Guidelines for Operation of Investment Trusts in Case of Emergency
Established May 18, 2007
Revised on December 20, 2012
Revised July 15, 2021

I. Purpose
These Guidelines set forth matters serving as guidelines for the investment trust management company(hereinafter referred to as the “Management Company”) to make decisions regarding measures to be taken to
ensure the appropriate operation of the investment trust (hereinafter referred to as the “Fund”) in the case ofan occurrence of an event such as suspension of trading in the securities market (hereinafter referred to as an“Emergency”) due to the occurrence of an unexpected event such as a natural disaster, terrorist incident,
system failure, or large-scale power failure.

II. Measures to be Taken by the Management Company in the Event of an Emergency and the Contents Thereof,etc.
In the event of an Emergency, measures to be taken by the Management Company and the contents thereof,
and the requirements for sales companies and financial instruments intermediary service providers (meaning
financial instruments intermediary service providers set forth in Article 4, Paragraph 1, Item 1 of the Articles
of Incorporation) shall be as follows:(1) Measures to be taken by the Management Company and the contents thereof
The Management Company shall take measures to suspend acceptance of applications forestablishment and cancellation of the Fund (meaning suspension of acceptance of applications forestablishment and cancellation of the Fund to be handled at the base value on the application date of thebase value stipulated in the contracts of the Fund to be subject to the measure, hereinafter referred to as
the “Acceptance Suspension Measure”).
This Acceptance Suspension Measure shall be taken upon receipt of notification of a resolution by
the Special Measures Committee of the Association or when the Management Company deems it
necessary and appropriate.

(2) Requirements for sales companies in case of taking the Acceptance Suspension Measure
The Management Company shall notify sales companies of the implementation of the Acceptance
Suspension Measure and information on the subject Fund, etc. and request the following matters so thatthe measure can be implemented smoothly.
(i)Prompt notification of the measure shall be provided to sales offices, etc.

(ii) Any application for establishment or cancellation that has already been accepted shall be dealt
with as cancellation of the order or as an order placed on or after the next day in consideration of
the customer’s intention.
(iii) In order to avoid confusion among investors, sufficient explanation shall be made on how todeal with orders for establishment and cancellation to investors.
－1－III. Development of Internal System, etc.
(1) The Management Company shall establish an internal control system in advance to properly andsmoothly implement the Acceptance Suspension Measure due to the occurrence of an emergency. For
example, the Management Company shall examine and decide the terms and conditions of any Fundthat may be subject to such measures or any Fund that is not subject to such measures based on the“Basic Policy on Suspension of Acceptance of Application for Establishment or Cancellation of
Investment Trust in Case of Emergency” (see Appendix) and the following elements:(i)

Level of the allocation ratio of assets to be affected by the event(ii) Status of establishment or cancellation of the Fund, its ratio to the net asset value, andconfiguration of attributes of beneficiaries, etc.
(iii) Fairness among beneficiaries and effects on trust property(iv) Whether there is an application for establishment or cancellation from an unusual sales form,
such as defined contribution pension plans, or regular fixed-amount installment deposit.
(v) Fund’s product characteristics(vi) Others
In addition, a Management Company shall make efforts to review the terms and conditions of the Fund,etc. subject to or not subject to the measure, etc. periodically or as necessary.

(2) In consideration of the establishment of the internal control system described above, the Management
Company shall consult and cooperate with sales companies in advance on information considerednecessary for smooth implementation of the measure, such as the communication method and thecontact point in case of implementation of the Acceptance Suspension Measure, as well as therequirements for a Fund that is assumed to be applicable to or excluded from the measure.

IV. Anticipated Events and Measures to Be Taken upon Occurrence Thereof
1. Suspension of Transactions by Exchange, etc.
(1) Suspension of trading by the Tokyo Stock Exchange and Osaka Exchange (hereinafter referred to as the“Tokyo Stock Exchange, etc.”)(i)

Decision to implement the measures
At the time of an emergency of suspension of trading at the Tokyo Stock Exchange, etc., theManagement Company shall take the Acceptance Suspension Measure upon receipt of
notification of a resolution by the Special Measures Committee of the Association or when theManagement Company deems it necessary and appropriate.

(ii) Measures to be taken by the Management Company
The Management Company shall determine the measure in (i) above and the Fund to be covered
thereby, and promptly inform sales companies of such decision.
When determining the Fund, it is desirable to ensure compliance with the blind method andto consider and determine effects on the base value of the Fund and effects of the establishment－2－

or cancellation on the trust property, taking into account the following points. Determination of
the Fund subject to the measure, etc.
a.

Non-acceptance date set forth in contractsb.

Allocation ratio of listed issues (with approximately 20% as a rough standard, at a level
deemed appropriate by the Management Company)c.

Weight of the exchange’s futures transactions in the trust propertyd.

Recent status of establishment or cancellation of the Fund and its ratio to the net asset valuee.

Discrepancy between the futures market and the spot market

f.

Fund’s product characteristicsg.

Others(2) Suspension of trading on domestic exchanges other than the Tokyo Stock Exchange, etc.
The Management Company shall take measures similar to those in (1) above, according to the status ofsuspension of trading at the exchange.

(3) Suspension of trading at overseas exchanges (such as those in Europe and the United States of America)that are to start trading after the end of the time for accepting applications in Japan(i)

Measures to be taken by the Management Company
In the event that the Management Company decides to suspend trading all day by noon Japan
Time at any overseas exchange where trading starts after the end of the time for accepting
applications in Japan, or in the event that the Management Company judges that trading on theprevious day has been suspended and that there is no prospect of resuming trading on the day,the Management Company shall take the Acceptance Suspension Measure.
When the overseas exchange is a futures market, it does not matter what kind theunderlying assets, such as interest rates, exchange rates, etc. in addition to stocks and bonds, are.

(ii) Implementation of measures and determination of the Fund covered, etc.
The Management Company shall obtain information on suspension of trading at an overseas
exchange, examine the measure in (i) above and the Fund that is subject to the measure based on
the list prepared in advance, and if they are judged to be appropriate, shall determine theimplementation of the measure and promptly inform sales companies of the determination.
When determining implementation of the measure and the Fund covered, it is desirable toconsider and determine impact on the base value of the Fund and effects of the establishment orcancellation on the trust property due to that base value, taking into account the following
points.
a.

Non-acceptance date set forth in contracts of the Fundb.

Allocation ratio of listed issues (with approximately 20% as a rough standard, at a level
deemed appropriate by the Management Company)c.

Weight of the exchange’s futures transactions in the trust propertyd.

Recent status of establishment or cancellation of the Fund and its ratio to the net asset value
－3－

e.

Discrepancy between the futures market and the spot market

f.

Fund’s product characteristicsg.

Others(4) Suspension of trading at overseas exchanges (such as those in Asia and Oceania) whose time for
accepting applications and the trading time overlap with those in Japan.
(i)

Measures to be taken by the Management Company
If any of the events set forth in the following sub-items (a) through (b) occurs at any overseas
exchange (such as those in Asia and Oceania) whose time for accepting applications and the
trading time overlap with those in Japan, the Management Company shall take Acceptance
Suspension Measure for acceptance on the day in the case of (a) and for application for
acceptance on the next day in the case of (b).

(a) When trading on the day is suspended and there is no announcement on the resumption of
trading by noon Japan Time(b) When trading is suspended after noon Japan Time and the Management Company judges thattrading on the next day is unlikely to be resumed(ii) Implementation of measures and determination of the Fund covered, etc.
If the Management Company shall obtain information on the suspension of trading at theoverseas exchange, the Management Company shall examine implementation of the measure in(i) above and the Fund that is subject to the measure based on the list prepared in advance, and ifthey are judged to be appropriate, shall determine the implementation of the measure andpromptly inform sales companies of the determination.
When determining implementation of the measure the Fund covered, it is desirable toensure compliance with the blind method and to consider and determine impact on the basevalue of the Fund and effects of the establishment or cancellation on the trust property due tothat base value, taking into account the following points.
a.

Non-acceptance date set forth in contracts of the Fundb.

Allocation ratio of listed issues (with approximately 20% as a rough standard, at a level
deemed appropriate by the Management Company)c.

Weight of the exchange’s futures transactions in the trust propertyd.

Recent status of establishment or cancellation of the Fund and its ratio to the net asset valuee.

Discrepancy between the futures market and the spot market

f.

Fund’s product characteristicsg.

Others(5) Suspension of trading at an exchange market(a) Basically, it is considered unnecessary to take the Acceptance Suspension Measure. However,this does not preclude taking the Acceptance Suspension Measure or any other measure when
the Management Company deems it necessary, for example in the case where the suspension of－4－

trading at an exchange market poses an obstacle to inward remittance of the Fund and the Fundfinds it difficult to secure funds for cancellation.
If the Management Company determines implementation of the Acceptance Suspension
Measure and the Fund covered, the Management Company shall promptly notify sales
companies to that effect and the name of the Fund covered.
(b) When trading at an exchange market is suspended, as for the exchange rate used for evaluationof the trust property, the Association shall make responses in accordance with the Rules of the
Association and notify the Management Company of the exchange rate.

2. Market Turmoil such as Collapse
Basically, it is considered unnecessary to take the Acceptance Suspension Measure. However, this does
not preclude taking the Acceptance Suspension Measure or any other measure when the Management
Company deems it necessary and appropriate, for example in the case where indicative price quotations
continue due to collapse for consecutive days, etc. or where liquidity of assets could be affected.
In this case, it is desirable that the Management Company considers and determines impact on thebase value of the individual Fund, effects of the establishment or cancellation on the trust property due tothat base value, financing for the cancellation, etc., taking into account the following points.
a.

Discrepancy between indicative price quotations and actual price as a result of thecontinuation of the indicative price quotationsb.

Asset mix of the Fund and recent status of cancellation (financing)

If the Management Company determines implementation of the Acceptance Suspension Measure and theFund covered, the Management Company shall promptly notify sales companies to that effect and thename of the Fund covered.

3. Failure of Market Infrastructure
In the event that it becomes impossible to obtain market information due to a disaster such as a large-scale
earthquake or the suspension of the exchange distribution system or the settlement mechanism, andconsequently it becomes difficult to calculate the base value or such an event has a significant impact onliquidity of assets, the Management Company shall implement the Acceptance Suspension Measure.
In this case, it is desirable that the Management Company considers and determines implementationof the measure and the Fund subject to the measure, taking into account the following points.
a.

Impact of the allocation ratio of securities listed on the stock exchange on which market
information has become difficult to obtainb.

Whether or not there is a possibility of calculating the base value

4. Others
Even in the event of any event other than those set forth in 1 through 3 above, this shall not preclude taking
the Acceptance Suspension Measure when the Management Company judges it necessary and appropriate
to take the Acceptance Suspension Measure for the Fund in consideration of securing compliance with the－5－blind method, impact on the base value, etc.

V. Notification of Implementation of Measures, etc. to Sales Company
The Management Company shall inform the contact point of sales companies of the contents of each item
described in the prescribed form as information necessary for implementation of measures, such asmeasures decided by the Special Measures Committee or measures decided by the Management Company,
which have been communicated by the Association, and the name of the Fund that is subject to thosemeasures, using the prescribed form or other method.

VI. Publication of Base Value on the Implementation Date of the Acceptance Suspension Measure
The Management Company shall calculate the base value on the day when the Acceptance Suspension
Measure are implemented in accordance with the Rules of the Association, and shall publicize the basevalue in principle;
Provided, however, that in any of the following cases, the Management Company may refrain fromdisclosing the base value if the company considers it appropriate not to disclose the base value after
conducting an examination from the viewpoint that disclosing the base value may cause misunderstanding
for the investment decision of Investors.
a.

When the subject Exchange is closed for a long period of timeb.

When the market as a whole is disrupted by, for example, a limit-low or stop-high ofindicative prices of many issues at the market, and this situation continues to exist

VII. Date of Implementation, etc.
1. These Guidelines shall come into effect from May 18, 2007, and the Association and its members shallestablish internal systems such as communication systems as soon as possible after the implementationdate.
2. The “Temporary Measures in Connection with the Suspension of Trading by the Tokyo Stock Exchange(Resolution of the Special Task Force dated January 19, 2006)” shall be repealed on May 18, 2007.

Supplementary Provision
The amendments shall come into effect on January 4, 2013.

Supplementary ProvisionThis amendment shall come into effect on July 15, 2021.

－6－

<Appendix>

Basic Policy on Suspension of Acceptance of Application for Establishment or Cancellation of Investment
Trust in Case of Emergency[Premise]With regard to the implementation of measures to suspend the acceptance of applications for establishment
or cancellation of investment trusts from investors or beneficiaries at the time of an emergency, regardless of
the reason for such suspension, an investment trust management company shall decide whether or not to
implement such measures and which investment trusts are to be implemented based on the provisions ofindividual investment trust contracts.

[Basic Concept]
When an investment trust management company takes any measure to suspend the acceptance of applicationfor establishment or cancellation of an investment trust, the investment trust Management Company shall
pay attention to the following points with regard to the same Investment Trust.
‐Handling conditions shall not differ depending on sales companies.

‐

There shall be no inequity between investors applying for establishment or cancellation andremaining beneficiaries.

‐

The blind point of view shall be maintained.

etc.

[Scope of Specific Exemption from Application]
Even if an investment trust management company has implemented any measure to suspend the acceptanceof application for establishment or cancellation of an investment trust, basically from the above viewpoint, it
is considered that the adverse effects of accepting the application for any of the following cases as an
exception to such measures will be small.
In this case, however, it should be noted that the investment trust management company must sharenecessary information with sales companies regarding the terms and conditions, channels, etc. of theinvestment trust that will be an exception to the measure.
(Cases Considered to Have Few Adverse Effects)‐

Establishment, cancellation, and replacement of a defined contribution pension plan‐

Establishment of regular, fixed-amount purchase for cumulative investment contracts, accumulation
investment contracts, etc.

‐

Establishment of distribution reinvestment‐

Establishment and cancellation under variable pension insurance contracts－7－

Appended Form

List of Funds for Which Establishment or Cancellation Has Been Suspended
Date: MM DD, YYYY
Application
date of the
Acceptance
Suspension
MeasureDescription

yyyy/mm/dd

RequireditemsInvestment
Trusts
Association
Code

ISIN
Code

Fund Code(i)

8 digits

1Fund Code(ii)

Fund Code(iii)

Name of theInvestment
Trust
Company

Official
Fund Name

Abbreviations
or Nicknames

Regular, FixedAmount Category

If neither
establishment nor
cancellation issuspended, enter 1.

NomuraResearch
Institute

Daiwa
Institute of
Research

Others△△△If establishment only
is not suspended,
enter 2.
If cancellation only is
not suspended, enter
3




△

△

2
3
4
5
6

Precautions for description
1. Application date of Acceptance Suspension Measure
Enter the date. Required items. Enter the application date of the Acceptance Suspension Measure.
2. Investment Trusts Association CodeAn eight digit number. Required items.
3. ISIN Code
12 digit alphanumeric characters. Required items.
4. Fund Code (i)Optional Items. Left blank if not applicable. When Nomura Research Institute’s system is used, the fund code for the system may be entered.
5. Fund Code (ii)
Optional Items. Left blank if not applicable. When Daiwa Institute of Research’s system is used, the fund code for the system may be entered.
6. Fund Code (iii)
Optional Items. Left blank if not applicable. When any system other than the above fund codes (i) and (ii) is used, the fund code for the system may be entered.

7

Distribution
Reinvestment
Category

If nothing issuspended,
enter 1.

△

DC Category

If neither
establishment nor
cancellation issuspended, enter 1.
If establishment
only is notsuspended, enter 2.
If cancellation only
is not suspended,
enter 3△

VA
Category

Application
date of thebase value

1: On theday
If nothing issuspended,
enter 1.

2: On thenext day△

3: Two dayslater
4: Others7. Investment Trust Company
Required items. Enter the name of the investment trust company.
8. Official Fund Name
Required items. Enter the official name of the fund.
9. Abbreviations or Nicknames
Optional Items. Enter the fund’s abbreviation or nickname.
10. Regular, Fixed-Amount Category
Optional Items. Enter 1-3 if applicable. Left blank if not applicable. If neither establishment nor cancellation is suspended for regular, fixed-amount installment deposit, enter 1.
If only establishment is suspended and cancellation is suspended for regular, fixed-amount installment deposit, enter 2.
If establishment is suspended and only cancellation is not suspended for regular, fixed-amount installment deposit, enter 3. In the case where operations including regular, fixed-amount installment deposit are suspended, and other cases, it isleft blank.
11. Distribution Reinvestment Category
Optional Items. Enter 1 if applicable. Left blank if not applicable. If distribution reinvestment is not suspended, enter 1.
In the case where there is no category for distribution reinvestment, the case where operations including distribution reinvestment are suspended, or other cases, it is left blank.
12. DC Category
Optional Items. Enter 1 if applicable. Left blank if not applicable. Neither establishment nor cancellation is suspended, enter 1 for DC.
If only establishment is not suspended and cancellation is suspended for DC, enter 2. If establishment is suspended and only cancellation is not suspended for DC, enter 3.
In the case where there is no DC category, the case where operations including DC is suspended, or other cases, it is left blank.
13. VA Category
Optional Items. Enter 1 if applicable. Left blank if not applicable. If nothing is suspended for VA, enter 1.
In the case where there is no VA category, the case where operations including the VA category are suspended, or other cases, it is left blank.
14. Date on which the unit price is applied
Required items. If the application date of the base value is the day, enter 1. Enter 2 if the application date is the next day, or enter 3 if the application date is the day after next.
In the case where the application date is three days later, or the case where the application date of the base value is applied is different between establishment and cancellation, or other cases, enter 4.

8