1680 - Listed Index Fund International Developed Countries Equity (MSCI-KOKUSAI)

Structure of the Fund

This Fund of Funds invests in securities held for investment trust.

• Index Fund Developed Countries Equity (for Institutional Investors)
  The Fund seeks to achieve investment results that correlate to the movement of the yen-converted MSCI-KOKUSAI Index by investing mainly in “International Stock Index MSCI-KOKUSAI No Hedge Mother Fund”.
• Money Account Mother Fund
  This fund seeks to achieve stable returns through stable management by investing in public and corporate bonds.

Fund Name	Listed Index Fund International Developed Countries Equity (MSCI-KOKUSAI) Open-end/Overseas/Equities/ETF/Index type
Listed Exchange	Tokyo Stock Exchange
Issue Code	1680
Targeted Investments	The funds seeks to target investment trust securities whereby investment performance tracks the MSCI-KOKUSAI Index (in yen equivalent)
Date Listed	29 January 2010 (launched on 22 January 2010)
Exchange Trading Unit	10 units
Trust period	Unlimited
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.

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.
Exchange 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	An amount calculated by multiplying NAV at the time of a redemption by 0.3% (per unit)

■Costs paid indirectly by the customer for the trust assets (paid from the fund)

TER (Total Expense Ratio)

0.3074% (TER includes Trust Fee, management fee and other costs below) ※ This represents the actual TER for the period of January 23, 2023 - January 19, 2024.

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 fund will not directly invest in any portfolio, stocks and bonds other than securities held for investment trust, short term corporate bonds, etc., commercial paper and designated money in trust. There is no restriction on the investment ratio for assets denominated in foreign currencies.

Trustee Companies

The Sumitomo Mitsui Trust Bank, Limited

MSCI-KOKUSAI Index is an equity index developed by MSCI Inc. calculated to be an index of the total return of equities in major countries excluding Japan in the world weighted by the market capitalization of each respective market.

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.

• Information on JPX's ETFs

S&P Global

• Listed ETF iNav

  Please click this link to see the iNAV.

MSCI-KOKUSAI Index

• MSCI Index Calculation Methodologies
• MSCI Global Investable Market Indices Methodology

• MSCI-KOKUSAI Index Performance Data
  After clicking the above link, please chose the following criteria.
  Market : Developed Markets (DM)
  Currency : USD
  Index Level : Price
  Size : Standard (Large+Mid Cap)
  Please click "Search" and choose "KOKUSAI INDEX (WORLD ex JP)" in the list.

* For enquiries regarding this fund's holdings, please contact MSCI.

*Link to external sites.

Copyright and Other Rights of the "MSCI-KOKUSAI Index"

This Fund is not supported, sold, or promoted by MSCI Inc.(hereinafter referred to as "MSCI"), its affiliated companies, information provider, and other third parties who were involved or related in edit, calculation, or creation of MSCI index (hereinafter referred to as "MSCI related companies"). MSCI index is an exclusive property of MSCI. Name of MSCI and MSCI index is a service mark of MSCI and its affiliated companies, and Nikko Asset Management Co., Ltd. has been licensed to use it for a specific purpose. MSCI related companies make no representation or warranty, expressed or implied, to the owners or issuing company of the Fund or any other members or organizations regarding the suitability of investing in funds generally or in the Fund particularly or the ability of MSCI index to track return of the corresponding stock markets. MSCI or its related companies are licensers of MSCI index which were determined, edited, calculated by MSCI regardless of specific trade marks, service marks or names, and the Fund or issuing company, owner and other members or organizations of the Fund. MSCI related companies are not responsible for considering the requests of issuing company or owner of the Fund, or other members or organizations when determining, editing and calculating MSCI index. MSCI related companies are not responsible for or have participated in the determination of the timing of, price at, or amount of the Fund to be issued or in the determination or calculation of the equation by which the Fund is to be converted into cash. MSCI related companies are not under any obligation to or take responsibility for the issuing company or owner of the Fund, or other members or organizations regarding management, marketing, or subscription of the Fund.

MSCI obtains information required for calculation and use of MSCI index from sources they think are reliable. MSCI related companies do not guarantee of the originality, accuracy or completeness of MSCI index or its data included. MSCI related companies do not guarantee, expressed or implied, the result obtained by the use of MSCI index or its data included by the issuing company or owner of the Fund or other members or organizations. MSCI related companies are not responsible for error, omission or discontinuation of MSCI index or its data included. MSCI related companies do not guarantee, expressed or implied, the accuracy of MSCI index and its data included. MSCI related companies expressly disclaim all the warranty regarding the suitability of market characteristics or special purpose concerned. Without limiting any of the foregoing, MSCI related companies are not responsible for any direct, indirect, special, punitive, or consequential damages, and all other damages (including lost gains), even if notified of the possibility of such damages.

No purchasers, distributors or owner or other members or organizations of the Securities, the Product, or the Fund can use or mention MSCI's name, trademark or service mark for the purpose of sponsor, endorsement, sales, or sales promotion of the Securities without asking MSCI beforehand whether MSCI’s approval is required. Members or organizations cannot mention the relationship with MSCI without obtaining written approval from MSCI's beforehand.

Daily Fund Data (CSV)

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:

• Calendar for all Nikko AM ETFs (Excel)

Authorized Participants

• SMBC Nikko Securities Inc.
• ABN AMRO Clearing Tokyo Co., Ltd.
• BNP Paribas Securities (Japan) Limited
• BofA Securities Japan Co., Ltd.
• Citigroup Global Markets Japan Inc.
• Goldman Sachs Japan Co.,Ltd.
• Mitsubishi UFJ Morgan Stanley 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.

The Fund invests primarily in equities. The NAV of the Fund may fall and investors may incur a loss for reasons such as a drop in the price of equities or deterioration in the financial conditions and business performance of an issuer of the equities. 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
Stock prices fluctuate as they are affected by information on the company's 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 movements or liquidity.

Corporate and government bonds generally have a price fluctuation risk arising from changes in interest rates. Generally, their prices go down when interest rates rise, causing the NAV of the funds to fall. The degree of price fluctuation varies depending on the remaining time to maturity and the terms of issue in question.

2. Liquidity Risk
Where the market size or trading volume is small, buying and selling prices for securities may be largely affected. This results in the risk that securities cannot be traded at the expected prices, sold at the appraised prices, or that trading volume is limited regardless of prices. This creates the risk of unexpected losses.

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 decrease (possibly to zero) due to fears of default or corporate bankruptcy, which can contribute to a decline in the Fund's NAV.

If a default has occurred or is expected to occur, for issues of public and corporate bonds or short-term financial assets, the prices of such public and corporate bonds or short-term financial assets decline (the value could even fall to zero). This results in a decline of the Fund's NAV. In addition, 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.

Risk of Discrepancies in yen-converted MSCI-KOKUSAI Index and NAV

This Fund seeks to ensure that its NAV has the same volatility as the yen-converted MSCI-KOKUSAI Index; however, we cannot always guarantee that the Fund will have the same volatility as the Index due to the following factors attributable to this Fund and to the investment trust securities invested in by this Fund:

• Lag in the timing of fund inflows and to the purchase of investment trust securities;
• The potential investment on selected issues other than MSCI-KOKUSAI Index, when portfolio adjustments are made due to changes in selected issues on the MSCI-KOKUSAI Index or capital transfers, potential market impact from the trading, etc. of individual issues or expenses from trust fees, brokerage commission, audit costs, etc.
• The management fee from lending securities or dividends of incorporated issues.
• When derivative transactions such as futures are conducted, discrepancies in price movements between such transaction and part or all of the constituent issues of the MSCI-KOKUSAI Index.

Discrepancies between the market prices at which bonds are traded on the exchange and the NAV
This 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 this fund will be treated at a market value below or above its NAV.
*The prices of securities targeted for investment of this Fund will fluctuate due to the aforementioned risks. Therefore, please note that this Fund itself has these risks as well.
*The factors that contribute to fluctuations in the NAV are not limited to those listed above.

Additional Considerations

• This sales promotional material produced by Nikko AM is primarily intended to provide information on the Listed Index Fund International Developed Countries Equity (MSCI-KOKUSAI). It has also been prepared to deepen the understanding of investors about this 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 the Fund faces big redemption causing short term cash requirement or sudden change in the main trading market condition, there can be temporal decline in the liquidity of holding assets, resulting in the risks that Fund unable to trade securities at the expected market prices or appraised prices, or encounters limitation in trading volume. This may result in the negative influence on NAV, suspension of redemption applications, or delay in making payment of redemption.
• When applying for this Fund, investors should fully read documents handed over prior to the conclusion of contracts.