolidation”). When amending the trust deed or conducting a Consolidation, theManagement Company must notify the supervisory authorities of its intent and thecontent thereof in advance.
2) Any amendment with significant implications or any Consolidation (excluding the casewhere the impact on the benefit of the unitholders is not material) is subject to a Written
Resolution. (Please see “Written Resolution” below.)3) The provisions of “Written Resolution” below shall apply when the Management Company
amends the trust deed, due to an order by the supervisory authorities.
iv) Written Resolution
1) The Management Company must conduct a Written Resolution for an early redemption, asignificant amendment to the trust deed or a Consolidation. In such cases, theManagement Company sets the day of the Written Resolution, the content and reason
thereof and other matters in advance and sends a notice of Written Resolution statingthese matters in writing to its known unitholders no later than two weeks prior to the dateof such resolution.

2) The unitholders have and may exercise voting rights that are proportionate to the numberof Units they own. Furthermore, if the known unitholders do not exercise their voting
rights, they will be deemed to be in favor of the Written Resolution.
3) The Written Resolution will be made by a majority equivalent to two thirds or more of thevoting rights of the unitholders entitled to vote.
4) A Written Resolution will not be conducted if all the unitholders consent in writing or byelectronic record with regard to the proposal by the Management Company for an earlytermination, a significant change to the trust deed or a Consolidation.

465) Even in the event that a Written Resolution for a Consolidation of the Fund is adopted, if
the Written Resolution for such Consolidation is rejected with respect to other Fund(s)involved in the Consolidation, the Consolidation with such other Fund(s) may not be
conducted.
6) When conducting an early termination, a significant amendment to the trust deed or a
Consolidation with regard to the Fund, the unitholders who voted against the Written
Resolution may request the Trustee Company to buy back their Units with the trust assets.

v)

Other than the above

Implementation

End of buyback request
acceptanceCommencement of buyback
request acceptanceA report to thesupervisory authorities

Two thirds ormore of thevoting rights of
the unitholders
entitled to voteare in favor of
the Written
Resolution

Written Resolution
is aborted

Day of Written Resolution

at least
2 weeks

Deadline for executionof voting rights

A notice of Written
Resolution is sent

<Major Steps Involved in a Written Resolution>

Public Notice
Public notices are posted electronically on the Management Company’s website.
Website: www.nikkoam.com/*In the event that it is not possible to post a public notice electronically due to unavoidable
circumstances, the public notice will be published in The Nikkei (Nihon Keizai Shimbun).

vi) Preparation of Investment Report
Pursuant to the Act on Investment Trusts and Investment Corporations, investment reports
will not be prepared or delivered.
vii) Agreements with Affiliated Corporations
The effective term of an agreement on the handling of offerings, etc. entered into with aDistributor shall be one year from the date of such agreement. However, such agreement
shall be automatically renewed for one year and so on thereafter if neither the Distributor
nor the Management Company manifests intentions to the contrary three months prior to
the expiration date.
viii) Restrictions on Requests for Disclosure of Names, etc. of Other Unitholders
The unitholders may not request the Management Company or the Trustee Company todisclose the following matters:

4

1)

Names or corporate names and addresses of the other unitholders; and2)

Description of the units held by the other unitholders.

Unitholders’ Rights.
Primary rights of unitholders are as follows:i)

Right to receive income dividends

47 Unitholders are determined through name registration procedures and such unitholders
receive payment of income distribution. The Fund’s income distributions are paid tounitholders whose names are registered with the Trustee Company as of the last day of thecalculation period. The unitholders may register their names via handling companies.
 Unitholders whose names or corporate names and addresses are registered with the Trustee
Company as of the last day of the calculation period are entitled to receive an income
distribution of the Fund that is in proportion to the number of Units they have registered.
 If a unitholder fails to claim an income distribution within five years from the date ofcommencement of payment thereof, such right will be forfeited and such money will revert to
the Management Company.
ii)

Right to receive redemption moneyUntiholders whose names or corporate names and addresses are registered with the Trustee
Company as of the last day of the trust term are entitled to receive redemption money of
the Fund that is in proportion to the number of Units they have registered.



If a unitholder fails to claim redemption money within ten years from the date ofcommencement of payment thereof, such right will be forfeited and such money will revert
to the Management Company.
iii) Right to request redemption
A untiholders may request the Management Company to redeem his or her Units througha Distributor.
iv) Right to request a buyback of Units
A unitholder may request a Distributor to buy back his or her Units if the total number ofUnits he or she owns is less than the minimum trading lot for the Units established by thefinancial instruments exchange.
v)

Right to examine books
A unitholder may make a request to the Management Company to examine the books anddocuments for the Fund’s trust assets during the business hours of the Management
Company.

48

III. Financial Condition of the Fund
(1) The Financial Statements of the Fund are prepared in accordance with the Ordinance on
Terminology, Forms and Preparation Methods of Financial Statements, etc. (Ministry of FinanceOrdinance No. 59 of 1963; hereinafter referred to as “Financial Statements Regulation”) and theOrdinance on Accountings of Investment Trust Property (Cabinet Office Ordinance No. 133 of 2000),
pursuant to the provisions of Article 2-2 of the Financial Statements Regulation.
The Financial Statements are stated in Japanese yen.
(2) As the calculation period of the Fund is six months, the financial statements are prepared every six
months.
(3) Pursuant to Article 193-2 Paragraph 1 of the Financial Instruments and Exchange Act, the Fund’s
Financial Statements for the 20th calculation period (from July 9, 2023 to January 8, 2024) havebeen audited by PricewaterhouseCoopers Japan LLC.

49

Independent Auditors’ Report
March 27,2024

The Board of Directors
Nikko Asset Management Co., Ltd.

PricewaterhouseCoopers Japan LLC
Tokyo Office
Designated Limited
Liability Partner
Engagement Partner

Certified Public Accountant
Kazuyuki Tsujimura

OpinionWe have audited the financial statements, comprising the balance sheet, the statement of profit and loss and retained
earnings and the related notes, and the supplementary schedules for Listed Index Fund JPX-Nikkei Index 400 for the
calculation period from July 9, 2023 to January 8, 2024 shown in “Financial Condition of the Fund” to provide audit
certification in accordance with Article 193-2, Paragraph 1, of the Financial Instruments and Exchange Act.
In our opinion, the accompanying financial statements present fairly, in all material respects, the Trust Assets positionof Listed Index Fund JPX-Nikkei Index 400 as at January 8, 2024, and its profit and loss performance for the year thenended in accordance with accounting principles generally accepted in Japan.
Basic for Opinion
We conducted our audit in accordance with auditing standards generally accepted in Japan. Our responsibilities underthose standards are further described in the Auditor’s Responsibilities for the Audit of the Financial Statements. We
are independent of Nikko 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
to provide a basis for our opinion.
The other information
Information other than the financial statement and the auditor's report which are included in the annual securities
report and the securities registration statement. It is management’s responsibility to prepare and disclose the contentsof the other information.
Audit opinion on the financial statement does not cover the other information, and the audit firm will not express any
opinion regarding the other information.
The responsibility in the financial statement audit is to read the other information and, in doing so, identify material
differences between the other information and the financial statement or with the knowledge obtained in the course of
the audit, and attention should be paid to whether there are any indication of such material errors in the description
other than material differences.
The audit firm is required to report if the other information is deemed to be materially misstated.
There are no matters to be reported by the audit firm with respect to the other information.
Management’s Responsibility for the Financial Statements
Management is responsible for the preparation and fair presentation of the financial statements in accordance withaccounting principles generally accepted in Japan, and to establish and operate for such internal control system as
management determines is necessary to enable preparation and fair presentation of the financial statements that are
free from material misstatements, 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 applicable, 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 frommaterial misstatement, whether due to fraud or error, and to issue an auditor’s report that includes our opinion.

50

Reasonable assurance is a high level of assurance, but is not a guarantee that an audit conducted in accordance withauditing standards generally accepted in Japan will always detect a material misstatement when it exists.
Misstatements can arise from fraud or error and are considered material if, individually or in the aggregate, they could
reasonably be expected to influence the economic decisions of users taken on the basis of these financial statements.
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 and perform audit procedures responsive to those risks, and obtain audit evidence that is sufficient andappropriate to provide a basis for our opinion.
Obtain an understanding of internal control relevant to the audit in order to design audit procedures that areappropriate in the circumstances, while the purpose of the financial statement audit is not to express and opinion
on the effectiveness of the Group’s internal control.
Evaluate the appropriateness of accounting policies used and the reasonableness of accounting estimates andrelated disclosures made by management.
Conclude on the appropriateness of management’s use of the going concern basis of accounting and, based on theaudit evidence obtained, whether a material uncertainty exists related to events or conditions that may castsignificant 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 whether the presentation and disclosures of the financial statements are in accordance with accounting
principles generally accepted in Japan, overall presentation, structure and content of the financial statements,
including the disclosures, and whether the financial statements represent the underlying transactions and eventsin a manner that achieves fair presentation.

We communicate with those charged with governance regarding, among other matters, the planned scope and timingof the audit and significant audit findings, including any significant deficiencies in internal control that we identify
during our audit.
We also provide those charged with governance with a statement that we have complied with relevant ethicalrequirements regarding independence, and to communicate with them all relationships and other matters that may
reasonably be thought to bear on our independence, and where applicable, related safeguards.
Interest
Our firm and engagement partners have no interest in the Nikko Asset Management Co., Ltd. and the Fund whichshould be disclosed pursuant to the provisions of the Certified Public Accountants Act.
(Note) The original has been retained separately by the Company.

51

1 Financial Statements
Listed Index Fund JPX-Nikkei Index 400(1) Balance Sheet(Unit:yen)
19th Calculation Period As 20th Calculation Period As
of July 8, 2023
of January 8, 2024
AssetsCurrent assets
Call loans
StocksDerivative evaluation account
Accounts receivable
Accrued dividend receivable
Accrued interest
Other accrued revenue
Total current assets
Total assets
Liabilities
Current liabilities
Derivative evaluation account
Advances received
Accounts payable-other
Unpaid dividends
Trustee fee payable
Investment trust management fee
payableAccrued interest expenses
Cash collateral received
Other accrued expenses

23,383,158,042
341,349,107,520
1,442,391,396
468,943,874
1,399,437
24,449,896

15,864,597,391
364,983,599,530
1,184,391
3,054,355,010
452,803,450
1,840,802
83,457,323

366,669,450,165

384,441,837,897

366,669,450,165

384,441,837,897

1,052,244
23,657,540
20,924,892
4,012,141,540
52,342,402

3,886,061
3,871,507,332
59,373,694

123,205,636

139,558,565

58,847
20,984,642,911

130,575
15,095,842,672

25,306,822,026

19,327,452,805

88,796,014

Total current liabilities

157,153,906

Total liabilities
Net assets
Principal and otherPrincipal
Surplus
Surplus (deficit) at end of period(Reserve for distribution)

25,306,822,026

19,327,452,805

182,370,070,000

184,357,492,000

158,992,558,139
134,680,027

180,756,893,092
139,048,400

Total principal and other341,362,628,139

365,114,385,092

Total net assets
Total liabilities and net assets

52

341,362,628,139

365,114,385,092

366,669,450,165

384,441,837,897

(2) Statement of Profit and Loss and Retained Earnings(Unit:yen)

19th Calculation Period
From January 9, 2023 To
July 8, 2023
Operating revenue
Dividends income
Interest income
Profit and loss on buying and selling of
securities and otherProfit and loss on dealing of derivatives
Other revenue
Total operating revenue
Operating expenses
Interest expenses

20th Calculation Period
From July 9, 2023 To
January 8, 2024

4,061,612,107

3,957,911,632△8,879,831△8,897,605

59,438,106,246

19,831,609,503

516,043,744

66,450,491

290,602,182

197,978,086

64,297,484,448

24,045,052,107

140,278

222,943

Trustee fee
Investment trust management fee
Other expenses

52,342,402

59,373,694

123,205,636

139,558,565

88,796,094

71,961,206

Total operating expenses

264,484,410

271,116,408

Operating income (loss)

64,033,000,038

23,773,935,699

Ordinary income (loss)

64,033,000,038

23,773,935,699

Net income (loss)

64,033,000,038

23,773,935,699--

101,689,716,377

158,992,558,139

630,572,000

3,129,075,357--

630,572,000

3,129,075,357

3,348,588,736

1,267,168,771

3,348,588,736

1,267,168,771--

4,012,141,540

3,871,507,332

158,992,558,139

180,756,893,092

Distribution of net income (loss) frompartial redemptions
Surplus (deficit) at beginning of period

Increase in surplus or decrease in deficit
Increase in surplus or decrease in deficit
from partial redemptions

Increase in surplus or decrease in deficit
from additional subscriptions for theperiodDecrease in surplus or increase in deficit
Decrease in surplus or increase in deficit
from partial redemptions
Decrease in surplus or increase in deficit
from additional subscriptions for theperiodDividends

Surplus (deficit) at end of period53

(3) Notes(Notes regarding Significant Accounting Policies)
1.

Standards andsecurities valuation

methods

2.

Standards and methods
derivatives evaluationof Stocks are valued at fair market value in principle, based on the moving averagemethod as stated below.
(1) Securities Listed on a Stock Exchange
As a general rule, securities that are listed on a stock exchange are valued at theclosing price on the exchange on the last day of the calculation period (or theclosing price on the closest known day to the last day of the calculation period forforeign currency-denominate securities).
(2) Securities Not Listed on a Stock Exchange
As a general rule, these securities are valued at a price obtained from either the
OTC Trading Reference Statistical Data (average price), etc., published by theJapan Securities Dealers Association; or prices offered by financial instruments
business operators, banks, etc. (excluding bid prices); or prices offered by priceproviding companies.
(3) Securities for which Fair Market Value Could Not Be Obtained
When fair market value is not available or when there is a reason to believe thatan obtained assessment value cannot be determined to be the market value, thesecurities are valued at either the price that the Investment Trust Management
Company establishes to be the market value by exercising due diligence and bybasing its determination on a rational reason, or the value that is determined tobe the market value jointly by the Investment Trust Management Company and
the Trustee upon mutual consultation and based on a rational reason.
of Derivatives Transactions
As a general rule, derivatives transactions are valued at fair market value, basedon the specific identification method.

(Notes to the Balance Sheet)
1.

2.
3.

4.

Principal at the beginning of the year
Additional creation of principal during
the year
Partial redemptions of principal
during the year
Total number of beneficial interests
Pledged assets
Assets pledged as collateral in theform of collateral securities depositedas margin in relation to derivatives
transactions are as follows:
Stocks19th Calculation Period
As of July 8, 2023
186,174,288,000 yen
725,000,000 yen

20th Calculation Period
As of January 8, 2024
182,370,070,000 yen
3,353,230,000 yen

4,529,218,000 yen

1,365,808,000 yen

182,370,070 units

184,357,492 units

5,758,865,000 yen

8,948,100,000 yen

19,574,845,620 yen

14,635,314,680 yen

Securities loaned under lending andborrowing contracts for securities are
as follows:
Stocks(Notes to Statement of Profit and Loss and Retained Earnings)
19th Calculation Period
From January 9, 2023
To July 8, 2023
Process for calculation of dividends

A Dividends and other income
for the period
B Reserve for distribution

20th Calculation Period
From July 9, 2023
To January 8, 2024
Process for calculation of dividends

A Dividends and other income
for the period
67,971,519 yen B Reserve for distribution

4,343,194,180 yen

54

4,146,769,170 yen
134,680,027 yen

C Total dividends and otherincome (A+B)
D Miscellaneous expenses
E Possible amount of dividend(C-D)
F Profit distribution
G Carry forward (Reserve for
distribution) (E-F)
H Number of units
I Dividend amount (per10unit)4,411,165,699 yen
264,344,132 yen
4,146,821,567 yen
4,012,141,540 yen
134,680,027 yen
182,370,070 units
220 yen

C Total dividends and otherincome (A+B)
D Miscellaneous expenses
E Possible amount of dividend(C-D)
F Profit distribution
G Carry forward (Reserve for
distribution) (E-F)
H Number of units
I Dividend amount (per10unit)4,281,449,197 yen
270,893,465 yen
4,010,555,732 yen
3,871,507,332 yen
139,048,400 yen
184,357,492 units
210 yen(Notes Regarding Financial Instruments)
I Matters concerning the state of financial instruments
19th Calculation Period
From Januaryuly 9, 2023
To July 8, 2023
Policy on handling of financial
The Fund makes investments in
instruments
financial instruments such as securities
and derivative transactions as
securities investment trusts based on
the basic investment policy prescribedin the trust deed.
Details of financial instruments and Major securities in which the Fundrisk involved in the financial
invests are securities stated in the
instruments“Standards and methods of securities
valuation” of the “Notes regarding
Significant Accounting Policies,” and all
the securities are held for the purposeof trading. Major derivativetransactions include futurestransactions, option contracts and swap
transactions, etc. and may be carriedout to contribute to the effective
investment of assets belonging to trust
assets. Price fluctuation risk, liquidity
risk and credit risk, etc. are involved in
the securities and derivativetransactions concerned according totheir nature.
Risk management system for
The Risk Management Department, an
financial instruments
organization independent fromManagement Division and the Sales
Division, is established to centralize themonitoring and guidance of the entire
company’s risk management activities.

55

20th Calculation Period
From July 9, 2023
To January 8, 2024

Same as left

Same as left

Same as left

II Matters concerning the fair market value, etc. of financial instruments
19th calculation period
As of July 8, 2023

20th calculation period
As of January 8, 2024

Amount recorded on balance sheet,fair market value and difference
between themAmounts are recorded on the balance
sheet based on fair market values as ofSame as leftthe end of the period, and there is
therefore no difference between them.
Method of calculation of fair market (1) Securities(1) Securities
value
Securities held for the purpose of
trading:
Stated in the “Standards and methods
Same as leftof securities valuation” of the “Notes
regarding Significant Accounting
Policies”(2) Derivative transactions(2) Derivative transactions
Stated in the “Notes regarding
Same as leftderivative transactions, etc.”(3) Financial instruments other than(3) Financial instruments other than
the above
the above
These financial instruments will besettled within a short period of time,
and their fair market values
approximate their book values. The fairSame as left
market value of these financial
instruments is therefore determined as
their book value.
Supplementary explanations
Certain assumptions, etc. are used toregarding the matters concerning the calculate the market values of financial
fair market value, etc. of financial
instruments. If different assumptions,
Same as left
instruments
etc. are used, the values may bedifferent.

(Notes Regarding Securities)

19th calculation period (as of July 8, 2023)
Securities held for the purpose of trading(Unit: yen)Type

Valuation difference included in the profit and loss of the calculation
period under review

Stocks58,354,277,395
Total

58,354,277,395

20th calculation period (as of January 8, 2024)
Securities held for the purpose of trading(Unit: yen)Type

Valuation difference included in the profit and loss of the calculation
period under review

Stocks

19,229,609,603
Total

19,229,609,603(Notes Regarding Derivative Transactions, etc.)
Matters concerning the fair market value, etc. of transactions

56

(Stock-related)
19th calculation period (as of July 8, 2023)(Unit: yen)
Category

Type

Markettransaction

Stock index
futurestransactions

Contracted amount,etc.

New purchase
Total

Longer than
one year

Fair market value

Valuation difference

56,207,304－

55,161,000△1,046,304

56,207,304－

55,161,000△1,046,304

20th calculation period (as of January 8, 2024)(Unit: yen)
Category

Type

Markettransaction

Stock index
futurestransactions

Contracted amount, etc. Longer than
one yearNewpurchase
Total

Fair market value

Valuation difference

113,177,949－

114,374,000

1,196,051

113,177,949－

114,374,000

1,196,051(Note) 1. Method for calculation of fair market value
The fair market values of stock index futures transactions are assessed as follows:
In principle, the fair market values of stock index futures transactions are assessed based on liquidation
prices or closing prices announced by a principal stock exchange on the closest known day to the last day ofthe calculation period. Where such prices have not been announced, the fair market values of stock index
futures transactions are assessed based on closing prices or quoted prices, etc. that are closest to the last dayof the calculation period, using a method pursuant to the principle.
2. The outstanding balance of stock index futures transactions is indicated based on contracted amounts.
3. Contracted amounts, etc. do not include an amount equivalent to fees.
4. The amount shown in the column of the total contracted amount, etc. or fair market value shows the total of
the contracted amount, etc. or fair market value, respectively.

(Notes Regarding Transactions with Related Parties)
There is no applicable item.
(Information per Unit)
19th Calculation Period
As of July 8, 2023
Net assets per unit
(Net assets per 10 units)

20th Calculation Period
As of January 8, 2024
1,871.8 yen Net assets per unit
(18,718 yen) (Net assets per 10 units)

57

1,980.5 yen(19,805 yen)(4) Supplementary Schedules
Name

Number ofsharesValuation
Unit priceAmountRemarks
Loaned securities(Unit:shares)

NISSUI CORPORATION

212,000

768.70162,964,400

30,400

MITSUI MATSUSHIMA HOLDINGS CO.,LTD.

12,6002,775.00

34,965,000

4,600

INPEX CORPORATION

784,100

1,981.50

1,553,694,150

184,100

WEST HOLDINGS CORPORATION

18,2002,995.00

54,509,000

7,300

SHO-BOND HOLDINGS CO.,LTD.

28,9006,444.00

186,231,600

MIRAIT ONE CORPORATION

70,1001,898.00

133,049,800

TAMA HOME CO.,LTD.

13,3004,060.00

53,998,000

HAZAMA ANDO CORPORATION

122,800

1,164.00

142,939,200

COMSYS HOLDINGS CORPORATION

67,7003,153.00

213,458,100

TAISEI CORPORATION

138,800

5,016.00

696,220,800

OBAYASHI CORPORATION

530,300

1,268.00

672,420,400

SHIMIZU CORPORATION

420,500

962.10404,563,050

HASEKO CORPORATION

136,100

1,913.50

260,427,350

46,700

KAJIMA CORPORATION

328,800

2,450.00

805,560,000

9,100

SUMITOMO FORESTRY CO.,LTD.

128,200

4,164.00

533,824,800

DAIWA HOUSE INDUSTRY CO.,LTD.

410,100

4,461.00

1,829,456,100

100

SEKISUI HOUSE,LTD.

449,800

3,227.00

1,451,504,600

181,300

KANDENKO CO.,LTD.

92,9001,370.00

127,273,000

EXEO GROUP,INC.

72,5003,117.00

225,982,500

KYUDENKO CORPORATION

32,0005,120.00

163,840,000

INFRONEER HOLDINGS INC.

171,000

1,446.00

247,266,000

MORINAGA & CO.,LTD.

63,7002,613.50

166,479,950

CALBEE,INC.

68,2002,817.50

192,153,500

MORINAGA MILK INDUSTRY CO.,LTD.

52,0002,816.00

146,432,000

YAKULT HONSHA CO.,LTD.

212,800

3,199.00

680,747,200

MEIJI HOLDINGS CO.,LTD.

182,500

3,431.00

626,157,500

NH FOODS LTD.

64,0004,812.00

307,968,000

11,400ASAHI GROUP HOLDINGS,LTD.

344,000

5,366.00

1,845,904,000

26,000KIRIN HOLDINGS COMPANY,LIMITED

620,200

2,088.50

1,295,287,700

188,800

TAKARA HOLDINGS INC.

101,600

1,226.50

124,612,400

10,700SUNTORY BEVERAGE & FOOD LIMITED

104,800

4,717.00

494,341,600

KIKKOMAN CORPORATION

98,7008,698.00

858,492,600

200

AJINOMOTO CO.,INC.

353,800

5,516.00

1,951,560,800

100

NICHIREI CORPORATION

68,2003,503.00

238,904,600

TOYO SUISAN KAISHA,LTD.

75,2007,600.00

571,520,000

300

NISSIN FOODS HOLDINGS CO.,LTD.

157,000

4,938.00

775,266,000

200JAPAN TOBACCO INC.

904,700

3,757.00

3,398,957,900

323,600

1,014,700

746.80757,777,960

15,000TORAY INDUSTRIES,INC.

58

5,300

93,90029,600300

GOLDWIN INC.

26,8009,485.00

254,198,000

100

OJI HOLDINGS CORPORATION

630,900

561.50354,250,350

11,700RENGO CO.,LTD.

137,900

962.30132,701,170

KURARAY CO.,LTD.

220,700

1,447.00

319,352,900

16,900ASAHI KASEI CORPORATION

1,024,600

1,076.50

1,102,981,900

45,700SUMITOMO CHEMICAL COMPANY,LIMITED

1,123,900

358.10402,468,590

130,700

NISSAN CHEMICAL CORPORATION

71,1005,577.00

396,524,700300

TOSOH CORPORATION

202,200

1,900.00

384,180,000

40,700TOKUYAMA CORPORATION

48,9002,468.00

120,685,200

DENKA COMPANY LIMITED

55,1002,583.50

142,350,850

1,216,100

5,637.00

AIR WATER INC.

142,900

1,928.00

275,511,200

NIPPON SANSO HOLDINGS CORPORATION

146,900

3,792.00

557,044,800

MITSUBISHI GAS CHEMICAL COMPANY,INC.

113,100

2,320.00

262,392,000

MITSUI CHEMICALS,INC.

124,900

4,358.00

544,314,200

TOKYO OHKA KOGYO CO.,LTD.

72,3002,996.50

216,646,950

MITSUBISHI CHEMICAL GROUPCORPORATION

1,107,200

895.50991,497,600

KH NEOCHEM CO.,LTD.

23,1002,308.00

53,314,800

DAICEL CORPORATION

194,700

1,423.00

277,058,100

SUMITOMO BAKELITE COMPANY,LIMITED

21,2007,393.00

156,731,600

SEKISUI CHEMICAL CO.,LTD.

304,300

2,091.00

636,291,300

ZEON CORPORATION

103,800

1,308.50

135,822,300

AICA KOGYO COMPANY,LIMITED

38,2003,420.00

130,644,000

FUSO CHEMICAL CO.,LTD.

16,1004,110.00

66,171,000

ADEKA CORPORATION

52,8002,867.00

151,377,600

NOF CORPORATION

45,7006,853.00

313,182,100

KAO CORPORATION

342,500

5,845.00

2,001,912,500

NIPPON PAINT HOLDINGS CO.,LTD.

804,200

1,143.50

919,602,700

KANSAI PAINT CO.,LTD.

148,400

2,400.00

356,160,000

TAIYO HOLDINGS CO.,LTD.

26,4003,040.00

80,256,000

FUJIFILM HOLDINGS CORPORATION

281,300

8,509.00

2,393,581,700

100

SHISEIDO COMPANY,LIMITED

316,600

4,212.00

1,333,519,200

53,400

LION CORPORATION

198,500

1,308.50

259,737,250

24,700KOSE CORPORATION

30,80010,260.00

316,008,000

7,800

KOBAYASHI PHARMACEUTICAL CO.,LTD.

44,1006,564.00

289,472,400

TAKARA BIO INC.

40,9001,236.00

50,552,400

DEXERIALS CORPORATION

38,0004,223.00

160,474,000

NITTO DENKO CORPORATION

97,40010,700.00

1,042,180,000

NIFCO INC.

45,4003,839.00

174,290,600

SHIN-ETSU CHEMICAL CO.,LTD.

59

19,0006,855,155,700 Collateral Securities
600,000
Loaned Securities
16,10032,60037,70025,800500

2,400

UNICHARM CORPORATION

315,900

5,125.00

1,618,987,500

KYOWA KIRIN CO.,LTD.

183,200

2,414.50

442,336,400

TAKEDA PHARMACEUTICAL COMPANY
LIMITED

1,174,200

4,288.00

5,034,969,600

ASTELLAS PHARMA INC.

1,330,200

1,766.00

2,349,133,200

SHIONOGI & CO.,LTD.

191,200

6,883.00

1,316,029,600

NIPPON SHINYAKU CO.,LTD.

39,7005,192.00

206,122,400

CHUGAI PHARMACEUTICAL CO.,LTD.

474,700

5,388.00

2,557,683,600

EISAI CO.,LTD.

184,500

7,260.00

1,339,470,000

ROHTO PHARMACEUTICAL CO.,LTD.

146,900

2,920.50

429,021,450

ONO PHARMACEUTICAL CO.,LTD.

321,800

2,639.50

849,391,100

44,800JCR PHARMACEUTICALS CO.,LTD.

51,3001,142.00

58,584,600

1,800

1,168,200

4,031.00

4,709,014,200

43,400OTSUKA HOLDINGS CO.,LTD.

315,400

5,587.00

1,762,139,800

61,500PEPTIDREAM INC.

73,5001,406.00

103,341,000

20,300IDEMITSU KOSAN CO.,LTD.

842,100

807.50679,995,750

3,000

2,400,800

597.301,433,997,840

11,200COSMO ENERGY HOLDINGSCOMPANY,LIMITED

45,0005,924.00

266,580,000

THE YOKOHAMA RUBBERCOMPANY,LIMITED

76,7003,294.00

252,649,800

TOYO TIRE CORPORATION

87,1002,356.50

205,251,150

2,300

BRIDGESTONE CORPORATION

443,900

5,913.00

2,624,780,700

157,000

SUMITOMO RUBBER INDUSTRIES,LTD.

148,700

1,584.00

235,540,800

AGC INC.

135,200

5,334.00

721,156,800

TOTO LTD.

100,100

3,824.00

382,782,400

NGK INSULATORS,LTD.

176,400

1,737.00

306,406,800

NITERRA CO.,LTD.

127,000

3,515.00

446,405,000

MARUWA CO.,LTD.

5,600

27,660.00

154,896,000

FUJIMI INCORPORATED

40,8002,934.00

119,707,200

NICHIAS CORPORATION

38,4003,390.00

130,176,000

NIPPON STEEL CORPORATION

698,500

3,384.00

2,363,724,000

56,800

JFE HOLDINGS,INC.

433,900

2,310.00

1,002,309,000

19,700TOKYO STEEL MANUFACTURING CO.,LTD.

43,8001,802.00

78,927,600

700

MARUICHI STEEL TUBE LTD.

47,5003,706.00

176,035,000

NIPPON YAKIN KOGYO CO.,LTD.

11,4004,355.00

49,647,000

100

DAIKI ALUMINIUM INDUSTRY CO.,LTD.

19,7001,221.00

24,053,700

600

MITSUI MINING AND SMELTING
COMPANY,LIMITED

45,4004,420.00

200,668,000

SUMITOMO METAL MINING CO.,LTD.

180,900

4,262.00

770,995,800

100

DOWA HOLDINGS CO.,LTD.

38,6005,112.00

197,323,200

14,700SUMITOMO ELECTRIC INDUSTRIES,LTD.

583,600

1,838.50

1,072,948,600

44,400

ARE HOLDINGS,INC.

58,6001,966.00

115,207,600

DAIICHI SANKYO COMPANY,LIMITED

ENEOS HOLDINGS,INC.

60

24,10057,900

2,000

2,100

12,90045,20011,300SUMCO CORPORATION

277,200

2,058.50

570,616,200

5,800

SANWA HOLDINGS CORPORATION

156,700

2,154.50

337,610,150

7,500

RINNAI CORPORATION

76,4003,280.00

250,592,000

MIURA CO.,LTD.

63,8002,755.50

175,800,900

1,300

AMADA CO.,LTD.

243,700

1,497.00

364,818,900

1,600

FUJI CORPORATION

71,9002,398.00

172,416,200

DMG MORI CO.,LTD.

92,6002,652.50

245,621,500

DISCO CORPORATION

73,50032,920.00

2,419,620,000

NABTESCO CORPORATION

95,8002,812.50

269,437,500

SMC CORPORATION

45,70075,000.00

3,427,500,000

KOMATSU LTD.

715,800

3,804.00

2,722,903,200

SUMITOMO HEAVY INDUSTRIES,LTD.

90,3003,586.00

323,815,800

HITACHI CONSTRUCTION MACHINERYCO.,LTD.

60,8003,880.00

235,904,000

RORZE CORPORATION

8,000

14,350.00

114,800,000

KUBOTA CORPORATION

801,400

2,141.00

1,715,797,400

EBARA CORPORATION

62,7008,176.00

512,635,200

DAIKIN INDUSTRIES,LTD.

181,600

22,750.00

4,131,400,000

300

ORGANO CORPORATION

18,3005,540.00

101,382,000

500

DAIFUKU CO.,LTD.

257,700

2,754.50

709,834,650

1,100

SANKYO CO.,LTD.

35,1008,355.00

293,260,500

TAKEUCHI MFG.CO.,LTD.

27,7004,465.00

123,680,500

SEGA SAMMY HOLDINGS INC.

136,400

2,039.50

278,187,800

HOSHIZAKI CORPORATION

90,1005,085.00

458,158,500

MAKITA CORPORATION

174,200

3,825.00

666,315,000

MITSUBISHI HEAVY INDUSTRIES,LTD.

267,100

8,641.00

2,308,011,100

IHI CORPORATION

113,700

2,827.00

321,429,900

4,600

IBIDEN CO.,LTD.

79,6007,501.00

597,079,600

3,500

BROTHER INDUSTRIES,LTD.

204,000

2,262.00

461,448,000

44,800MINEBEA MITSUMI INC.

265,600

2,859.50

759,483,200

HITACHI,LTD.

590,500

10,245.00

6,049,672,500

34,0001,699,700

2,029.50

3,449,541,150

22,500

FUJI ELECTRIC CO.,LTD.

92,9006,086.00

565,389,400

YASKAWA ELECTRIC CORPORATION

165,900

5,650.00

937,335,000

NIDEC CORPORATION

337,200

5,696.00

1,920,691,200

OMRON CORPORATION

116,600

6,286.00

732,947,600

200

MCJ CO.,LTD.

63,3001,099.00

69,566,700

25,500NEC CORPORATION

200,600

8,348.00

1,674,608,800

FUJITSU LIMITED

140,500

21,235.00

2,983,517,500

RENESAS ELECTRONICS CORPORATION

996,600

2,388.50

2,380,379,100

3,700

SEIKO EPSON CORPORATION

195,900

2,151.00

421,380,900

24,500

WACOM CO.,LTD.

116,100

651.0075,581,100

100

MITSUBISHI ELECTRIC CORPORATION

61

37,2003,000

20,80011,00043,200

3,600

100

200

ULVAC, INC.

36,3006,443.00

233,880,900

ELECOM CO.,LTD.

36,5001,699.00

62,013,500

1,804,000

1,424.50

2,569,798,000

ANRITSU CORPORATION

107,500

1,328.50

142,813,750

SONY GROUP CORPORATION

410,000

13,170.00

5,399,700,000

7,900

TDK CORPORATION

241,800

6,488.00

1,568,798,400

100

HIROSE ELECTRIC CO.,LTD.

22,50016,035.00

360,787,500

YOKOGAWA ELECTRIC CORPORATION

167,100

2,735.00

457,018,500

AZBIL CORPORATION

104,000

4,730.00

491,920,000

400

NIHON KOHDEN CORPORATION

64,9004,486.00

291,141,400

100

HORIBA,LTD.

28,90010,435.00

301,571,500

2,500

ADVANTEST CORPORATION

433,200

4,663.00

2,020,011,600

10,500KEYENCE CORPORATION

78,30060,130.00

4,708,179,000

100

SYSMEX CORPORATION

130,500

7,793.00

1,016,986,500

3,900

FERROTEC HOLDINGS CORPORATION

48,0002,617.00

125,616,000

19,300LASERTEC CORPORATION

69,30034,010.00

2,356,893,000

JEOL LTD.

37,9005,961.00

225,921,900

900

FANUC CORPORATION

737,300

4,090.00

3,015,557,000

6,900

ROHM COMPANY LIMITED

279,500

2,606.50

728,516,750

50,000

HAMAMATSU PHOTONICS K.K.

121,300

5,694.00

690,682,200

300

MITSUI HIGH-TEC,INC.

13,4007,039.00

94,322,600

5,400

SHINKO ELECTRIC INDUSTRIES CO.,LTD.

53,5005,495.00

293,982,500

3,700

KYOCERA CORPORATION

939,500

2,055.00

1,930,672,500

TAIYO YUDEN CO.,LTD.

73,6003,683.00

271,068,800

13,200

MURATA MANUFACTURING CO.,LTD.

1,375,600

2,907.50

3,999,557,000

18,200

KOITO MANUFACTURING CO.,LTD.

156,700

2,225.50

348,735,850

SCREEN HOLDINGS CO.,LTD.

51,70011,860.00

613,162,000

2,300TOKYO ELECTRON LIMITED

258,500

24,120.00

6,235,020,000

3,700

TOYOTA BOSHOKU CORPORATION

63,7002,362.50

150,491,250

TOYOTA INDUSTRIES CORPORATION

129,000

11,660.00

1,504,140,000

DENSO CORPORATION

1,247,500

2,165.00

2,700,837,500

ISUZU MOTORS LIMITED

439,600

1,917.00

842,713,200

2,302,400

2,701.50

KYB CORPORATION

14,5005,040.00

73,080,000

500

AISIN CORPORATION

116,600

5,154.00

600,956,400

24,900

MAZDA MOTOR CORPORATION

500,100

1,611.00

805,661,100

3,673,300

1,530.00

5,620,149,000

186,300SUZUKI MOTOR CORPORATION

277,700

6,055.00

1,681,473,500

200

SUBARU CORPORATION

468,900

2,765.50

1,296,742,950

YAMAHA MOTOR CO.,LTD.

653,500

1,309.50

855,758,250

PANASONIC HOLDINGS CORPORATIONTOYOTA MOTOR CORPORATIONHONDA MOTOR CO.,LTD.

62

200

17,60026,7006,219,933,600 Collateral Securities
1,000,000
Loaned Securities
32,70073,200TOYODA GOSEI CO.,LTD.

44,1002,729.00

120,348,900

SHIMANO INC.

61,40021,840.00

1,340,976,000

TERUMO CORPORATION

422,800

4,672.00

1,975,321,600

SHIMADZU CORPORATION

200,900

3,957.00

794,961,300

NAKANISHI INC.

64,0002,419.00

154,816,000

TOKYO SEIMITSU CO.,LTD.

30,9008,159.00

252,113,100

500

OLYMPUS CORPORATION

930,700

2,030.50

1,889,786,350

11,200HOYA CORPORATION

289,300

16,865.00

4,879,044,500

ASAHI INTECC CO.,LTD.

168,900

2,853.00

481,871,700

BANDAI NAMCO HOLDINGS INC.

414,200

2,839.00

1,175,913,800

PILOT CORPORATION

21,3004,186.00

89,161,800

7,100

YAMAHA CORPORATION

95,3003,255.00

310,201,500

400

PIGEON CORPORATION

96,3001,619.00

155,909,700

13,000NINTENDO CO.,LTD.

812,500

7,223.00

5,868,687,500

38,400CHUBU ELECTRIC POWER
COMPANY,INCORPORATED

557,200

1,903.00

1,060,351,600

THE KANSAI ELECTRIC POWER
COMPANY,INCORPORATED

583,900

1,956.50

1,142,400,350

ELECTRIC POWER DEVELOPMENT CO.,LTD.

124,200

2,393.00

297,210,600

3,200

EREX CO.,LTD.

26,900819.0022,031,100

10,800RENOVA,INC.

40,3001,200.00

48,360,000

16,000TOKYO GAS CO.,LTD.

319,700

3,339.00

1,067,478,300

OSAKA GAS CO.,LTD.

306,300

3,089.00

946,160,700

SBS HOLDINGS,INC.

13,5002,503.00

33,790,500

YAMATO HOLDINGS CO.,LTD.

193,300

2,632.50

508,862,250

17,500SANKYU INC.

38,4005,233.00

200,947,200

800

SENKO GROUP HOLDINGS CO.,LTD.

79,9001,176.00

93,962,400

100

AZ-COM MARUWA HOLDINGS INC.

38,6001,593.00

61,489,800

2,900

SG HOLDINGS CO.,LTD.

253,500

2,067.00

523,984,500

5,900

NIPPON EXPRESS HOLDINGS,INC.

51,2008,252.00

422,502,400

600

NIPPON YUSEN KABUSHIKI KAISHA

432,700

4,758.00

2,058,786,600

200

MITSUI O.S.K.LINES,LTD.

327,600

4,908.00

1,607,860,800

300

KAWASAKI KISEN KAISHA,LTD.

127,600

6,607.00

843,053,200

51,400NS UNITED KAIUN KAISHA,LTD.

8,100

5,030.00

40,743,000

MITSUI-SOKO HOLDINGS CO.,LTD.

14,1004,880.00

68,808,000

NEC NETWORKS & SYSTEM INTEGRATIONCORPORATION

59,1002,288.00

135,220,800

SYSTENA CORPORATION

229,500

309.0070,915,500

NS SOLUTIONS CORPORATION

25,9004,650.00

120,435,000

TIS INC.

165,900

3,092.00

512,962,800

3,200

KOEI TECMO HOLDINGS CO.,LTD.

95,0001,623.50

154,232,500

32,900NEXON CO.,LTD.

339,300

2,694.50

914,243,850

300

SHIFT INC.

10,10033,760.00

340,976,000

2,300

63

700

7,200

900
900

T-GAIA CORPORATION

15,9001,945.00

30,925,500

GUNGHO ONLINE ENTERTAINMENT,INC.

39,5002,328.50

91,975,750

GMO PAYMENT GATEWAY,INC.

30,3009,224.00

279,487,200

4,700

INTERNET INITIATIVE JAPAN INC.

72,5002,843.00

206,117,500

800

RAKUS CO.,LTD.

71,7002,435.00

174,589,500

CHANGE HOLDINGS,INC.

33,0001,419.00

46,827,000

13,200NOMURA RESEARCH INSTITUTE,LTD.

336,000

4,172.00

1,401,792,000

100

OBIC CO.,LTD.

50,70023,815.00

1,207,420,500

JUSTSYSTEMS CORPORATION

21,8003,120.00

68,016,000

2,158,800

483.301,043,348,040

153,300

TREND MICRO INCORPORATED

71,7007,469.00

535,527,300

300

ORACLE CORPORATION JAPAN

29,00010,935.00

317,115,000

100

OTSUKA CORPORATION

75,2005,677.00

426,910,400

100

DENTSU SOKEN INC.

18,4005,720.00

105,248,000

TOEI ANIMATION CO.,LTD.

7,100

18,130.00

128,723,000

DIGITAL GARAGE,INC.

24,2003,555.00

86,031,000

NET ONE SYSTEMS CO.,LTD.

61,2002,344.00

143,452,800

BIPROGY INC.

49,6004,340.00

215,264,000

USEN-NEXT HOLDINGS CO.,LTD.

17,0003,995.00

67,915,000

NIPPON TELEGRAPH AND TELEPHONECORPORATION

28,948,100

173.905,034,074,590

KDDI CORPORATION

1,171,800

4,594.00

5,383,249,200

SOFTBANK CORP.

2,440,200

1,811.00

4,419,202,200

HIKARI TSUSHIN,INC.

15,30024,080.00

368,424,000

GMO INTERNET GROUP,INC.

56,0002,497.50

139,860,000

KADOKAWA CORPORATION

80,2002,891.00

231,858,200

TOHO CO.,LTD

84,4004,854.00

409,677,600

NTT DATA GROUP CORPORATION

396,500

1,980.00

785,070,000

DTS CORPORATION

32,0003,570.00

114,240,000

SQUARE ENIX HOLDINGS CO.,LTD.

69,3005,203.00

360,567,900

CAPCOM CO.,LTD.

135,600

4,803.00

651,286,800

SCSK CORPORATION

106,100

2,867.50

304,241,750

NSD CO., LTD.

54,1002,720.00

147,152,000

KONAMI GROUP CORPORATION

56,8007,874.00

447,243,200

100

SOFTBANK GROUP CORP.

748,100

6,080.00

4,548,448,000

100

SOJITZ CORPORATION

178,100

3,309.00

589,332,900

9,300

ALFRESA HOLDINGS CORPORATION

160,600

2,408.50

386,805,100

KOBE BUSSAN CO.,LTD.

123,800

3,941.00

487,895,800

48,900DAIWABO HOLDINGS CO.,LTD.

70,8003,050.00

215,940,000

200

MACNICA HOLDINGS,INC.

37,8007,122.00

269,211,600

SHIP HEALTHCARE HOLDINGS,INC.

57,5002,302.50

132,393,750

MEDIPAL HOLDINGS CORPORATION

165,700

2,320.00

384,424,000

LY CORPORATION

64

2,800

1,109,200
1,400

400

2,300

10,0002,100IDOM INC.

42,300965.0040,819,500

2,400

ITOCHU CORPORATION

1,019,600

5,878.00

5,993,208,800

42,500MARUBENI CORPORATION

1,333,800

2,291.00

3,055,735,800

16,000TOYOTA TSUSHO CORPORATION

140,100

8,798.00

1,232,599,800

9,000

KANEMATSU CORPORATION

66,9002,147.00

143,634,300

23,8001,042,900

5,443.00

5,676,504,700

55,800968,200

3,147.00

3,046,925,400

2,492,800

2,353.00

5,865,558,400

CANON MARKETING JAPAN INC.

37,1004,195.00

155,634,500

HANWA CO.,LTD.

28,7005,050.00

144,935,000

300

IWATANI CORPORATION

36,4006,593.00

239,985,200

1,000

INABATA & CO.,LTD.

31,6003,255.00

102,858,000

ITOCHU ENEX CO.,LTD.

39,7001,653.00

65,624,100

KAGA ELECTRONICS CO.,LTD.

14,6006,240.00

91,104,000

PALTAC CORPORATION

21,6004,589.00

99,122,400

MISUMI GROUP INC.

241,500

2,413.50

582,860,250

LAWSON,INC.

34,0007,237.00

246,058,000

500

ABC-MART,INC.

70,0002,410.00

168,700,000

300

ASKUL CORPORATION

33,1002,167.00

71,727,700

1,500

MCDONALD'S HOLDINGSCOMPANY(JAPAN),LTD.

97,7006,160.00

601,832,000

SERIA CO.,LTD.

47,2002,475.00

116,820,000

MONOTARO CO.,LTD.

226,800

1,557.50

353,241,000

51,500

MATSUKIYOCOCOKARA & CO.

291,000

2,562.50

745,687,500

8,800

ZOZO,INC.

101,900

3,242.00

330,359,800

WELCIA HOLDINGS CO.,LTD.

83,0002,514.50

208,703,500

6,000

CREATE SD HOLDINGS CO.,LTD.

26,4003,085.00

81,444,000

10,600

NEXTAGE CO.,LTD.

36,5002,568.00

93,732,000

14,700COSMOS PHARMACEUTICAL CORPORATION

15,80015,965.00

252,247,000

6,200

SEVEN & I HOLDINGS CO.,LTD.

551,300

5,645.00

3,112,088,500

TSURUHA HOLDINGS INC.

33,60012,980.00

436,128,000

KUSURI NO AOKI HOLDINGS CO.,LTD.

42,8003,341.00

142,994,800

FOOD & LIFE COMPANIES LTD.

85,3002,835.50

241,868,150

NOJIMA CO.,LTD.

46,4001,758.00

81,571,200

RYOHIN KEIKAKU CO.,LTD.

174,600

2,260.50

394,683,300

KOHNAN SHOJI CO.,LTD.

19,6003,930.00

77,028,000

PAN PACIFIC INTERNATIONAL HOLDINGSCORPORATION

323,000

3,292.00

1,063,316,000

ZENSHO HOLDINGS CO.,LTD.

81,5007,328.00

597,232,000

11,800WORKMAN CO.,LTD.

18,5004,020.00

74,370,000

7,400

VT HOLDINGS CO.,LTD.

60,800519.0031,555,200

SUGI HOLDINGS CO.,LTD.

32,2006,500.00

209,300,000

MITSUI & CO.,LTD.
SUMITOMO CORPORATION (SUMITOMOSHOJI KAISHA,LTD.)MITSUBISHI CORPORATION

65

154,800

34,900100
30,200NIPPON GAS CO.,LTD.

84,8002,383.50

202,120,800

LIFE CORPORATION

16,8003,330.00

55,944,000

KOMERI CO.,LTD.

24,6003,200.00

78,720,000

SHIMAMURA CO.,LTD.

18,80015,605.00

293,374,000

IZUMI CO.,LTD.

28,4003,657.00

103,858,800

1,600

YAOKO CO.,LTD

18,1008,072.00

146,103,200

7,100

K'S HOLDINGS CORPORATION

113,100

1,334.50

150,931,950

1,300

NITORI HOLDINGS CO.,LTD.

58,20017,500.00

1,018,500,000

100

FAST RETAILING CO.,LTD.

72,00034,500.00

2,484,000,000

300

SUNDRUG CO.,LTD.

54,0004,517.00

243,918,000

200

MEBUKI FINANCIAL GROUP,INC.

738,900

438.00323,638,200

28,100

CONCORDIA FINANCIAL GROUP,LTD.

799,000

671.00536,129,000

36,700

MITSUBISHI UFJ FINANCIAL GROUP,INC.

4,853,200

1,258.00

6,105,325,600

600

RESONA HOLDINGS, INC.

1,736,400

746.701,296,569,880

31,700SUMITOMO MITSUI TRUST HOLDINGS,INC.

535,200

2,848.00

1,524,249,600

36,800SUMITOMO MITSUI FINANCIAL GROUP,INC.

839,700

7,161.00

6,013,091,700 Collateral Securities
400,000

THE CHIBA BANK,LTD.

415,000

1,044.50

433,467,500

FUKUOKA FINANCIAL GROUP,INC.

129,700

3,447.00

447,075,900

SEVEN BANK,LTD.

466,800

300.30140,180,040

2,010,100

2,548.00

5,121,734,800

SBI HOLDINGS,INC.

218,100

3,360.00

732,816,000

JAFCO GROUP CO.,LTD.

44,4001,669.50

74,125,800

1,100

DAIWA SECURITIES GROUP INC.

1,153,600

1,005.00

1,159,368,000

39,200NOMURA HOLDINGS,INC.

2,504,300

669.201,675,877,560

28,800MONEX GROUP,INC.

145,800

697.00101,622,600

14,900

SOMPO HOLDINGS,INC.

224,000

7,080.00

1,585,920,000

27,500

MS&AD INSURANCE GROUPHOLDINGS,INC.

333,400

5,700.00

1,900,380,000

DAI-ICHI LIFE HOLDINGS,INC.

727,600

3,107.00

2,260,653,200

145,900

TOKIO MARINE HOLDINGS,INC.

1,471,900

3,555.00

5,232,604,500

14,600ZENKOKU HOSHO CO.,LTD.

39,0005,347.00

208,533,000

5,900

FUYO GENERAL LEASE CO.,LTD.

13,70012,735.00

174,469,500

1,500

MIZUHO LEASING COMPANY,LIMITED

24,9004,965.00

123,628,500

TOKYO CENTURY CORPORATION

111,300

1,584.00

176,299,200

AEON FINANCIAL SERVICE CO.,LTD.

85,5001,308.50

111,876,750

ACOM CO.,LTD.

265,700

355.5094,456,350

JACCS CO.,LTD.

15,9005,300.00

84,270,000

ORIENT CORPORATION

48,6001,094.00

53,168,400

ORIX CORPORATION

907,700

2,759.00

2,504,344,300

1,600

MITSUBISHI HC CAPITAL INC.

663,500

984.90653,481,150

70,200JAPAN EXCHANGE GROUP,INC.

388,500

3,005.00

1,167,442,500

MIZUHO FINANCIAL GROUP,INC.

66

100

300

1,500

900

DAITO TRUST CONSTRUCTION CO.,LTD.

54,60016,430.00

897,078,000

800

HULIC CO.,LTD.

347,400

1,499.50

520,926,300

127,600

NOMURA REAL ESTATE HOLDINGS,INC.

82,9003,823.00

316,926,700

100

PRESSANCE CORPORATION

23,6001,640.00

38,704,000400

OPEN HOUSE GROUP CO.,LTD.

54,6004,287.00

234,070,200

1,600

TOKYU FUDOSAN HOLDINGSCORPORATION

447,700

953.30426,792,410

IIDA GROUP HOLDINGS CO.,LTD.

142,700

2,201.50

314,154,050

KI-STAR REAL ESTATE CO.,LTD

7,200

3,235.00

23,292,000

2,800

MITSUI FUDOSAN CO.,LTD.

688,700

3,551.00

2,445,573,700

24,500

MITSUBISHI ESTATE COMPANY,LIMITED

973,400

1,996.50

1,943,393,100

22,700TOKYO TATEMONO CO.,LTD.

130,100

2,138.00

278,153,800

7,700

SUMITOMO REALTY & DEVELOPMENT
CO.,LTD.

215,400

4,289.00

923,850,600

STARTS CORPORATION INC.

21,4002,954.00

63,215,600

KATITAS CO.,LTD

40,0002,144.00

85,760,000

NIHON M&A CENTER HOLDINGS INC.

247,700

777.20

192,512,440

UT GROUP CO.,LTD.

20,0002,310.00

46,200,000

PASONA GROUP INC.

18,8002,582.00

48,541,600

SMS CO.,LTD.

54,5002,785.50

151,809,750

1,582,300

249.70395,100,310

SOHGO SECURITY SERVICES CO.,LTD.

259,600

819.00212,612,400

KAKAKU.COM,INC.

102,700

1,721.50

176,798,050

DIP CORPORATION

23,8003,175.00

75,565,000

BENEFIT ONE INC.

54,0002,110.00

113,940,000

12,700

M3,INC.

307,200

2,278.00

699,801,600

22,800HAKUHODO DY HOLDINGS INCORPORATED

198,200

1,098.50

217,722,700

2,400

H.U. GROUP HOLDINGS,INC.

45,5002,669.00

121,439,500

200

BML,INC.

19,1002,920.00

55,772,000

USS CO.,LTD.

174,400

2,830.00

493,552,000

CYBERAGENT,INC.

343,500

888.60305,234,100

FULLCAST HOLDINGS CO.,LTD.

14,8001,815.00

26,862,000

TECHNOPRO HOLDINGS,INC.

91,0003,668.00

333,788,000

JAPAN MATERIAL CO.,LTD.

47,6002,362.00

112,431,200

RECRUIT HOLDINGS CO.,LTD.

1,150,700

5,818.00

6,694,772,600

BELLSYSTEM24 HOLDINGS,INC.

16,7001,716.00

28,657,200

BAYCURRENT CONSULTING,INC.

114,200

4,742.00

541,536,400

JAPAN ELEVATOR SERVICE HOLDINGS
CO.,LTD.

50,4002,328.00

117,331,200

RELO GROUP,INC.

77,9001,646.00

128,223,400

1,800

TRANSCOSMOS INC.

19,3003,080.00

59,444,000

6,100

SECOM CO.,LTD.

158,300

10,375.00

1,642,362,500

600

MEITEC GROUP HOLDINGS INC.

56,0002,849.00

159,544,000

PERSOL HOLDINGS CO.,LTD.

67

100

18,4002,100

100

42,90047,9002,900

AEON DELIGHT CO.,LTD.

16,700Total

145,950,800

3,580.00

59,786,000
364,983,599,530(2) Non-stock securities
N/A

2. Schedule of Balances of Margin Transaction Contracts
N/A

3. Amounts of Derivatives Transactions and Forward Exchange Transactions and Market Value Status
These are stated in “Notes (Notes Regarding Derivative Transactions etc.)”.

68

2. Current Status of the FundThe following is the current status of the Fund as of January 31, 2024.
Listed Index Fund JPX-Nikkei Index 400
Statement of calculation of net assets
I Total assets

409,096,282,568 yen

II Total liabilities

19,492,755,202 yen

III Net assets (I-II)

389,603,527,366 yen

IV Number of outstanding units

184,254,792 units

V Net assets per unit (III / IV)

2,114.5 yen

69

IV.

Outline of Administration of Domestic Investment Trust Beneficiary Certificates(1) Title Transfer
Except when the Management Company issues beneficiary certificates for unavoidable reasons,unitholders may not request to have their bearer beneficiary certificates converted to registeredbeneficiary certificates, or vice versa.
(2) Special Privileges to Unitholders
N/A(3) Restrictions on Transfersi)There are no restrictions on transfers.

ii)

Transfer of Units When unitholder transfers the Units he or she owns, a unitholder must submit a request
for transfer to the Book-Entry Transfer Institution, Etc. that maintains a book-entry
transfer account book in which the Units that the unitholder intends to transfer are
listed or recorded.
 When a request referred to in the preceding paragraph is made, the Book-Entry Transfer
Institution, Etc. lists or records a decrease in the number of Units owned by theunitholder making the transfer and an increase in the number of Units held by thetransferee in the book-entry transfer account book that it maintains. However, in theevent that the Book-Entry Transfer Institution, Etc. is not the institution that createdthe account to which the transfer is made, the Book-Entry Transfer Institution, Etc. shallinform the different book-entry transfer institution, etc. that opened the account of thetransferee to which the transfer is made (and its upper-positioned institutions) to add anentry or record of the increase in the number of Units in the account of the transferee towhich the transfer is made pursuant to the provisions of the Act on Book-Entry Transfer
of Company Bonds, Shares, etc.
 In connection with the above-mentioned book-entry transfer, the Management Company
may establish a day or a period of book-entry transfer suspension when it deems
necessary or determines that unavoidable circumstances exist, such as when the BookEntry Transfer Institution, Etc. that maintains the book-entry transfer account book inwhich the Units the unitholder intends to transfer is listed or recorded is different fromthe book-entry transfer institution, etc. that opened the account of the transferee towhich the transfer is made.

iii) Requirements for Perfection of the Transfer of Units
The transfer of Units may not be asserted against the Management Company or the Trustee
Company unless such a transfer is listed or recorded in the book-entry transfer account book.
(4) Reissue of Beneficiary Certificates
Unitholders may not request that their beneficiary certificates be reissued except when theManagement Company issues such certificates for unavoidable reasons.
(5) Subdivision the Units
The Management Company may equally subdivide the Units outstanding as of a certain dateupon consultation with the Trustee Company pursuant to the provisions of the Act on Book-Entry
Transfer of Company Bonds, Shares, etc.

70

(6) Handling of Units Listed or Recorded in the Pledge Column
The payment of income dividends, acceptance of a request for cancellation and payment ofredemption money in connection with the Units listed or recorded in the pledge column of thebook-entry transfer account book of the Book-Entry Transfer Institution, Etc. are handled inaccordance with the provisions of the trust deed, as well as those of the Civil Code and other laws
and regulations.

71PART III. Information on the Management Company
Please contact “ETFBusinessDevelop@nikkoam.com” for the consolidated financial statement.

72

Trust Deed for Open-end Securities Investment Trust
Listed Index Fund JPX-Nikkei Index 400
Article 1 (Type of Trust, Trustor and Trustee)
1. This Trust is a securities investment trust, having Nikko Asset Management Co., Ltd.
as Trustor and Sumitomo Mitsui Trust Bank, Limited as Trustee.
2. The Trust Act (Act No. 108 of 2006; hereinafter referred to as the “Trust Act”) applies
to this Trust.
Article 2 (Delegation of Trust Business)
1. The Trustee may enter into a trust deed with a financial institution, which is licensed
to operate a combined management of trust business under Article 1, Paragraph 1 of
the Act on Provision, etc. of Trust Business by Financial Institutions (including aninterested person of the Trustee (as defined in Article 29, Paragraph 2, Item 1 of theTrust Business Act applied mutatis mutandis pursuant to Article 2, Paragraph 1 of
the Act on Provision, etc. of Trust Business by Financial Institutions; the same shallapply hereafter in this article)), and pursuant to such deed, it may entrust part of thetrust business to be dealt with to such financial institution in the form of entrustmentof trust business as provided for in Article 28, Item 1 of the Trust Act.
2. Business shall be entrusted to an interested person pursuant to the preceding
Paragraph to the extent not to hinder the protection of beneficiaries.
Article 3 (Purpose and Amount of Trust, Limitation on Additions to Trust Fund)
1. The Trustor shall deposit, and the Trustee shall accept, the amount of 1 billion yen(1,000,000,000 yen) for the purpose of making profits for and on behalf of thebeneficiaries.
2. Upon agreement with the Trustee, the Trustor may make additions in cash to thetrust fund of a maximum limit of 5 trillion yen (5,000,000,000,000 yen).
3. Upon agreement with the Trustee, the Trustor may change the maximum limit
specified in the preceding paragraph.
Article 4(Trust Term)
No term shall be set for this Trust; provided that this Trust may be terminated under
Article 53, Paragraph 1 of Article 54, Paragraph 1 of Article 55 and Paragraph 2 ofArticle 57.

Article 5(Offering for Sale of Beneficial Interests)
The solicitation for sale of beneficial interests of this Trust shall be made through apublic offering under Article 2, Paragraph 8 of the Act on Investment Trusts andInvestment Corporations that shall fall under the offerings for sale as provided for in
Article 2, Paragraph 3, Item 1 of the Financial Instruments and Exchange Act.

Article 6 (Initial Beneficiaries)
1. The initial beneficiaries at the time of execution of the Trust Deed or at the time ofan addition to the trust fund shall be the subscribers of beneficial interests designatedas such by the Trustor, and their beneficial interests divided under Article 7 shallbelong to such subscribers in proportion to their respective number of units
subscribed.
2. In connection with the beneficiaries referred to in the preceding paragraph, theTrustee shall register its name or corporate name, address and any other mattersspecified by the Trustee in the register of beneficiaries set out in Article 17.
73Article 7 (Division and Subdivision of Beneficial Interests)
1. The Trustor shall divide the beneficial interests set out in Article 3, Paragraph 1
equally into 1,000,000 units and the beneficial interests derived from any addition to
the trust fund equally into the number of units added under Article 8, Paragraph 1
upon each addition.
2. The Trustor may, upon consultation with the Trustee, equally subdivide the beneficial
interests existing as at a given day in accordance with the provisions set forth in the
Act on Book-Entry Transfer of Company Bonds, Shares, etc. (hereinafter referred toas the “Book-Entry Transfer Act”).
Article 8 (Calculation Method and Accounting Treatment of Added Trust Fund)
1. The added trust fund shall be an amount obtained by multiplying the net asset value
per unit of the business day immediately preceding the day on which the addition ismade to the trust fund by the number of the beneficial interests of such additional
trust.
2. As regards additional trust, a difference between the added trust fund and theamount equal to principal shall be treated as the difference of additional trust.
Article 9 (Calculation Method of Net Asset Value per Unit)
1. For the purpose of the Trust Deed, the “Net Asset Value per Unit” means an amountcalculated by dividing the total amount of assets of the trust assets obtained throughassessment at the current market price of such assets (excluding collateral securities
and securities borrowed provided for in Article 29) belonging to the trust assets inaccordance with the relevant laws and regulations as well as the rules of The
Investment Trusts Association, Japan, less the total amount of liabilities, (hereinafterreferred to as the “Total Net Asset Value”) by the total number of the beneficial
interests as of the calculation date. Any asset denominated in foreign currencies(which refers to securities denominated in foreign currencies (hereinafter referred toas the “Foreign Currency Denominated Securities”), deposit and other assets
denominated in foreign currencies; the same shall apply hereinafter) shall be
converted into yen, in principle, at the middle rate of the telegraphic transfer buying
or selling rate in Japan as of such day.
2. Forward foreign exchange provided for in Article 31 shall be valued, in principle, atthe middle rate of the telegraphic transfer buying or selling rate in Japan as of thecalculation date.
Article 10 (Description of Beneficial Interests with Different Trust Dates)
The beneficial interests in this Trust shall not be treated differently depending on
trust dates.
Article 11 (Attribution of Beneficial Interests and Non-issuance of Beneficiary Certificates)
1. The provisions of the Book-Entry Transfer Act shall apply to all the beneficial
interests in this Trust. The attribution of beneficial interests shall be determinedby entry or record in a book-entry transfer account book of a book-entry transfer
institution agreed by the Trustor to deal with the beneficial interests in this Trust inadvance (which refers to the “Book-Entry Transfer Institution” as defined in Article
2 of the Book-Entry Transfer Act; hereinafter referred to as the “Book-Entry Transfer
Institution”) and any account management institution subordinate to such BookEntry Transfer Institution (which refers to the “account management institution” asdefined in Article 2 of the Book-Entry Transfer Act; collectively with the Book-Entry
Transfer Institution, hereinafter referred to as the “Book-Entry Transfer Institution,
Etc.”) (beneficial interests determined by entry or record in a book-entry transfer
account book shall be hereinafter referred to as the “Book-Entry Transfer Beneficial
Interests”).
74

2.

3.

The Trustor shall not issue beneficiary certificates representing the Book-Entry
Transfer Beneficial Interests when the designation of the Book-Entry Transfer
Institution dealing with the beneficial interests in this Trust by the Minister in charge
is cancelled by the provisions of the Book-Entry Transfer Act or when suchdesignation becomes invalid, except for the cases where there exists no one who
succeeds to the transfer business of such Book-Entry Transfer Institution or there areother unavoidable circumstances.
In addition, beneficiaries shall not make a request to convert their bearer beneficiary
certificates into registered beneficiary certificates, to convert their registeredbeneficiary certificates into bearer beneficiary certificates, or to reissue beneficiary
certificates unless the Trustor issues beneficiary certificates due to unavoidable
circumstances.
The Trustor shall, as regards the beneficial interests divided by the provisions ofArticle 7, notify the Book-Entry Transfer Institution of the matters provided for in
the Book-Entry Transfer Act for a new entry or record in a book-entry transfer
account book of the Book-Entry Transfer Institution, Etc. The Book-Entry Transfer
Institution, Etc. shall, if there is a notification from the Trustor to the Book-Entry
Transfer Institution, make a new entry or record in the book-entry transfer accountbook managed by such Book-Entry Transfer Institution, Etc. in accordance with theprovisions of the Book-Entry Transfer Act.

Article 12 (Notification by Trustee of Creation of Beneficial Interests)
The Trustee shall notify the Book-Entry Transfer Institution that a trust in respectof the relevant beneficial interests has been created on the day when the Trust Deedis executed as regards the beneficial interests provided for in Article 3, Paragraph 1
or otherwise upon each addition as regards the beneficial interests created throughadditional trust, in such way as designated by the Book-Entry Transfer Institution.
Article 13 (Subscription Method, Subscription Unit and Value of Beneficial Interests)
1. The Type 1 financial instruments business operator designated by the Trustor (whichrefers to a person who conducts the Type 1 financial instruments business provided
for in Article 28, Paragraph 1 of the Financial Instruments and Exchange Act
designated by the Trustor; the same shall apply hereinafter) may deal for theapplicant with the subscription for the beneficial interests divided pursuant to theprovision of Article 7, Paragraph 1 in units equal to or more than 1,000 designated by
the Type 1 financial instruments business operator designated by the Trustor.
2. The applicant referred to in the preceding paragraph shall indicate an account of theBook-Entry Transfer Institution, Etc. to be used for the transfer of beneficial interestsin the Trust established for such applicant to the Type 1 financial instruments
business operator designated by the Trustor at the time of or prior to the subscription,in which increases in the number of units held by the applicant shall be described orrecorded. The Type 1 financial instruments business operator designated by theTrustor may describe or record increases in the number of units held by the applicant
in such account in exchange for payment of subscription (which refers to the amountobtained by multiplying the value of the beneficial interests provided for in Paragraph
4 by the number of units of such subscription).
3. Notwithstanding the provisions set forth in Paragraph 1 above, if the subscription
date falls within two (2) business days, beginning two business days before the last
day of each calculation period set forth in Article 34 hereof (if the last day of thecalculation period is a holiday, then within three (3) business days, beginning threebusiness days before the last day of each calculation period), the Type 1 financial
instruments business operator designated by the Trustor shall not handle suchapplication, in principle.
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5.

6.

The value of beneficial interests as referred to in Paragraph 1 above shall be the Net
Asset Value per Unit as of the subscription date; provided that the value of thebeneficial interests subscribed prior to the day when the Trust Deed is executed shallbe 1,000 yen per unit.
At the time of its acceptance of subscription, the Type 1 financial instruments
business operator designated by the Trustor may charge applicants its own specified
fees and the consumption and local taxes (hereinafter referred to as the “Consumption
Tax, Etc.”) thereon.
Notwithstanding the provisions of each of the preceding paragraphs, the Trustor shallbe entitled to suspend the acceptance of subscriptions of beneficial interests or cancel
the subscriptions thereof already accepted when there are unavoidable circumstancessuch as suspension of trading, suspension of foreign exchange trading or suspensionof the settlement function on the relevant financial instruments exchange (whichrefers to a financial instruments exchange prescribed in Article 2, Paragraph 16 of
the Financial Instruments and Exchange Act and a foreign financial instruments
market prescribed in Article 2, Paragraph 8, Item 3-b of the Financial Instruments
and Exchange Act; the same shall apply hereinafter).

Article 14 (Listing on Financial Instruments Exchange)
1. The Trustor shall apply for listing of the beneficial interests in the Trust on a financial
instruments exchange, which shall be listed on the market established by theexchange upon approval given by it in accordance with its specified rules andregulations.
2. In the event of the beneficial interests in the Trust being listed on any financial
instruments exchange as set out in the preceding paragraph, the Trustor shall comply
with the rules and regulations defined by the exchange as well as with such delistingor suspension of trading or any such other action as may be taken for the beneficial
interests by the exchange under its rules and regulations.
Article 15 (Entries or Records in the Transfer of Beneficial interests)
1. If a beneficiary transfers its beneficial interests, the beneficiary shall make a requestof transfer to the Book-Entry Transfer Institution, Etc. managing the book-entry
transfer account book in which the beneficial interests to be transferred are listed orrecorded.
2. In the case of the above-mentioned request, the Book-Entry Transfer Institution, Etc.,
shall describe or record the decrease of the beneficial interests held by the transferor
as well as the increase of the beneficial interests held by the transferee in the bookentry transfer account book managed by the Book-Entry Transfer Institution, Etc.
Provided, however, that if the Book-Entry Transfer Institution, Etc. has notestablished the transferee account, it shall notify such other Book-Entry Transfer
Institution, Etc. which has established such transferee account (including upper
positioned institutions of such other Book-Entry Transfer Institution, Etc.) pursuant
to the Book-Entry Transfer Act thereof to ensure that such other Book-Entry Transfer
Institution, Etc. describes or records the increase of the beneficial interests in thetransferee account.
3. Upon conducting the transfer set forth in Paragraph 1, the Trustor may set a transfer
suspension date or transfer suspension period if it considers necessary or judges that
there are unavoidable circumstances, such as the case where the Book-Entry Transfer
Institution, Etc. managing the book-entry transfer account book in which thebeneficial interests to be transferred are listed or recorded differs from the BookEntry Transfer Institution, Etc. which has established the transferee account.

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Article 16 (Requirements for Perfection of Transfer of Beneficial Interests)
Transfer of beneficial interests may not be asserted against the Trustor or Trustee
unless listed or recorded in the book-entry transfer account book under the provisionsof the preceding Article.
Article 17 (Preparation of Register of Beneficiaries and Registration of Beneficiaries)
1. The Trustee shall prepare a register of beneficiaries for the Trust and register theholders of beneficial interests notified by the Book-Entry Transfer Institution
pursuant to the Book-Entry Transfer Act, any relevant laws, regulations and rules asof the last day of the calculation period and the termination date of the Trust byentering its name or corporate name, address and any other matters specified by theTrustee in the register of beneficiaries as the beneficiaries of the beneficial interests
listed or recorded in such book-entry transfer account book managed by the BookEntry Transfer Institution, Etc. The Trustee, however, may enter into a delegation
contract with another securities agency company or any such other party as it may
deem eligible to delegate the preparation of the register to such company or party.
2. Any beneficiary may request its name to be entered in the register referred to in thepreceding paragraph through a member of the financial instruments exchange on
which the beneficial interests in this Trust are listed (which is an accountmanagement institution; the same shall apply hereinafter). In such a case, suchmember may charge the beneficiary its own specified fees and the Consumption Tax,
Etc. thereon; provided that securities and financial companies may affect any suchentry as set out in the preceding paragraph directly to the Trustee (or any such party
to which the Trustee has delegated the preparation of the register as set out in thepreceding paragraph).
Article 18 (Types of Assets in Which the Trust May Invest)
The types of assets in which this Trust may invest (which refer to such specific assets
as provided for in each item of Article 3 of the Order for Enforcement of the Act on
Investment Trusts and Investment Corporations) shall be as listed below:
1) securities;2) interests in derivatives transactions (as defined in Article 2, Paragraph 20 of the
Financial Instruments and Exchange Act but limited to those provided for in
Article 24, Article 25 and Article 26 hereof);3) monetary claims; and4) promissory notes.
2. In addition to the assets listed in each item of the preceding paragraph, this Trust
may invest in the following assets:
1) bills of exchange.
Article 19 (Scope of Investment Instructions, Etc.)
1. The Trustor shall give instructions so that the trust funds are invested primarily inthe following securities (excluding the rights deemed as securities provided for in
Article 2, Paragraph 2 of the Financial Instruments and Exchange Act):1) equities (share certificates) or subscription warrants of shares;
2) government securities;3) municipal securities;4) debt instruments issued by corporations pursuant to special laws;5) corporate bonds (excluding subscription warrants of corporate bonds with
subscription warrants which comprises subscription warrants and corporate
bonds (hereinafter referred to as “Corporate Bonds with Detachable Subscription
Warrants”));
6) specified corporate bonds (which refer to those specified in Article 2, Paragraph
1, Item 4 of the Financial Instruments and Exchange Act);772.

7) commercial papers;
8) subscription warrants (including subscription warrants of the Corporate Bonds
with Detachable Subscription Warrants; the same shall apply hereinafter) andsubscription rights;
9) securities or instruments issued by a foreign country or a foreign person whichhave the nature of the securities or instruments set forth in each of the preceding
items;
10) beneficiary certificates of an investment trust or a foreign investment trust(which refer to those specified in Article 2, Paragraph 1, Item 10 of the Financial
Instruments and Exchange Act);11) investment securities or foreign investment securities (which refer to thosespecified in Article 2, Paragraph 1, Item 11 of the Financial Instruments andExchange Act; the same shall apply in the following item) other than those set
forth in the following item;
12) investment corporation bonds (which refer to those specified in Article 2,
Paragraph 1, Item 11 of the Financial Instruments and Exchange Act; the same
shall apply hereafter in this item) or foreign investment securities similar toinvestment corporation bonds;
13) trust beneficiary certificates on foreign loan claims (which refer to those specified
in Article 2, Paragraph 1, Item 18 of the Financial Instruments and ExchangeAct);14) securities or instruments evidencing options (which refer to those specified in
Article 2, Paragraph 1, Item 19 of the Financial Instruments and Exchange Act,but limited to those with respect to securities);15) depository receipts (which refer to those specified in Article 2, Paragraph 1, Item
20 of the Financial Instruments and Exchange Act);16) negotiable certificates of deposit issued by a foreign corporation;17) beneficiary certificates of designated money trusts (limited to the beneficiary
certificates of the trusts issuing beneficiary certificates specified in Article 2,
Paragraph 1, Item 14 of the Financial Instruments and Exchange Act);18) trust beneficial interests on loan claims which should be classified as thebeneficiary certificates of the trusts issuing beneficiary certificates specified in
Article 2, Paragraph 1, Item 14 of the Financial Instruments and Exchange Act;19) interests in a foreign person which have the nature of the securities set forth in
the preceding item.
Provided that, with respect to the securities or the instruments set forth in Item 1 as
well as the securities or the instruments set forth in Item 9 and Item 15, those with
the nature of the securities or the instruments set forth in Item 1 shall be hereinafterreferred to as “Equities”, and with respect to the securities set forth in Item 2 through
Item 6 as well as the securities set forth in Item 12 as well as the securities or the
instruments set forth in Item 9 and Item 15, those with the nature of the securities
set forth in Item 2 through Item 6 shall be hereinafter referred to as the “Bonds andDebentures”, and the securities set forth in Item 10 and Item 11 shall be hereinafterreferred to as the “Investment Trust Securities”.
Notwithstanding the provisions of the preceding paragraph, the Trustor may give
instructions so that the trust funds are invested in the financial instruments listed
below (including the rights deemed as securities provided for in each of the items of
Article 2, Paragraph 2 of the Financial Instruments and Exchange Act) when the
Trustor deems it necessary to do so in investment management to cope with thecreation, or redemption of this Trust or for the purpose of taking appropriate
measures against any change in the investment environment or otherwise:1) deposits;

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2) designated money trusts (excluding trusts issuing beneficiary certificates as
defined in Article 2, Paragraph 1, Item 14 of the Financial Instruments andExchange Act);3) call loans;4) notes traded in a discounted notes market;5) trust beneficial interests on loan claims specified in Article 2, Paragraph 2, Item
1 of the Financial Instruments and Exchange Act;6) interests in a foreign person which have the nature of the interests set forth in
the preceding item.
The Trustor shall not give any instruction so that the aggregate market value of theInvestment Trust Securities attributable to the trust assets (excluding theInvestment Trust Securities listed on a Financial Instruments Exchange, and at any
time available for sale on such exchange (except for the cases where liquidity is
temporarily reduced due to sudden fluctuation in the market, etc.)) would exceed
5/100 of the aggregate amount of the trust assets.

Article 20 (Transactions, Etc. with Interested Persons, Etc.)
1. The Trustee may, upon instructions of the Trustor, invest in the assets set forth in
Article 18 as well as Article 19, Paragraph 1 and Paragraph 2 between the trust assets
as well as other trust assets of the Trustee (including transactions and other actions
executed for the trust assets with a third party in which the Trustee acts on behalf ofsuch third party) and an interested person of the Trustee (as defined in Article 29,
Paragraph 2, Item 1 of the Trust Business Act applied mutatis mutandis pursuant to
Article 2, Paragraph 1 of the Act on Provision, etc. of Trust Business by Financial
Institutions; the same shall apply hereafter in this paragraph, Paragraph 3 andArticle 32), the person to whom trust business is delegated pursuant to Article 32,
Paragraph 1 and his interested person or trustee; provided that such investment
would not hinder the protection of beneficiaries nor violate the Trust Business Act,
the Act on Investment Trusts and Investment Corporations as well as any relevantlaws and regulations.
2. The treatment set forth in the preceding paragraph shall also apply to thetransactions upon instructions of the Trustor specified in Article 22 through Article
29, Article 31, and Article 35 through Article 37.
3. The Trustee may, on the account of the Trustee or an interested person of the Trustee,
execute any transaction or other actions which the Trustee may execute in the courseof handling the trust business under the authority as trustee of this Trust. This
shall also apply to the case where an interested person of the Trustee executes suchtransactions, etc. on the account of such interested person.
4. The Trustor may give instructions to invest in the assets set forth in Article 18 as well
as Article 19, Paragraph 1 and Paragraph 2 as well as to execute transactions set
forth in Article 22 through Article 29, Article 31, and Article 35 through Article 37
and other similar actions between the trust assets and other trust assets of theTrustor, its director, executive officer and interested person (which refer to parent
companies and subsidiaries, etc. specified in Article 31-4, Paragraph 3 and Paragraph
4 of the Financial Instruments and Exchange Act) or those for whose management
the Trustor gives instructions, and the Trustee may, upon instructions of the Trustor,
make such investment as well as execute such transactions and actions; provided thatsuch investment would not violate the Financial Instruments and Exchange Act, theAct on Investment Trusts and Investment Corporations as well as any relevant laws
and regulations.
5. In the case of the preceding four items, the Trustor and the Trustee shall not provide
such notice to beneficiaries as provided for in Article 31, Paragraph 3 and Article 32,
Paragraph 3 of the Trust Act.
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Article 21 (Basic Policies for Investment Management)
The Trustor shall give instructions concerning management of the trust assets based
upon the basic policies as described in each of the following items:1) this Trust invests in the constituent shares of the “JPX-Nikkei Index 400”
(including DR (depository receipts)) with the aim of matching the volatility of the
net asset value per unit of the trust assets with the volatility of the relevant
index (this Trust shall follow the “JPX-Nikkei Index 400”;2) in each of the following events, the Trustor may give instructions to adjust thecomposition of the trust assets pursuant to the basic policy as described in Item
1 above:a. if the calculation method of the JPX-Nikkei Index 400 has been changed;b. if the aggregate market value of any of the constituent shares of the JPXNikkei Index 400 has been revised reflecting a change of the constituent
shares of the JPX-Nikkei Index 400, capital movements, etc.;
c. if any instruction is given for making additional trust and partial
redemption;d. any other case where the Trustor considers necessary in order to maintaintracking.
3) to realize the same gains and losses similar to holding the underlying assets, theTrust may execute securities index futures trading, etc. set forth in Article 24
hereof according to the funds movement for the purpose of achieving a closer
tracking to the JPX-Nikkei Index 400,.
4) when there are unavoidable circumstances such as sudden fluctuation in themarket, as well as the remaining trust term or the outstanding principal likely
to hinder management, investment management as described above may be
impracticable.
5) no restriction shall be placed on the ratio of shares in the investment portfolio.
6) the proportion of investment in investment trust securities (excluding listed
investment trust securities) may not exceed 5% of the total value of the trust
assets.
7) no restriction shall be placed on the proportion of investment in foreign currency
denominated assets.
8) Equity, debt, and derivative are the categories of exposures prescribed in therules of The Investment Trusts Association, Japan. With regard to the exposures,in principle, the individual category’s exposure to a certain interest counterparty,
the kind of a counterparty prescribed in the rule, shall not exceed 10% of the total
net asset value of the trust assets. And all the categories’ exposure to a certain
counterparty shall not exceed 20%. If the ratio exceeds the limit, the Trustor
shall carry out adjustment to keep within the limit pursuant to the rules of The
Investment Trusts Association, Japan.
Article 22 (Scope of Equities, Etc. to Invest In)
1. The Trustor shall give instructions to invest in equities, subscription warrants andsubscription rights issued by the Issuing Companies whose equities, etc. are listed onany market established by a financial instruments exchange (including the casewhere such equities, etc. are traded in a market, etc. similar to such market as
established by a financial instruments exchange; the same shall apply hereafter inthis article), except for those equities, subscriptions warrants and subscription rights
acquired by way of allotment to shareholders or bond holders.
2. Notwithstanding the provisions of the preceding paragraph, the Trustor may give
instructions to invest in equities, subscription warrants and subscription rights
which are scheduled to be listed and in respect of which prospectus or any otherdocument indicates such listing.
80Article 23 (Scope of Instructions for Margin Tradings)
1. For efficient management of the trust assets, the Trustor may give instructions to sellshares on margin; provided that the Trustor may also give instructions to settle such
sale by way of delivery or repurchase of the relevant share certificates.
2. The instructions for margin tradings provided for in the preceding paragraph shallbe such that the aggregate market value of the unsettled position of such sale iswithin the extent of the Total Net Asset Value of the trust assets.
3. In the event that the aggregate market value of the unsettled position of the saleprovided for in the preceding paragraph exceeds the Total Net Asset Value of the trust
assets due to partial redemption of the trust assets or any other reason, the Trustor
shall immediately give instructions for settlement of such part of the sale asequivalent to the amount in excess.
Article 24 (Management Instructions for Futures Tradings, Etc.)
1. To realize the same gains and losses similar to holding the underlying assets, and to
avoid price fluctuation risk, the Trustor may give instructions to execute securities
futures tradings (which refer to those specified in Article 28, Paragraph 8, Item 3 of
the Financial Instruments and Exchange Act), securities index, etc. futures tradings(which refer to those specified in Article 28, Paragraph 8, Item 3-b of the Financial
Instruments and Exchange Act) and securities option tradings (which refer to thosespecified in Article 28, Paragraph 8, Item 3-c of the Financial Instruments andExchange Act) on financial instruments exchanges in Japan as well as any trading
similar thereto on foreign financial instruments exchanges; provided that puts andcalls shall be included in option tradings (the same shall apply hereinafter).
2. To realize the same gains and losses similar to holding the underlying assets, and to
avoid currency fluctuation risk, the Trustor may give instructions to execute currency
futures tradings on financial instruments exchanges in Japan as well as currency
futures tradings and option tradings on foreign financial instruments exchanges.
3. To realize the same gains and losses similar to holding the underlying assets, and to
avoid price fluctuation risk, the Trustor may give instructions to execute interest rate
futures tradings and option tradings on financial instruments exchanges in Japan aswell as any trading similar thereto on foreign financial instruments exchanges.
Article 25 (Management Instructions for Swap Tradings)
1. To realize the same gains and losses similar to holding the underlying assets, and to
avoid price fluctuation risk and currency fluctuation risk, the Trustor may give
instructions to execute tradings which swap different currencies, different coupons or
different coupons plus their principals under certain conditions (hereinafter referred
to as “Swap Tradings”).
2. Upon giving instructions as to Swap Tradings, the term of such trading shall not in
principle exceed the trust term provided for in Article 4, except for the cases wheresuch trading may be wholly cancelled within such trust term.
3. Swap Tradings shall be valued based on the value calculated by the opposite parties
of such trading contracts at the prevailing market rate, etc.
4. The Trustor shall give instructions for provision or acceptance of any collateral on
Swap Tradings if it deems it necessary to do so at the time of the Swap Tradings.
Article 26 (Management Instructions for Forward Rate Agreements and Forward Exchange
Agreements)
1. To realize the same gains and losses similar to holding the underlying assets, and to
avoid price fluctuation risk and currency fluctuation risk, the Trustor may give
instructions to execute forward rate agreements and forward exchange agreements.
2. Upon giving instructions as to forward rate agreements and forward exchange
agreements, the settlement date of such agreement shall not be later than the
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4.

termination date of the trust term provided for in Article 4, except for the cases wheresuch agreement may be wholly cancelled within such term.
Forward rate agreements and forward exchange agreements shall be valued based on
the value calculated by the opposite parties of such agreements at the prevailingmarket rate, etc.
The Trustor shall give instructions for provision or acceptance of any collateral on
forward rate agreements and forward exchange agreements, if it deems it necessary
to do so at the time of such agreements.

Article 27 (Instructions for and Scope of Lending of Securities)
1. For efficient management of the trust assets, the Trustor may give instructions forlending of any Equities, Bonds and Debentures, as well as listed Investment Trust
Securities attributable to the trust assets to the extent specified in each item below::1) as for lending of Equities, the aggregate market value of such lent Equities as at
such lending shall not exceed the aggregate market value of the Equities held in
the Trust;2) as for lending of Bonds and Debentures, the aggregate nominal amount of such
lent Bonds and Debentures as at such lending shall not exceed the aggregate
nominal amount of the Bonds and Debentures held in the Trust;3) as for lending of listed Investment Trust Securities, the aggregate market valueof such lent listed Investment Trust Securities as at such lending shall not exceed
the aggregate market value of the listed Investment Trust Securities held in the
Trust.
2. In the event that the relevant lending is made in excess of the amount of the limit
specified in each item of the preceding paragraph, the Trustor shall immediately give
instructions for cancellation of such part of the loan agreement as equivalent to theamount in excess.
3. The Trustor shall give instructions for the acceptance of any collateral on the lendingof securities if it deems it necessary to do so at the time of the lending.
Article 28 (Scope of Instructions for Short Selling of Bonds and Debentures)
1. For efficient management of the trust assets, the Trustor may give instructions to sell
any Bonds and Debentures which are not attributable to the trust assets on theaccount of the trust assets; provided that the Trustor may also give instructions tosettle such sale by way of delivery or repurchase of the relevant Bonds andDebentures (including such Bonds and Debentures borrowed with the trust assets).
2. The instructions for sale provided for in the preceding paragraph shall be such thatthe aggregate market value of the Bonds and Debentures to be sold is within theextent of the Total Net Asset Value of the trust assets.
3. In the event that the aggregate market value of the Bonds and Debentures to be soldspecified in the preceding paragraph exceeds the Total Net Asset Value of the trust
assets due to partial redemption of the trust assets or any other reason, the Trustor
shall immediately give instructions for settlement of such part of the sale asequivalent to the amount in excess.
Article 29 (Borrowing of Bonds and Debentures)
1. For efficient management of the trust assets, the Trustor may give instructions toborrow any Bonds and Debentures; provided that the Trustor shall give instructions
for provision of any collateral on the borrowing of Bonds and Debentures if it deems
it necessary to do so at the time of the borrowing.
2. The instructions provided for in the preceding paragraph shall be such that theaggregate market value of the Bonds and Debentures to be borrowed is within theextent of the Total Net Asset Value of the trust assets.
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4.

In the event that the aggregate market value of the Bonds and Debentures to beborrowed specified in the preceding paragraph exceeds the Total Net Asset Value ofthe trust assets due to partial redemption of the trust assets or any other reason, theTrustor shall immediately give instructions for return of such part of the borrowed
Bonds and Debentures as equivalent to the amount in excess.
The fees for the borrowing specified in Paragraph 1 shall be paid out of the trust
assets.

Article 30 (Restrictions on Investment in Foreign Currency Denominated Securities in Special
Cases)
Investment in Foreign Currency Denominated Securities may be subject to restriction
if such restriction is deemed necessary for international trade balance of Japan or
any other reason.
Article 31 (Instructions for foreign exchange forwards)
1. To realize the same gains and losses similar to holding the underlying assets, and to
avoid currency fluctuation risk, the Trustor may give instructions for foreignexchange forward contracts.
2. Instructions for foreign exchange forward contracts shall be such that the Japanese
yen equivalent of the difference between the total amount of the purchase contractsof foreign exchange forward contracts for the trust assets and the total amount of theselling contract thereof does not exceed the total net asset value of the trust assets.
However, this would not apply to instructions to engage in foreign exchange forward
contracts entered into for the purpose of avoiding foreign currency risk in regards
trust assets that are denominated in foreign currencies.
3. In the event that the amount exceeds limit specified in the preceding paragraph, theTrustor shall within the specified period give instructions for foreign exchange
forward contracts in order to cancel such part of the forward contracts as equivalent
to the amount in excess.
Article 31-2 (Restrictions on investment regarding derivative transactions, etc.)
The derivative transactions shall be such that the amount calculated in a reasonable manner
pursuant to the rules of the Investment Trusts Association, Japan does not exceed the total
net asset value of the trust asset.

Article 32 (Delegation of Trust Business, Etc.)
1. When the Trustee entrusts part of the trust business as defined in Article 22,
Paragraph 1 of the Trust Business Act upon consultation with the Trustor, the Trustee
shall select a person who meets all of the following requirements (including aninterested person of the Trustee) as the person to whom such trust business isdelegated:
1) in light of the credibility of the person to whom such trust business is delegated,
there is no concern for the continuous performance of the business by the person;2) in light of the person’s past performance in the business to be delegated, theperson is deemed to have the ability to properly process the business to bedelegated; and3) the person has a management system for example to manage the assets
belonging to the trust assets to be entrusted separately from his own assets andother property.
4) the person has a system to properly carry out the business related to internalmanagement.
2. The Trustee shall, in selecting a person to whom such trust business is delegatedprovided for in the preceding paragraph, confirm that the person meets therequirements set forth in each of the items of the preceding paragraph.
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Notwithstanding the preceding two paragraphs, the Trustee may delegate thebusiness set forth in each of the following items to a person (including an interested
person of the Trustee) deemed to be appropriate by both the Trustee and Trustor:
1) the business concerning the maintenance of the trust assets;
2) the business for the use or improvement of the trust assets to the extent it does
not change the nature of the trust assets;
3) the business related to the activities required for the disposal of the trust assets
or achievement of other trust objectives carried out solely under the instructionsof the Trustor; and4) the activities to provide support functions for the Trustee to carry out its business.

Article 33 (Commingled Deposit)
Any certificate of deposit or commercial paper issued in a foreign country by afinancial institution or financial instruments business operator (which refers to aperson who conducts the Type 1 financial instruments business provided for in Article
28, Paragraph 1 of the Financial Instruments and Exchange Act and any corporation
similar to such person incorporated pursuant to foreign laws and regulations; thesame shall apply hereafter in this Article)), which has been obtained through atransaction executed in yen and settled in yen with respect to the transaction value
and redemption, etc., may be commingled and deposited with the custodian withwhich such financial institution or financial instruments business operator has
executed a custody agreement, in the name of such financial institution or financial
instruments business operator.
Article 34 (Retention, Etc. of Registration, Entry, Etc. of Trust Assets)
1. The trust assets, the registration or recording of which is possible, shall be registeredor recorded; provided that, when the Trustee permits, such, registration or recording
may be suspended.
2. Notwithstanding the proviso in the preceding paragraph, when the Trustor or the
Trustee deems it necessary to protect the beneficiaries, registration or record shall bemade immediately.
3. The trust assets that can be listed or recorded as being attributable to the trust assets
shall be listed or recorded as being attributable to the trust assets and shall beclassified and managed by a method to clarify the calculation; provided that, when
the Trustee permits, it may be classified and managed in a way that clarifies thecalculation method.
4. Personal property (excluding money) may be classified and managed in a way thatmakes it distinguishable by outward appearance or a way that clarifies thecalculation method.
Article 35 (Instructions for Sale, Etc. of Securities)
The Trustor may give instructions for sale, etc. of any securities attributable to thetrust assets.
Article 36 (Instructions for Reinvestment)
The Trustor may give instructions to reinvest any proceeds from such sale as set forthin the provisions of the preceding Article, any redemptions, etc. in respect of securities,
any distributions on settlement of equities, any interests, etc. in respect of securities,
etc., dividends on equities and any other accounts receivable.
Article 37 (Borrowing of Funds)
1.
For efficient management of the trust assets and stability of management, theManagement Company may give instructions to borrow funds (including borrowing
through the call market) in order to finance payments associated with redemption
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3.

4.

(including repayment of the funds borrowed to finance such payment of redemption).
Such borrowings shall not be used for the investment management of securities.
The amount of the funds to be borrowed in accordance with the preceding paragraphshall be within the extent which meets the requirements set forth in each of thefollowing items:
1) for financing redemption payments, the amount borrowed is within an amountdetermined to be received from sale or redemption of securities for the purposeof financing redemption payment.; and2) the amount borrowed is within the net asset value of trust assets on the day theborrowing instructions are given.
The borrowing period in order to finance the payment for redemption shall be theperiod from the date on which payment of redemption money to beneficiaries iscommenced to the date on which proceeds from the sale of the securities, etc. held in
the trust assets are delivered, or the period from the date on which payment ofredemption money to beneficiaries is commenced to the date on which redemption
money of the securities, etc. held in the trust assets are paid, the period from the dateon which payment of redemption money to beneficiaries is commenced to the date on
which redemption money of the securities held in the trust assets are paid, whicheveris five (5) business days or shorter.
Interests on the borrowings shall be paid out of the trust assets.

Article 38 (Attribution of Profit and Loss)
Any profit and loss of the trust assets resulting from any act taken in accordance with
the Trustor’s instructions shall be attributable to the beneficiaries.
Article 39 (Advance Payment of Funds by the Trustee)
1. With respect to any securities attributable to the trust assets, the Trustee may, uponrequest of the Trustor, make advance payment of funds in the event of refinancing,
conversion, new shares issuance and share allotment.
2. If there exist any redemption money, etc. concerning securities, distributions on
settlement of equities, interests, etc. concerning securities, dividends on equities andother accounts receivable belonging to the trust assets, the amount of which can be
estimated on or prior to the termination date of the Trust, the Trustee may makeadvance payments and transfer these accounts to the trust assets.
3. Matters concerning settlement of, and interest on, the advance payments made under
the preceding two paragraphs shall be determined separately on a case-by-case basis
through consultations between the Trustor and the Trustee.
Article 40 (Calculation Period of Trust)
The calculation period of this Trust shall be from January 9 to July 8 of each year andfrom July 9 of each year to January 8 of the following year; provided, however, thatthe first calculation period shall begin on January 27, 2014 and end on July 8, 2014,
and the termination date of the final calculation period shall be the termination dateof the trust term provided for in Article 4 hereof.
Article 41 (Reports, Etc. on Trust Assets)
1. The Trustee shall calculate profits and losses at the end of each calculation period,
prepare a report on the trust assets and submit it to the Trustor.
2. At the termination of the Trust, the Trustee shall make final calculations, prepare areport on the trust assets and submit it to the Trustor.
3. The reports by the Trustor specified in the preceding two paragraphs shall replace
the reports to beneficiaries provided for in Article 37, Paragraph 3 of the Trust Act.
4. A beneficiary shall not be able to request the Trustee for inspection or copying of any
document pursuant to Article 38, Paragraph 1 of the Trust Act other than information85

indispensable for preparation of the documents or electronic records provided for in
Article 37, Paragraph 2 of the Trust Act, other important information concerning theTrust and information which will not damage the interests of any party other thansuch beneficiary.
Article 42 (Expenses for Trust Business)
1. Any and all taxes imposed on the trust assets, expenses resulting from conducting
trust business, interest on the advance payments made by the Trustee, (collectively
with the expenses specified in each item of Paragraph 2, hereinafter referred to as“Expenses”) shall be borne by the beneficiaries and paid out of the trust assets.
2. In addition to the expenses specified in the preceding paragraph, the following
expenses (including the amount equivalent to Consumption Tax, Etc. thereon) shallbe borne by the beneficiaries and paid out of the trust assets; provided that thefollowing includes the expenses for delegation of the business which falls under anyof Item 1 through Item 7, if applicable:
1) expense for accounting (e.g. creation and redemption handling, contract
processing, calculation of Net Asset Value per Unit, financial closing) and any
business incidental thereto (e.g. management of statutory books, statutory
reports);2) expense concerning the Book-Entry Transfer Beneficial Interests as well as
expense for issuance and management in the case where beneficiary certificatesare issued due to unavoidable circumstances;3) expense for preparation, printing and filing of securities registration statements(yûka-shôken todokede-sho), annual securities reports (yûka-shôken hôkokusho) and current reports (rinji hôkoku-sho);4) expense for preparation, printing and delivery of prospectuses and preliminary
prospectuses (including the corrections thereof, and including expense for filingwith the supervisory authorities, if applicable);5) expense for preparation, printing and delivery of the Trust Deed (including
expense for filing with the supervisory authorities, if applicable);6) expense for preparation, printing and delivery of disclosure documents such as
investment reports and statements of accounts (including expense for filing withthe supervisory authorities, if applicable);7) expense for public notices to the beneficiaries of the Trust as well as expense forpreparation, printing and delivery of documents containing matters regarding
amendment to or termination of the Trust Deed;8) expense required for obtaining ratings;
9) fees and expenses payable to the auditors, legal advisers and tax advisers of theTrust;
10) expense for listing of the beneficial interests; and11) royalties for the “JPX-Nikkei Index 400” and other similar marks.
3. The Trustor may make payment of the expenses specified in the preceding paragraphon behalf of the trust assets, be compensated for such payment out of the trust assets,
and set in advance a limit on the amount to be compensated for the actual payment
on behalf of the trust assets. In such a case, the Trustor may review such limit
periodically in consideration of the size, etc. of the trust assets.
4. Instead of being compensated for the actual payment in accordance with thepreceding paragraph, the Trustor may reasonably estimate the amount of such
expenses in advance, and be compensated out of the trust assets for the amountconsidered as expenses calculated by means of a reasonable estimation rate
regardless of the actual amount of expenses. In such a case, the Trustor shall set alimit on such estimation rate, within which the Trustor may at any time review such
estimation rate.
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6.

In the case of the preceding paragraph, the amount considered as expenses specified
in Paragraph 2 shall be the amount obtained by multiplying the Total Net Asset Valueof the trust assets by the estimation rate (the limit on the estimation rate provided
for in the preceding paragraph shall be 10/10,000 per annum), be recorded for all orpart of the trust term provided for in Article 4, and be paid out of the trust assets atthe time specified by the Trustor.
The Trustor may reconsider whether to adopt the method specified in Paragraph 3 or
the method specified in Paragraph 4 at any time during the trust term provided forin Article 4.

Article 43 (Amount of Trust Fees, Etc.)
1. The aggregate amount of the trust fees for the Trustor and the Trustee shall be theamount obtained by multiplying the Total Net Asset Value of the trust assets by
10/10,000 per annum or less for each day throughout the calculation period set out in
Article 40
2. The trust fees provided for in the preceding paragraph shall be paid out of the trust
assets at the end of each calculation period or at the time of termination of the Trust,and the allotment of such fees between the Trustor and the Trustee shall be
determined separately.
3. An amount equal to Consumption Tax, Etc. on the trust fees set out in Paragraph 1
shall be paid out of the trust assets at the time of paying such trust fees.
Article 44 (Amount of Other Fees)
1. The Trustor and the Trustee may receive fees of the amount calculated as follows:
1) In the event that the Trustor gives instructions for lending of securities provided
for in Article 27, such amount as obtained by multiplying the lending
commissions (excluding any amount equivalent to interest or dividends, etc. ofsuch lent securities; provided that, when cash is accepted as collateral upon
lending of securities, such amount of the lending commissions plus earnings that
could be considered as being derived from management of such cash from which
the interests on such cash payable to the borrower (if such amount is negative,
it shall be zero)) by 50/100 or less.
2. The fees provided for in the preceding paragraph shall be paid out of the trust assets
at the end of each calculation period or at the time of termination of the Trust, andthe allotment of such fees between the Trustor and the Trustee shall be determined
separately.
3. An amount equal to Consumption Tax, Etc. on the fees set out in Paragraph 1 shallbe paid out of the trust assets at the time of paying such fees.
Article 45 (Income Distributions)
1. With respect to income such as dividends derived from the trust assets (meaning asum of dividends, interest, lending commissions on securities loaned and any similar
income less interest payable; the same shall apply hereinafter) plus reserve for
distributions carried over from the preceding period, the remaining amount after
deducting the Expenses, fees and Consumption Tax, Etc. thereon specified in Article
43 and Article 44 as at the end of each calculation period and also covering in full a
deficiency in reserve for distributions carried over from the preceding period (if any)
shall be distributed to the beneficiaries; provided, however, that if the balanceobtained after the above deduction and covering is reserved, in part or in whole, inthe trust assets to adjust the income distribution amount, such sum may be retained
as a reserve for distributions to apply it to the distributions in the next period andthereafter. In addition, if the sum of the Expenses, fees and Consumption Tax, Etc.
thereon specified in Article 43 and Article 44 as well as a deficiency in reserve for87

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distributions may not be deducted in full, the amount not deducted shall be carriedover to the next period as a deficiency in reserve for distributions.
The sum of the income as listed in Item 1 below derived from the trust assets as at
the end of each calculation period shall, if there is any net operating loss carryforward
after deducting the loss as listed in Item 2 below, be carried over to the next period
after covering the amount in full:1) gains on trading of securities (including their unrealized gains), gains on tradingof futures, etc. (including their unrealized gains), gains on additional trust
creations and gains on redemption;2) losses on sales of securities (including their unrealized losses), losses on the
trading of futures, etc. (including their unrealized losses), losses on additional
trust creations and losses on redemption.

Article 46 (Payment of Partial Redemption Money and Releasing of the Trustee from Further
Payment)
1. The Trustee shall pay all the partial redemption money into the deposit account, etc.
designated by the Trustor no later than the payment date specified in Article 47,
Paragraph 6.
2. After the payment of the partial redemption money into the deposit account, etc.
designated by the Trustor in accordance with the provision of the preceding
paragraph, the Trustee shall not be liable for any payment to the beneficiaries.
Article 47 (Payment of Income Distributions, Redemption Money and Partial Redemption
Money)
1. With the persons whose names are entered in the register of beneficiaries set out in
Article 17 as of the day on which the calculation period ends as the beneficiaries as ofthe last day of the calculation period (hereinafter referred to as the “Beneficiaries
Whose Names Are Registered”), income distributions shall be paid to such
Beneficiaries Whose Names Are Registered.
2. Payment of the income distributions as set forth in the preceding paragraph shall bemade by the Trustee in principle on the day specified by the Trustor within forty (40)days after the last day of each calculation period by transferring such income
distributions to the deposit account, etc. designated in advance by the Beneficiaries
Whose Names Are Registered. In addition, when the Beneficiaries Whose Names Are
Registered have entered into a separate agreement on the handling of income
distributions with the members provided for in Article 17, Paragraph 2, the income
distributions shall be paid in accordance with such agreement.
3. With the persons whose names are entered in the register of beneficiaries set out in
Article 17 as of the termination date of the Trust as the beneficiaries as of thetermination date of the trust, redemption money shall be paid to such Beneficiaries
Whose Names Are Registered. In exchange for redemption of the Trust by theTrustor into the Book-Entry Transfer Institution, Etc. in which such account isestablished, such beneficiaries shall request the Trustor to delete the same numberof units as the number of the beneficial interests subject to such redemption, and thedecrease of such number of units shall be described or recorded in the account of such
Book-Entry Transfer Institution, Etc. in accordance with the provisions of the BookEntry Transfer Act.
4. Payment of the redemption money as set forth in the preceding paragraph shall bemade in principle by the Trustee or a member specified in Article 17, Paragraph 2 onthe day specified by the Trustor within forty (40) days after the termination date of
the Trust by transferring such redemption money to the deposit account, etc.
designated in advance by the Beneficiaries Whose Names Are Registered.
5. The Trustee may delegate the payment of the income distributions and theredemption money to the party to which the preparation of the register of
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beneficiaries has been delegated in accordance with the provisions of Article 17,
Paragraph 1.
The partial redemption money shall be paid to the relevant beneficiaries in principle
on or after the fourth (4th) business day from the day on which the requests by such
beneficiaries are accepted as provided for in Article 49, Paragraph 1.
Payment of the partial redemption money as set forth in the preceding paragraphshall be made at the place of business, etc. of the Type 1 financial instruments
business operator designated by the Trustor.

Article 48 (Prescription Period for Payment of Income Distributions and Redemption Money)
Beneficiaries shall, with respect to income distributions, lose their right if they fail toclaim the payment of the income distributions within five (5) years from the date ofcommencement of payment thereof specified in Article 47, Paragraph 1 or to claim
the payment of the redemption money within ten (10) years from the date ofcommencement of payment thereof specified in Article 47, Paragraph 3, and any
amount paid by the Trustee shall revert to the Trustor thereafter.
Article 49 (Partial Redemption)
1. In connection with their beneficial interests, beneficiaries may request the Trustor
for partial redemption on a unit basis equal to or more than 1,000.
2. Request by the beneficiaries for implementation of partial redemption specified in thepreceding paragraph shall be made to the Type 1 financial instruments business
operator designated by the Trustor with the Book-Entry Transfer Beneficial Interests.
3. Notwithstanding the provisions of the preceding two paragraphs, if the day on which
the request for implementation of partial redemption falls during the two (2) businessdays, beginning two business days before the last day of each calculation period set
forth in Article 34 hereof (if the last day of the calculation period is a holiday, thenduring the three (3) business days, beginning three business days before the last dayof each calculation period) of the Trust, such request for partial redemption of thebeneficial interests shall not be accepted.
4. When the Trustor accepts the request for implementation of partial redemption asprovided for in Paragraph 1, the Trustor shall instruct the Trustee to realize suchpart of the securities and other assets belonging to the trust assets as equivalent tothe share of the beneficial interests subject to such partial redemption in the trust
assets, and cancel part of the Trust Deed. In exchange for partial redemption of theTrust Deed by the Trustor into the Book-Entry Transfer Institution, Etc. in whichsuch account is established in accordance with the request by the beneficiaries, such
beneficiaries who makes the request for implementation of partial redemption
specified in Paragraph 1 shall request to delete the same number of units as thenumber of the beneficial interests subject to such partial redemption, and thedecrease of such number of units shall be described or recorded in the account of such
Book-Entry Transfer Institution, Etc. in accordance with the provisions of the BookEntry Transfer Act.
5. The value of the partial redemption specified in the preceding Paragraph shall be the
Net Asset Value per Unit as of the day of the request for implementation of partial
redemption.
6. When the beneficiaries request for implementation of redemption specified in
Paragraph 1, the Type 1 financial instruments business operator designated by theTrustor may charge such beneficiaries its own specified fees and the Consumption
Tax, Etc. thereon.
7. The Trustor shall be entitled to suspend the acceptance of requests for
implementation of partial redemption specified in Paragraph 1 or cancel the requests
therefor already accepted when there are unavoidable circumstances such as89

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suspension of trading, suspension of foreign exchange trading or suspension of thesettlement function on the relevant financial instruments exchange.
In the event of suspension of the acceptance of the requests for implementation ofpartial redemption as set out in the preceding paragraph, the beneficiaries may
withdraw their requests on such day as acceptance is suspended. In the event ofsuch request not being withdrawn by the beneficiaries, the value of partial
redemption of such beneficial interests shall be calculated consistent with theprovision of Paragraph 5 deeming the first calculation date of the Net Asset Value per
Unit after the lifting of such suspension (if this calculation date falls under a day on
which requests for partial redemption is not accepted as set out in Paragraph 3, thefirst day immediately after such calculation date on which a request for partial
redemption may be accepted) as the day of request for implementation of partial
redemption.

Article 50 (Calculation Method and Accounting Treatment of Partial Redemption Money)
1. Partial redemption money shall be the amount obtained by multiplying the Net Asset
Value per Unit of the business day immediately preceding the day on which partial
redemption is made by the number of the beneficial interests of such partial
redemption.
2. In the partial redemption of the beneficial interests as set out in the preceding Article,
a difference between the partial redemption money and the amount of principal shallbe treated as the redemption difference.
Article 51 (Purchase of Beneficial Interests)
1. If the total number of units of the beneficial interests held by a beneficiary is below
the trading unit of the beneficial interests as prescribed by the financial instruments
exchanges, the Type 1 financial instruments business operator designated by theTrustor shall purchase such beneficial interests upon request by the beneficiary.
2. The purchase price of the beneficial interests specified in the preceding paragraphshall be the Net Asset Value per Unit on the commitment date of purchase.
3. At the time of the purchase of beneficial interests under Paragraph 1, the Type 1
financial instruments business operator designated by the Trustor may charge thebeneficiaries an amount equivalent to its own specified fees and Consumption Tax,
Etc. thereon.
4. The Type 1 financial instruments business operator designated by the Trustor shallbe entitled to suspend the purchase of the beneficial interests under Paragraph 1 orcancel the committed purchases of beneficial interests upon consultation with theTrustor when there are unavoidable circumstances such as suspension of trading,suspension of foreign exchange trading or suspension of the settlement function on
the relevant financial instruments exchange.
5. In the event of suspension of purchase of the beneficial interests according to thepreceding paragraph, the beneficiaries may withdraw their requests for purchase on
such day as purchase is suspended. In the event of such request for purchase notbeing withdrawn by the beneficiaries, the purchase price of such beneficial interests
shall be calculated consistent with the provision of Paragraph 2 deeming the first
calculation day of the Net Asset Value per Unit after the lifting of such suspension as
the commitment date of purchase, and the provision set forth in the Paragraph 3 shallapply thereto mutatis mutandis.
Article 52 (Handling of Beneficial Interests Entered or Recorded in the Pledge Column)
Payment of income distributions, acceptance of a request for implementation ofpartial redemption, payment of partial redemption money and redemption money aswell as other matters relating to the beneficial interests entered or recorded in the90

pledge column of the book-entry transfer account book of the Book-Entry Transfer
Institution, Etc. shall be handled in accordance with the Trust Deed, the Civil Codeand other applicable laws.
Article 53 (Termination of the Trust Deed)
1. At any time during the trust term, in the event that the Total Net Asset Value falls
below five hundred million (500,000,000) yen, that the Trustor considers it favorable
for the beneficiaries to cancel the Trust Deed, or that there are unavoidable
circumstances, the Trustor may cancel the Trust Deed and terminate the Trust upon
agreement with the Trustee. In such a case, the Trustor shall previously notify thesupervisory authorities of its intention to cancel.
2. If any of the following items occurs during the trust term, the Trustor shall cancel theTrust Deed and terminate the Trust upon agreement with the Trustee. In such a case,
the Trustor shall previously notify the supervisory authorities of its intention tocancel:1) if the beneficial interests are delisted from all the financial instruments
exchanges on which they have been listed;
2) if the JPX-Nikkei Index 400 is abolished; or3) if any amendment to the Trust Deed deemed necessary by the Trustor or the
Trustee as a result of a change in the calculation method, etc. of the JPX-Nikkei
Index 400 is not made as such amendment does not comply with the provisionsof Article 58, Paragraph 4.
Provided that, with respect to Item 1, in the event of delisting from all the financial
instruments exchanges, the Trustor shall commence the procedure to terminate theTrust as of the day of such delisting.
3. As regards the matters set out in Paragraph 1, the Trustor shall adopt a written
resolution (hereinafter referred to as the “Written Resolution”). In such a case, theTrustor shall specify the day of the Written Resolution, reason for termination of theTrust Deed, etc. in advance and send a written notice of the Written Resolution
stating these matters to its known beneficiaries of the Trust Deed no later than two(2) weeks prior to the day of such resolution.
4. Upon the Written Resolution specified in the preceding paragraph, beneficiaries(excluding the Trustor and the Trustee as beneficiary of the beneficial interests of theTrust belonging to the trust assets of the Trust, if applicable; the same shall apply
hereafter in this paragraph) shall have voting rights according to the number of unitsof their beneficial interests and be entitled to exercise such voting rights. Unless the
known beneficiaries of the Trust Deed exercise the voting rights, such known
beneficiaries shall be deemed to have agreed to the Written Resolution.
5. The Written Resolution specified in Paragraph 3 shall be made by a majority
equivalent to two-thirds or more of the voting rights of the beneficiaries.
6. The provisions of Paragraph 3 through the preceding paragraph shall not apply if theTrust Deed is cancelled under the provisions of Paragraph 2 above, if, in view of thestatus of the trust assets, there are truly unavoidable circumstances, as well as if theTrustor proposes termination of the Trust Deed to which all the beneficiaries of theTrust Deed consent in writing or by electronic record.
Article 54 (Order of Supervisory Authorities on Trust Deed)
1. If the Trustor receives an order from the supervisory authorities to cancel the Trust
Deed, it shall cancel the Trust Deed and terminate the Trust in accordance with suchorder.
2. The Trustor shall comply with the provisions of Article 58 if it intends to amend theTrust Deed in accordance with the order given by the supervisory authorities.

91Article 55 (Action to Be Taken upon Cancellation of the Trustor’s License, etc.)
1. In the event that the Trustor’s license is revoked by the supervisory authorities or if
the Trustor is liquidated or discontinues its business, the Trustor shall cancel theTrust Deed and terminate the Trust.
2. Notwithstanding the provision of the preceding paragraph, if an order is issued by
the supervisory authorities to transfer the Trustor’s business under the Trust Deedto another investment trust management company, this Trust shall continue to be inforce between the said investment trust management company and the Trustee, inthe cases that fall under Article 58, Paragraph 4.
Article 56 (Action to Be Taken upon Transfer or Succession of Trustor’s Business)
1. The Trustor may transfer all or part of its business, in connection with which thebusiness under the Trust Deed may be transferred.
2. The Trustor may have all or part of its business succeeded by way of subdivision, in
connection with which the business under the Trust Deed may be subject to suchsuccession.
Article 57 (Action to Be Taken upon Resignation or Removal of the Trustee)
1. The Trustee may resign from its duties by obtaining approval of the Trustor. In theevent that the Trustee causes serious damage to the trust assets in violation of its
duties or upon occurrence of any other material events, the Trustor or beneficiaries
may request the court to remove the Trustee. If the Trustee has resigned or has been
removed by the court, the Trustor shall appoint a new trustee pursuant to Article 58;
provided that the beneficiaries shall not be able to remove the Trustee except for theremoval as set out above.
2. If the Trustor fails to appoint a new trustee, the Trustor shall cancel the Trust Deedand terminate the Trust.
Article 58 (Amendments, Etc. to Trust Deed)
1. When the Trustor deems it necessary for the benefit of the beneficiaries or there areunavoidable circumstances, the Trustor may, upon agreement with the Trustee,amend the Trust Deed or consolidate this Trust with other trusts (which refers to the“Consolidation of Investment Trusts Managed under Instructions from the Settlor”
provided for in Article 16, Paragraph 2 of the Act on Investment Trusts andInvestment Corporations; the same shall apply hereinafter), in which case the Trustor
shall notify the supervisory authorities in advance of its intention to makeamendments or a consolidation and the description thereof; provided that the Trust
Deed shall not be amended in any way other than that specified in this Article.
2. With respect to the matters set out in the preceding paragraph (as regards theamendments specified in the preceding paragraph, they shall be applied to only thosewhich are significant in nature; as regards the consolidations specified in thepreceding paragraph, the "minor" consolidations, as provided for in Paragraph 2 ofArticle 29 of the Order for Enforcement of the Act on Investment Trusts andInvestment Corporations, they shall be excluded; collectively with consolidation,
hereinafter referred to as the “Material Amendments to the Trust Deed”), the Trustor
shall adopt a Written Resolution. In such a case, the Trustor shall specify the day of
the Written Resolution, description of and reason for the Material Amendments to
the Trust Deed, etc. and send a written notice of the Written Resolution in advancestating these matters to its known beneficiaries of the Trust Deed no later than two(2) weeks prior to the day of such resolution.
3. Upon the Written Resolution specified in the preceding paragraph, beneficiaries(excluding the Trustor and the Trustee as beneficiary of the beneficial interests of theTrust belonging to the trust assets of the Trust, if applicable; the same shall apply
hereafter in this paragraph) shall have voting rights according to the number of units
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6.
7.

of their beneficial interests and be entitled to exercise such voting rights. Unless the
known beneficiaries of the Trust Deed exercise the voting rights, such known
beneficiaries shall be deemed to have agreed to the Written Resolution.
The Written Resolution specified in Paragraph 2 shall be made by a majority
equivalent to two-thirds or more of the voting rights of the beneficiaries.
The Written Resolution shall take effect against all the beneficiaries of the Trust
The provisions of Paragraph 2 through the preceding paragraph shall not apply if theTrustor proposes Material Amendments to the Trust Deed to which all thebeneficiaries of the Trust Deed consent in writing or by electronic record.
Notwithstanding the provisions of the preceding paragraphs, even if the Written
Resolution is adopted for consolidation in the Trust, in the event that the Written
Resolution for such consolidation is rejected in one or more other investment trusts
subject to such consolidation, no consolidation shall be exercisable with such otherinvestment trusts.

Article 59 (Right of Objecting Beneficiaries to Request Repurchase)In the event of the termination of the Trust Deed set forth in Article 53 or Material
Amendments to the Trust Deed under the preceding Article being made, thosebeneficiaries who have objected to such termination or Material Amendments to theTrust Deed in the Written Resolution may request the Trustee to repurchase theirbeneficial interests with any of the trust assets.
Article 60 (Limit on Request for Disclosure of Names, Etc. of Other Beneficiaries)
The beneficiaries of the Trust shall not be entitled to request the Trustor or the
Trustee for the disclosure of the following matters:
1) names or corporate names and addresses of the other beneficiaries;2) description of the beneficial interests held by the other beneficiaries.
Article 61 (Public Notices)
1. Public notices given by the Trustor to the beneficiaries shall be posted electronicallyon the following website:www.nikkoam.com/
2. Notwithstanding the provision of the preceding paragraph, in the event that it isdifficult to post an electronic public notice due to accident or unavoidable
circumstances, public notices shall be carried in the Nihon Keizai Shimbun.
Article 62 (Handling of Doubts Arising from Trust Deed)Any doubts arising in connection with the interpretation of the Trust Deed shall be
resolved through consultations between the Trustor and the Trustee.

93Supplementary Provisions
Article 1

2.

“Forward rate agreements” set out in Article 26 refer to a transaction where a figureof the interest rate of the receivables is previously determined under a deposit
agreement or a loan agreement to be published as the representative interest rate
domestically and internationally for the period between the settlement date on a
specific day in the future (hereinafter referred to as the “Settlement Date”) andthe day after a certain period of time from such Settlement Date (hereinafterreferred to as the “Maturity Date”) (hereinafter referred to as the “Index Interest
Rate”), and where the parties agree to pay and receive the money of such amountas the difference between such figure as determined and the actual figure of suchIndex Interest Rate as of the Settlement Date multiplied by the figure based on
the amount previously specified as the principal and the number of days agreed
upon between the parties, and discounted by the actual figure of such Index
Interest Rate as of the Settlement Date representing the present value as of theSettlement Date.
“Forward exchange agreements” set out in Article 26 refer to a transaction where a
spread of rates in swap (which refers to a figure representing the difference
between the exchange rate of the spot exchange transaction and the exchange rateof the forward exchange transaction; the same shall apply hereafter in this Article)of a foreign exchange swap (which refers to a transaction that contracts spot
exchange transaction and forward exchange transaction as a reversing trade ofsuch sport exchange transaction simultaneously between the same parties; thesame shall apply hereafter in this Article) is previously determined between theparties for the period between the Settlement Date and the Maturity Date, andwhere the parties agree to pay and receive the money of such amount as thedifference between such spread of rates in swap as determined and the actual
spread of rates in such foreign exchange swap as of the Settlement Date multipliedby the amount previously specified as the principal and discounted by the Index
Interest Rate as of the Settlement Date representing the present value as of theSettlement Date, or the difference between such spread of rates in swap asdetermined and the actual spread of rates in such foreign exchange swap as of theSettlement Date multiplied by the amount previously specified as the principal
plus the interest from the Settlement Date to the Maturity Date on the difference
between the forward exchange transaction using the amount previously specified
as the principal setting the date of delivery on the Settlement Date and thereversing trade thereof by spot exchange transaction on the Settlement Date anddiscounted by the actual figure of such Index Interest Rate as of the Settlement
Date representing the present value as of the Settlement Date.

In witness of the provisions described above, the Trust Deed has been executed by the parties
hereto as of the date written below.
January 27, 2014

Trustor:

7-1, Akasaka 9-chome, Minato-ku, Tokyo
Nikko Asset Management Co., Ltd.

Trustee:

4-1, Marunouchi 1-chome, Chiyoda-ku, Tokyo
Sumitomo Mitsui Trust Bank, Limited
94