The Fund seeks to achieve a NAV that closely correlates with the movement of the TOPIX Ex-Financials by investing in shares of the component stocks of the TOPIX Ex-Financials, and maintaining, in principle, a portfolio constructed consistent with the calculation method of the TOPIX Ex-Financials.

Key information
Name: Listed Index Fund TOPIX Ex-Financials

ProspectusProspectus

Earnings ReportEarnings Report

Code: 1586

Net Asset Value and Performance

NAV (per 10 shares): ¥{{numberFormat net_per_unit}}   (As of: {{dateFormat distribution_date 'Y-m-d'}}) Net Assets: {{numberFormat (M:floor total_net_assets)}} million
Day change: ¥{{numberFormat change_from_previous}} Issued: {{numberFormat unit_of_beneficial_interest}} shares

Performance Chart - Since Listing on 26 September 2013

Net Asset Value (per Shares) (excluding dividend payment) (¥)
TOPIX Ex-Financials

  • NAV value is listed after deducting trust fees.
  • The benchmark in the graph is set in accordance with the NAV as of the graph’s starting point.
  • Trademarks and all other intellectual property for all labels containing "Listed Index Fund TOPIX Ex-Financials" are the sole property of Nikkei.
  • The performance, data, etc., noted above are based on past information and neither guarantee nor promise future performance.

Fund Name Listed Index Fund TOPIX Ex-Financials
Open-end/Domestic/Equities/ETF/Index type
Listed Exchange Tokyo Stock Exchange
Issue Code 1586
Targeted Investments This fund mainly invests in stock issues adopted for TOPIX Ex-Financials.
Date Listed 26 September 2013 (launched on 24 September 2013)
Exchange Trading Unit 1 unit
Trust period Unlimited
Computation Period Every year, 9 Jan - 8 Jul, 9 Jul - 8 Jan
Closing Date Every year, the 8th day of January and July
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.

Fund Expenses

■Expenses to be borne directly by investors

Subscription Fee Independently set by Distributors
*Please contact your Distributor for further information.
*Subscription Fee is compensation for explanation and information providing about the Fund or investment environment, and is also including expense of clerical processing of the subscription.
Redemption Fee Independently set by Distributors
*Please contact your Distributor for further information.
*Exchange Fee is compensation for clerical processing of the exchange.
Amount to be Retained in Trust Assets None

■Expenses to be borne indirectly by investors from trust assets

TER(Total Expense Ratio) 0.1216% (TER includes Trust Fee, management fee and other costs below)
※This represents the actual TER for the period of January 9, 2018 – January 8, 2019
Investment Management Expenses
(Trust fee)

No more than 0.09504%* (0.088% excluding taxes) per annum of the Fund’s daily NAV
*0.0968% when the consumption tax increases to 10%.

The investment management fee is daily recorded and paid out of the trust assets at the end of each calculation period or at the time of termination of the Trust.

Distribution of Investment Management Expenses(annual rate)

When above is 0.088%, as of the date of filing of the securities registration statement.

Investment Management Expenses(Trust fee)
=NAV of investment period X Trust fee rate
Total Management Company Trustee
0.088% 0.060% 0.028%
Management Company Compensation for investment management
Trustee Compensation for administration of assets under management and execution of orders from Management Company

*Figures in brackets are excluding tax. Consumption tax will be added.

Investment Management Expenses
(Trust fee)
Target Investment Trust Securities

Annual rate of approx. 0.0972%*(0.09% excluding taxes) of the total net assets
*0.099% when the consumption tax increases to 10%

Investment Management Expenses
(Trust fee)
Expenses borne by the investors

No more than 0.2592%*(0.24% excluding taxes) per annum of net assets.
*0.264% when the consumption tax increases to 10%.

*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 Expenses and Fees
Expenses
(Expenses for preparation of prospectus and other expenses)

No more than 0.1% per annum of the Fund’s daily NAV

1. Expenses for the preparation and distribution of prospectuses, 2. Cost for accounting and its incidental operations, 3. Cost for preparation of financial summary statement (including outsourcing fee in case of outsourcing the (1) - (3) operations), 4. Auditing fees, 5. Fees related to the listing of the fund, 6. Royalties for the "TOPIX Ex-Financials", and others are paid out of the trust assets at the times specified by the Management Company.

*Auditing fee is an expense paid to audit firm for auditing of the Fund

Other Expenses and Fees
Brokerage Commissions and Other Fees

Brokerage commissions on securities in the portfolio, interest on borrowings, 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 profit for Trust Assets, not exceeding 0.54*(0.5 excluding taxes) (0.5 excluding taxes as of the date of the filing 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.

*0.55 when the consumption tax increases to 10%

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

  • There is no restriction as to the investment ratio in stocks.
  • There is no restriction as to the investment ratio for assets denominated in foreign currency.

Trustee Companies

  • The Sumitomo Mitsui Trust Bank, Limited

TOPIX Ex-Financials is calculated using free-float adjusted market capitalization as an index and targets issues that exclude those belonging to insurance, banking, securities and commodity futures trading industries, and other financial operations from issues calculated for TOPIX (Tokyo Stock Price Index).

TOPIX Ex-Financials is calculated by setting the July 5, 1993 closing price as the base time and setting the total market value on that date as 1,000 points.

* 33 industries specified by the Securities Code Council" shall be used when classifying industries.

What is TOPIX Ex-Financials?

Further Information

Japan Exchange Group (JPX)

Japan Exchange Group publishes summaries and lists of the ETFs, as well as other valuable information on their website.

Copyrights and Other Rights of TOPIX Ex-Financials

The TOPIX Ex-Financials index price and the TOPIX trademarks are intellectual property rights owned by the Tokyo Stock Exchange. All rights and know-how relating to the TOPIX Ex-Financials, including calculation, publication and use of this index price, as well as all rights relating to the TOPIX trademarks belong to the Tokyo Stock Exchange.

The Tokyo Stock Exchange reserves the right to change the method of calculation or publication, to cease the calculation or publication of the TOPIX Ex-Financials index price, or to modify the TOPIX trademarks or cease the use thereof.

The Tokyo Stock Exchange makes no warranty or representation as to the results derived from the use of the TOPIX Ex-Financials index price and TOPIX trademarks, as well as the TOPIX Ex-Financials index price of a particular date.

The Tokyo Stock Exchange does not guarantee the accuracy or completeness of the TOPIX Ex-Financials index price and data contained therein. Further, the Tokyo Stock Exchange shall not be liable for the miscalculation, incorrect publication, delayed or interrupted publication of the TOPIX Ex-Financials index price.

This Fund is not in any way sponsored, endorsed or promoted by the Tokyo Stock Exchange.

The Tokyo Stock Exchange does not bear any obligation to give an explanation of this Fund or advice on investments to any purchaser of this Fund or to the public.

The Tokyo Stock Exchange does not consider the needs of Nikko Asset Management Co., Ltd. or purchaser of this Fund in terms of issue composition and calculation for calculating the TOPIX Ex-Financials index price.

Including but not limited to the above items, the Tokyo Stock Exchange shall not be responsible for any damage resulting from the subscription into, sale or marketing of this fund.

Daily Fund Data (CSV)

Portfolio data (XLS)

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This Fund can be applied for as a cash creation and a cash redemption at Authorised Participants in addition to the Tokyo Stock Exchange.

Authorized Participants

  • SMBC Nikko Securities Inc.
  • Citigroup Global Markets Japan Inc.
  • ABN AMRO Clearing Tokyo Co., Ltd.
  • BNP Paribas Securities (Japan) Limited
  • Daiwa Securities Co. Ltd.
  • Deutsche Securities Inc.
  • Goldman Sachs (Japan) Co., Ltd.
  • JPMorgan Securities Japan Co., Ltd.
  • Merrill Lynch Japan Securities Co., Ltd.
  • Mitsubishi UFJ Morgan Stanley Securities Co., Ltd.
  • Mizuho 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 underlying asset at last price of T day's market.

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

Cash Creation/Redemption Type ETFs

Redemption 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.

The Fund invests primarily in stocks. The NAV of the Fund may fall and investors may suffer a loss due to a decline in stock prices or deterioration in the financial conditions and business performance of an equity issuer. Investors may also incur losses due to exchange rate fluctuations when investing in assets denominated in foreign currencies.

Major risks are as follows:

1. Price Fluctuation Risk
Stock prices fluctuate as they are affected by information on the companyfs growth rate and profitability as well as 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 will suffer material losses if unexpected changes occur in stock price or liquidity.

2. Liquidity Risk
The Fund may incur unexpected losses when the size of the market or trading volumes is small. The purchase and sale prices of securities are influenced by trading volume, resulting in the risks that they cannot be traded at prices expected to be realized in light of the prevailing market trend, sold at the estimated prices, or that the trading volume is limited regardless of the level of prices.

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 NAV.

4. Foreign Currency Risk
For foreign currency-denominated assets, generally if the foreign exchange market moves so that the yen appreciates against the currency in which the concerned assets are held, the fund's NAV may depreciate as a result.

5. Security-lending Risk
Lending securities involves counterparty risks, which are the risks of contractual default or cancellation following bankruptcy, etc., by the counterparty. As a result, the Fund may 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.

Discrepancy factors between the TOPIX Ex-Financials and the NAV

The Fund seeks to match the NAV volatility with that of the TOPIX Ex-Financials, but it cannot guarantee that movements will be consistent with the Index for the following reasons:

  • The Fund may be subjected to market impact when buying or selling individual stocks as it adjusts its portfolio in response to changes in the stocks that comprise the TOPIX Ex-Financials and capital changes among corporations. In addition, the Fund will incur various expenses, including trust fees, brokerage commissions, and audit fees.
  • The management fee from lending securities or dividends of incorporated issues.
  • When derivatives transactions such as futures are made, there may be disparity between the price movements of such transactions and that of some or all of the constituents of the TOPIX Ex-Financials.

Discrepancy between the market prices at which stocks are traded on 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.
*The factors that contribute to fluctuations in the NAV are not limited to those listed above.

Additional Considerations

  • These materials are distribution materials created by Nikko Asset Management in order to increase investors' understanding of "Listed Index Fund TOPIX Ex-Financials".
  • The provisions stipulated in Article 37-6 of the Financial Instruments and Exchange Act (the "cooling-off period") is 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, the Japan Investor Protection Fund will not pay any compensation for units purchased from registered financial institutions, such as banks.
  • 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.