This Fund seeks to achieve net worth per unit which closely correlates with the movement of the yen-converted S&P 500 Index by mainly investing in some or all of the separately specified investment trust securities.
Net Asset Value and Performance
|NAV (per 100 shares):||¥ (As of: )||Net Assets:||
Structure of the Fund
This Fund of Funds invests in investment trust securities.
- US Equity Index Fund (for qualified institutional investors)
While investing in domestic and overseas short-term public and corporate bonds, this Fund seeks investment returns that track the movements of the yen-converted S&P 500 Index by mainly investing in rights for stock price index futures trading.
While investing in equities listed on US financial instruments exchanges (including depositary receipts) in accordance with the Fund's status and the investment environment, this Fund seeks investment returns that track the movements of the yen-converted S&P 500 Index by investing in rights for stock price index futures trading.
- Money Account Mother Fund
This Fund seeks to ensure stable returns by investing in public and corporate bonds.
|Fund Name||Listed Index Fund US Equity (S&P500)
Open-ended type/Foreign/Stocks/ETF/Index fund
|Listed Exchange||Tokyo Stock Exchange|
|Targeted Investments||This fund invests in investment trust securities that aim to match fluctuation in the JPY-converted S&P500 Index|
|Date Listed||29 October 2010 (launched on 22 October 2010)|
|Exchange Trading Unit||10 units|
|Computation Period||From 21 January of each year to 20 January of the next year|
|Closing Date||20 January of each year|
|Dividends||All revenue from dividends arising from the trust assets will be, in principle, paid as dividends on the last day of the fiscal year after deducting expenses.
*There is no guarantee on the payment or the amount of dividend.
Overview of Fees & Expenses
|Trading Fee||Stipulated by the broker. Please contact the broker for details.|
|Amount to be Retained in Trust Assets||0.3% of NAV at the time of exchange.|
Approximately 0.1728% (0.16% excluding taxes) per annum of the total NAV.
The breakdown of the trust fee rate is as follows: the fund's trust fee rate is no higher than 0.0648% per annum (0.06% before tax) and the trust fee rate for incorporating investment trust securities targeted for investment is approximately 0.108% per annum (0.1% before tax).
*The actual annual rate of trust fees paid by beneficiaries varies depending on the percentage of target investment trust securities, changes to such investment trust securities and other factors.
|Other Fees and Costs||
An amount no more than the total amount for the trust period reached by multiplying an annual rate of 0.1% on the fund's daily net asset value.
Expenses for preparation and distribution of prospectuses, audit costs, expenses for listing of the Fund, as well as royalties for the S&P 500 are paid out of the trust assets at the times specified by the Management Company.
Brokerage commissions on securities in the portfolio, interest on advances, lending fee (in case security lending is conducted, the amount obtained by multiplying a lending fee on securities lent by a figure which is a profit for Trust Assets, not exceeding 0.54 (0.5 excluding taxes) (0.5 excluding taxes as of the date of the filling of the securities registration statement), and other fees are paid out of the trust assets each time they are incurred.
*The figures for items such as the rate and maximum amount cannot be provided in advance as they fluctuate in line with investment performance and other factors.
The total amount of expenses of the Fund to be borne by investors varies according to holding length and investment status, and thus cannot be shown.
Major Investment Restrictions
The S&P 500 Index is an equity index developed by Standard & Poor's Financial Services LLC and calculated by determining the weighted average after subsequent flotation adjustment by market capitalization ratio of 500 leading listed stocks on the New York Stock Exchange (NYSE Arca, NYSE Amex) and NASDAQ, then assigning index values accordingly.
Japan Exchange Group (JPX)
- Listed ETF Prices
To see the Listed ETF Prices, please follow this link and click "Display of stock price".
Standard & Poor's
- S&P 500 Index
- Fact Sheet, Methodology, Directory (In the left menu)
Downloading Index Data. (Free registration is required)
1. Click on "+ Download Index Data"
2. You will be asked for your email address and password. New users should click "register here" and enter their details to register.
3. Click "Index Constituents" to open or save data as in Excel format.
Japan Exchange Group publishes summaries and lists of the ETFs, as well as other valuable information on their website.
Copyright and Other Rights of the "S&P 500 Index"
THIS FUND IS NOT SPONSORED, ENDORSED, SOLD OR PROMOTED BY STANDARD & POOR'S AND ITS AFFILIATES ("S&P"). S&P MAKES NO REPRESENTATION, CONDITION OR WARRANTY, EXPRESS OR IMPLIED, TO THE OWNERS OF THE FUND OR ANY MEMBER OF THE PUBLIC REGARDING THE ADVISABILITY OF INVESTING IN SECURITIES GENERALLY OR IN THE FUND PARTICULARLY OR THE ABILITY OF THE S&P 500 TO TRACK THE PERFORMANCE OF CERTAIN FINANCIAL MARKETS AND/OR SECTIONS THEREOF AND/OR OF GROUPS OF ASSETS OR ASSET CLASSES. S&P'S ONLY RELATIONSHIP TO NIKKO ASSET MANAGEMNT CO., LTD. IS THE LICENSING OF CERTAIN TRADEMARKS AND TRADE NAMES AND OF THE S&P 500 INDEX WHICH IS DETERMINED, COMPOSED AND CALCULATED BY S&P WITHOUT REGARD TO NIKKO ASSET MANAGEMNT CO., LTD. OR THE FUND. S&P HAS NO OBLIGATION TO TAKE THE NEEDS OF NIKKO ASSET MANAGEMNT CO., LTD. OR THE OWNERS OF THE FUND INTO CONSIDERATION IN DETERMINING, COMPOSING OR CALCULATING THE S&P 500 INDEX. S&P IS NOT RESPONSIBLE FOR AND HAS NOT PARTICIPATED IN THE DETERMINATION OF THE PRICES AND AMOUNT OF THE FUND OR THE TIMING OF THE ISSUANCE OR SALE OF THE FUND OR IN THE DETERMINATION OR CALCULATION OF THE EQUATION BY WHICH THE FUND SHARES ARE TO BE CONVERTED INTO CASH. S&P HAS NO OBLIGATION OR LIABILITY IN CONNECTION WITH THE ADMINISTRATION, MARKETING, OR TRADING OF THE FUND.
S&P DOES NOT GUARANTEE THE ACCURACY AND/OR THE COMPLETENESS OF THE S&P 500 INDEX OR ANY DATA INCLUDED THEREIN AND S&P SHALL HAVE NO LIABILITY FOR ANY ERRORS, OMISSIONS, OR INTERRUPTIONS THEREIN. S&P MAKES NO WARRANTY, CONDITION OR REPRESENTATION, EXPRESS OR IMPLIED, AS TO RESULTS TO BE OBTAINED BY NIKKO ASSET MANAGEMNT CO., LTD., OWNERS OF THE FUND, OR ANY OTHER PERSON OR ENTITY FROM THE USE OF THE S&P 500 INDEX OR ANY DATA INCLUDED THEREIN. S&P MAKES NO EXPRESS OR IMPLIED WARRANTIES, REPRESENTATIONS OR CONDITIONS, AND EXPRESSLY DISCLAIMS ALL WARRANTIES OR CONDITIONS OF MERCHANTABILITY OR FITNESS FOR A PARTICULAR PURPOSE OR USE AND ANY OTHER EXPRESS OR IMPLIED WARRANTY OR CONDITION WITH RESPECT TO THE S&P 500 INDEX OR ANY DATA INCLUDED THEREIN. WITHOUT LIMITING ANY OF THE FOREGOING, IN NO EVENT SHALL S&P HAVE ANY LIABILITY FOR ANY SPECIAL, PUNITIVE, INDIRECT, OR CONSEQUENTIAL DAMAGES (INCLUDING LOST PROFITS) RESULTING FROM THE USE OF THE S&P 500 INDEX OR ANY DATA INCLUDED THEREIN, EVEN IF NOTIFIED OF THE POSSIBILITY OF SUCH DAMAGES.
- 31 Aug 2017 — Interim Earnings Report for Fiscal Year ending Jan 2018 (21 Jan 2017 - 20 Jul 2017)
- 2 Mar 2017 — Earnings Report for Fiscal Year ended Jan 2017 (21 Jan 2016 - 20 Jan 2017)
- 2 Sep 2016 — Interim Earnings Report for Fiscal Year ending Jan 2017 (21 Jan 2016 - 20 Jul 2016)
- 4 Mar 2016 — Earnings Report for Fiscal Year ended Jan 2016 (21 Jan 2015 - 20 Jan 2016)
- 2 Sep 2015 — Interim Earnings Report for Fiscal Year ending Jan 2016 (21 Jan 2015 - 20 Jul 2015)
- 5 Mar 2015 — Earnings Report for Fiscal Year ended Jan 2015 (21 Jan 2014 - 20 Jan 2015)
- 2 Sep 2014 — Interim Earnings Report for Fiscal Year ending Jan 2015 (21 Jan 2014 - 20 Jul 2014)
- 5 Mar 2014 — Earnings Report for Fiscal Year ended Jan 2014 (21 Jan 2013 - 20 Jan 2014)
- 3 Sep 2013 — Interim Earnings Report for Fiscal Year ending Jan 2014 (21 Jan 2013 - 20 Jul 2013)
- 6 Mar 2013 — Earnings Report for Fiscal Year ended Jan 2013 (21 Jan 2012 - 20 Jan 2013)
- 31 Aug 2012 — Interim Earnings Report for Fiscal Year ending Jan 2013 (21 Jan 2012 - 20 Jul 2012)
This Fund can be applied for as a cash creation and a cash redemption at Authorised Participants in addition to the Tokyo Stock Exchange. When applying as a direct addition and exchange, please keep in mind that we cannot accept your application on the following dates:
- SMBC Nikko Securities Inc.
- Citigroup Global Markets Japan Inc.
- ABN AMRO Clearing Tokyo Co., Ltd.
- Merrill Lynch Japan Securities Co., Ltd.
- Morgan Stanley MUFG Securities Co., Ltd.
- Nomura Securities Co., Ltd.
Daily Creation and redemption are based on ETF's NAV calculated in early evening. Confirm non-tradable days by referring to trading calendar on our official homepage. Basket for creation is continually-updated on our official homepage.
Basically sell/buy at last price of T day's market while FX rate is TTM of one business day after the application (10am on T+1)
The flow chart below is showing the creation/redemption process for Nikko AM ETFs. Please note that transactions cannot be processed for days on which applications are not accepted.
Creation Flow for Cash Creation/Redemption Type ETFs
Redemption Flow for cash Creation/Redemption Type ETFs
Investors are not guaranteed the investment principal that they commit. Investors may incur a loss and the value of their investment principal may fall below par as the result of a decline in market price or NAV. All profits and losses arising from investments in the Fund belong to the investors (beneficiaries). This fund is different from saving deposit.
This Fund will invest mainly in rights for stock price index futures trading and short-term bonds, therefore, due to the effects of falls in the prices of rights for stock price index futures trading and short-term bonds or worsening financial standing or business results of the organizations that issue short-term bonds, it is possible that the NAV will fall and the Fund may incur losses. Losses may also be incurred due to exchange rate fluctuation when investing in assets denominated in foreign currencies.
Major risks of the investment trust securities targeted for investment are as follows:
1. Price Fluctuation Risk
Stock prices fluctuate due to the changes in the information of the company's growth and profitability, and any changes in such information. They also fluctuate as they are affected by economic and political conditions in Japan and abroad. There is a risk that the Fund may incur material losses if unexpected changes occur in stock price movements or liquidity.
The prices of rights relating to stock index futures will change due to fluctuations in the stock prices of companies used to calculate the stock price index, and in the constituent stock markets of the stock price index. In addition, the prices of rights relating to stock index futures trading can change due to fluctuations in other domestic and overseas stock price indexes. There is a risk that the Fund will suffer material losses owing to an unexpected change in the prices of rights relating to stock index futures trading in the fund or to an unexpected fluctuation in the prices of stocks related to the stock price index and the constituent stock markets of the stock price index.
Public and corporate bonds contain a risk of price fluctuation due to interest rate fluctuation. In general, when interest rates rise, bond prices decline, resulting in a decline in the fund's NAV. However, the range of price fluctuation varies by bond depending on duration and issuance conditions of coupon rate and others.
2. Liquidity Risk
There is a risk that the Fund will incur unexpected losses when the market size or trading volumes is small. The purchase and sale prices of securities are influenced by the trading volume, resulting in the inability of the Fund to sell certain stocks in its portfolio at prices that are expected to be realized in light of the prevailing market trend, that a security can sold as appraised, or that the transaction volume is limited regardless of the price levels.
3. Credit Risk
There is a risk that the Fund will incur material losses in the event of a serious crisis that directly or indirectly affects the business of a corporation in which the Fund invests. The prices of stocks of issuers may substantially decline (possibly to zero) due to fears of default or corporate bankruptcy, which can contribute to decline in the Fund's NAV.
In cases where default has occurred or is expected to occur, for issuers of public and corporate bonds or money market instruments, the prices of such corporate bonds or money market instruments decline (the value could even fall to zero). This results in a decline in the Fund's NAV. Also, if default in fact occurs, there is a high possibility of being unable to collect investment funds.
4. Currency Fluctuation Risk
For foreign-currency-denominated assets, in general, if the yen is stronger than the currencies of such assets, the Fund's NAV will decline.
5. Security-lending Risk
Lending of securities is accompanied by counterparty risks, which are the risks of default or cancellation of lending agreements as a result of bankruptcy, etc., of the counterparties. As a result, there is a risk that the Fund will suffer unexpected losses. Following the default or cancellation of a lending agreement, when liquidation procedures are implemented by using the collateral that is set aside in the lending agreement, the procurement cost of buying back the securities can surpass the collateral value, due to price fluctuations in the market. In such cases, the Fund is required to pay the difference, which may cause the Fund to incur losses.
Major discrepancy factors for yen-converted S&P 500 Index and NAV
Whereas the Fund seeks to match the NAV volatility with that of the yen-converted S&P 500 Index, it does not guarantee movements that are identical to those of the Index for the following reasons:
- The lag in the timing from fund inflow to the purchase of investment trust certificates.
- The potential investment in selected issues other than S&P 500 Index, potential market impact from the trading, etc., of individual issues or expenses from trust fees when portfolio adjustments are made due to changes in selected issues on the S&P 500 Index or capital transfers, costs borne by the Fund such as brokerage commission, audit costs, etc.
- The management fee from securities or dividends loan of incorporated issues.
- When derivative transactions such as futures are made, there may be disparity between the price movements of all or some of such transactions and that of the S&P 500 Index.
Discrepancy between the market prices at which stocks are traded on financial instruments exchanges and the NAV
The Fund is listed on the Tokyo Stock Exchange and the units are traded on that exchange. The market price of the units is affected primarily by the demand for the Fund, its performance, and how attractive it is to investors in comparison with their other investments. It is not possible to predict whether the units will sell in the market above or below the NAV.
*Since the prices of the investment trust securities targeted by the Fund fluctuate due to the impact of these factors, the Fund itself is subject to the same risks.
*The factors that contribute to fluctuations in the NAV are not limited to those listed above.
- This document is meant as promotional material whose purpose is for Nikko Asset Management to provide information about its "Listed Index Fund US Equity (S&P 500)" and for investors to gain further understanding about the fund.
- The provisions stipulated in Article 37-6 of the Financial Instruments and Exchange Act ("cooling-off period") are not applicable to Fund transactions.
- This Fund differs from deposits or insurance policies in that it is not protected by the Deposit Insurance Corporation of Japan or the Policyholders Protection Corporation of Japan. Furthermore, units purchased from registered financial institutions, such as banks, are exempted from compensation by the Japan Investor Protection Fund.
- When applying to invest in the Fund, please make the decision to invest carefully after taking the time to read the delivered pre-agreement document and other relevant materials in detail.