August 22, 2024
Nomura Asset Management Co., Ltd.
Notice Regarding Termination Date, Significant Change to the Basic Terms andConditions, and Being Designated to Securities Under Supervision (Confirmation)
for NEXT FUNDS Russian Equity Index Exchange Traded Fund
The NEXT FUNDS Russian Equity Index Exchanged Traded Fund (Code: 1324) (hereinafterreferred to as “the Fund”) managed by Nomura Asset Management Co., Ltd. has beensuspending acceptance of applications of creation/redemption since February 24, 2022, andtrading the Fund on the Tokyo Stock Exchange (TSE) has also been suspended since March17, 2022.
Furthermore, evaluation price of underlying constituents of the Fund has been zero sinceApril 25, 2022 after careful considerations with the fund auditor because it has been
unforeseeable to liquidate assets into cash.
In response to Russia's military invasion of Ukraine, some countries including Japan continue
to impose sanctions against Russia, and they are taking countermeasures. As a result, it has
been difficult for the Fund to trade Russian equities for a long period of time. This leads theFund to continuously decrease the cash assets due to the costs associated with listing andcustody of assets, and there are concerns that the Fund will eventually run out of funds.
After careful considerations, if it remains difficult to trade Russian equities, we came to theconclusion that it is beneficial for beneficiaries to receive redemption proceeds after thetrading environment of Russian equities will improve. The assets in the Fund will bepreserved by minimizing costs associate with listing as well as custody of securities anddelisting the Fund before depleting its funds.
Nomura Asset Management Co., Ltd. hereby announces that we have decided to amend thebasic terms and conditions of the Fund (hereinafter referred to as “the Amendments”) todefine a trust termination date as July 8, 2050, with the effective date of November 19, 2024,
considering that the Fund will terminate in the future and a feasibility of trading Russian
equities is unpredictable.
With the above decision, the beneficiary certificates of the Fund is planned to be designatedas “Securities Under Supervision (Confirmation).“We will carefully look after a tradability of Russian equity markets, however, if it is determined
to apply the Amendments on November 19, 2024, taking the Fund’s assets into consideration,
it will meet the delisting criterion on TSE, and will be expected to be delisted on December
20, 2024 after being appointed as “Securities to Be Delisted.”
Moreover, as mentioned later, with regards to treatment under the Book-Entry Transfer
System of Shares, etc. of the Fund after delisting, discussions are currently under way with
the Japan Securities Depository Center, Inc. in order to continue to handle beneficial interestsof the Fund.
Besides, this situation where there is a concern that funds may be depleted is considered as“truly unavoidable circumstances,” it is difficult to conduct a written resolution regarding theAmendments; thus, a beneficial resolution of the Amendments will not be taking place.
However, if the environment of trading Russian assets changes by the date of the above
decision on November 19, 2024, such as stable liquidation of Russian assets and exchange
from Russian Rubles (RUB) to Japanese Yen (JPY), the above case might not be applicable.
Kindly noted that it is possible to advance the schedule including the delisting date forwardfrom preservation of assets’ perspectives in case the costs associated with custodian, etc.
are unexpectedly surged. Custodian costs of securities are affected by markets of Russian
equities and exchange rate between RUB and JPY. Having said that, when a market price ofRussian equities or exchange rate of RUB against JPY increases, the custodian cost canunexpectedly go up.
If the Fund would be in a difficult situation such as failing to pay its custodian expenses, etc.
(the Net Asset Value is going to be negative), we will disclose in a timely manner.

1.

ETF
NEXT FUNDS Russian Equity Index Exchanged Traded Fund (Code: 1324)

2.

Schedule
Following is the schedule in the event of setting up the trust termination date and theAmendments are applied. If the Fund is terminated before the trust termination date, thetermination date and the date of the beginning of payment of redemption proceeds canbe advanced.
November 19, 2024: Decision of the Amendments
December 20, 2024: Effective date of the Amendments
July 8, 2050: Trust termination dateJuly 8, 2050: Payment of redemption proceeds will begin
August 22, 2024: Designated Security Under Supervision (Confirmation) on TSE
November 19, 2024: Designated Security to Be Delisted on TSE
December 20, 2024: Date of delisting from TSE
If we decide not to implement the Amendments, the Fund will be released from the
Designated Security Under Supervision (Confirmation) on TSE. For example, the trading
environment for Russian assets may change by the date of the decision on theAmendments on November 19, 2024, such as the stable liquidation of Russian assets
and the exchange from RUB to JPY. It is possible to advance the schedule including thedelisting date forward from preservation of assets’ perspectives in case the costs
associated with custodian, etc. are unexpectedly surged.
It remains challenging to trade Russian equities; hence, the trading of the Fund is
expected to be suspended.

3.

Overview and Reasons of the defined termination date and AmendmentsA) Overviewi.

The trust term period of the Fund will be changed from unlimited to thetermination date of July 8, 2050.

ii.

In case of early termination, we will make changes to the conditions regardingthe payment of redemption proceeds.

B) Reasonsi.

The inception date of the Fund was July 25, 2008. It has been suspending
acceptance of applications of creation/redemption since February 24, 2022,
and trading the Fund on TSE has also been suspended since March 17, 2022.
The Fund is expected to decrease the cash assets due to costs associated with

listing, etc. and we came to the conclusion that it will be difficult to keep theFund listed. In case the situation continues, delisting the Fund will be beneficial
for beneficiaries by making the Amendments on the trust termination date toJuly 8, 2050.
ii.

In order to facilitate early termination, we will make the necessary amendments
to the basic terms and conditions of the Fund’s trust deed.

4.

Financial Position of the FundThe balance sheet of the Fund in the 16th Fiscal Year (as of July 8, 2024) is provided
below. The total assets is 5,142,523 yen, and there are concerns that the Fund may run
out of its funds.
（単位：円）（Unit：JPY）
第 15 期(2023 年 7 月 8 日現在)
15th Fiscal YearAs of July 8, 2023

第 16 期(2024 年 7 月 8 日現在)
16th Fiscal YearAs of July 8, 2024

金額 Amount

金額 Amount

預金
Deposits

1,941,742

3,274,398

コール・ローン
Call loans

456,863

1,868,121

株式
Stocks8,214,988-未収利息
Accrued interest-

4

流動資産合計
Total current assets

10,613,593

5,142,523

資産合計
Total assets

10,613,593

5,142,523

未払受託者報酬
Trustee fees payable

3,230

1,641

未払委託者報酬
Investment trust management fees

586

263

資産の部
Assets
流動資産
Current assets

負債の部
Liabilities
流動負債
Current liabilities

payable
その他未払費用
Other accrued expenses

577333流動負債合計
Total current liabilities

4,393

2,237

負債合計
Total liabilities

4,393

2,237

1,992,616,500

1,992,616,500

期末剰余金又は期末欠損金（△）
Surplus (deficit) at end of period△1,982,007,300△1,987,476,214（分配準備積立金）(Reserve for distribution)

22,741,806

18,198,728

元本等合計
Total principal and other

10,609,200

5,140,286

純資産合計
Total net assets

10,609,200

5,140,286

負債純資産合計Total liabilities and net assets

10,613,593

5,142,523

純資産の部Net assets
元本等
Principal and other
元本Principal
剰余金Surplus

5.

Handling of the Fund After Delisting
In case of implementing the trust termination date and the Amendments with theschedule above, the Fund will be delisted on December 20, 2024. With regards to treatment
under the Book-Entry Transfer System of Shares, etc. of the Fund after delisting, discussions
are currently under way with the Japan Securities Depository Center, Inc. in order to continue
to handle beneficial interests of the Fund.
Early termination is planned to be carried out after being delisted and when sales ofRussian assets and the exchange of RUB to JPY can be normally transacted and theunderlying securities of the Fund can be cashed out. Although the timing and amount of sales
proceeds are not certain as of present, redemption proceeds according to the number ofunits held on the trust termination date are planned to be paid out to the beneficiaries as of
the trust termination date.
If a change of address or inheritance occurs during the period between the delisting andthe early termination, please do not forget to apply for a change of address or inheritancewith your financial institution so that redemption proceeds can be paid appropriately.

The trust termination date (July 8, 2050) has been determined by taking the situation of
the Russian market into consideration. However, if the trust can be terminated before thetermination date of the trust period, the date may be advanced. In addition, if the sale ofRussian assets and the exchange of RUB to JPY are not executed normally even on July 8,2050, a change to the trust deed to update the termination date of the trust period may bemade.