This Fund seeks to achieve net worth per unit which closely correlates with the movement of the yen-converted CNX Nifty Index Futures mainly by 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.
- India 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 CNX Nifty Index by mainly 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 CNX Nifty Futures (India Equity)
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 CNX Nifty Index (the settlement value for the most recent month for CNX Nifty Index futures on the Singapore Exchange, with the CNX Nifty Index as the base asset)|
|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.|
Approximately 0.594% (0.55% 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 0.486% per annum (0.45% 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 real trust fee rate (the annual rate) payable by the beneficiaries will change depending on factors including the fund's weighting in investment trusts securities targeted for investment or changes in the portfolio.
|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 fundfs daily net asset value.
Expenses for the preparation and distribution of prospectuses, audit costs, expenses for listing of the Fund, as well as royalties for the CNX Nifty Index Futures 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
CNX Nifty Index Futures is the settlement price of the most recent delivery month of the CNX Nifty Index Futures in Singapore Stock Exchange of which the underlying asset is the CNX Nifty Index. The Futures are traded in US dollars.
CNX Nifty Index is a leading stock price index on the National Stock Exchange in India. It is the weighted-average of 50 blue-chip stock prices with higher market capitalization and liquidity by market capitalization ratio after subsequent flotation adjustment, 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".
National Stock Exchange of India
- CNX Nifty
* Methodology, List of CNX Nifty Stocks and Fact Sheet of CNX Nifty
Japan Exchange Group publishes summaries and lists of the ETFs, as well as other valuable information on their website.
Copyright and other aspect of "CNX Nifty Index"
The Product(s) are not sponsored, endorsed, sold or promoted by India Index Services & Products Limited ("IISL"). IISL does not make any representation or warranty, express or implied, to the owners of the Product(s) or any member of the public regarding the advisability of investing in securities generally or in the Product(s) particularly or the ability of the CNX NIFTY Index to track general stock market performance in India. The relationship of IISL to the Licensee is only in respect of the licensing of certain trademarks and trade names of its Index which is determined, composed and calculated by IISL without regard to the Licensee or the Product(s). IISL does not have any obligation to take the needs of the Licensee or the owners of the Product(s) into consideration in determining, composing or calculating the CNX NIFTY Index. IISL is not responsible for or has participated in the determination of the timing of, prices at, or quantities of the Product(s) to be issued or in the determination or calculation of the equation by which the Product(s) is to be converted into cash. IISL has no obligation or liability in connection with the administration, marketing or trading of the Product(s).
IISL do not guarantee the accuracy and/or the completeness of the CNX NIFTY Index or any data included therein and they shall have no liability for any errors, omissions, or interruptions therein. IISL does not make any warranty, express or implied, as to results to be obtained by the Licensee, owners of the product(s), or any other person or entity from the use of the CNX NIFTY Index or any data included therein. IISL makes no express or implied warranties, and expressly disclaim all warranties of merchantability or fitness for a particular purpose or use with respect to the Index or any data included therein. Without limiting any of the foregoing, IISL expressly disclaim any and all liability for any damages or losses arising out of or related to the Products, including any and all direct, special, punitive, indirect, or consequential damages (including lost profits), 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.
- 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 forCash 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 invests mainly in rights for stock price index futures trading and short-term bonds. As such, it is possible that the NAV will fall and the Fund may incur losses due to a decline 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. Losses may also be incurred due to exchange rate fluctuation when investing in assets denominated in foreign currencies.
Major risks are as follows:
1. Price Fluctuation Risk
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 indices. 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.
Stocks and rights related to stock index futures trading in emerging countries tend to show high price volatility compared to those in developed countries. This can also have a large impact on the fund's NAV.
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, price fluctuation is different for each bond depending on the maturity, coupon rate and other issuance conditions.
2. Liquidity Risk
There is a risk that the Fund will incur unexpected losses where the market size or trading volume 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 cannot be sold as appraised, or that the transaction volume is limited regardless of the price levels.
The liquidity risk of stocks and rights relating to stock index futures trading in emerging countries can be higher than those in developed countries, due to the small market size or trading volume.
3. Credit Risk
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 of 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.
Generally speaking, emerging countries' currencies show higher volatility than those of developed countries.
5. Country risk
There is the risk of significant losses in the Fund due to market trends or the flow of funds, including emergencies in invested countries (such as financial crises, government default due to financial reasons, significant policy changes or introductions of new regulations including asset freezes, natural disasters, coups or significant political changes, or war). In such cases, the fund cannot be managed in accordance with the investment policy.
Generally speaking, emerging countries do not disclose enough information, or accurate information cannot be obtained in a timely manner.
6. Security-lending Risk
Lending of securities is accompanied by counterparty risks, which are the risks of default or cancellation of lending agreements as result of bankruptcy, etc., and by the counterparties. As a result, there is a risk that the Fund will suffer unanticipated 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.
Risks of Disparity between the JPY-converted CNX Nifty Index Futures and the NAV
Whereas the Fund seeks to match the NAV volatility with that of the JPY-converted CNS Nifty Index futures, it does not guarantee the movements will be consistent to those of the Index for the following reasons:
- The lag in timing of fund inflow to the purchase of investment trust securities.
- The fund will bear such expenditures as trust fees, brokerage commissions and auditing fees.
- When derivative transactions such as futures are made, there may be disparity discrepancy between the price movements of such transactions and that of the CNX Nifty Index futures.
Disparity between the market prices at which stocks are traded on exchanges and the NAV
The Fund is listed on and will be publicly traded on the Tokyo Stock Exchange; however, the market price of the units will depend mainly on the demand for the Fund, its investment performance, and how attractive it is to investors in comparison to alternative investments, etc. We cannot predict whether the units of this fund will be traded at the market value below or above its NAV.
*Because the prices of investment trust securities in which the Fund invests fluctuate due to the influence of these factors, the Fund's NAV fluctuates accordingly.
*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 CNX Nifty Futures (India Equity)" 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.