<Disclaimer for the English Translation of the Full
Prospectus of Listed Index Fund 225>
This document is an English translation of the Japanese “Prospectus Issued upon Request” (the“Full Prospectus”) of Listed Index Fund 225 (the “Fund”).

The Japanese Full Prospectus is theoffering document. This English translation is not required by law 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 asdifferences of interpretation may arise between the English and Japanese language. In the eventof any inconsistency between this English translation and the Japanese version, the Japaneseversion 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 as ofApril 9, 2024.

In case of any update to or modification of the Japanese version of the terms andconditions, there is no guarantee that a corresponding update or modification will be made to thisEnglish 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 thesesecurities 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, thisdocument does not contain or constitute, and should not be relied upon as an offer or invitation to
make an offer for the purchase of these securities (including units of the Fund) to any person orentity 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(Prospectus Issued upon Request)

April 9, 2024

Listed Index Fund 225
Nickname: “JoJo 225”

Open-end Investment Trust/Domestic/Equities/ETF/Index Type◆In connection with the invitation for subscription to the “Listed Index Fund 225”, which is extended by way ofthis 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:

April 8, 2024

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:

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 -PART I.

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

Information on the Fund ···················································· 6I.

Description of the Fund ···················································· 6II.

Administration and Operation ·········································· 36

III. Financial Condition of the Fund ········································ 45
IV. Outline of Administration of Domestic Investment Trust Beneficiary
Certificates ··································································· 63
PART III. Information on the Management Company, Etc.······················· 65
Trust Deed for Open-end Securities Investment Trust Listed Index Fund 225 66

PART I.

Information on Securities(1) Fund Name
• Listed Index Fund 225 (hereinafter referred to as the “Fund”).
• “Listed 225” or “JoJo 225” may be used as nicknames.
(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. Title to the Units is determined by entry or record in a book-entry transfer
account book of the book-entry transfer institution set forth under “(11) Matters Concerning
the Book-Entry Transfer Institution” below and of the account management institutions
subordinate to the book-entry transfer institution (meaning the “account management
institutions” set forth in Article 2 of the Act on Book-Entry Transfer of Company Bonds,
Shares, etc.; the account management institutions and the book-entry transfer institution
are hereinafter collectively referred to as the “Book-Entry Transfer Institution, Etc.”). (The
Units determined by entry or record in a book-entry transfer account book are hereinafterreferred to as the “Book-Entry Transfer Units.”)

Except when there is an unavoidable

reason, the Management Company does not issue any beneficiary certificates that represent
any of the Book-Entry Transfer Units. Furthermore, neither a bearer form nor a registeredform is recognized for the Book-Entry Transfer Units.
(3) Total Issue (Offering) Price
Up to 30 trillion yen(4) Issue (Offering) Price
The issue price is the Net Asset Value per Unit on the day on which an application forsubscription of the Units is accepted.
• Please contact one of the Distributors or the place referred to in “(8) Place of Subscription” forquestions 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
The minimum number of Units for subscription is determined by dividing the market value ofthe Unit Shares by the Net Asset Value per Unit on the day on which an application forsubscription is accepted and subscriptions must be made in whole-number multiples of theminimum lot.
* “Unit Shares” refers to all shares (the number of which is designated by the Management
Company) of the respective composites of the Nikkei Stock Average.

4

* Subscription unit is rounded up to the nearest multiple of 10 units when using Clearing
Service offered by the Financial Instruments Clearing Institution, otherwise it is rounded up
to the nearest multiple of 1 unit.
(7) Subscription Period
The subscription period is 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: 0120-25-1404
9 a.m. – 5 p.m., excluding weekends, public holidays, and nonbusiness days
(9) Payment Date
An applicant generally makes an application for subscription by surrendering the shares he or
she owns no later than the day designated by the Distributor. The surrendered shares aredeposited by the Distributor for safeguarding in an account with the Japan Securities
Depository Center, Inc. for the Fund that is designated by the Trustee Company on the day
when additional Units are created. (Monies, if included, are deposited in the fund account thatis designated by the Trustee Company through an account designated by the Management
Company.)(10) Place of Payment
As shown in “(8) Place of Subscription”.
(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 closely link the Net Asset Value per Unit to the movements of the Nikkei
Stock Average by investing in the stocks that comprise the Nikkei Stock Average, building
a portfolio in accordance with the method of computing the Nikkei Stock Average andholding the portfolio as a general rule.
*The Nikkei Stock Average is a stock price index published by Nikkei Inc. that is computed
based on the 225 representative stocks listed on the Prime Market of the Tokyo Stock
Exchange.
The computation method is the same as that of the Dow-Jones average and the divisor ismodified as necessary in order to maintain the index’s continuity.

Nikkei Stock Average=

Sum of stock prices of 225 components
Divisor*The current calculation method was first adopted in 1950, and the index is calculated
retroactive to 1949. The Nikkei Stock Average has the longest history among stock indicesin Japan, and is well known by investors and market participants in Japan and aroundthe world. The components are reviewed annually based on market liquidity and sector
balance. In addition, they are reviewed in response to mergers or delisting of component
issues.
Copyright and Other Rights of the “Nikkei Stock Average (Nikkei 225)”
 THE "NIKKEI STOCK AVERAGE" IS A COPYRIGHTED WORK CALCULATEDTHROUGH A METHOD DEVELOPED INDEPENDENTLY BY NIKKEI INC., AND
NIKKEI INC. HOLDS THE COPYRIGHTS AND ALL OTHER INTELLECTUAL
PROPERTY RIGHTS RELATED TO THE “NIKKEI STOCK AVERAGE” ITSELF
AND ITS CALCULATION METHOD.
 ALL TRADEMARK RIGHTS AND OTHER INTELLECTUAL PROPERTY RIGHTSRELATING TO TRADEMARKS OF "NIKKEI" AND THE "NIKKEI STOCKAVERAGE" BELONG TO NIKKEI INC.
 MANAGEMENT OF THE FUND IS THE RESPONSIBILITY OF THE
MANAGEMENT COMPANY, AND NIKKEI INC. HAS NO RESPONSIBILITY FOR
SUCH MANAGEMENT OR THE TRANSACTIONS OF THE FUND.
 NIKKEI INC. HAS NO OBLIGATION TO CONTINUE TO PUBLISH THE “NIKKEISTOCK AVERAGE”, AND IS NOT RESPONSIBLE FOR MISTAKES, DELAYS ORSUSPENSIONS IN ITS PUBLICATIONS.
 NIKKEI INC. HAS THE RIGHT TO CHANGE THE COMPONENT SHARES,CALCULATION METHOD AND OTHER CONTENTS OF THE “NIKKEI STOCKAVERAGE” AND TO SUSPEND ITS PUBLICATION.

6

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

Overseas

Index type

Real estate
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.
 Equities
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

Corporations (Order No. 480 of 2000) and listed securities investment trusts, as
defined in Article 9-4-2 of the Act on Special Measures Concerning Taxation (Act No.
26 of 1957).

7

 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
Investment Assets
Equities
GeneralLarge-cap
Medium- andsmall-cap

GeographicalAreas ofInvestment

Frequency of
Settlement
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
(
)

Note: The attribute segments that apply to the Fund are shown in shaded boxes.
 Equities – General
The Fund invests in equities. The “Eqities – General” category contains all equities
that do not have the attributes of large-cap, medium-cap or small-cap equities.
 Annual
A statement to the effect that settlements are made annually is found in theprospectus or the trust deed of these funds.
 Japan
A statement to the effect that investment income from the fund portfolio is sourced
from Japanese assets is found in the prospectus or the trust deed of these funds.
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 ofadditional product classes and those of attribute segments: https://www.toushin.or.jp/.

8iii) Characteristics of the Fund
The Fund is a contractual-type investment trust but is structured differently from ordinary
investment trusts with respect to the following:1) Units are listed on the Tokyo Stock Exchange and can be traded at any time during the
trading hours.
●

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

●

Brokerage commissions are set by the respective handling companies.

●

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

*

Please contact your respective handling company for further information.

2) The application for subscription of the Units is made by means of shares.
Applications are made in blocks (and whole-number multiples thereof) of the market
value of the Unit Shares divided by the Net Asset Value per Unit on the day theapplication is accepted.
*“Unit Shares” refers to all shares (the number of which is designated by theManagement Company) of the respective composites of the Nikkei Stock Average*

Units may be subscribed using Clearing Service offered by the Financial
Instruments Clearing Institution.

*

Subscription unit is rounded up to the nearest multiple of 10 units when using
Clearing Service offered by the Financial Instruments Clearing Institution,otherwise it is rounded up to the nearest multiple of 1 unit.

3) Units may not be redeemed for cash prior to maturity with a request for cancellation.
4) Units may be exchanged for shares.
* As composites of the Nikkei Stock Average are replaced annually, the shares of stocks
that comprise the Nikkei Stock Average that you contribute at the time of yourapplication do not completely match the shares of stocks that you receive in exchange.
* The number of Units that you acquire at the time of your application does notnecessarily agree with the number of Units you will need at the time of exchange due
to factors such as modifications to the divisor resulting from stock price movements
which are not due to changes in market condition such as replacement or ex-rights ofthe composites of the Nikkei Stock Average.

* Units may be exchanged using Clearing Service offered by the Financial Instruments
Clearing Institution.
* ”Clearing Service offered by the Financial Instruments Clearing Institution” is a scheme
to guarantee the execution of settlements by the Financial Instruments Clearing Institution
assuming obligation of securities pertaining to subscription and exchange of ETF.
Principal Investment Restrictions● There is no restriction as to the ratios of investment in stocks.
● As a general rule, the stocks that the Fund intends to invest in are those issued bycompanies whose stocks comprise the Nikkei Stock Average. However, shares that are
acquired through shareholder allotments are exempted from this rule.
● The Fund does not invest in assets denominated in foreign currencies.

9Distribution Policy● As a general rule, distributions are made in the full amount after deducting expenses,
etc. from income such as dividends arising from trust assets.
* There is no guarantee on future payments or the amounts of dividend.
iv) Maximum Amount of Trust Money● Securities or monies may be added to the trust up to a maximum amount equivalent
to 10 trillion yen.
● The Management Company may change the maximum amount with the consent of
the Trustee Company.
(2) Fund History
July 9, 2001:- Execution of the trust deed of the Fund and commencement of management.
July 13, 2001:- Listing of the Fund’s Units on the Tokyo Stock Exchange.
(3) Structure of the Fundi)

Structure of the Fund
Fund
Listed Index Fund 225*2
A securities
investment
trust deedManagement Company
Nikko Asset Management Co., Ltd.


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

Mitsubishi UFJ Trust and Banking Corp.

(Delegated trustee company: The Master Trust Bankof Japan, Ltd.)*1
An agreement on thehandling of offerings, etc.

Distributors

Trustee Company

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

Investors (Unitholders)

10





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

*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 ofbusiness regarding the handling of offerings, exchanges 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.
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
1-4-1, Marunouchi, Chiyoda-ku, Tokyo

Number of
Shares Held

Holding
Ratio

192,211,000

97.562％

Investment Policy(1) Investment Policy Investments are made in the stocks that comprise the Nikkei Stock Average, and the Fund ismanaged so that each stock in the trust assets maintains its weight in the Nikkei Stock
Average, aiming to achieve investment results that correspond to the performance of the
Nikkei Stock Average.
 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 Nikkei Stock Average.

ii)

An adjustment is made to the weight of the respective stocks that comprise the Nikkei
Stock Average as the result of a replacement of the stocks that comprise the Nikkei
Stock Average or a change in capital, etc.

iii) Instructions are issued for additional trust creations or an exchange between the Unitsand shares, resulting in the weight of each stock in the trust assets differing greatly
from its weight in the Nikkei Stock Average.
 To realize the same gains and losses similar to holding the underlying assets, the Fund may,in response to fund movements, take part in futures trading in securities indices and othervehicles set forth in the trust deed for the purpose of bringing the Fund’s performance closer
to that of the Nikkei Stock Average.

 Management in accordance with the investment policy described above may not be possible in
the event that the Fund is to terminate its trust arrangement.

11

(2) Investment Assets
The Fund invests mainly in the shares of stocks that comprise the Nikkei Stock Average.
i)ii)

Types of assets that the Fund invests in are as follows:
1) Securities;
2) Interests in derivatives transactions (as defined in Article 2, Paragraph 20 of the
Financial Instruments and Exchange Act and provided for in Article 26 of the Trust
Deed); and
3) Monetary claims.
In addition to primarily investing in shares, the Fund may also be managed byinvesting in securities other than shares (excluding rights deemed as securities under
Article 2, Paragraph 2 of the Financial Instruments and Exchange Act and set forth ineach Item of the same Paragraph) and 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) Beneficiary certificates for designated money trusts (limited to the beneficiary
certificates for the trusts issuing beneficiary certificates as defined in Article 2,
Paragraph 1, Item 14 of the Financial Instruments and Exchange Act);
3) Designated money trusts (excluding the trusts issuing beneficiary certificates as
defined in Article 2, Paragraph 1, Item 14 of the Financial Instruments andExchange Act); and
4) Call loans.

iii) The following transactions may be effected:1) Futures trading, etc.; and2) Lending of securities.

12(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

Ordering Policy Committee

 Selects ordering outsourcecompanies that are deemed to be themost qualified in terms of theirability to provide information andexecution ability, and decides
ordering policies, etc.

Trading Department(Execution of trades)

Management Risk Meeting Deliberates on the fundmanagement status, including
the evaluation and analysis of
the investment performance,
etc.

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

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

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

Management Risk Committee Efficiently keeps track of andmonitors the management
status pertaining tomanagement 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.

13

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

14

(4)
i)

Distribution Policy
Income Distribution Policy

1) The full amount of dividends and other income arising from the trust assets (whichequals the sum of dividends, interest, fees on securities lent and other similar income
less interest paid) and a distribution reserve that has been carried over from thepreceding 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 to consumption taxes levied on the trust fees, and after the full amount ofa negative distribution reserve carried over from the preceding period, if any, is offset.
However, part or all of such money may be retained in the trust assets for the purpose ofadjusting the amounts of income distribution. In such a case, the retained income isadded to the distribution reserve and can be applied toward distributions in thesubsequent periods. When there is insufficient income to deduct the full amounts ofexpenses, trust fees stipulated in the trust deed and consumption taxes levied on thetrust fees, and also offset a negative distribution reserve, the shortfall is reported as anegative distribution reserve and 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 amountof loss 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
and gains on exchanges.

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 exchanges.

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 ofthe end of each calculation period in the deposit account designated in advance by theunitholder. When a unitholder has signed a separate agreement with his handlingcompany in connection with the handling of income distribution, the payment is madepursuant to the provisions of such agreement.

(5) Investment Restrictionsi)

Investment Restrictions Set Forth in the Trust Deed1) There is no restriction as to the ratios of investment in stocks.
2) As a general rule, the stocks that the Fund intends to invest in are those issued bycompanies whose stocks comprise the Nikkei Stock Average. However, shares that are
acquired through shareholder allotments are exempted from this rule.
3) The Fund does not invest in assets denominated in foreign currencies.
4) 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
trading similar to the Nikkei Stock Average futures and options trading on financial
instruments exchanges in Japan as well as trading similar to the Nikkei Stock Average
futures and options trading on foreign financial instruments exchanges.

155) For efficient management of the trust assets, the Management Company may give
instructions for lending of any stocks attributable to the trust assets. Any such lendingof stocks shall be such that the total market price of the stocks to be lent shall not exceed
the total market price of the stocks held in the trust assets at the time of lending.
6) 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 notexceed the total net asset value of the trust asset.
7) 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 ofthe trust 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.

16

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 theFund and 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. It is therefore possible that factors such as a decline instock prices or deterioration of the financial conditions or performance of the issuer of thestock will cause the Net Asset Value per Unit to fall and result in a loss.
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 conditionsin Japan and abroad. There is a risk that the Fund will suffer material losses if unexpectedchanges 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 timeof acquisition 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 ofthe prevailing market trend, a risk that the securities cannot be sold at the appraised price,
and 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 Fundinvests. Concerns over default and bankruptcies may result in a significant decline in theprices of the issuer’s stock, etc. (the price may drop to zero) and cause a decline in the
Fund’s Net Asset Value per Unit. Additionally, delisting of stock, etc. may occur whenfalling short of certain standards stipulated by the financial instruments exchange, andfear for delisting or occurrence of delisting may cause the price of stock, etc. of the issuer
to fall. There is therefore a risk that material losses will result in the Fund.
iv) Security-lending Risk
Acts such as lending of securities is accompanied by business partner risks (i.e. risk of nonperformance or cancellation of the loan agreement due to bankruptcy of business partners,etc.) 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, theprocurement cost of buying back the securities can surpass the collateral value, due to17

price fluctuations in the market. The Fund’s payment of such shortfalls may cause theFund to incur losses.
<Major Reasons for Disparity between the Nikkei Stock Average 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 Nikkei Stock Average, it does not guarantee movements that are identical tothose of 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 Nikkei Stock
Average 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 Nikkei Stock Average 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.

<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, etc., acquisitions and exchanges may temporarily besuspended at the discretion of the Management Company.
 Matters concerning suspension of acquisitions and exchanges when there arises doubts as tothe adequacy 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 adequacy of the Net Asset Value per Unit, acquisitions and exchanges 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, etc. 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 other investment business engaged in by the Management Company or affiliates thereof.

18

It is therefore possible that these restrictions will affect the Fund’s management
performance and cause 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.
(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
have been 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 and various risks, to establish preventive measures and to support constructing
methods of control that can lead to reduced risks, in addition to monitoring laws andregulation compliance status, monitoring and reporting on various risks (including
management risks (including liquidity risks), market risks, counterparty risks, operationalrisks (including administrative risks) and so on ).

19

■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 theevaluation and of the analyses on the investment performance and the investment risks arereported to the Management Risk Meeting and the investment risk management status(including liquidity risks) is reported to the Risk Monitoring Committee, and measures aretaken to determine the cause of problems and to establish improvement strategies.
Additionally, the outsourced fund management department administers the management of
the funds managed by sub-managers and monitors whether investments of such funds arebeing made in accordance with investment policies.
 Monitoring of Compliance with Laws and Regulations
Compliance related departments are responsible for ensuring that the company is compliant
with investment management laws, regulations and trust deeds. Any issues are reported tothe compliance related committees, which adopt appropriate management and supervisory
procedures to instruct fund management departments to rectify such problems whennecessary.
* The system described above is current as of the end of January 2024, and may be subject tochange in the future.

20

（Reference information）
Comparison of fluctuations the fund with other

Changes in annual fluctuations

representative asset classes
February 2019～January 2024

and Dividend-included NAV of the fundFebruary 2019～January 2024

(Yen)

100%

50,000

80%

MAX
MIN

60%

100%

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

40,00080%

30,00060%

40%

20,00040%

20%

10,000

20%

0

0%

AVE

0%

-10,000

-20%
-40%

-20%

-20,000

Feb-19The FundJapanese
EquityDeveloped
Country
EquityEmerging Japanese Developed
Country Government Country
EquityBond
Bond

Emerging
Country
Bond< Average, annual Maximum, and Minimum fluctuationsof this fund and other representative assets(%) >The Fund Japanese Developed Emerging Japanese Developed Emerging
EquityCountryCountry Governm Country

Country

EquityEquityBond

ent Bond

Bond

AVG 10.3%
9.1% 16.8%
7.6% -0.7%
3.9%
5.2%
MAX 56.3% 42.1% 59.8% 62.7%
5.4% 14.8% 21.5%
MIN -10.2% -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 month forfive years from February 2019 to January 2024 for the fund andother representative asset classes. This fund's fluctuations in thepercentage are theoretical data calculated with dividends
reinvested (before tax) and may differ from the data calculated
based on NAV.

Feb-20Feb-21

Feb-22

Feb-23-40%※NAV is the price per 1 unit 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 thepercentage (the last year's fluctuations in the percentage atthe end of each month) are theoretical data calculated withdividends reinvested (before tax) and may differ from the data
calculated based on NAV.

<Indices of each asset class>Japanese Equity:
Japanese Government bond:Tokyo Stock Price Index(TOPIX, Total return)
Nomura BPI Government
Developed Country Equity:
Developed Country Bond:MSCI Kokusai Index(Total return, Yen based)
FTSE WGBI(ex Japan, Yen based)
Emerging Country Equity:
Emerging Country Bond:MSCI Emerging Markets Index(Total return, Yen based)
JPM GBI-EM Global Diversified Index(Non-hedge, Yen based)※Indices of foreign assets are calculated in JPY with no currency hedge.
<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.

21

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
an investment 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 associatedwith 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.

22

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 (Cancellation) 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 feein the event that the unitholder makes an exchange 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, Etc.
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 0.154% (or 0.14% without tax),
accumulated daily throughout the calculation period.

ii)

Allocation of the Trust Fee
The trust fee (annual rate) (as of the date when the securities registration statement was
filed) is allocated as follows.
Trust fee= NAV of investment period ×
Trust Fee Rate (Annual Rate)
Asset Under
Management

Total

Management
Company

Trustee Company

The portion up to
1 trillion yen

0.140％

0.075％

0.065％The portion morethan 1 trillion yen
up to 2 trillion yen

0.125%

0.075%

0.050%The portion morethan 2 trillion yen

0.110%

0.070%

0.040%The portion morethan 3 trillion yen

0.080%

0.040%

0.040%The portion morethan 4 trillion yen

0.044%

0.029%

0.015%

up to 3 trillion yen

up to 4 trillion yen

up to 5 trillion yen

23

The portion morethan 5 trillion yen
Management
Company
TrusteeCompany

0.039%

0.029%

0.010%

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.

24

(4) Other Fees, Etc.
The following costs/fees and any amounts equal to consumption taxes levied thereon are borneby unitholders and paid out of the trust assets:i)

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

The cost required for audits of the financial statements for the trust assets (calculated
daily);

iii) Taxes on the trust assets, various expenses required for the administrative work for thetrust, and interest on monies advanced by the Trustee Company;iv) In the event that securities are loaned, fees related to securities loaned calculated bymultiplying the lending commissions received as consideration for such loan by amultiplier not to exceed 0.55(or 0.5 without tax). Such multiplier was 0.55(or 0.5 withouttax) as of the date the securities registration statement was filed. Allocation of such feesto the Management Company and Trustee Company is 1:1 and paid at the same as thetrust fees; andv)

The cost related to the listing of the Units and the fee for the use of the “Nikkei Stock
Average” and other similar marks.

* Audit fees are the fee for auditing the fund such as audit companies' fees.
* Audit fees, brokerage commissions, etc. cannot be shown as they vary depending on theholding lengths and investment 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.

25

(5) Tax Treatment
The Fund is treated as a specified stock investment trust (tokutei kabushiki 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
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
is 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.)2) Taxation upon receipt of income distributions
 Income distributions are deemed to be dividend income and tax will be withheld atsource at a tax rate of 20.315% (15.315% income tax and 5% local tax). (As a generalrule, 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
apply).

*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 andcorporate bonds and such like (as long as separated taxation has been chosen upondeclaration). In addition, gains on sale (capital gains), income distributions, and interest
income from public and corporate bonds etc. (if separated taxation has been chosen upondeclaration) can be offset against capital losses from listed stocks and such like.
*When investing through the Nippon Individual Savings Account (NISA), dividend income
and transfer 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 is available only to those who meet certain conditions, such as opening a taxexempt account with a distributor, and who purchase products that meet the requirements ofthe tax law. For details, please contact the distributor.
3) Exchanges between Units and shares of stocks
Exchanges of Units with shares of stocks are also deemed to be transfers of Units andtreated the same way as sales of Units.
ii)

Corporate Unitholders

1) Taxation upon sale of Units
The difference between the sales price of the Units and their acquisition cost is combinedwith other corporate income and taxed.
2) Taxation upon receipt of income distributions26

 Income distributions are deemed to be dividend income and tax will be withheld atsource at a tax rate of 15.315% (income tax only). The distributions taxed together withother corporate income.
 Income distributions are subject to exclusion from gross revenue. The limit is the sameas that for stock dividends.
3) Exchanges between Units and shares of stocks
Exchanges of Units with shares of stocks are also deemed to be transfers of Units andtreated the same way as sales of Units.
* In cases of being applied to the foreign tax deduction, tax on distributions may differ from theaforementioned descriptions.
* The above is as of April 8, 2024 and tax rates and other tax treatment may change in theevent that tax laws are revised.
It is recommended that you consult with a professional tax advisor for details regarding tax
treatment.

27

5.

Status of Investment Portfolio
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
Total Market Value(in yen)Investment Ratio(%)

Type of Invested Assets

Country/Region

StocksJapan

4,696,458,563,600

99.74

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

12,358,239,470

0.26

4,708,816,803,070

100.00Total (Total Net Assets)

Investment 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(%)

12,365,800,000

0.26

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/R
egion

Type

Japan

Stock

FAST RETAILING
CO.,LTD.

Retail Trade

Japan

Stock

TOKYO ELECTRON
LIMITED

Electric Appliances

Japan

Stock

ADVANTESTCORPORATIONElectric Appliances

Japan

Stock

SOFTBANK GROUP
CORP.

Japan

Stock

KDDI
CORPORATION

Japan

Stock

SHIN-ETSUCHEMICAL CO.,LTD.

Chemicals

Japan

Stock

DAIKIN
INDUSTRIES,LTD.

Machinery

Japan

Stock

Japan

Stock

Industry

Investme
Qty. or Total Unit Book
Unit Market
Book Value (yen)Market Value (yen) nt Ratio
Par Value Price (yen)Value (yen)(%)
12,930,000 34,593.85

447,298,496,670

39,740.00

513,838,200,000

10.91

12,930,000 20,323.27

262,779,997,710

27,865.00

360,294,450,000

7.65

34,480,000

4,967.53

171,280,671,280

5,823.00

200,777,040,000

4.26

Information &Communication

25,860,000

6,697.59

173,199,739,320

6,460.00

167,055,600,000

3.55

Information &Communication

25,860,000

4,304.95

111,326,172,000

4,897.00

126,636,420,000

2.69

21,550,000

4,612.55

99,400,464,000

5,875.00

126,606,250,000

2.69

4,310,000 28,827.08

124,244,746,820

23,885.00

102,944,350,000

2.19

TDK CORPORATION Electric Appliances

12,930,000

5,443.62

70,386,031,950

7,442.00

96,225,060,000

2.04

Stock

FANUC
CORPORATIONElectric Appliances

21,550,000

4,715.81

101,625,837,650

4,117.00

88,721,350,000

1.88

Japan

Stock

TERUMOCORPORATION

Precision
Instruments

17,240,000

4,325.31

74,568,351,000

5,031.00

86,734,440,000

1.84

Japan

Stock

RECRUITHOLDINGS CO.,LTD.

12,930,000

4,560.19

58,963,292,910

5,927.00

76,636,110,000

1.63

Japan

Stock

KYOCERACORPORATION

34,480,000

1,899.41

65,491,686,320

2,182.50

75,252,600,000

1.60

Japan

Stock

CHUGAI
PHARMACEUTICAL

12,930,000

3,949.98

51,073,349,130

5,347.00

69,136,710,000

1.47Services
Electric Appliances
Pharmaceutical28

CO.,LTD.
Japan

Stock

LASERTECCORPORATIONElectric Appliances

1,724,000 23,538.24

40,579,941,208

39,780.00

68,580,720,000

1.46

Japan

Stock

TOYOTA MOTORCORPORATION

Transportation
Equipment

21,550,000

2,321.24

50,022,775,650

3,000.00

64,650,000,000

1.37

Japan

Stock

SONY GROUPCORPORATIONElectric Appliances

4,310,000 12,996.64

56,015,550,470

14,695.00

63,335,450,000

1.35

Japan

Stock

DAIICHI SANKYOCOMPANY,LIMITED

12,930,000

4,130.27

53,404,454,820

4,423.00

57,189,390,000

1.21

Japan

Stock

NITTO DENKOCORPORATION

Chemicals

4,310,000 10,052.93

43,328,137,560

12,310.00

53,056,100,000

1.13

Japan

Stock

SECOM CO.,LTD.

Services

4,310,000

9,514.06

41,005,635,240

10,720.00

46,203,200,000

0.98

Japan

Stock

NTT DATA GROUPCORPORATION

Information &Communication

21,550,000

1,922.36

41,426,893,100

2,140.50

46,127,775,000

0.98

Japan

Stock

HONDA MOTOR
CO.,LTD.

Transportation
Equipment

25,860,000

1,438.60

37,202,439,120

1,675.50

43,328,430,000

0.92

Japan

Stock

TOYOTA TSUSHOCORPORATION

Wholesale Trade

4,310,000

7,245.75

31,229,192,700

9,786.00

42,177,660,000

0.90

Japan

Stock

BANDAI NAMCO
HOLDINGS INC.

Other Products

12,930,000

3,157.53

40,826,866,950

3,215.00

41,569,950,000

0.88

Japan

Stock

HOYA
CORPORATION

Precision
Instruments

2,155,000 16,303.82

35,134,738,635

18,945.00

40,826,475,000

0.87

Japan

Stock

FUJIFILMHOLDINGSCORPORATION

Chemicals

4,310,000

8,314.96

35,837,520,380

9,410.00

40,557,100,000

0.86

Japan

Stock

DENSO
CORPORATION

Transportation
Equipment

17,240,000

2,391.75

41,233,816,440

2,341.00

40,358,840,000

0.86

Japan

Stock

KIKKOMANCORPORATION

Foods

4,310,000

8,012.00

34,531,746,420

9,141.00

39,397,710,000

0.84

Japan

Stock

KONAMI GROUPCORPORATION

Information &Communication

4,310,000

7,358.97

31,717,172,530

9,126.00

39,333,060,000

0.84

Japan

Stock

OLYMPUSCORPORATION

Precision
Instruments

17,240,000

2,214.21

38,173,125,240

2,200.00

37,928,000,000

0.81

Japan

Stock

ASTELLAS PHARMA
INC.

21,550,000

2,053.31

44,249,030,850

1,725.00

37,173,750,000

0.79

b.

PharmaceuticalPharmaceutical

Investment Ratios by Type and Industry

Type
Stock

Domestic/International
Domestic

Industry

Investment
Ratio(%)

Fishery, Agriculture & Forestry

0.07

Mining0.07

Construction

1.65

Foods

3.40

Textiles and Apparels

0.09

Pulp and Paper

0.07

Chemicals

6.78

Pharmaceutical

5.95

Oil and Coal Products

0.21

Rubber Products

0.75

Glass and Ceramics Products

0.70

Iron and Steel

0.09

29

Nonferrous Metals

0.67

Metal Products

0.02

Machinery

4.84

Electric Appliances

27.10

Transportation Equipment

4.68

Precision Instruments

3.74

Other Products

2.33

Electric Power and Gas

0.16

Land Transportation

1.26

Marine Transportation

0.48

Air Transportation

0.29

Warehousing and Harbor Transportation Service

0.21

Information & Communication

9.90

Wholesale Trade

3.35

Retail Trade

12.84

Banks

0.67

Securities and Commodities Futures

0.17

Insurance

0.92

Other Financing Business

0.82

Real Estate

1.15

Services

4.29

Total

99.74

ii) Real Estate Properties Invested In
N/Aiii) Other Major Assets Invested In
Type ofInvested
AssetsStock
Exchange

Stock Name

Stock Price Osaka
Nikkei 225
Index Futures Exchange Futures
Trading2024-03

Type
Long
position

Qty.

Currency

340 JPY

Contract
Value, Etc.
(yen)
11,374,147,600

Market Value(yen)
12,365,800,000

Investment
Ratio (%)
0.26

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

30(3) Past Performancei)

Changes in Net Assets
Net Asset Value per Unit(yen)
TSE Quoted
Price (yen)WithWith dividend Ex-dividend
dividend

Total Net Assets (million yen)
PeriodEx-dividend
As of the end of the 13th
calculation period

July 8, 2014

As of the end of the 14th
calculation period

July 8, 2015

As of the end of the 15th
calculation period

July 8, 2016

As of the end of the 16th
calculation period

July 8, 2017

As of the end of the 17th
calculation period

July 8, 2018

As of the end of the 18th
calculation period

July 8, 2019

As of the end of the 19th
calculation period

July 8, 2020

As of the end of the 20th
calculation period

940,073

951,796

15,61415,80815,6201,409,409

1,426,345

20,156

20,39920,2101,434,226

1,458,032

15,423

15,67915,4502,461,222

2,493,841

20,403

20,673

20,4202,855,907

2,900,350

22,324

22,671

22,3302,927,807

2,982,740

22,06522,47922,0602,943,165

2,993,523

23,021

23,41523,020July 8, 2021

3,728,927

3,775,401

28,877

29,23728,950

As of the end of the 21st
calculation period

July 8, 2022

3,484,481

3,547,767

27,19927,69327,285

As of the end of the 22nd
calculation period

July 8, 2023

4,156,375

4,225,654

33,33333,88933,370

As of the end of January 2023

3,548,031―

28,301―28,280

As of the end of February 2023

3,549,576―

28,435―28,405

As of the end of March 2023

3,652,175―

29,316―29,320

As of the end of April 2023

3,735,015―

30,166―30,180

As of the end of May 2023

4,054,001―

32,293―32,300

As of the end of June 2023

4,303,907―

34,728―34,760

As of the end of July 2023

4,258,830―

34,139―34,150

As of the end of August 2023

4,186,091―

33,587―33,560

As of the end of September
2023

4,143,838―

33,027―33,040

As of the end of October 2023

3,997,956―

31,990―32,040

As of the end of November 2023

4,357,654―

34,715―34,680

As of the end of December 2023

4,333,785―

34,742―34,800

As of the end of January 2024

4,708,816―

37,669―37,670Note: 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.

31ii) Dividends Paid
Calculation Period

PeriodDividend per Unit (yen)

13thJul. 9, 2013 – Jul. 8, 2014194.7000

14th

Jul. 9, 2014 – Jul. 8, 2015242.2000

15th

Jul. 9, 2015 – Jul. 8, 2016

256.0000

16th

Jul. 9, 2016 – Jul. 8, 2017

270.4000

17th

Jul. 9, 2017 – Jul. 8, 2018347.4000

18th

Jul. 9, 2018 – Jul. 8, 2019

414.0000

19th

Jul. 9, 2019 – Jul. 8, 2020

393.9000

20th

Jul. 9, 2020 – Jul. 8, 2021

359.9000

21st

Jul. 9, 2021 – Jul. 8, 2022

494.0000

22nd

Jul. 9, 2022 – Jul. 8, 2023

555.6000

Latest Interim Period

Jul. 9, 2023 – Jan. 8, 2024―iii) Past Returns
Calculation Period

PeriodReturns (%)

13th

Jul. 9, 2013 – Jul. 8, 2014

10.09

14th

Jul. 9, 2014 – Jul. 8, 2015

30.65

15th

Jul. 9, 2015 – Jul. 8, 2016(22.21)

16th

Jul. 9, 2016 – Jul. 8, 2017

34.04

17th

Jul. 9, 2017 – Jul. 8, 2018

11.12

18th

Jul. 9, 2018 – Jul. 8, 2019

0.69

19th

Jul. 9, 2019 – Jul. 8, 2020

6.12

20th

Jul. 9, 2020 – Jul. 8, 2021

27.00

21st

Jul. 9, 2021 – Jul. 8, 2022

(4.10)

22nd

Jul. 9, 2022 – Jul. 8, 2023

24.60

Latest Interim Period

Jul. 9, 2023 – Jan. 8, 2024

3.95

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.

32

iv) Past Creation and Cancellation
Calculation Period

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

13th

Jul. 9, 2013 – Jul. 8, 2014

27,720,867

18,179,753

14thJul. 9, 2014 – Jul. 8, 2015

41,900,362

32,184,688

15thJul. 9, 2015 – Jul. 8, 2016

37,581,993

14,512,925

16thJul. 9, 2016 – Jul. 8, 2017

49,099,300

21,460,748

17thJul. 9, 2017 – Jul. 8, 2018

55,798,682

48,499,491

18thJul. 9, 2018 – Jul. 8, 201925,491,356

20,732,441

19thJul. 9, 2019 – Jul. 8, 2020

23,063,359

27,908,213

20thJul. 9, 2020 – Jul. 8, 2021

25,942,434

24,656,542

21stJul. 9, 2021 – Jul. 8, 2022

10,410,100

11,432,252

22ndJul. 9, 2022 – Jul. 8, 2023

8,243,580

11,660,058

Latest Interim Period

Jul. 9, 2023 – Jan. 8, 2024

5,562,683

5,366,811

Note:

The number of units cancelled represents the number of units exchanged.

33

(Reference Material)

Past Performance

As of January 31, 2024

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

150,000

50,000Net Assets (Right Axis)
NAV (Left Axis)
Dividend-included NAV (Left Axis)

40,000120,000

30,000（100
90,000MillionYen）

20,00060,00010,00030,0000
Jan-14Jan-16

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

NAV………..……¥37,669
Net Assets………¥4,708.8 billion*NAV is the unit price 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 Unit, before tax)
Jul-19JPY 414.0

Jul-20
JPY 393.9

Jul-21JPY 359.9

Jul-22
JPY 494.0

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

100.00％
0.26％
0.26％

*As percentage of net assets

34

Jul-23
JPY 555.6

Cumulative
JPY 4,898.2

<Top10 Component Shares>
Name
1
2
3
4
5
6

FAST RETAILING CO.,LTD.
TOKYO ELECTRON LIMITEDADVANTEST CORPORATIONSOFTBANK GROUP CORP.
KDDI CORPORATION
SHIN-ETSU CHEMICAL CO.,LTD.

7
8
9
10

DAIKIN INDUSTRIES,LTD.
TDK CORPORATIONFANUC CORPORATIONTERUMO CORPORATION

SectorRetail Trade%
10.91％

Electric Appliances
Electric Appliances
Information & Communication

7.65％
4.26％
3.55％

Information & Communication
Chemicals

2.69％
2.69％

Machinery
Electric Appliances
Electric Appliances
Precision Instruments

2.19％
2.04％
1.88％
1.84％

*As percentage of net assets

 Past Annual Returns
（％）

50

30.7％
21.0％
10.7％

20.4％

17.9％
8.4％

6.4％

2.1％

0
△7.6％

△10.5％

△50

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.

35

II.

Administration and Operation

1.

Procedures for Subscription (Sale), Etc.
i)

Subscription Method
 Investors wishing to purchase Units may do so by surrendering shares of stocks theyown in accordance with the method specified by the respective Distributors. The
composition of such shares of stocks must correspond to the ratio of the shares of stocks
comprising the Nikkei Stock Average as determined by the Management Company.
Investors also pay fees that are set independently by the Distributors, as well as an
amount equal to the consumption taxes levied on such fees. Such payments are due atthe time of applying for subscription.
 When the market value of the shares surrendered is less than the market value of thenumber of Units to be acquired (the number of Units requested for purchase times the
Net Asset Value per Unit as of the date on which the application is accepted), a cash
payment may be used strictly to make up for the difference. When an investor applying
to purchase Units is the issuer of a stock that is included in the Nikkei Stock Averageor such an issuer’s subsidiary (as defined in Article 2, Item 3 of the Companies Act; thesubsidiary is to be hereinafter referred to jointly with the issuing corporation as an“Issuing Company, Etc.”), the portion of the shares required for its subscription thatpertains to the stock of the Issuing Company, Etc. may be paid in cash in the amountequal to the market value of such shares.
 The Fund is listed on the Tokyo Stock Exchange. The Management Company complies
with all rules established by the Exchange, and subjects itself to any disciplinary action
taken by the Exchange in accordance with its own rules, including suspension of tradingor delisting from the Exchange.

ii)

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

iii) Hours of Operation
As a general rule, applications that are complete in accordance with the procedures
established by the Distributors by 3 p.m. are deemed to have been accepted on the day.
When the applicant is the Issuing Company, Etc. of a Nikkei Stock Average-comprisingstock, however, the cut-off time is 2 p.m. Distributors may have different cut-off times andmethods for application. Please check with your Distributor for details of specific times andmethods.
iv) Applications for subscription are not accepted:a.

During the three business days starting from the business day prior to the ex-rightday (excluding the ex-dividend day) of any Nikkei Stock Average-comprising stock.

b.

During the six business days starting from the day which is three business days
prior to the date on which the divisor changes as the result of a change in the stocks
comprising the Nikkei Stock Average or a capital increase, decrease, etc.

c.

During the two business days starting from the day which is two business days prior
to the last day of each calculation period (if the last day of the calculation period isa holiday, then during the three business days starting from the day which is threebusiness days prior to the last day of each calculation period).

d.

During the five business days immediately preceding the termination day of thetrust, if the Fund terminates its trust.

36

e.

v)

Any time the Management Company determines that circumstances have developedthat could prevent it from making investments in accordance with the basic
investment policies set forth in the trust deed, in addition to the days referred to ina. through d. above.

Blocks of Units for Subscription
An application is accepted only in whole-number multiples of the minimum number ofUnits. The minimum number of Units is the market value of the Unit Shares divided by
the Net Asset Value per Unit that is effective on the day the application is accepted.
* Subscription unit is rounded up to the nearest multiple of 10 units when using Clearing
Service offered by the Financial Instruments Clearing Institution, otherwise it is rounded
up to the nearest multiple of 1 unit.

vi) 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 suspensionof trading on a stock exchange*, 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 definedin Article 2, Paragraph 8, Item 3-b of the Financial Instruments and Exchange Act.

2

Redemption (Cancellation) Procedures, Etc.
i)

Cancellation of Units
Unitholders may not request cancellation during the trust term.

ii)

Exchange of Units with Stocks in the Trust Assetsa.

Any unitholder may request a Distributor designated by the Management Company
for an exchange (hereinafter referred to as “Exchange”) of his or her Units whose
number is a whole-number multiple of the minimum number of units for which an
exchange can be requested with shares of stocks that are equivalent to the Units’
share of the trust assets. The minimum number of Units for which an exchange canbe requested means the number of Units specified by the Management Company as
the number of Units that, when multiplied by the Net Asset Value per Unit effectiveon the date the Exchange is requested, would equal the total market value of theshares of stocks comprising the Nikkei Stock Average on the date the Exchange isrequested.

b.

The number of shares of each stock that a unitholder can acquire through an
Exchange is the number of shares calculated based on the Net Asset Value per Unit
effective on the date the Exchange is requested and shall be a whole-number multipleof the minimum block for trade specified by the financial instruments exchange(hereinafter referred to as the “Minimum Block of Shares Traded on the Exchange”).

c.

Exchange requests that are accepted by the Management Company by 3 p.m. aretreated as having been accepted on the day. When the unitholder is the IssuingCompany, Etc. of a Nikkei Stock Average-comprising stock, however, the cut-off timeis 2 p.m. Distributors may have different cut-off times and methods for Exchange
requests. Please check with your Distributor for details of specific times and methods.

37

d.

At the time of an Exchange, unitholders shall pay fees that are set independently by
the Distributors, as well as an amount equal to the consumption taxes levied on such
fees.

e.

Requests for Exchanges are not accepted:a)During the three business days starting from the business day prior to the ex-rightday (excluding the ex-dividend day) of any Nikkei Stock Average-comprising stock.

b)

During the six business days starting from the day which is three business days
prior to the date on which the divisor changes as the result of a change in the stocks
comprising the Nikkei Stock Average or a capital increase, decrease, etc.

c)During the two business days starting from the day which is two business days priord)During the five business days immediately preceding the termination day of thetrust, if the Fund terminates its trust.

e)

Any time the Management Company determines that circumstances have developedthat could prevent it from making investments in accordance with the basic
investment policies set forth in the trust deed, in addition to the days referred to ina. through d. above.

to the last day of each calculation period (if the last day of the calculation period isa holiday, then during the three business days starting from the day which is threebusiness days prior to the last day of each calculation period).

f.

In the event that a unitholder requesting an Exchange is the Issuing Company, Etc.
of a stock that is included in the Exchange, the Management Company first deducts
the number of Units equivalent to the total market value of the shares of the IssuingCompany, Etc. from the number of Units accepted for the Exchange, and thenexchanges the resulting number of Units with a whole-number multiple of the
Minimum Block of Shares Traded on the Exchange (excluding the shares of theIssuing Company, Etc.).

g.

When delivering the exchanged equities to the beneficiary, as a general rule, anincrease in the number of equities pertaining to the beneficiary who made the request
for exchange will be entered or recorded in the account with the Book-entry Transfer
Institution from the third business day after and including the day on which a request
for an exchange is made.

h.

The Management Company may suspend the acceptance of requests for an Exchange
or cancel the requests for an Exchange that have been accepted in the event thattrading on a stock exchange is suspended, settlement functions are halted, or it
determines that there is a possibility that investment in accordance with the basic
investment policies set forth in the trust deed will be hindered.

i.

In the event that acceptance of requests for an Exchange is suspended, unitholders
may withdraw their requests for an Exchange that they submit on the day theacceptance is suspended. If unitholders do not withdraw their Exchange requests,
however, the requests 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 acceptancesuspension.

iii) Buyback of Units

38

3

a.

A unitholder may request a Distributor designated by the Management Company tobuy back his or her Units if the total number of Units he or she owns is less than theminimum trading lot for the Units established by the financial instruments exchange.

b.

As a general rule, requests that are complete in accordance with the procedures
established by the Distributors designated by the Management Company by 3 p.m.
are deemed to have been accepted on the day. The buyback price of the Units is the
Net Asset Value per Unit effective as of the day the buyback is agreed on.

c.

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.

d.

The Distributors designated by the Management Company may suspend buybacks orcancel the buybacks already accepted upon consultation with the Management
Company in the event that trading on the financial instruments exchange issuspended, settlement functions are halted, or a circumstance beyond their control
develops.

e.

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 Valueper Unit is calculated following the lifting of the acceptance suspension.

Overview of Asset Management, Etc.

(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 thetotal value of the trust assets by valuing individual assets that comprise the trust
assets (excluding securities received in place of cash collateral), 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 date the calculation is
made.

39

<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 price(b) Total liabilities

Total net assets = (a) total value ofthe trust assets, less (b) total
liabilities (expenses and other costs
required for managing the Fund)(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
and regulations, 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 iscalculated.

iii) Inquiries regarding the Net Asset Value per Unit
Please contact either a Distributor or the Management Company.
<Management Company>
Nikko Asset Management Co., Ltd.
Website: www.nikkoam.com/
Call Center telephone number: 0120-25-1404
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 July 9, 2001.) However, the trust may
be terminated upon cancellation of the trust deed pursuant to the provisions of the trust deed.
(4) Calculation Period
Each calculation period runs from July 9 of a given year to July 8 of the following year.
(5) Otheri)

Termination of the Trust (Early Redemption)
1) The Management Company may, with the consent of the Trustee Company, terminate
the trust deed and redeem the Units prior to their maturity.

402) In such an event, the Management Company must publicly announce its intent for early
redemption and the reason for it, and notify all known unitholders in writing in advance.
As a general rule, however, public notice is not required when all unitholders are notified
in writing.
3) Any unitholder who objects to such early redemption may voice his or her objections
within a specified period (to be determined by the Management Company but not to beless than one month; the same applies hereunder). (Please refer to the “Declaration of
Objections” that follows.)
4) The Management Company terminates the trust deed and redeems the Units prior totheir maturity in any of the following events. In any such event, the provisions of the“Declaration of Objections” that follows are waived.
a)

The number of Units falls below 200 thousand;b)

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

The Nikkei Stock Average is abolished;d)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
Nikkei Stock Average is not made due to declaration of objections;e)

There are truly unavoidable circumstances in view of the status of the trust assets
and it is difficult to give a public notice and written notice within a specified period;f)

The Management Company receives an order from the supervisory authorities tocancel the trust deed;g)

The Management Company’s license is revoked by the supervisory authorities or if
the Management Company is liquidated or discontinues its business (excluding
cases where the supervisory authorities order that the business of the Management
Company under the trust deed be transferred to another management company and,as a result of declaration of objections, amendments to the trust deed are made); orh)

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.

5) Prior to the actual early redemption, the Management Company must notify thesupervisory authorities of its intent to so do.
ii)

Amendments to the Trust Deed1) The Management Company may, upon agreement with the Trustee Company, amend thetrust deed. When amending the trust deed, the Management Company must notify thesupervisory authorities of its intent for amendment in advance.
2) When any such amendment has significant implications, the Management Company
must publicly announce its intent for such an amendment and its content, and notify all
known unitholders in writing in advance. As a general rule, however, public notice is not
required when all unitholders are notified in writing.
3) Any unitholder opposing such an amendment to the trust deed may raise his or her
objections within a certain period. (Please refer to the “Declaration of Objections” that
follows.)
4) The provisions of the “Declaration of Objections” that follow apply when the Management
Company amends the trust deed, due to an order by the supervisory authorities.
41iii) Declaration of Objections
1) Unitholders may voice their objections to an early redemption or a significant
amendment to the trust deed to the Management Company within a set period in
accordance with prescribed procedures. In the event that the number of Units of theunitholders raising their objections within the set period exceeds half of the total numberof Units, no early redemption or amendment to the trust deed may be executed.
2) In the event that the Management Company decides against an early redemption or anamendment to the trust deed, it must publicly announce its intent and the reason for thedecision, and notify all known unitholders in writing. As a general rule, however, public
notice is not required when all unitholders are notified in writing.
3) In the event that the number of Units of the unitholders raising objections within the set
period does not exceed half of the total number of Units and the Management Company
proceeds with an early redemption or an amendment to the trust deed, the unitholders
raising objections may request the Trustee Company to buy back their Units by applying
the trust assets.

Objectors constitutemajority(based on thenumber of Units)

Early redemption
Amendment to the trustdeed

End of buyback request
acceptanceA report to the supervisory
authorities

Objectors do notconstitute majority(based on thenumber of Units)

Commencement of buyback
request acceptance

Period for objection
acceptance(at least 1 month)

End of the period for objection
acceptance

Public notice
Written notice<Steps Involved in Early Redemptions and Significant Amendments to the Trust Deed>

Redemption oramendment is aborted
Public Notice
Written Noticeiv) Public Notice
Public notices are published in The Nikkei.
v)

Exchanges upon Trust Termination, Etc.
1) In the event that the Fund terminates its trust, unitholders who hold the number ofUnits necessary for an Exchange are given in lieu of such Units shares of stocks that
correspond to their Units’ share in the trust assets at the time of trust termination in
exchange for the book-entry transfer Units listed or recorded in the book-entry transfer
account book.
2) Exchanges are handled by the Distributors designated by the Management Company.
3) The number of shares of each stock that unitholders acquire is the number of sharescomputed based on the redemption value, and is a whole-number multiple of the
Minimum Block of Shares Traded on the Exchange.
4) Unitholders pay fees that are independently established by the Distributors and an
amount equal to the consumption taxes levied on such fees at the time of the Exchange.
5) In the event that a unitholder is an Issuing Company, Etc. of a stock that comprises the
Nikkei Stock Average, his or her Units that are equal in value to the total market valueof the shares of the Issuing Company, Etc. are repaid in the form of cash.

426) A unitholder who does not hold the number of Units necessary for an Exchange requests
a Distributor designated by the Management Company to buy back his or her Units at
the redemption price. In such an event, the unitholder pays fees that are independently
established by the Distributor and an amount equal to the consumption taxes levied onsuch fees.
7) In the event that a unitholder does not make any request for an Exchange with stocks ora repayment in cash for a buyback within ten years following the termination of the trust,
his or her rights are forfeited and revert to the Management Company.
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.

4

Unitholders’ Rights, Etc.

Primary rights of unitholders are as follows:i)

Right to receive income dividends

 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.
 Unitholders whose names are not registered with the Trustee Company as of the last day ofthe calculation period are not entitled to receive income distributions even if they are owners
of beneficiary certificates.
 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 exchange Units with shares held in the trust assets

 Unitholders may request to exchange a minimum of a certain number of Units with shares
held in the trust assets equivalent to their interests.
 However, if a unitholder fails to request for an exchange with shares or a repayment in cash
for a buyback which are the results of termination of the trust within ten years from suchtermination of the trust, such rights are forfeited and revert to the Management Companyiii) 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.

43iv) 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.

44

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) Pursuant to Article 193-2 Paragraph 1 of the Financial Instruments and Exchange Act, theFund’s Financial Statements for the 22nd calculation period (from July 9, 2022 to July 8, 2023)
have been audited by PricewaterhouseCoopers Aarata LLC.

45

Independent Auditors’ Report
September 27, 2023
The Board of Directors
Nikko Asset Management Co., Ltd.
PricewaterhouseCoopers Aarata LLC
Tokyo Office
Designated Partner
Engagement Partner

Certified Public Accountant
Kazuyuki Tsujimura

OpinionWe have audited the financial statements, comprising the balance sheet, the statement of profit and loss andretained earnings and the related notes, and the supplementary schedules for Listed Index Fund 225 for the
calculation period from July 9, 2022 to July 8, 2023 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
position of Listed Index Fund 225 as at July 8, 2023, and its profit and loss performance for the year then endedin 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
under those 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 that are relevant to our audit of the financial statements in Japan, and we have fulfilled ourother ethical responsibilities in accordance with these requirements. We believe that the audit evidence we haveobtained is sufficient and appropriate to provide a basis for our opinion.
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 anddisclose the contents of 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 obtainedin 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 accordancewith accounting principles generally accepted in Japan, and for such internal control as management determines
is necessary to enable the preparation of financial statements that are free from material misstatement, whether
due to fraud or error.
In preparing the financial statements, management is responsible for assessing the Fund’s ability to continue asa 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.
Reasonable assurance is a high level of assurance, but is not a guarantee that an audit conducted in accordancewith auditing 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, they46

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 and appropriate 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 andopinion 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
the audit evidence obtained, whether a material uncertainty exists related to events or conditions that may
cast significant doubt on the Fund’s ability to continue as a going concern. If we conclude that a material
uncertainty exists, we are required to draw attention in our auditor’s report to the related disclosures in thefinancial statements or, if such disclosures are inadequate, to modify our opinion. Our conclusions are basedon the audit evidence obtained up to the date of our auditor’s report. However, future events or conditions
may cause the Fund to cease to continue as a going concern.
Evaluate whether the presentation and disclosures of the financial statements are in accordance withaccounting 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 events in a manner that achieves fair presentation.

We communicate with those charged with governance regarding, among other matters, the planned scope andtiming of 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.

47

1

Financial Statements

Listed Index Fund 225(1) Balance Sheet(Unit:yen)
21st Calculation Period As of
July 8, 2022

22nd Calculation Period As of
July 8, 2023

AssetsCurrent Assets
Call loans

390,005,042,047

393,716,745,623

3,474,687,645,600

4,147,907,520,400

Accounts receivable

50,554,630,240

48,904,796,040

Dividends receivable

2,718,456,500

3,408,598,600

7,178,972

22,735,905

Stocks

Accrued interest
Advance payments

1,040,726,700-

Other accrued income

1,610,388,958

1,238,452,178

Total Current Assets

3,920,624,069,017

4,595,198,848,746

3,920,624,069,017

4,595,198,848,746

Total Assets
Liabilities
Current Liabilities
Valuation account of derivatives

376,674,350

106,606,650

Advances received-

340,007,000

Accounts payable

615,584,900

20,501,640

Dividends payable

63,285,657,292

69,278,952,984

Trustee fees payable

2,915,292,883

2,873,660,609

Trustor fees payable

6,389,182,913

6,295,665,210

Interest payable
Cash collateral received

2,685

789,064

361,505,640,813

358,868,705,806

Other accrued expenses

1,054,427,561

1,038,678,794

Total Current Liabilities

436,142,463,397

438,823,567,757

436,142,463,397

438,823,567,757

1,576,632,761,726

1,534,586,166,980

1,907,848,843,894

2,621,789,114,009

Total Liabilities
Net Assets
Principal, etc.
Principal
Retained Earnings
Retained earnings (loss) at the endof the year
(Reserve for distribution)
Total Principal, Etc.
Total Net Assets
Total Liabilities and Net Assets

41,107,393

40,488,894

3,484,481,605,620

4,156,375,280,989

3,484,481,605,620

4,156,375,280,989

3,920,624,069,017

4,595,198,848,746

48

(2) Statement of Profit and Loss and Retained Earnings(Unit:yen)
21st Calculation Period From
July 9, 2021 To July 8, 2022

22nd Calculation Period From
July 9, 2022 To July 8, 2023

Operating Revenue
Dividend income

69,685,122,682

72,452,883,051

Interest income△132,708,777△289,067,614

Gain or loss on sales of securities△211,985,462,029

758,003,581,418

Gain or loss on derivative trading△3,019,763,470

9,620,062,320

4,558,238,033

7,558,014,490△140,894,573,561

847,345,473,665

Other income
Total operating revenue
Operating Expenses
Interest paid-

5,088,384

Trustee fees

2,915,292,883

2,873,660,609

Trustor fees

6,389,182,913

6,295,665,210

Other expenses

1,521,261,935

1,269,081,239

10,825,737,731

10,443,495,442

Operating income or operating loss

Total operating expenses△151,720,311,292

836,901,978,223

Ordinary income or ordinary loss

△151,720,311,292

836,901,978,223

Net Income or Net Loss for the Period△151,720,311,292

836,901,978,223

Distribution of net income for the periodancillary to partial conversions or
distribution of net loss for the year ancillary
to partial conversions--

Retained earnings or loss at the beginning of
the period

2,139,714,854,404

1,907,848,843,894

170,263,459,320

150,957,795,650

An increase in retained earnings or adecrease in loss ancillary to partial
conversions during the period--

An increase in retained earnings or adecrease in loss ancillary to additional
trust creations during the period

170,263,459,320

150,957,795,650

187,123,501,246

204,640,550,774

A decrease in retained earnings or an
increase in loss ancillary to partial
conversions during the period

187,123,501,246

204,640,550,774

A decrease in retained earnings or an
increase in loss ancillary to additional
trust creations during the period--

63,285,657,292

69,278,952,984

1,907,848,843,894

2,621,789,114,009

An increase in retained earnings or adecrease in loss

A decrease in retained earnings or an
increase in loss

Distribution
Retained earnings (loss) at the end of the
year

49

(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

21st YearAs of July 8, 2022
1,589,212,386,390 yen
128,117,100,700 yen

22nd YearAs of July 8, 2023
1,576,632,761,726 yen
101,453,739,060 yen

Partial conversion of principal during the year

140,696,725,364 yen

143,500,333,806 yen

Total number of beneficial interests
Pledged assets
Assets pledged as collateral in the form of collateral
securities deposited as margin in relation toderivatives transactions are as follows:
Stocks128,108,618 units

124,692,140 units

17,065,000,000 yen

21,059,550,000 yen

Securities loaned under lending and borrowing
contracts for securities are as follows:
Stocks350,183,585,330 yen

334,614,685,660 yen

50

(Notes to Statement of Profit and Loss and Retained Earnings)
21st Year
From July 9, 2021
To July 8, 2022
Process for calculation of dividends
A Dividends and other income forthe period
B Reserve for distribution
C Total dividends and otherincome (A+B)
D Miscellaneous expenses
E Possible amount of dividend (CD)F Profit distribution
G Carry forward (Reserve for
distribution) (E-F)
H Number of units
I Dividend amount (per unit)

22nd Year
From July 9, 2022
To July 8, 2023
Process for calculation of dividends

74,110,651,938 yen A Dividends and other income forthe period
41,850,478 yen B Reserve for distribution
74,152,502,416 yen C Total dividends and otherincome (A+B)
10,825,737,731 yen D Miscellaneous expenses
63,326,764,685 yen E Possible amount of dividend (CD)63,285,657,292 yen F Profit distribution
41,107,393 yen G Carry forward (Reserve for
distribution) (E-F)
128,108,618 units H Number of units
494 yen I Dividend amount (per unit)

79,716,741,543 yen
41,107,393 yen
79,757,848,936 yen
10,438,407,058 yen
69,319,441,878 yen
69,278,952,984 yen
40,488,894 yen
124,692,140 units
555 yen(Notes Regarding Financial Instruments)
I Matters concerning the state of financial instruments
21st Year
From July 9, 2021
To July 8, 2022
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 financial instruments invests are securities stated in the“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 and option contracts, etc.
and may be carried out to contribute to
the effective investment of assets
belonging to trust assets. Pricefluctuation risk, liquidity risk andcredit risk, etc. are involved in the
securities and derivative transactions
concerned according to their 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.

51

22ndYear
From July 9, 2022
To July 8, 2023

Same as left

Same as left

Same as left

II Matters concerning the fair market value, etc. of financial instruments
21st YearAs of July 8, 2022

22nd YearAs of July 8, 2023

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 fiscal year, 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
Same as left
fair market value, etc. of financial
instruments. If different assumptions,
instruments
etc. are used, the values may bedifferent.

(Notes Regarding Securities)
21st year (as of July 8, 2022)
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(206,936,142,165)
Total(206,936,142,165)

22nd year (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

Stocks721,622,294,120
Total

721,622,294,120

52

(Notes Regarding Derivative Transactions, etc.)
Matters concerning the fair market value, etc. of transactions(Stock-related)
21st year (as of July 8, 2022)(Unit: yen)
Category

Type

Markettransaction

Stock index
futurestransactions

Contracted amount, etc.

Newpurchase
Total

Longer than
one year

Fair market value

Valuationdifference

10,142,342,500－

9,765,870,000(376,472,500)

10,142,342,500－

9,765,870,000(376,472,500)

22nd year (as of July 8, 2023)(Unit: yen)
Category
Markettransaction

Type

Contracted
amount, etc.

Longer than one
year

Fair market value Valuation difference

Stock index futurestransactions
New purchaseTotal

8,830,128,700

8,723,670,000(106,458,700)

8,830,128,700

8,723,670,000(106,458,700)(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 basedon liquidation prices or closing prices announced by a principal stock exchange on theclosest known day to the last day of the calculation period. Where such prices have notbeen 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 day of thecalculation period, using a method conforming to the principle.
2. The outstanding balance of stock index futures transactions is indicated based oncontracted 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)

Net assets per unit

21st YearAs of July 8, 2022

27,199 yen Net assets per unit

53

22nd YearAs of July 8, 2023

33,333 yen

(4) Supplementary Schedules
1 Schedule of Securities(1) Stocks(Unit: yen)
Name

Number ofsharesValuation
Unit priceAmountLoaned securities(Unit:shares)

NISSUI CORPORATION

4,340,000

643.002,790,620,000

INPEX CORPORATION

1,736,000

1,602.00

2,781,072,000

COMSYS HOLDINGS CORPORATION

4,340,000

2,746.50

11,919,810,000

868,000

5,014.00

4,352,152,000

300

OBAYASHI CORPORATION

4,340,000

1,225.50

5,318,670,000

2,046,300

SHIMIZU CORPORATION

4,340,000

899.603,904,264,000

70,200HASEKO CORPORATION

868,000

1,762.50

1,529,850,000

1,500

KAJIMA CORPORATION

2,170,000

2,152.50

4,670,925,000

100

DAIWA HOUSE INDUSTRY CO.,LTD.

4,340,000

3,697.00

16,044,980,000

52,300SEKISUI HOUSE,LTD.

4,340,000

2,865.00

12,434,100,000

3,191,500

JGC HOLDINGS CORPORATION

4,340,000

1,812.00

7,864,080,000

31,400NISSHIN SEIFUN GROUP INC.

4,340,000

1,695.00

7,356,300,000

84,600

MEIJI HOLDINGS CO.,LTD.

1,736,000

3,266.00

5,669,776,000

700

NH FOODS LTD.

2,170,000

3,916.00

8,497,720,000

15,900SAPPORO HOLDINGS LIMITED

868,000

3,611.00

3,134,348,000

50,500ASAHI GROUP HOLDINGS,LTD.

4,340,000

5,558.00

24,121,720,000

540,200

KIRIN HOLDINGS COMPANY,LIMITED

4,340,000

2,085.00

9,048,900,000

3,063,500

TAKARA HOLDINGS INC.

4,340,000

1,137.00

4,934,580,000

3,800

KIKKOMAN CORPORATION

4,340,000

7,966.00

34,572,440,000

7,900

AJINOMOTO CO.,INC.

4,340,000

5,616.00

24,373,440,000

359,100

NICHIREI CORPORATION

2,170,000

3,052.00

6,622,840,000

JAPAN TOBACCO INC.

4,340,000

3,096.00

13,436,640,000

2,910,100

868,000

1,476.00

1,281,168,000

11,300TORAY INDUSTRIES,INC.

4,340,000

798.403,465,056,000

229,600

OJI HOLDINGS CORPORATION

4,340,000

517.402,245,516,000

176,700

434,000

1,184.00

513,856,000

22,300KURARAY CO.,LTD.

4,340,000

1,384.00

6,006,560,000

777,900

ASAHI KASEI CORPORATION

4,340,000

979.804,252,332,000

19,400434,000

2,285.50

991,907,000

27,200SUMITOMO CHEMICALCOMPANY,LIMITED

4,340,000

435.701,890,938,000

302,000

NISSAN CHEMICAL CORPORATION

4,340,000

6,117.00

26,547,780,000

15,000TOSOH CORPORATION

2,170,000

1,688.00

3,662,960,000

15,500TOKUYAMA CORPORATION

868,000

2,355.00

2,044,140,000

DENKA COMPANY LIMITED

868,000

2,692.50

2,337,090,000

21,700,000

4,597.00

99,754,900,000

83,500868,000

4,128.00

3,583,104,000

300

TAISEI CORPORATIONTEIJIN LIMITEDNIPPON PAPER INDUSTRIES CO.,LTD.

RESONAC HOLDINGS CORPORATION

SHIN-ETSU CHEMICAL CO.,LTD.
MITSUI CHEMICALS,INC.

54

59,500MITSUBISHI CHEMICAL GROUPCORPORATION

30,7002,170,000

851.101,846,887,000

UBE CORPORATION

434,000

2,495.50

1,083,047,000

KAO CORPORATION

4,340,000

5,358.00

23,253,720,000

1,472,400

DIC CORPORATION

434,000

2,623.00

1,138,382,000

321,200

FUJIFILM HOLDINGS CORPORATION

4,340,000

8,298.00

36,013,320,000

3,400

SHISEIDO COMPANY,LIMITED

4,340,000

6,290.00

27,298,600,000

1,906,200

NITTO DENKO CORPORATION

4,340,000

10,040.00

43,573,600,000

14,100KYOWA KIRIN CO.,LTD.

4,340,000

2,624.50

11,390,330,000

2,115,400

TAKEDA PHARMACEUTICAL COMPANY
LIMITED4,340,000

4,410.00

19,139,400,000

ASTELLAS PHARMA INC.

21,700,000

2,061.00

44,723,700,000

927,200

SUMITOMO PHARMA CO.,LTD.

4,340,000

661.902,872,646,000

164,800

SHIONOGI & CO.,LTD.

4,340,000

5,919.00

25,688,460,000

12,100CHUGAI PHARMACEUTICAL CO.,LTD.

13,020,000

3,907.00

50,869,140,000

362,000

EISAI CO.,LTD.

4,340,000

9,382.00

40,717,880,000

DAIICHI SANKYO COMPANY,LIMITED

13,020,000

4,133.00

53,811,660,000

798,900OTSUKA HOLDINGS CO.,LTD.

4,340,000

5,216.00

22,637,440,000

2,970,600

IDEMITSU KOSAN CO.,LTD.

1,736,000

2,889.00

5,015,304,000

12,600ENEOS HOLDINGS,INC.

4,340,000

496.902,156,546,000

13,500THE YOKOHAMA RUBBERCOMPANY,LIMITED

2,170,000

3,075.00

6,672,750,000

BRIDGESTONE CORPORATION

4,340,000

5,750.00

24,955,000,000

3,212,700

AGC INC.

868,000

4,959.00

4,304,412,000

445,900NIPPON SHEET GLASSCOMPANY,LIMITED

434,000

645.00279,930,000

NIPPON ELECTRIC GLASS CO.,LTD.

1,302,000

2,506.50

3,263,463,000

579,500

SUMITOMO OSAKA CEMENT CO.,LTD.

434,000

3,646.00

1,582,364,000

300

TAIHEIYO CEMENT CORPORATION

434,000

2,777.00

1,205,218,000

1,000

TOKAI CARBON CO.,LTD.

4,340,000

1,274.00

5,529,160,000

1,770,200

TOTO LTD.

2,170,000

4,197.00

9,107,490,000

2,900

NGK INSULATORS,LTD.

4,340,000

1,654.50

7,180,530,000

15,400NIPPON STEEL CORPORATION

434,000

2,993.50

1,299,179,000

217,500

KOBE STEEL,LTD.

434,000

1,395.00

605,430,000

8,400

JFE HOLDINGS,INC.

434,000

1,989.50

863,443,000

19,800PACIFIC METALS CO.,LTD.

434,000

1,520.00

659,680,000

138,000

MITSUI MINING AND SMELTING
COMPANY,LIMITED

434,000

3,248.00

1,409,632,000

MITSUBISHI MATERIALSCORPORATION

434,000

2,534.00

1,099,756,000

2,170,000

4,577.00

9,932,090,000

68,900

DOWA HOLDINGS CO.,LTD.

868,000

4,516.00

3,919,888,000

41,900FURUKAWA ELECTRIC CO.,LTD.

434,000

2,556.50

1,109,521,000

300

SUMITOMO ELECTRIC
INDUSTRIES,LTD.

4,340,000

1,716.00

7,447,440,000

FUJIKURA LTD.

4,340,000

1,178.00

5,112,520,000

SUMITOMO METAL MINING CO.,LTD.

55

51,700665,100

300
700

SUMCO CORPORATION

434,000

2,000.00

868,000,000

THE JAPAN STEEL WORKS,LTD.

868,000

2,989.50

2,594,886,000

OKUMA CORPORATION

868,000

7,391.00

6,415,388,000

3,600

4,340,000

1,385.50

6,013,070,000

300

434,000

76,900.00

33,374,600,000

4,340,000

3,727.00

16,175,180,000

437,900

SUMITOMO HEAVY INDUSTRIES,LTD.

868,000

3,359.00

2,915,612,000

248,100

HITACHI CONSTRUCTION MACHINERYCO.,LTD.

4,340,000

3,898.00

16,917,320,000

KUBOTA CORPORATION

4,340,000

2,011.50

8,729,910,000

132,800

EBARA CORPORATION

868,000

6,906.00

5,994,408,000

601,100

DAIKIN INDUSTRIES,LTD.

4,340,000

29,110.00

126,337,400,000

NSK LTD.

4,340,000

896.403,890,376,000

NTN CORPORATION

4,340,000

303.201,315,888,000

JTEKT CORPORATION

4,340,000

1,309.50

5,683,230,000

3,700

MITSUI E&S CO.,LTD.

434,000

514.00223,076,000

29,600HITACHI ZOSEN CORPORATION

868,000

914.00793,352,000

84,600

MITSUBISHI HEAVY INDUSTRIES,LTD.

434,000

6,627.00

2,876,118,000

100

IHI CORPORATION

434,000

3,891.00

1,688,694,000

40,600KONICA MINOLTA,INC.

4,340,000

498.802,164,792,000

19,800MINEBEA MITSUMI INC.

4,340,000

2,557.00

11,097,380,000

244,400

868,000

8,825.00

7,660,100,000

94,2004,340,000

1,999.50

8,677,830,000

447,200

868,000

5,985.00

5,194,980,000

500

YASKAWA ELECTRIC CORPORATION

4,340,000

6,217.00

26,981,780,000

196,000

NIDEC CORPORATION

3,472,000

7,520.00

26,109,440,000

19,900OMRON CORPORATION

4,340,000

8,509.00

36,929,060,000

14,300

GS YUASA CORPORATION

868,000

2,850.00

2,473,800,000

NEC CORPORATION

434,000

6,942.00

3,012,828,000

FUJITSU LIMITED

434,000

18,255.00

7,922,670,000

RENESAS ELECTRONICSCORPORATION

4,340,000

2,688.50

11,668,090,000

SEIKO EPSON CORPORATION

8,680,000

2,196.00

19,061,280,000

2,016,300

PANASONIC HOLDINGS CORPORATION

4,340,000

1,719.00

7,460,460,000

369,900

SHARP CORPORATION

4,340,000

790.203,429,468,000

3,250,000

SONY GROUP CORPORATION

4,340,000

13,005.00

56,441,700,000

400,700

TDK CORPORATION

13,020,000

5,410.00

70,438,200,000

39,000

ALPS ALPINE CO.,LTD.

4,340,000

1,221.50

5,301,310,000

113,700

YOKOGAWA ELECTRIC CORPORATION

4,340,000

2,645.00

11,479,300,000

7,800

ADVANTEST CORPORATION

8,680,000

19,970.00

173,339,600,000

219,300

KEYENCE CORPORATION

434,000

65,970.00

28,630,980,000

CASIO COMPUTER CO.,LTD.

4,340,000

1,171.00

5,082,140,000

641,000

FANUC CORPORATION

21,700,000

4,753.00

103,140,100,000

20,600KYOCERA CORPORATION

8,680,000

7,584.00

65,829,120,000

1,800

AMADA CO.,LTD.
SMC CORPORATION
KOMATSU LTD.

HITACHI,LTD.
MITSUBISHI ELECTRIC CORPORATION
FUJI ELECTRIC CO.,LTD.

56

228,500

14,20038,600600

TAIYO YUDEN CO.,LTD.

4,340,000

4,182.00

18,149,880,000

33,600

MURATA MANUFACTURING CO.,LTD.

3,472,000

8,089.00

28,085,008,000

6,100

868,000

15,630.00

13,566,840,000

118,400

CANON INC.

6,510,000

3,725.00

24,249,750,000

3,491,000

RICOH COMPANY,LTD.

4,340,000

1,216.00

5,277,440,000

16,300TOKYO ELECTRON LIMITED

13,020,000

20,205.00

263,069,100,000

17,500DENSO CORPORATION

4,340,000

9,569.00

41,529,460,000

3,800

434,000

3,718.00

1,613,612,000

2,900

NISSAN MOTOR CO.,LTD.

4,340,000

597.102,591,414,000

141,200

ISUZU MOTORS LIMITED

2,170,000

1,757.50

3,813,775,000

3,000

TOYOTA MOTOR CORPORATION

21,700,000

2,299.50

49,899,150,000

1,557,500

HINO MOTORS,LTD.

4,340,000

597.602,593,584,000

MITSUBISHI MOTORS CORPORATION

434,000

503.30218,432,200

3,900

MAZDA MOTOR CORPORATION

868,000

1,368.00

1,187,424,000

228,000

HONDA MOTOR CO.,LTD.

8,680,000

4,291.00

37,245,880,000

552,600SUZUKI MOTOR CORPORATION

4,340,000

5,462.00

23,705,080,000

240,600

SUBARU CORPORATION

4,340,000

2,615.50

11,351,270,000

3,400

YAMAHA MOTOR CO.,LTD.

4,340,000

4,076.00

17,689,840,000

2,120,100

TERUMO CORPORATION

17,360,000

4,321.00

75,012,560,000 Collateral Securities
1,050,000
Loaned Securities
14,800NIKON CORPORATION

4,340,000

1,827.00

7,929,180,000

3,800

OLYMPUS CORPORATION

17,360,000

2,222.00

38,573,920,000

800

HOYA CORPORATION

2,170,000

16,315.00

35,403,550,000

600

CITIZEN WATCH CO.,LTD.

4,340,000

880.003,819,200,000

2,838,400

BANDAI NAMCO HOLDINGS INC.

13,020,000

3,161.00

41,156,220,000

16,400

TOPPAN INC.

2,170,000

3,099.00

6,724,830,000

900

DAI NIPPON PRINTING CO.,LTD.

2,170,000

3,966.00

8,606,220,000

1,000

YAMAHA CORPORATION

4,340,000

5,270.00

22,871,800,000

286,900

NINTENDO CO.,LTD.

4,340,000

6,351.00

27,563,340,000

311,800

TOKYO ELECTRIC POWER COMPANYHOLDINGS,INCORPORATED

434,000

525.10227,893,400

CHUBU ELECTRIC POWER
COMPANY,INCORPORATED

434,000

1,717.50

745,395,000

THE KANSAI ELECTRIC POWER
COMPANY,INCORPORATED

434,000

1,781.00

772,954,000

TOKYO GAS CO.,LTD.

868,000

3,115.00

2,703,820,000

OSAKA GAS CO.,LTD.

868,000

2,145.50

1,862,294,000

700

TOBU RAILWAY CO.,LTD.

868,000

3,657.00

3,174,276,000

9,900

TOKYU CORPORATION

2,170,000

1,703.00

3,695,510,000

52,100ODAKYU ELECTRIC RAILWAY CO.,LTD.

2,170,000

1,872.00

4,062,240,000

237,300

868,000

4,241.00

3,681,188,000

63,9002,170,000

5,822.00

12,633,740,000

6,100

434,000

7,850.00

3,406,900,000

51,000SCREEN HOLDINGS CO.,LTD.

KAWASAKI HEAVY INDUSTRIES,LTD.

KEIO CORPORATIONKEISEI ELECTRIC RAILWAY CO.,LTD.
EAST JAPAN RAILWAY COMPANY

57

1,800
25,900600

WEST JAPAN RAILWAY COMPANY

434,000

5,843.00

2,535,862,000

CENTRAL JAPAN RAILWAY COMPANY

434,000

17,730.00

7,694,820,000

4,340,000

2,601.50

11,290,510,000

78,800NIPPON EXPRESS HOLDINGS,INC.

434,000

8,070.00

3,502,380,000

69,600NIPPON YUSEN KABUSHIKI KAISHA

1,302,000

3,352.00

4,364,304,000

5,700

MITSUI O.S.K.LINES,LTD.

1,302,000

3,678.00

4,788,756,000

1,800

KAWASAKI KISEN KAISHA,LTD.

1,302,000

3,877.00

5,047,854,000

990,000

JAPAN AIRLINES CO.,LTD.

4,340,000

3,134.00

13,601,560,000

117,000

434,000

3,427.00

1,487,318,000

319,900

MITSUBISHI LOGISTICSCORPORATION

2,170,000

3,458.00

7,503,860,000

NEXON CO.,LTD.

8,680,000

2,583.50

22,424,780,000

Z HOLDINGS CORPORATION

1,736,000

368.60639,889,600

TREND MICRO INCORPORATED

4,340,000

6,821.00

29,603,140,000

NIPPON TELEGRAPH AND
TELEPHONE CORPORATION

43,400,000

166.207,213,080,000

KDDI CORPORATION

26,040,000

4,291.00

SOFTBANK CORP.

4,340,000

1,536.50

6,668,410,000

102,700

434,000

5,370.00

2,330,580,000

1,800

NTT DATA GROUP CORPORATION

21,700,000

1,923.00

41,729,100,000

49,200KONAMI GROUP CORPORATION

4,340,000

7,328.00

31,803,520,000

9,800

SOFTBANK GROUP CORP.

26,040,000

6,724.00

175,092,960,000 Collateral Securities
1,500,000
Loaned Securities
397,300

SOJITZ CORPORATION

434,000

3,193.00

1,385,762,000

500

ITOCHU CORPORATION

4,340,000

5,540.00

24,043,600,000

38,800MARUBENI CORPORATION

4,340,000

2,400.50

10,418,170,000

727,600

TOYOTA TSUSHO CORPORATION

4,340,000

7,168.00

31,109,120,000

542,700

MITSUI & CO.,LTD.

4,340,000

5,236.00

22,724,240,000

569,400

SUMITOMO CORPORATION(SUMITOMO SHOJI KAISHA,LTD.)

4,340,000

2,973.00

12,902,820,000

MITSUBISHI CORPORATION

4,340,000

6,832.00

29,650,880,000

97,100J.FRONT RETAILING CO.,LTD.

2,170,000

1,386.50

3,008,705,000

746,900

ISETAN MITSUKOSHI HOLDINGS LTD.

4,340,000

1,468.00

6,371,120,000

48,500

SEVEN & I HOLDINGS CO.,LTD.

4,340,000

6,023.00

26,139,820,000

3,212,700

TAKASHIMAYA COMPANY,LIMITED

2,170,000

1,989.00

4,316,130,000

955,100

MARUI GROUP CO.,LTD.

4,340,000

2,451.00

10,637,340,000

5,300

AEON CO.,LTD.

4,340,000

2,960.00

12,846,400,000

200,200

FAST RETAILING CO.,LTD.

13,020,000

34,560.00

449,971,200,000

1,147,900

SHIZUOKA FINANCIAL GROUP,INC.

4,340,000

1,046.50

4,541,810,000

CONCORDIA FINANCIAL GROUP,LTD.

4,340,000

588.702,554,958,000

42,000434,000

2,707.50

1,175,055,000

330,000

4,340,000

1,057.50

4,589,550,000

1,006,100

YAMATO HOLDINGS CO.,LTD.

ANA HOLDINGS INC.

TOHO CO.,LTD

AOZORA BANK,LTD.
MITSUBISHI UFJ FINANCIAL

58

16,2001,198,300
3,200,000

111,737,640,000 Collateral Securities
1,500,000
Loaned Securities
187,800

929,400

GROUP,INC.
RESONA HOLDINGS, INC.

434,000

716.30310,874,200

SUMITOMO MITSUI TRUSTHOLDINGS,INC.

434,000

5,332.00

2,314,088,000

SUMITOMO MITSUI FINANCIALGROUP,INC.

434,000

6,200.00

2,690,800,000

4,340,000

912.903,961,986,000

FUKUOKA FINANCIAL GROUP,INC.

868,000

3,095.00

2,686,460,000

MIZUHO FINANCIAL GROUP,INC.

434,000

2,211.00

959,574,000

23,200DAIWA SECURITIES GROUP INC.

4,340,000

723.303,139,122,000

1,238,300

NOMURA HOLDINGS,INC.

4,340,000

542.202,353,148,000

7,000

MATSUI SECURITIES CO.,LTD.

4,340,000

801.003,476,340,000

74,000868,000

6,556.00

5,690,608,000

MS&AD INSURANCE GROUPHOLDINGS,INC.

1,302,000

5,226.00

6,804,252,000

DAI-ICHI LIFE HOLDINGS,INC.

434,000

2,859.00

1,240,806,000

109,600

TOKIO MARINE HOLDINGS,INC.

6,510,000

3,284.00

21,378,840,000

792,600

868,000

2,242.00

1,946,056,000

225,800

CREDIT SAISON CO.,LTD.

4,340,000

2,243.00

9,734,620,000

78,400

ORIX CORPORATION

4,340,000

2,571.00

11,158,140,000

476,400

JAPAN EXCHANGE GROUP,INC.

4,340,000

2,364.00

10,259,760,000

TOKYU FUDOSAN HOLDINGSCORPORATION

4,340,000

815.903,541,006,000

MITSUI FUDOSAN CO.,LTD.

4,340,000

2,827.50

12,271,350,000

MITSUBISHI ESTATECOMPANY,LIMITED

4,340,000

1,711.50

7,427,910,000

TOKYO TATEMONO CO.,LTD.

2,170,000

1,851.50

4,017,755,000

SUMITOMO REALTY & DEVELOPMENT
CO.,LTD.

4,340,000

3,528.00

15,311,520,000

M3,INC.

10,416,000

3,006.00

31,310,496,000

3,458,600

DENA CO.,LTD.

1,302,000

1,825.00

2,376,150,000

23,300DENTSU GROUP INC.

4,340,000

4,600.00

19,964,000,000

3,252,100

ORIENTAL LAND CO.,LTD.

4,340,000

5,569.00

24,169,460,000

2,558,100

CYBERAGENT,INC.

3,472,000

1,013.50

3,518,872,000

12,200RAKUTEN GROUP,INC.

4,340,000

528.902,295,426,000

3,212,700

RECRUIT HOLDINGS CO.,LTD.

13,020,000

4,532.00

59,006,640,000

1,297,900

JAPAN POST HOLDINGS CO.,LTD.

4,340,000

1,043.00

4,526,620,000

SECOM CO.,LTD.

4,340,000

9,469.00

41,095,460,000

THE CHIBA BANK,LTD.

SOMPO HOLDINGS,INC.

T&D HOLDINGS, INC.

Total

945,686,000(2) Non-stock securities
N/A
2 Schedule of Balances of Margin Transaction Contracts
N/A
59

4,147,907,520,400

500

4,200

3,700

1,900
490,900
502,800
1,289,600

4,300

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

60

Interim financial statements(1) The Interim Financial Statements of the Fund are prepared in accordance with theOrdinance on Terminology, Forms and Preparation Methods of Interim Financial
Statements, etc. (Ministry of Finance Ordinance No. 38 of 1977; hereinafter referred to as“Interim Financial Statements Regulation”) and the Ordinance on Accountings ofInvestment Trust Property (Cabinet Office Ordinance No. 133 of 2000), pursuant to theprovisions of Article 38-3 and Article 57-2 of the Interim Financial Statements Regulation.
The Interim Financial Statements are recorded in Japanese yen.
(2) Pursuant to the provision of paragraph 1 of Article 193-2 of the Financial Instruments
and Exchange Act, the Fund’s Interim Financial Statements for the interim calculation
period under review (from July 9, 2023 to January 8, 2024) have been audited byPricewaterhouseCoopers Japan LLC.

61

2. Current Status of the FundThe following is the current status of the Fund as of January 31, 2024
Listed Index Fund 225
Statement of calculation of net assets
I Total assets

4,921,738,696,066 yen

II Total liabilities

212,921,892,996 yen

III Net assets (I-II)

4,708,816,803,070 yen

IV Number of outstanding units

125,003,857 units

V Net assets per unit (III / IV)

37,669 yen

62

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 transferring the Units he or she owns, a unitholder must submit a request fortransfer 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
the unitholder 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.
shall inform the different book-entry transfer institution, etc. that opened the accountof the transferee to which the transfer is made (and its upper-positioned institutions)to add an entry or record of the increase in the number of Units in the account of thetransferee to which the transfer is made pursuant to the provisions of the Act on BookEntry 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 theBook-Entry Transfer Institution, Etc. that maintains the book-entry transfer accountbook in which the Units the unitholder intends to transfer is listed or recorded isdifferent from the book-entry transfer institution, etc. that opened the account of thetransferee to which 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 BookEntry Transfer of Company Bonds, Shares, etc.

63(6) Handling of Units Listed or Recorded in the Pledge Column
The payment of income dividends, acceptance of a request for an Exchange and delivery of exchanged
shares (including Exchanges upon termination of the trust) in connection with the Units listed orrecorded in the pledge column of the book-entry transfer account book of the Book-Entry Transfer
Institution, Etc. are handled in accordance with the provisions of the trust deed, as well as those of the
Civil Code and other laws and regulations.

64PART III.

Information on the Management Company, Etc.

Please contact “ETFBusinessDevelop@nikkoam.com” for the consolidated financial statement.

65Trust Deed for Open-end Securities Investment
Listed Index Fund 225

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 Mitsubishi UFJ Trust and Banking Corporation as Trustee.
2. The Trust Act (Act No. 62 of 1922) applies to this Trust except for the matters of requirementsfor perfection of assets belonging to the trust assets.
Article 2(Delegation of Trust Business)
The Trustee may enter into a trust deed with a financial institution, which is licensed tooperate a combined management of trust business under Article 1, Paragraph 1 of the Act
on Provision, etc. of Trust Business by Financial Institutions, and pursuant to such deed, it
may delegate part of the trust business to be dealt with for this Trust to such financial
institution in the form of delegation of trust business as provided for in Article 26, Paragraph
1 of the Trust Act.

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 50 billion, 133 million,
795 thousand and 2 hundred yen (50,133,795,200 yen) to be held in trust in cash andsecurities for the purpose of making profits for and on behalf of the beneficiaries.
2. Upon agreement with the Trustee, the Trustor may make additions, either in cash or insecurities, to the trust fund to a maximum limit of 10 trillion yen (10,000,000,000,000 yen),
and in case of any such addition to the trust fund, the Trustee shall deliver a certificate ofacceptance in writing to the Trustor.
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
47, Paragraph 1 of Article 48, Paragraph 1 of Article 49 and Paragraph 2 of Article 51.

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

Article 6(Initial Beneficiaries)
1. The initial beneficiaries at the time of execution of the Trust Deed or at the time of an addition
to the trust fund shall be the subscribers of beneficial interests designated as such by theTrustor, and their beneficial interests divided under Article 7 shall belong to such subscribers
in proportion to their respective number of units subscribed. However, in accordance with thestatement of operation procedures of the Financial Instruments Clearing Institution (theFinancial Instruments Clearing Institution defined in Article 2, Paragraph 29 of the
Financial Instruments and Exchange Act and hereinafter referred to as the "Clearing
Institution") specified separately, when the Type 1 financial instruments business operator
designated by the Trustor who accepted the subscription, applies to the Clearing Institution
for assuming obligation of delivery or payment of equities pertaining to the acceptance ofsubscription and the Clearing Institution assumes this obligation, the initial beneficiaries at
the time of an addition to the trust fund is the Clearing Institution.
2. In connection with the beneficiaries referred to in the preceding paragraph, the Trustee shallregister its name or corporate name, address and any other matters specified by it in theregister of beneficiaries set out in Article 21. The Trustee shall also separately register its
personal number (meaning the personal number defined in Article 2-5 of the Act on the Useof Numbers to Identify a Specific Individual in Administrative Procedures; hereinafter thesame) or corporate number (meaning the corporate number defined in Article 2-15 of the Act
on the Use of Numbers to Identify a Specific Individual in Administrative Procedures;66

hereinafter the same). However, Trustees that do not have a personal number or corporate
number are prohibited from registering (the same shall apply in Article 21-1).
Article 7(Division or Subdivision of Beneficial Interests)
1. The Trustor shall divide the beneficial interests set out in Paragraph 1 of Article 3 equally
into 4,073,600 units or the beneficial interests derived from any addition to the trust fundequally into the number of units added under Paragraph 1 of Article 8 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 to as the “BookEntry Transfer Act”).
Article 8(Additional Trust)
1. The Trustor shall, in principle, make an addition to the trust fund in this Trust withsecurities (excluding those in which no investment may be permitted under the Trust Deed);
provided that if the aggregate of the value of such securities (i.e., the value calculated on thebasis of the closing price reported on the business day immediately preceding the day on
which the addition is made to the trust fund or any equivalent value calculated in any
reasonable manner; the same shall apply hereinafter) is less than the value obtained bymultiplying the net asset value per unit of the business day immediately preceding the dayon which the addition is made to the trust fund by the number of the beneficial interests ofsuch additional trust, then such addition to the trust fund shall be made in cash with respect
to the resultant difference.
2. As regards the added trust fund (including the value of the securities placed in trust), adifference between the added amount and the amount equal to principal shall be treated as
the difference of additional trust.
Article 9(Calculation Method of Net Asset Value per Unit)
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)
belonging to the trust assets in accordance with the relevant laws and regulations as well as
the rules of The Investment Trusts Association, Japan, less the total amount of liabilities,(hereinafter referred to as the “Total Net Asset Value”) by the total number of the beneficial
interests as of the calculation date.

Article 10(Description of Beneficial Interests with Different Trust Dates)
The beneficial interests in this Trust shall not be treated differently depending on the
different 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 the beneficial interests in thisTrust from January 4, 2008. The attribution of beneficial interests which are added to thetrust fund on or after the same date shall be determined by entry or record in a book-entry
transfer account book of a book-entry transfer institution agreed by the Trustor to deal withthe beneficial interests in this investment trust in advance (which refers to the “Book-Entry
Transfer Institution” as defined in Article 2 of the Book-Entry Transfer Act; hereinafterreferred to as the “Book-Entry Transfer Institution”) and any account management
institution subordinate to such Book-Entry Transfer Institution (“account management
institution” as defined in Article 2 of the Book-Entry Transfer Act; including 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 shallbe hereinafter referred to as the “Book-Entry Transfer Beneficial Interests”).
2. 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 theprovisions of the Book-Entry Transfer Act or when such designation becomes invalid, except
for the cases where there exists no one who succeeds to the transfer business of such BookEntry Transfer Institution or there are other unavoidable circumstances.

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4.

In addition, beneficiaries shall not make a request to convert their bearer beneficiary
certificates into registered beneficiary certificates, or convert their registered beneficiary
certificates into bearer beneficiary certificates, or reissue beneficiary certificates unless theTrustor issues beneficiary certificates due to unavoidable circumstances.
The Trustor shall, as regards the beneficial interests divided by the provisions of Article 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 BookEntry 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 account book managed by the Book-Entry Transfer
Institution, Etc. in accordance with the provisions of the Book-Entry Transfer Act.
The Trustor may apply for entry or record of the beneficial interests in this Trust in thetransfer acceptance book for and on behalf of the beneficiaries and shall, in principle, apply
for entry or record of all of the beneficial interests in this Trust as of December 28, 2007 (suchbeneficial interests are those whose record of exchange in the trust assets has already been
finished and include those whose distribution date of shares in relation to such exchange ison or after January 4, 2008) in the transfer acceptance book on January 4, 2008 for and on
behalf of the beneficiaries. However, as regards the beneficiary certificates that have not beenentered or recorded in the participant account book and the beneficial interests related to thebeneficiary certificates not held in a custody account in the central securities custody andbook-entry transfer system, the Trustor shall make such application after it confirms such
beneficiary certificates during the trust term. The beneficiary certificates relating to thebeneficial interests entered or recorded in the transfer acceptance book shall become invalid
and they shall become the Book-Entry Transfer Beneficial Interests by such entry or record.
In addition, the Trustor may, when applying for entry or record of the beneficial interests inthis Trust in the transfer acceptance book for and on behalf of the beneficiaries, delegate theprocedure of such application to a Type 1 financial instruments business operator designatedby the Trustor (which refers 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) or a member of a financial
instruments exchange as an account management institution (which refers 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 12(Notification by Trustee of Creation of Beneficial Interests)
The Trustee shall notify the Trustor that an addition to the trust fund has been made when
the Trustee receives notification of the acceptance or transfer of the shares associated withsuch addition to the trust fund (including the amount equal to the value of the equities of theissuing company, etc. set forth in Paragraph 1 of Article 13). However, as provided by thestatement of operation procedures of the Clearing Institution set forth in the proviso to
Article 6, when the Clearing Institution assumes obligation of delivery or payment of theequities to the Trustor, Trustee shall, at the direction of the Trustor, notify the Book-Entry
Transfer Institution that an addition to the trust fund has been made, regardless of whether
or not the Trustee received notification of the acceptance or transfer of the equities.

Article 13 (Subscription Method, Unit of Beneficial Interests and Value of Beneficial Interests)
1. Subscription shall be made by applicants with the equities held by them against the Type 1
financial instruments business operator designated by the Trustor. In this case, the equities
for the subscription shall be those in the constituent shares of the Nikkei Stock Average inthe same constituent ratio as the Nikkei Stock Average; provided that if the applicant is an
issuing company or any of its subsidiaries (which refer to those as set forth in Article 2, Item
3 of the Companies Act; hereinafter referred to as the “Issuing Company, Etc.,” including theissuing company) of the stock issues included in the Nikkei Stock Average, subscription may
be made in cash with respect to the subscription in an amount equal to the value of theequities of the Issuing Company, Etc. to be included in such subscription.
2. The Type 1 financial instruments business operator designated by the Trustor may deal forthe applicant with the subscription for the beneficial interests divided pursuant to theprovision of Article 7, Paragraph 1 in the unit of the minimum subscription number (which

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3.

4.

5.

6.

is to be determined by the Trustor as the number equal to an amount multiplied by the valueof beneficial interests being equivalent to the aggregate value of the unit shares (which refer
to all of such numbers of respective constituent shares of the Nikkei Stock Average as
specified by the Trustor; the same shall apply hereinafter) on the subscription date).
The applicant referred to in the preceding paragraph shall indicate an account of the BookEntry Transfer Institution, Etc. used for the transfer of beneficial interests for the Trustestablished for the applicant to the Type 1 financial instruments business operator
designated by the Trustor at the time of or prior to the subscription in which the increase in
the number of units of the applicant is described or recorded. The Type 1 financial
instruments business operator designated by the Trustor may describe or record the increasein the number of units of the applicant in the account in exchange for delivery or payment of
the unit shares required for the application for subscription (including the amount equal tothe value of the equities of the Issuing Company, Etc. set forth in Paragraph 1 above. The
same applies hereinafter in this section). As provided by the business methods of the Clearing
Institution set forth in the proviso to Article 6, when the Type 1 financial instruments
business operator designated by the Trustor who accepted the subscription, applies to theClearing Institution for assuming obligation of delivery or payment of the unit shares to theTrustor which is associated with the acceptance of subscription and the Clearing Institution
assumes this obligation, the increase in the number of units is entered or recorded in theaccount of the Clearing Institution with the Book-Entry Transfer Institution, The entry or
recording of the increase in the number of units in the account with a Book-Entry Transfer
Institution, etc. opened by the subscription applicant for its own to transfer of beneficiaryinterests of this Trust will be made through the book-entry transfer institution, etc. between
the Clearing Institution and a Type 1 financial instruments business operator designated by
the Trustor (Including financial instruments business operators or registered financial
institutions that act as clearing agents for the securities etc. if the clearing of securities, etc.
is delegated by the Type 1 financial instruments business operator designated by the Trustor
and is executed under Article 2, Paragraph 27 of the Financial Instruments and Exchange
Act when the Type 1 financial instruments business operator designated by the Trustor
applies to the Clearing Institution for assuming obligation).
Notwithstanding the provisions set forth in Paragraph 2 above, if the day on whichapplication for subscription is made falls under any of the following items, the Type 1
financial instruments business operator designated by the Trustor shall not handle suchapplication, in principle:
1) During the three (3) business days from the business day immediately preceding ex
right date (excluding ex dividend date) for the relevant constituent shares of the Nikkei
Stock Average;2) During the six (6) business days from the day which is three (3) business days prior to
the day on which the divisor has been changed as a result of a change in the constituent
shares of the Nikkei Stock Average or an increase or decrease in capital, etc.;3) During the two (2) business days from the day which is two (2) business days prior to
the last day of each calculation period set forth in Article 34 hereof (if the last day ofthe calculation period is a holiday, then during the three (3) business days from the day
which is three (3) business days prior to the last day of each calculation period);4) During the five (5) business days immediately preceding the termination date of theTrust if it is to be terminated; or5) In addition to the above items, if the Trustor considers that there have occurred any
unavoidable events that might hinder management in accordance with the basic policies
for management as provided for in each item in Article 24 hereof.
The value of beneficial interests as referred to in Paragraph 2 above shall be the Net Asset
Value per Unit as of the subscription date; provided that the value of the beneficiary
certificates subscribed prior to the day when the Trust Deed is executed shall be the price perunit (any fraction less than a full yen to be rounded up) equal to the closing price of the Nikkei
Stock Average on the business day immediately preceding such day.
The applicant shall satisfy an amount of the difference, if any, resulting from the total of theaggregate value of the equities of the subscription set out in Paragraph 1 and the cash set
out in the proviso thereto being less than an amount obtained by multiplying the value of
beneficial interests by the number of units subscripted as set out in the preceding paragraph.

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7.

At the time of its acceptance of subscription, the Type 1 financial instruments business
operator designated by the Trustor may charge the applicant its own specified fees and theconsumption and local taxes (hereinafter referred to as the “Consumption Tax, Etc.”) thereon.
8. In the event of an applicant being the Issuing Company, Etc. of the constituent shares of the
Nikkei Stock Average, the Type 1 financial instruments business operator designated by theTrustor which has accepted the subscription shall notify the Trustor of the name of theapplicant and the number of units subscribed by it at the time of the acceptance thereof(including any such case as the Type 1 financial instruments business operator makes
subscription on its own behalf if it falls under the Issuing Company, Etc. of the constituent
shares of the Nikkei Stock Average; the same shall apply in the next paragraph).
9. Should any damage occur to the trust assets, etc. in the absence of such notice as set out inthe preceding paragraph at the time of the subscription, the Type 1 financial instruments
business operator which has accepted it shall be liable for such damage.
10. Notwithstanding the provisions of each of the preceding paragraphs, the Trustor shall beentitled to suspend the acceptance of subscriptions of beneficial interests or cancel thesubscriptions thereof already made when there are unavoidable circumstances such as asuspension of trading or suspension of the settlement function on the relevant financial
instruments exchange.

Article 14 (Listing on Financial Instruments Exchange)
1. The Trustor shall apply for listing of the beneficial interests in the Trust (which are
represented by beneficiary certificates before January 4, 2008; the same shall apply to theprovisions of this Article) on a financial instruments exchange, which shall be listed on themarket established by the exchange upon approval given by it in accordance with its specified
rules and regulations.
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 andregulations defined by the exchange as well as with such delisting or suspension of tradingor 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 request oftransfer to the Book-Entry Transfer Institution, Etc. managing the book-entry transfer
account book in which the beneficial interests to be transferred are listed or recorded.
2. In the case of the above-mentioned request, the Book-Entry Transfer Institution, Etc., shalldescribe or record the decrease of the beneficial interests held by the beneficiary as well as
the increase of the beneficial interests held by the transferee in the book-entry transfer
account book managed by the Book-Entry Transfer Institution, Etc. Provided, however, that
if the transferee account is not established by the Book-Entry Transfer Institution, Etc., itshall notify the other Book-Entry Transfer Institution, Etc. which has established thetransferee account (including upper positioned institutions of such other Book-Entry
Transfer Institution, Etc.) pursuant to the Book-Entry Transfer Act thereof to ensure that it
describes or records the increase of the beneficial interests in the transferee account.
3. Upon conducting the transfer set forth in Paragraph 1, the Trustor may implement a transfer
suspension date or transfer suspension period as deemed necessary or if it 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 the beneficial interests to betransferred are listed or recorded differ from the Book-Entry Transfer Institution, Etc. whichhave established the transferee account.
Article 16(Requirements for Perfection of Transfer of Beneficial Interests)
The transfer of beneficial interests may not be asserted against the Trustor or Trustee unlesslisted or recorded in the book-entry transfer account book under the provisions of thepreceding Article.

Article 17(Reissue of Bearer Beneficiary Certificates)(Deleted)70Article 18(Reissue of Registered Beneficiary Certificates)(Deleted)

Article 19(Reissue When Beneficiary Certificates Are Defaced, Etc.)(Deleted)

Article 20(Expense of Reissue of Beneficiary Certificates)(Deleted)

Article 21 (Preparation of Register of Beneficiaries and Registration of Beneficiaries)
1. The Trustee shall prepare a register of beneficiaries for the Trust and register the holders ofbeneficial interests notified by the Book-Entry Transfer Institution pursuant to the BookEntry Transfer Act, any relevant laws, regulations and rules as of the last day of thecalculation period by entering its name or corporate name, address and any other mattersspecified by it in the register of beneficiaries as the beneficiaries of the beneficial interests
listed or recorded in the book-entry transfer account book managed by the Book-Entry
Transfer Institution, Etc. The Trustee shall also separately register its personal number or
corporate number. However, regarding the payment of income distributions prescribed in
Article 39-2, it is prohibited to register the personal number or corporate number ofbeneficiaries that are issued beneficiary certificates via the payment handlers defined in
Article 9, Paragraph 3(2)-1 of the Special Taxation Measure Act.
2. 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 theregister to such company or party.
2. Any beneficiary holding bearer certificates may request its name to be entered in the registerreferred to in Paragraph 1 through a member of the relevant financial instruments exchange(who is an account management institution; the same shall apply hereinafter). In this case,such member may charge the beneficiary its own specified fees and the Consumption Tax,
Etc. thereon; provided that securities and financial companies may affect any such entry as
set out in the preceding paragraph directly to the Trustee (or the party to which the Trustee
has delegated the preparation of the register as set out in Paragraph 1 above).
3. The registration of beneficiaries set out in the preceding paragraphs shall be suspended fora period of fifteen (15) days from the day next following the last day of each calculation period
specified in Article 34. If the Trust is terminated, such registration shall also be suspended
for a period of five (5) business days immediately prior to the date of termination of the Trust.
4. For the beneficiaries as of the date of the execution of these Trust Deed and beneficiaries ofadditional trusts prior to January 4, 2008, beneficiary certificates shall be issued after
making the registration set out in Paragraph 1. The beneficiaries of additional trusts afterJanuary 4, 2008 shall be entered or recorded in the book-entry transfer account book
managed by the Book-Entry Transfer Institution, Etc. after making the registration set out
in Paragraph 1.
Article 22(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 asprovided 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 and provided for in Article 26 hereof); and
3) Monetary claims.

Article 22-2 (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 23 (Scope of Investment Instructions)
1. The Trustor shall give instructions so that the trust funds are invested primarily in equities.
2. Notwithstanding the provisions of the preceding paragraph, the Trustor may give
instructions so that the trust funds are invested in the securities (excluding the rights
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deemed as securities provided for in Article 2, Paragraph 2 of the Financial Instruments andExchange Act) and financial instruments (including the rights deemed as securities provided
for in each of the items of Article 2, Paragraph 2 of the Financial Instruments and ExchangeAct) other than equities listed below when the Trustor deems it necessary to do so ininvestment management to cope with the creation, cancellation or redemption of this Trustor for the purpose of taking appropriate measures against any change in the investment
environment or otherwise:1) Deposits;
2) Beneficiary certificates for designated money trusts (limited to the beneficiary
certificates for the trusts issuing beneficiary certificates as defined in Article 2,
Paragraph 1, Item 14 of the Financial Instruments and Exchange Act);
3) Designated money trusts (excluding the trusts issuing beneficiary certificates as
defined in Article 2, Paragraph 1, Item 14 of the Financial Instruments and ExchangeAct); and
4) Call loans.
Article 24(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 Nikkei Stock Average and manages
the Fund so that each stock in the trust assets maintains its weight in the Nikkei Stock
Average, aiming to achieve investment results that track the performance of the Nikkei
Stock Average.
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 Nikkei Stock Average has been changed;b. If the weight of any of the constituent shares of the Nikkei Stock Average has beenrevised reflecting a replacement of the constituent shares of the Nikkei Stock
Average, capital movements, etc.; orc. If any instruction is given for making additional trust and exchange of beneficial
interests for shares, resulting in the weight of each stock in the trust assets
differing greatly from its weight in the Nikkei Stock Average.
3) To realize the same gains and losses similar to holding the underlying assets,, the Fundmay execute securities index futures trading, etc. set forth in Article 26 hereof according
to the funds movement for the purpose of achieving a closer tracking to the Nikkei Stock
Average.
4) In the event of terminating the Trust, investment management as described in each
item above may be impracticable.
5) No restriction shall be placed on the ratio of shares in the investment portfolio.
6) No investment shall be made in foreign currency-denominated assets.
7) 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,
the individual 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 ofthe 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 tokeep within the limit pursuant to the rules of The Investment Trusts Association, Japan.

Article 25(Scope of Equities to Invest In)
The Trustor shall give instructions to invest in equities issued by the Issuing Companies
whose equities are included in the Nikkei Stock Average, except for those equities acquiredby way of allotment to shareholders.

Article 26(Instructions, Purpose and Scope of Futures Trading, Etc.)
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 trading similar to the
Nikkei Stock Average futures and options trading on financial instruments exchanges inJapan as well as trading similar to the Nikkei Stock Average futures and options trading on
foreign financial instruments exchanges.

72Article 27 (Instructions for and Scope of Lending of Securities)
1. For efficient management of the trust assets, the Trustor may give instructions for lendingof any equities attributable to the trust assets to the extent specified in Paragraph 2 below.
2. Any such lending of equities as set forth in the preceding paragraph shall be such that the
total market price of the equities to be lent shall not exceed the total market price of theequities held in the trust assets at the time of lending.
3. In the event that the relevant lending is made in excess of the amount of the limit specified
in the preceding paragraph, the Trustor shall immediately give instructions for cancellationof such part of the loan agreement as equivalent to the amount in excess.
4. The Trustor shall give instructions for the acceptance of any collateral on the lending ofequities if it deems it necessary to do so at the time of the lending.
Article 27-2 (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 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 the Act on Provision, etc. of Trust Business by Financial Institutions;the same shall apply hereinafter)) as the person to whom such trust business is delegated.
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, the person isdeemed to have the ability to properly process the business to be delegated.
3) When delegating the custody, etc. of the trust assets, the person has a system to classify
and manage the trust assets.
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 delegated provided
for in the preceding paragraph, confirm that the person meets the requirements set forth ineach of the items of the preceding paragraph.
3. Notwithstanding Paragraph 2 above, the Trustee may delegate the business set forth in eachof the following items (to the extent that it requires no discretion) to a person (including aninterested 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 notchange 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 instructions of theTrustor; and
4) The activities to provide support functions for the Trustee to carry out its business.
Article 28(Custody of Equities)(Deleted)

Article 29 (Retention, Etc. of Registration, Entry, Etc. of Trust Assets)
1. The trust assets, the registration or recording of which is possible, shall be registered orrecorded. However, registration or recording of trust assets may be suspended if thesuspension is approved by the Trustee.
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 be madeimmediately.
3. The trust assets that can be listed or recorded as being attributable to the trust assets shallbe listed or recorded as being attributable to the trust assets and shall be classified andmanaged by a method to clarify the calculation. However, when the Trustee permits, it may
be classified and managed in a way that clarifies the calculation method.
4. Personal property (excluding money) may be classified and managed in a way that makes it
distinguishable by outward appearance or a way that clarifies the calculation method.

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Article 30(Instructions for Sale, Etc. of Securities)
The Trustor may give instructions for sale, etc. of any securities attributable to the trust
assets.

Article 31(Instructions for Reinvestment)
The Trustor may give instructions to reinvest any proceeds from such sale as set forth in theprovisions of the preceding Article, any distributions on settlement of equities, dividends onequities and any other accounts receivable.

Article 32(Attribution of Profit and Loss)
Any profit or loss of the trust assets resulting from any act taken in accordance with theTrustor’s instructions shall be attributable to the beneficiaries.

Article 33 (Advance Payment of Funds by the Trustee)
1. With respect to any securities attributable to the trust assets, the Trustee may, upon requestof the Trustor, make advance payment of funds in the event of new shares being issued.
2. If there exist any distributions on settlement of equities, dividends on equities and otheraccounts receivable belonging to the trust assets, the amount of which can be estimated onor prior to the termination date of the Trust, the Trustee may make advance payments andtransfer these accounts to the trust assets.
3. Matters concerning settlement of, and interest on, the advance payments made under thepreceding two paragraphs shall be determined separately on a case-by-case basis throughconsultations between the Trustor and the Trustee.
Article 34(Calculation Period of Trust)
The calculation period of this Trust shall begin on July 9 of each year and end on July 8 of
the following year; provided, however, that the termination date of the final calculation
period shall be the termination date of the trust term provided for in Article 4 hereof.

Article 35 (Reports on Trust Assets)
1. The Trustee shall calculate profits and losses at the end of each calculation period, prepare areport on the trust assets and submit it to the Trustor.
2. At the termination of the Trust, the Trustee shall make final calculations, prepare a reporton the trust assets and submit it to the Trustor.
Article 36(Expenses for Trust Business)
Any and all taxes imposed on the trust assets, expenses resulting from conducting trust
business, interest on the advance payments made by the Trustee, audit expenses of thefinancial documents on the trust assets as well as Consumption Tax, Etc. on such expenses(hereinafter referred to as “Expenses,” which may include expenses for listing of beneficial
interests as well as royalties on the “Nikkei Stock Average” and other similar marks andConsumption Tax, Etc. on such royalties) shall be borne by the beneficiaries and paid out of
the trust assets.

Article 37 (Amount of Trust Fees)
1. The aggregate amount of the trust fees for the Trustor and the Trustee shall be amountobtained by multiplying the Total Net Asset Value of the trust assets by 14/10,000 per annum
or less for each day throughout the calculation period set out in Article 34.
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 allotmentof 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 37-2 (Amount of Other Fees)
1. The Trustor and the Trustee shall receive fees calculated as follows.
1) When the instruction of the lending of securities set out in Article 27 is given, an amountof 50/100 or less of the lending commission.

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2.
3.

The fees provided for in the preceding paragraph shall be paid out of the trust assets at theend of each calculation period or at the time of termination of the Trust, and the allotment ofsuch fees between the Trustor and the Trustee shall be determined separately.
An amount equal to Consumption Tax, Etc. on the fees set out in Paragraph 1 shall be paidout of the trust assets at the time of paying such fees.

Article 38 (Income Distributions)
1. With respect to income such as dividends derived from the trust assets (meaning a sum of
dividends, interest, lending commissions on securities loaned and any similar income lessinterest payable; the same shall apply hereinafter) plus reserve for distributions carried overfrom the preceding period, the remaining amount after deducting the Expenses, trust fees
and Consumption Tax, Etc. on such trust fees as at the end of each calculation period andalso 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, in the 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 and thereafter. In addition, if
the sum of the Expenses, trust fees and Consumption Tax, Etc. on such trust fees as well asa deficiency in reserve for distributions may not be deducted in full, the amount not deductedshall be carried over to the next period as a deficiency in reserve for distributions.
2. The sum of the income as listed in 1) below derived from the trust assets as at the end of eachcalculation period shall, if there is any net operating loss carryforward after deducting theloss as listed in 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 trading of
futures, etc. (including their unrealized gains), gains on additional trust creations andgains on exchanges;
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 andlosses on exchanges.
Article 39 (Payment of Income Distributions)
1. With the persons whose names have been registered in the register of beneficiaries set out in
Article 21 as of the day on which the calculation period ends as the beneficiaries as of the dayon which the calculation period ends (hereinafter referred to as the “Beneficiaries Whose
Names Have Been Registered”), income distributions shall be paid to such Beneficiaries
Whose Names Have Been Registered. After the payment of income distributions to the
Beneficiaries Whose Names Have Been Registered, even if the Beneficiaries Whose Names
Have Been Registered are different from the holders of beneficial interests even after thetransition to the book-entry transfer system as of the day on which the calculation period
ends, the Trustee shall not be liable for the payment of income distributions to such holders
and any other damages.
2. The 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 day on which each calculation period ends by transferring such income distributions
to the deposit account, etc. designated in advance by the Beneficiaries Whose Names Have
Been Registered. In addition, when the Beneficiaries Whose Names Have Been Registered
have entered into a separate agreement on the handling of income distributions with themembers provided for in Article 21, Paragraph 2, the income distributions shall be paid inaccordance with such agreement.
3. The Trustee may delegate the payment of the income distributions to the party to which the
preparation of the register of beneficiaries has been delegated in accordance with theprovisions of Paragraph 1 of Article 21 hereof.
Article 40(Prescription Period for Payment of Income Distributions and for Exchange of Equities orPayment of Repurchase Proceeds upon Termination of Trust)Beneficiaries shall, with respect to income distributions, lose their right if they fail to claim
the payment of the income distributions within five (5) years from the date of commencementof payment thereof specified in Paragraph 2 of the preceding Article or to claim the exchangeof equities or the payment of the proceeds from repurchase of equities upon termination of75

Trust within ten (10) years from the date of termination of trust, and such right shall revert
to the Trustor thereafter.
Article 41(Partial Cancellation)
In connection with their beneficial interests, beneficiaries may not request the partial
cancellation of this Trust during the trust term.

Article 42 (Exchange of Beneficial interests for Equities Attributable to Trust Assets)
1. Beneficiaries shall be entitled to request the Trustor to exchange their beneficial interests
for the equities of their interests in the trust assets (hereinafter referred to as the “Exchange”)
in an integral multiple of the minimum number of units for an Exchange request at any timeafter September 10, 2001.
2. The minimum number of units for an Exchange request referred to in the preceding
paragraph shall be the number of units specified by the Trustor as the value obtained bymultiplying the relevant number of units by the Net Asset Value per Unit on the Exchange
request date being equal to the aggregate value of the respective constituent shares of the
Nikkei Stock Average on such date.
3. Notwithstanding the provisions set forth in Paragraph 1 above, the Trustor shall accept no
Exchange request if the Exchange request date falls on any day of the following:1) During the three (3) business days from the business day immediately preceding ex
right date (excluding ex dividend date) for the relevant constituent shares of the Nikkei
Stock Average;2) During the six (6) business days from the day which is three (3) business days prior to
the day on which the divisor has been changed as a result of a change in the constituent
shares of the Nikkei Stock Average or an increase or decrease in capital, etc.;3) During the two (2) business days from the day which is two (2) business days prior to
the last day of each calculation period set forth in Article 34 hereof (if the last day ofthe calculation period is a holiday, then during the three (3) business days from the day
which is three (3) business days prior to the last day of each calculation period);4) During the five (5) business days immediately preceding the termination date of theTrust if it is to be terminated.
5) In addition to the above items, if the Trustor considers that there have occurred any
unavoidable events that might hinder management in accordance with the basic
policies for management as provided for in each item in Article 24 hereof.
4. In the event of an Exchange request being made by a beneficiary under Paragraph 1, thebeneficiary shall make such request with its Book-Entry Transfer Beneficial Interests to theType 1 financial instruments business operator designated by the Trustor; provided that in
the event of an Exchange request which results in the delivery of equities (after the transfer
to the book-entry transfer system of equities, delivery refers to entry or record in the accountwith the Book-Entry Transfer Institution, Etc.; the same shall apply hereinafter) to thebeneficiary on or after January 4, 2008 being made prior to January 4, 2008, such a request
shall be made with beneficial interests that are ensured to be the Book-Entry Transfer
Beneficial Interests.
5. The Type 1 financial instruments business operator designated by the Trustor who accepted
the exchange set forth in Paragraph 1 shall conduct the procedures for the cancellation inaccordance with the methods prescribed by the Book-Entry Transfer Institution. As provided
by the statement of operation procedures of the Clearing Institution set forth in the proviso
to Article 6, the Type 1 financial instruments business operator designated by the Trustor
applies to the Clearing Institution for assuming obligation of delivery of Book-Entry Transfer
Beneficial Interests to the Trustee and the Clearing Institution assumes this obligation, theClearing Institution shall conduct the procedures for the cancellation of Book-Entry Transfer
Beneficial Interests. The Book-Entry Transfer Institution shall make a cancellation of thesame number of Book-Entry Transfer Beneficial Interests as the beneficial interests required
for the exchange specified in Article 43, Paragraph 2, and the decrease in the number of units
pertaining to the beneficiary who made the request for the exchange in Paragraph 1 isentered or recorded in the account with the Book-Entry Transfer Institution, Etc. pursuant
to the provisions of the Book-Entry Transfer Act after the procedures for such cancellationand the request for the transfer of the exchanged equites prescribed in Article 43, Paragraph
3 were executed.

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6.

7.
8.

9.
10.

11.

12.

13.

The Trustee shall, in accordance with the Exchange instruction by the Trustor set out inParagraph 7, treat the Book-Entry Transfer Beneficial Interests required for the Exchange
as being accepted and cancelled by the cancellation procedure for the book-entry transfer
account book and confirmation of the cancellation set out in Paragraph 8.
Upon acceptance of the Exchange request referred to in Paragraph 1 above, the Trustor shallgive instructions to exchange the relevant beneficial interests for any of the equities in thetrust assets in accordance with Article 43.
The Trustor shall treat the same number of beneficial interests as the Book-Entry Transfer
Beneficial Interests to be cancelled by the Exchange as invalid from the business day
immediately following the Exchange request date, and the Trustee shall confirm that theBook-Entry Transfer Beneficial Interests related to the beneficial interests have beencancelled on the date of the transfer to the exchanged equities.
At the time of the Exchange under Paragraph 1 above, the Type 1 financial instruments
business operator designated by the Trustor may charge an amount equivalent to its own
established fees and the Consumption Tax, Etc. thereon.
The number of equities of individual issues which the beneficiary is entitled to acquire
through the Exchange shall be the number in an integral multiple of unit shares determinedby the relevant financial instruments exchange, calculated on the basis of the Net Asset
Value per Unit on the Exchange request date.
Notwithstanding the preceding paragraph, if the beneficiary who has made an Exchange
request is the Issuing Company, Etc. of a constituent shares of the Nikkei Stock Average, theTrustor shall give instructions to exchange the beneficial interests remaining after the
deduction of the number of beneficial interests in an amount equal to the aggregate value ofthe equities of the Issuing Company, Etc. from the number of beneficial interests the
Exchange request for which has been accepted for the equities (excluding equities of theIssuing Company, Etc.) in an integral multiple of the trading unit on the exchange.
The Trustor shall be entitled to suspend the acceptance of Exchange requests made underParagraph 1 or cancel the Exchange requests already accepted if it determines that the
management of trust assets according to the basic management policy set out in Article 24
may be hindered for some reason, such as a suspension of trading or suspension of thesettlement function on the relevant financial instruments exchange.
In the event of the acceptance of Exchange requests being suspended as set out in thepreceding paragraph, the relevant beneficiary may withdraw its Exchange request on the day
when the acceptance is suspended; provided that unless the beneficiary withdraws its request,
the Trustor shall treat such request as if it was accepted on the first calculation date of the
Net Asset Value per Unit immediately after such suspension is lifted.

Article 43 (Instructions, Etc. on Exchange of Beneficial Interests for Equities in Trust Assets)
1. If the Trustor has accepted a request from a beneficiary made pursuant to Paragraph 1 of thepreceding Article by presenting the Trustor the Book-Entry Transfer Beneficial Interests in
an integral multiple of the minimum number of an Exchange request, the Trustor shallcalculate the number of equities of individual issues which a beneficiary is entitled to acquire
as well as the number of beneficial interests required for the Exchange based on the numberof the Book-Entry Transfer Beneficial Interests presented by the beneficiary.
2. The Trustor shall instruct the Trustee to exchange the same number of Book-Entry Transfer
Beneficial Interests as the beneficial interests required for Exchange as set out in thepreceding paragraph for those equities of unit shares in the trust assets; provided that if thebeneficiary who has made an Exchange request is the Issuing Company, Etc. of a constituent
share of the Nikkei Stock Average, the Trustor shall not so instruct as to such equities of theIssuing Company, Etc.
3. The Trustee shall, after confirming that an application for cancellation of the Book-Entry
Transfer Beneficial Interests having been provided to it for Exchange has been accepted by
the Book-Entry Transfer Institution, Etc., make a request for transfer to the Book-Entry
Transfer Institution, Etc. to issue equities to the Type 1 financial instruments business
operator designated by the Trustor to which the request set out in Paragraph 1 of thepreceding Article has been made by the beneficiary following the instruction by the Trustor
in accordance with the methods prescribed by the Book-Entry Transfer Institution. However,as provided by the statement of operation procedures of the Clearing Institution set forth in
the proviso to Article 6, when the Type 1 financial instruments business operator designatedby the Trustor who accepted the exchange, applies to the Clearing Institution for assuming

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4.

5.

obligation of delivery of Book-Entry Transfer Beneficial Interests to the Trustor and theClearing Institution assumes this obligation, the Trustee shall make a request for thetransfer of the exchanged equities belonging to the Trust Asset in accordance with the
instruction of the Trustor and the methods prescribed by the Book-Entry Transfer Institution,
notwithstanding the procedures set forth in Paragraph 5 of the preceding article. Whendelivering the exchanged equities to the beneficiary, as a general rule, an increase in thenumber of equities pertaining to the beneficiary who made the request for an exchange will
be entered or recorded in the account with the Book-entry Transfer Institution from the third
business day after and including the day on which a request for the exchange underParagraph 1 of the preceding Article is made.
In the event that the beneficiary making such Exchange request is the Issuing Company, etc.
of the constituent shares of the Nikkei Stock Average, the Type 1 financial instruments
business operator forwarding the Exchange request from the beneficiary shall give notice
thereof to the Trustor when making such Exchange request (including the request for
Exchange by the Type 1 financial instruments business operator for its own accounts if it
falls under the Issuing Company, Etc. of the constituent shares of the Nikkei Stock Average;
the same shall apply to the following paragraph).
Should any damage occur to the trust assets, etc. in the absence of such notice as set out inthe preceding paragraph at the time of the Exchange request, the Type 1 financial
instruments business operator which has forwarded the Exchange request shall be liable forsuch damage.

Article 44(Accounting Treatment of Exchange of Beneficial Interests for Equities)
In the Exchange of beneficial interests for equities as set out in the preceding Article, adifference between the amount obtained by multiplying the number of beneficial interests
for the Exchange by the Net Asset Value per Unit on the Exchange request date and theamount of principal shall be treated as the Exchange difference.

Article 45 (Purchase of Beneficial Interests)
1. If the total number of units of 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 the Trustor shall purchase such
beneficial interests upon request by the beneficiary.
2. The purchase price of the beneficial interests shall be the Net Asset Value per Unit on thecommitment date of purchase.
3. At the time of the purchase of beneficial interests under the preceding paragraph, the Type
1 financial instruments business operator designated by the Trustor may charge an amountequivalent to its own established fees and Consumption Tax, Etc. thereon.
4. The Type 1 financial instruments business operator designated by the Trustor shall beentitled to suspend the purchase of beneficial interests under Paragraph 1 or cancel thecommitted purchases of beneficial interests upon consultation with the Trustor when there
are unavoidable circumstances such as a suspension of trading or suspension of thesettlement function on the relevant financial instruments exchange.
5. In the event of suspension of the purchase of beneficial interests according to the preceding
paragraph, the beneficiaries may withdraw their requests for purchase on such day aspurchase is suspended. In the event of such request for purchase not being withdrawn by thebeneficiaries, the purchase price of such beneficial interests shall be calculated deeming thefirst calculation day of the Net Asset Value per Unit after the lifting of such suspension as
the commitment date of purchase pursuant to the provision set forth in the second paragraphabove and also the provision set forth in the third paragraph above shall apply thereto
mutatis mutandis.
Article 46 (Exchange, Etc. at the Time of Termination of Trust)
1. In the event of this Trust being terminated, the Trustor shall, with respect to the beneficial
interests held by the beneficiaries, exchange the equities equivalent to their interests in thetrust assets of such beneficial interests at the time of the termination for the Book-Entry
Transfer Beneficial Interests which have been entered or recorded in the book-entry transfer
account book as such beneficial interests or the beneficial interests representing such
beneficial interests.

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2.
3.

4.

5.

6.

At the time of the Exchange under Paragraph 1, the Type 1 financial instruments business
operator designated by the Trustor may charge an amount equivalent to its own establishedfees and Consumption Tax, Etc. thereon.
The Exchange of equities set out in Paragraph 1 shall be executed, with regard to the BookEntry Transfer Beneficial Interests, in principle, from the following business day of the day
when the Trustee has confirmed that the application for cancellation of the Book-Entry
Transfer Beneficial Interests for Exchange has been accepted by the Book-Entry Transfer
Institution, Etc., and with regard to the beneficial interests, from the third (3rd) business dayof the day when it has been confirmed that the beneficial interests to be exchanged have been
provided to the Trustee.
The Trustor shall, from the fourth (4th) business day prior to the termination date of theTrust, treat the same number of beneficial interests as the Book-Entry Transfer Beneficial
Interests to be cancelled by the Exchange and the beneficial interests represented by thebeneficial interests which the rust assets has obtained by the Exchange as invalid, and theTrustee shall confirm that the Book-Entry Transfer Beneficial Interests related to such
beneficial interests have been cancelled on the date of the transfer to the exchanged equities.
Notwithstanding the provisions of Paragraphs 1 through 3, out of the beneficial interests heldby the Trustee, the Book-Entry Transfer Beneficial Interests or the beneficial interests lessthan the number of beneficial interests required for the Exchange referred to in Paragraph 1
shall be purchased by the Type 1 financial instruments business operator designated by theTrustor at the redemption price on or after the termination date of the Trust.
At the time of the purchase under the preceding paragraph, the Type 1 financial instruments
business operator designated by the Trustor may charge an amount equivalent to its own
established fees and Consumption Tax, Etc. thereon.

Article 46-2 (Handling of Beneficial Interests Entered or Recorded in the Pledge Column)
The payment of income distributions, acceptance of a request for the Exchange and deliveryof the exchanged equities (including the Exchange at the time of the termination of Trust)
relating to the beneficial interests entered or recorded in the pledge column of the book-entry
transfer account book of the Book-Entry Transfer Institution, Etc. shall be handled inaccordance with the Trust Deed, the Civil Code and other applicable laws.
Article 47 (Cancellation of the Trust Deed)
1. At any time during the trust term, the Trustor may cancel the Trust Deed and terminate theTrust upon agreement with the Trustee. In such a case, the Trustor shall previously notify
the supervisory authorities of its intention of cancellation.
2. If any of the following items occurs during the trust term, the Trustor shall cancel the Trust
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 of cancellation.
1) If the number of units of beneficial interests falls below two hundred (200) thousand
2) If the beneficial interests are delisted from all the financial instruments exchanges on
which they have been listed
3) If the Nikkei Stock Average is abolished4) 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 Nikkei Stock Average is notmade in accordance with the provisions of Article 52, Paragraph 4
3. As regards the matters set out in the preceding two paragraphs, the Trustor shall previously
give public notice of its intention of cancellation and deliver a written instrument thereof toits known beneficiaries of the Trust Deed; provided that no such public notice shall be given
in principle if the said written instrument is delivered to all the beneficiaries of the Trust
Deed.
4. Such public notice and written instrument as set out in the preceding paragraph shall statethat any beneficiary having an objection may raise its objection against the Trustor within a
specified period, which shall not be less than one (1) month.
5. If the number of the beneficial interests of those beneficiaries who have raised their objection
in a specified period set out in the preceding paragraph exceeds one-half of the total number
thereof, no cancellation of the Trust Deed set out in Paragraph 1 shall be effected.
6. If the Trustor has decided not to cancel the Trust Deed, it shall give public notice of its
intention not to cancel the Trust Deed and the reason therefore, and shall deliver a written
instrument stating these matters to its known beneficiaries of the Trust Deed; provided that

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7.

no such public notice shall be given in principle if the said written instrument is delivered to
all the beneficiaries.
The provisions of the preceding three paragraphs shall not apply if the Trust Deed iscancelled under the provisions of Paragraph 2 above. Similar treatment shall apply if, in viewof the status of the trust assets, there are truly unavoidable circumstances and if it is difficult
to give the public notice and written instrument within a specified period which is not lessthan one (1) month as set out in Paragraph 4.

Article 48 (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 such order.
2. The Trustor shall comply with the provisions of Article 52 if it intends to amend the Trust
Deed in accordance with the order given by the supervisory authorities.
Article 49 (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 theTrustor is liquidated or discontinues its business, the Trustor shall cancel the Trust Deedand terminate the Trust.
2. Notwithstanding the preceding paragraph, if an order is issued by the supervisory authorities
to transfer the Trustor’s business under the Trust Deed to another investment trust
management company, this Trust shall continue to be in force between the said investment
trust management company and the Trustee, except for the cases that fall under Paragraph
4 of Article 52.
Article 50 (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 therewith, the businessunder the Trust Deed may be transferred.
2. The Trustor may have all or part of its business succeeded by way of subdivision. In
connection therewith, the business under the Trust Deed may be subject to such succession.
Article 51 (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. Upon theoccurrence of any breach by the Trustee of its duties or 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 Article52.
2. If the Trustor fails to appoint a new trustee, the Trustor shall cancel the Trust Deed andterminate the Trust.
Article 52 (Amendments to Trust Deed)
1. The Trustor may amend the Trust Deed upon agreement with the Trustee. In such a case,
the Trustor shall previously notify the supervisory authorities of its intention to makeamendments and the matters to be amended.
2. If any of such amendments referred to in the preceding paragraph are significant in nature,
the Trustor shall previously give public notice of its intention to make amendments and thematters to be amended, and shall deliver a written instrument stating these matters to its
known beneficiaries of the Trust Deed; provided that no such public notice shall be given in
principle if the said written instrument is delivered to all the beneficiaries hereof.
3. Such public notice and written instrument as set out in the preceding paragraph shall statethat any beneficiary having an objection may raise its objection against the Trustor within a
specified period, which shall not be less than one (1) month.
4. If the number of the beneficial interests of those beneficiaries who have raised their objection
within a specified period set out in the preceding paragraph exceeds one-half of the total
number thereof, no amendment of the Trust Deed set forth in Paragraph 1 shall be effected.
5. If the Trustor has decided not to amend the Trust Deed under the preceding paragraph, it
shall give public notice of its intention not to amend the Trust Deed and the reason therefore,
and shall deliver a written instrument stating these matters to its known beneficiaries of theTrust Deed; provided that no such public notice shall be given in principle if the said written
instrument is delivered to all the beneficiaries hereof.

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Article 53(Right of Objecting Beneficiaries to Request Repurchase)In the event of the cancellation of the Trust Deed set forth in Article 47 or the amendment
to the Trust Deed under the preceding Article being made, those beneficiaries who haveraised their objection thereto against the Trustor within a specified period set out inParagraph 4 of Article 47 or Paragraph 3 of the preceding Article, may request the Trustee
to repurchase their beneficial interests with any of the trust assets.

Article 54(Public Notices)
Public notices given by the Trustor to the beneficiaries shall be carried in the Nihon Keizai
Shimbun.

Article 55(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.

81Supplementary Provision
Article 1

Article 2

The provisions of Articles 11 and 12 and Articles 15 to 20 and the provisions on beneficiary
certificates that can be read as beneficial interests of this Trust Deed as of December 28,
2007 shall continue to be in effect in the event the Trustor issues beneficiary certificates
due to unavoidable circumstances.
The "Clearing Institution specified separately" defined in Article 6 shall be Japan
Securities Clearing Corporation.

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

July 9, 2001

Trustor:Trustee:

7-1, Akasaka 9-chome, Minato-ku, Tokyo
Nikko Asset Management Co., Ltd.
4-5, Marunouchi 1-chome, Chiyoda-ku, Tokyo
Mitsubishi UFJ Trust and Banking
Corporation

82