PRESS RELEASE
13 SEPTEMBER 2023

NIKKO ASSET MANAGEMENT CO., LTD.

Nikko AM Launches “Listed Tracers” ETF Series,
Using Rules-Based Investing Approach“Listed Tracers US Government Bond 0-2 years Ladder” to be listed on TSE on 5 October
Nikko Asset Management Co., Ltd. (Nikko AM) has launched a new series of exchange tradedfunds (ETF) called “Listed Tracers”. The ETFs in the series “trace” or follow rules-based
investing for a low-cost, non-active approach.
The first in the “Listed Tracers” series of ETFs is "Listed Tracers US Government Bond 0-2 years
Ladder (No Currency Hedge)" (Securities code: 2093). It invests in US government bonds witha remaining maturity of two years or less. Nikko AM is scheduled to launch the ETF on 2
October and list it on the Tokyo Stock Exchange (TSE) on 5 October.
The TSE has recently introduced active ETFs (Domestic Actively Managed ETFs), which offers flexible management
without being tied to an index. This ETF is passively managed according to a rules-based approach, but as there is nocorresponding index to track, it falls under the category of "Domestic Actively Managed ETF" under TSE’s classification.

*The above are Nikko AM’s classifications, and may differ from other commonly held classifications.

The rules-based approach for "Listed Tracers US Government Bond 0-2 years Ladder (No Currency Hedge)" is it invests
into four groups of bonds according to their remaining maturities: 6 months or less, more than 6 months but less than
12 months, more than 12 months but less than 18 months, and more than 18 months but less than 24 months. The ETF
invests in each group in approximately equal amounts, taking into account liquidity and trading costs.

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In general, fixed income investments tend to provide more stable returns than other types of investments because,with the exception of default by the issuer, investors will receive the par value of their investments on the maturity date.
The ETF invests in US government bonds, which are considered to have relatively high creditworthiness amongdeveloped countries, with a remaining maturity of two years or less, and thus have an early maturity cycle and relatively
low credit risk and price volatility risk. The ETF’s trust fee is 0.066% per annum (0.06% excluding tax).
Nikko AM has been working to expand its ETF line-up to meet the various needs of investors. The firm will continue to
strive to further provide a wide range of innovative investment opportunities.
– ENDS –Fund Outline for Exchange Trading
Product Type
Open-end/Overseas/Fixed Income/ETF
Listed ExchangeTokyo Stock Exchange
Listing Date
5 October 2023 (scheduled)
Securities Code2093
Trading Unit on Exchange
10 units
Trust Period
Unlimited (launch date: 2 October 2023)
Closing Dates
10 February, 10 May, 10 August and 10 November of each year
Distributions will be made four times a year in accordance with the distribution
policy.
*In principle, the trustee company will transfer the dividend to the bank account,etc. designated in advance by the beneficiary on the date designated by the
Dividends
trustee company, which falls within 40 days after the end of each calculation
period. If the beneficiary has entered into a separate agreement with the handlingcompany regarding the handling of profit distribution, it shall be paid inaccordance with the said agreement.

Outline of Fees, etc.
Investors bear the following expenses:
Fees charged at the time of trading at the Exchange●Trading Fees:
Fees are determined by each authorised participant. Inquire with the relevant authorised
participant for details. Fees are subject to Japanese consumption tax.
Fees and expenses charged indirectly through the trust assets (i.e. paid by the Fund)●Trust Fees:
Fund: annual rate of up to 0.066% (0.06% excluding tax) of total net assets●Other Expenses

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An amount no greater than the total obtained by multiplying the fund’s daily total net assets byan annual rate of 0.03% and multiplying the result by the trust period.
Expenses including the following will be paid from trust assets at the times stipulated by theasset manager: (i) expenses for creating and delivering prospectuses, (ii) expenses foraccounting and related services, (iii) expenses for producing summaries of accounts (if theservices set forth in (i)–(iii) are outsourced, they will also include outsourcing fees), (iv) audit
costs, (v) listing fees, and (vi) fees for using the indices.
* Audit costs are expenses for audits of a fund paid to an auditing firm, etc. Brokerage fees forsecurities purchased, interest on borrowings and interest on advance payments are paid fromtrust assets upon occurrence.

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* As miscellaneous expenses can vary depending on a fund’s management status and othersuch circumstances, it is not possible to provide information such as rates and maximum
amounts in advance. As the funds do not include any securities lending at present, no securities
lending-related fees apply.
For more details, please refer to the investment trust explanatory document (prospectus distributed in advance of
creation).

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Fund Outline
This is applicable to direct creations and redemptions of the fund, and not applicable to those investors who trade on
the exchange.
Subscription andOrders will in principle be processed on the same business day if all administrative
Redemption Processing procedures prescribed by the authorised participant are completed by 3:00 p.m. Japan
Hours
time.
Creation Value
Fund’s Net Asset Value (NAV) as of business day following date of application receipt
No less than 2,000 units and as stipulated by authorised participant
Creation Units* Please direct inquiries to authorised participant
Redemption Value
NAV as of business day following date of application receipt
No less than 2,000 units and in units of one* May vary depending on authorised participant.
* If number of beneficiary rights held is below minimum trading unit specified by the
Redemption Unitsfinancial instruments exchange, the beneficiary may apply for those beneficiaryrights to be bought back. Inquire with authorised participant for details.

Fees charged at the time of creation and redemption●Creation Fees:
Fees are determined by each authorised participant. Inquire with the authorised participant for
details. The fees are subject to Japanese consumption tax.
●Redemption Fees: When a beneficiary makes a redemption request or applies to have beneficiary rights bought
back, the authorised participant can collect any fees it has stipulated as well as the amountequivalent to the Japanese consumption tax applicable to said fees.
* Inquire with the authorised participant for details.
●Amount Retained in Trust Assets (Redemption charge): None
Fees and expenses charged indirectly through the trust assets (i.e. paid by the Fund)●Trust Fees: Fund: annual rate of up to 0.066% (0.06% excluding tax) of total net assets●Other Expenses: An amount no greater than the total obtained by multiplying the fund’s daily total net assets byan annual rate of 0.03% and multiplying the result by the trust period.
Expenses including the following will be paid from trust assets at the times stipulated by the asset
manager: (i) expenses for creating and delivering prospectuses, (ii) expenses for accounting andrelated services, (iii) expenses for producing summaries of accounts (if the services set forth in (i)–(iii) are outsourced, they will also include outsourcing fees), (iv) audit costs, (v) listing fees, and (vi)fees for using the indices.
* Audit costs are expenses for audits of a fund paid to an audit firm, etc.
Brokerage fees for securities purchased, interest on borrowings and interest on advancepayments are paid from trust assets upon occurrence.
* As miscellaneous expenses can vary depending on a fund’s management status and other suchcircumstances, it is not possible to provide information such as rates and maximum amounts inadvance. As the funds do not include any securities lending at present, no securities lendingrelated fees apply.
For more detail, please refer to the investment trust explanatory document (prospectus distributed in advance of
creation).

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Risk Information
Invested principal is not guaranteed. The investment’s value may fall below the principal amount if a fall in market
price and/or the NAV of the fund invested in causes a loss. All gains and losses from management of the funds are
attributable to the investor (beneficiary). The funds are different from bank deposits.
As the funds are mainly invested in bonds, they may experience losses from falls in NAV caused by adverse impacts
from bond price drops or adverse changes in a bond issuer’s financial situation or results. Losses may also occur fromexchange rate fluctuations if assets denominated in foreign currencies are included.
The major risk factors involved in investing in fund securities are as below:[Price Fluctuation Risk] [Liquidity Risk] [Credit Risk] [Currency Risk]* Refer to the explanatory prospectus delivered prior to investment for details.
Other Matters to Consider
 This material was prepared by Nikko Asset Management to enhance investors' understanding of Listed Tracers
US Government Bond 0-2 years Ladder (No Currency Hedge).
 The authorised participant will provide a prospectus and other such explanatory materials prior to investment.
Please be sure to read the materials before making your own investment decision.

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5About Nikko Asset Management
With US$219.2 billion* under management, Nikko Asset Management is one of Asia’s largest asset managers, providing
high-conviction, active fund management across a range of equity, fixed income, multi-asset and alternative strategies.
In addition, its complementary range of passive strategies covers more than 20 indices and includes some of Asia’s
leading exchange-traded funds (ETFs).
Headquartered in Asia since 1959, Nikko Asset Management and its subsidiaries employ personnel representing around30 nationalities, including approximately 200 investment professionals**. The firm has a presence through subsidiaries
or affiliates in a total of 11 countries and regions. More than 400 banks, brokers, financial advisors and life insurancecompanies around the world distribute the firm’s products.
The investment teams benefit from a unique global perspective complemented by the firm's historic Asian DNA,
striving to deliver consistent excellence in performance. The firm also prides itself on its progressive, solution-driven
approach, which has led to many innovative funds launched for its clients.
For more information about Nikko Asset Management and to access its investment insights, please visit the firm’s
homepage.
* Consolidated assets under management and sub-advisory of Nikko Asset Management and its subsidiaries as of 30 June 2023.
** Including employees of Nikko Asset Management and its subsidiaries as of 30 June 2023.

Important Information
This document is prepared by Nikko Asset Management Co., Ltd. and/or its affiliates (Nikko AM) and is for distribution only under suchcircumstances as may be permitted by applicable laws. This document does not constitute personal investment advice or a personal
recommendation and it does not consider in any way the objectives, financial situation or needs of any recipients. All recipients are recommended
to consult with their independent tax, financial and legal advisers prior to any investment.
This document is for information purposes only and is not intended to be an offer, or a solicitation of an offer, to buy or sell any investments orparticipate in any trading strategy. Moreover, the information in this document will not affect Nikko AM’s investment strategy in any way. The
information and opinions in this document have been derived from or reached from sources believed in good faith to be reliable but have notbeen independently verified. Nikko AM makes no guarantee, representation or warranty, express or implied, and accepts no responsibility or
liability for the accuracy or completeness of this document. No reliance should be placed on any assumptions, forecasts, projections, estimates orprospects contained within this document. This document should not be regarded by recipients as a substitute for the exercise of their own
judgment. Opinions stated in this document may change without notice.
In any investment, past performance is neither an indication nor guarantee of future performance and a loss of capital may occur. Estimates of
future performance are based on assumptions that may not be realised. Investors should be able to withstand the loss of any principal investment.
The mention of individual securities, sectors, regions or countries within this document does not imply a recommendation to buy or sell.
Nikko AM accepts no liability whatsoever for any loss or damage of any kind arising out of the use of all or any part of this document, provided
that nothing herein excludes or restricts any liability of Nikko AM under applicable regulatory rules or requirements.
All information contained in this document is solely for the attention and use of the intended recipients. Any use beyond that intended by Nikko
AM is strictly prohibited.
Japan: The information contained in this document pertaining specifically to the investment products is not directed at persons in Japan nor is it
intended for distribution to persons in Japan. Registration Number: Director of the Kanto Local Finance Bureau (Financial Instruments firms) No.
368 Member Associations: The Investment Trusts Association, Japan/Japan Investment Advisers Association.
United Kingdom: This document is communicated by Nikko Asset Management Europe Ltd, which is authorised and regulated in the United
Kingdom by the Financial Conduct Authority (the FCA) (FRN 122084). This document constitutes a financial promotion for the purposes of the
Financial Services and Markets Act 2000 (as amended) (FSMA) and the rules of the FCA in the United Kingdom, and is directed at professional
clients as defined in the FCA Handbook of Rules and Guidance.
Luxembourg and Germany: This document is communicated by Nikko Asset Management Luxembourg S.A., which is authorised and regulated
in the Grand Duchy of Luxembourg by the Commission de Surveillance du Secteur Financier (the CSSF) as a management company authorised
under Chapter 15 of the Law of 17 December 2010 (No S00000717) and as an alternative investment fund manager according to the Law of 12
July 2013 (No. A00002630).

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6United States: This document may not be duplicated, quoted, discussed or otherwise shared without prior consent. Any offering or distributionof a Fund in the United States may only be conducted via a licensed and registered broker-dealer or a duly qualified entity. Nikko AssetManagement Americas, Inc. is a United States Registered Investment Adviser.
Singapore: Nikko Asset Management Asia Limited (Co. Reg. No. 198202562H) is regulated by the Monetary Authority of Singapore.
Hong Kong: The contents of this document have not been reviewed by the Securities and Futures Commission or any regulatory authority in
Hong Kong. Nikko Asset Management Hong Kong Limited is a licensed corporation in Hong Kong.
New Zealand: Nikko Asset Management New Zealand Limited (Company No. 606057, FSP22562) is the licensed Investment Manager of Nikko
AM NZ Investment Scheme, the Nikko AM NZ Wholesale Investment Scheme and the Nikko AM KiwiSaver Scheme. This material is for information
purposes only.
Kingdom of Bahrain: The document has not been approved by the Central Bank of Bahrain which takes no responsibility for its contents. No
offer to the public to purchase the Strategy will be made in the Kingdom of Bahrain and this document is intended to be read by the addressee
only and must not be passed to, issued to, or shown to the public generally.
Kuwait: This document is not for general circulation to the public in Kuwait. The Strategy has not been licensed for offering in Kuwait by the
Kuwaiti Capital Markets Authority or any other relevant Kuwaiti government agency. The offering of the Strategy in Kuwait on the basis a private
placement or public offering is, therefore, restricted in accordance with Decree Law No. 7 of 2010 and the bylaws thereto (as amended). No private
or public offering of the Strategy is being made in Kuwait, and no agreement relating to the sale of the Strategy will be concluded in Kuwait. No
marketing or solicitation or inducement activities are being used to offer or market the Strategy in Kuwait.
Kingdom of Saudi Arabia: This document is communicated by Nikko Asset Management Europe Ltd (Nikko AME), which is authorised andregulated by the Financial Services and Markets Act 2000 (as amended) (FSMA) and the rules of the Financial Conduct Authority (the FCA) in the
United Kingdom (the FCA Rules). This document should not be reproduced, redistributed, or sent directly or indirectly to any other party or
published in full or in part for any purpose whatsoever without a prior written permission from Nikko AME.
This document does not constitute investment advice or a personal recommendation and does not consider in any way the suitability or
appropriateness of the subject matter for the individual circumstances of any recipient. In providing a person with this document, Nikko AME is
not treating that person as a client for the purposes of the FCA Rules other than those relating to financial promotion and that person will nottherefore benefit from any protections that would be available to such clients.
Nikko AME and its associates and/or its or their officers, directors or employees may have or have had positions or material interests, may at any
time make purchases and/or sales as principal or agent, may provide or have provided corporate finance services to issuers or may provide or
have provided significant advice or investment services in any investments referred to in this document or in related investments. Relevant
confidential information, if any, known within any company in the Nikko AM group or Sumitomo Mitsui Trust Holdings group and not available
to Nikko AME because of regulations or internal procedure is not reflected in this document. The investments mentioned in this document may
not be eligible for sale in some states or countries, and they may not be suitable for all types of investors.
Oman: The information contained in this document nether constitutes a public offer of securities in the Sultanate of Oman as contemplated by
the Commercial companies law of Oman (Royal decree 4/74) or the Capital Markets Law of Oman (Royal Decree80/98, nor does it constitute anoffer to sell, or the solicitation of any offer to buy non-Omani securities in the Sultanate of Oman as contemplated by Article 139 of the Executive
Regulations to the Capital Market law (issued by Decision No. 1/2009). This document is not intended to lead to the conclusion of any contract ofwhatsoever nature within the territory of the Sultanate of Oman.
Qatar (excluding QFC): The Strategies are only being offered to a limited number of investors who are willing and able to conduct an
independent investigation of the risks involved in an investment in such Strategies. The document does not constitute an offer to the public andshould not be reproduced, redistributed, or sent directly or indirectly to any other party or published in full or in part for any purpose whatsoever
without a prior written permission from Nikko Asset Management Europe Ltd (Nikko AME). No transaction will be concluded in your jurisdiction
and any inquiries regarding the Strategies should be made to Nikko AME.
United Arab Emirates (excluding DIFC): This document and the information contained herein, do not constitute, and is not intended toconstitute, a public offer of securities in the United Arab Emirates and accordingly should not be construed as such. The Strategy is only being
offered to a limited number of investors in the UAE who are (a) willing and able to conduct an independent investigation of the risks involved in
an investment in such Strategy, and (b) upon their specific request.
The Strategy has not been approved by or licensed or registered with the UAE Central Bank, the Securities and Commodities Authority or any
other relevant licensing authorities or governmental agencies in the UAE. This document is for the use of the named addressee only and should
not be given or shown to any other person (other than employees, agents or consultants in connection with the addressee's consideration thereof).
No transaction will be concluded in the UAE and any inquiries regarding the Strategy should be made to Nikko Asset Management Europe Ltd.
Republic of Korea: This document is being provided for general information purposes only, and shall not, and under no circumstances is, to beconstrued as, an offering of financial investment products or services. Nikko AM is not making any representation with respect to the eligibility ofany person to acquire any financial investment product or service. The offering and sale of any financial investment product is subject to theapplicable regulations of the Republic of Korea. Any interests in a fund or collective investment scheme shall be sold after such fund is registereden.nikkoam.com

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under the private placement registration regime in accordance with the applicable regulations of the Republic of Korea, and the offering of suchregistered fund shall be conducted only through a locally licensed distributor.
Comprehensive Risk Information on Mutual Funds: http://en.nikkoam.com/risk-information-mutual-funds

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