This Fund seeks to achieve net asset worth per unit that closely correlates with the movement of the Dow Jones Industrial Average (TTM, JPY-based, JPY Hedged) by mainly investing in the mother fund.

Key information
Name: Listed Index Fund US Equity (Dow Average) Currency Hedge

ProspectusProspectus

Earnings ReportEarnings Report

Code: 2562

Net Asset Value and Performance

NAV (per 100 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


Structure of the Fund

Structure of the Fund

Fund Name Listed Index Fund US Equity (Dow Average) Currency Hedge
Open-end/Overseas/Equities/ETF/Index-type
Listed Exchange Tokyo Stock Exchange
Issue Code 2562
Targeted Investments This Fund seeks to achieve net asset worth per unit that closely correlates with the movement of the Dow Jones Industrial Average (TTM, JPY-based, JPY Hedged) by mainly investing in the mother fund.
Date Listed March 18, 2020 (launched on March 13, 2020)
Exchange Trading Unit 10 units
Trust period Unlimited
Computation Period From 9 January to 8 July, from 9 July to 8 January of the following year
Closing Date January 8 and July 8 each year
Dividends As a general rule, the full amount of dividends and other income arising from the trust assets is distributed after deduction of 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 None.

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

Investment Management Expenses
(Trust fee)

No more than 0.33% (0.3% excluding taxes) per annum of the daily total NAV of the Fund

*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 0.3% 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
0.30% 0.26% 0.04%
Management Company Compensation for investment management
Trustee Compensation for administration of assets under management and execution of orders from Management Company

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

Other Expenses and Fees
Expenses
(Expenses for preparation of prospectuses and other expenses)

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

1. Expenses for preparation and distribution of prospectuses etc., 2. Expenses for accounting and operations incidental to the same, 3. Expenses for preparation of financial statements (including fees for outsourcing operations described in 1.-3.), 4. Auditing fee, 5. Expenses for listing of the Fund, as well as 6. Royalties for the Dow Jones Industrial Average (TTM, JPY Hedged) 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 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 0.55 (0.5 excluding taxes) 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

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

Trustee Companies

  • Sumitomo Mitsui Trust Bank, Limited

The Dow Jones Industrial Average is a price-weighted stock index composed of 30 excellent companies representing main sectors (excluding Transportation and Utilities) among stocks listed on financial instruments exchanges in the United States. In selecting components, company’s sustainable growth and investor’s high interest, etc. are considered. Dow Jones Industrial Average (TTM, JPY-based, JPY Hedged) is the result of JPY hedging of local currency-based index and converted into JPY.

What is The Dow Jones Industrial Average?

Further Information

Japan Exchange Group (JPX)

  • Listed ETF Prices

    To see the Listed ETF Prices, please follow this link and click "Display of stock price".

The Dow Jones Industrial Average

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 “Dow Jones Industrial Average”

"Standard & Poor's®", "S&P®", "Standard & Poor's" are registered trademarks owned by Standard & Poor's Financial LLC and Nikko Asset Management uses these trademarks under the license. Standard & Poor's does not support, recommend, distribute, or promote Listed Index Fund US Equity (Dow Average) Currency Hedge (hereinafter "The Fund") and makes no expression, guarantee, or condition on the suitability of investment in this Fund.

The Fund is not supported, guaranteed, distributed, or promoted by S&P and its affiliated companies (hereinafter "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 Dow Jones Industrial Average to track general stock market performance. The relationship of S&P and Nikko Asset Management is only in respect of the licensing of registered trademarks of S&P and Dow Jones Industrial Average. S&P does not take the needs of Nikko Asset Management or the owners of the Fund into consideration in determining, composing or calculating Dow Jones Industrial Average. S&P is not responsible for or has participated in the determination of the timing of, prices 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. S&P assumes no obligation regarding, nor does it take any responsibility for management, marketing, or trading of this Fund whatsoever.

S&P does not make any guarantee of the accuracy or completeness of the calculation or basic data of the Dow Jones Industrial Average. S&P takes no responsibility for any error, lack, or fault included in the Dow Jones Industrial Average. S&P makes no explicit or implicit guarantee whatsoever of the results arising from use of the Dow Jones Industrial Average or data incorporated therein on Nikko Asset Management Co., Ltd., owners of the Fund, or any other persons or organizations. S&P does not make any guarantee, explicit or implicit, of merchantability or suitability of the Dow Jones Industrial Average or the data contained therein. Without limiting any of the foregoing, S&P expressly disclaim any special, punitive, indirect, or consequential damages (including lost profits), even if notified of the possibility of such damages.

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. When applying as a direct addition and exchange, please keep in mind that we cannot accept your application on the following dates:

Authorized Participants

  • SMBC Nikko Securities Inc.
  • ABN AMRO Clearing Tokyo Co., Ltd.
  • BNP Paribas Securities (Japan) Limited
  • Daiwa Securities 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

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. Losses may also be incurred due to exchange rate fluctuation when investing in assets denominated in foreign currencies.

Major risks are as follows:

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.

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.

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.

Currency Fluctuation Risk
For foreign currency-denominated assets, in principle, currency hedging is carried out in order to reduce currency fluctuation risk. However, currency fluctuation risk cannot be eliminated completely. When currency hedging is carried out, if the yen interest rate is lower than the interest rate of the currency for which hedging is carried out, a hedge cost equivalent to the difference in interest rates is incurred. Hedge costs for currency hedging may be higher than anticipated depending on currency and interest rate trends.

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., by the counterparties. As a result, there is a risk that the Fund will suffer unanticipated 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.

Major discrepancy factors for the Dow Jones Industrial Average (TTM, JPY-based, JPY Hedged) and NAV

Whereas the Fund seeks to match the NAV volatility with that of the Dow Jones Industrial Average (TTM, JPY-based, JPY Hedged), it does not guarantee movements that are identical to those of the Index for the following reasons:

  • The potential investment in selected issues other than Dow Jones Industrial Average (TTM, JPY-based, JPY Hedged), 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 Dow Jones Industrial Average (TTM, JPY-based, JPY Hedged) or capital transfers, costs borne by the Fund such as trust fees, brokerage commission, and audit costs, etc.
  • The timing and amount of payment for the distribution of the Fund will not be completely the same as the distribution from the underlying stocks.
  • Fees may be earned for securities lent.
  • 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 Dow Jones Industrial Average (TTM, JPY-based, JPY Hedged).

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.
*The factors that contribute to fluctuations in the NAV are not limited to those listed above.

Additional Considerations

  • This document is meant as promotional material whose purpose is for Nikko Asset Management to provide information about its "Listed Index Fund US Equity (Dow Average) Currency Hedge" and for investors to gain further understanding about the fund.
  • The provisions stipulated in Article 37-6 of the Financial Instruments and Exchange Act (the “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. Nor are investment trusts protected by investor protection funds when purchased at banks or other registered financial institutions.
  • 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.