This Fund seeks the net asset value per unit to track the performance of the yen-converted MSCI EMERGING Market Index by mainly investing in the separately specified investment trust securities.

Key information
Name: Listed Index Fund International Emerging Countries Equity (MSCI EMERGING)

Overview of Summary ProspectusOverview of Summary Prospectus

Earnings ReportEarnings Report

Code: 1681

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

Performance Chart - Since Listing on 24 February 2010

Net Asset Value (per Shares) (excluding dividend payment) (¥)
MSCI Emerging Markets Index

  • 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.
  • Details of copyright are disclosed at the copyright section.
  • The performance, data, etc., noted above are based on past information and neither guarantee nor promise future performance.

Structure of the Fund

This Fund of Funds invests on the securities held for investment trust.

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

Listed Index Fund International Emerging Countries Equity (MSCI EMERGING)

Fund Name Listed Index Fund International Emerging Countries Equity (MSCI EMERGING)
Open-end/Overseas/Equities/ETF/Index type
Listed Exchange Tokyo Stock Exchange
Issue Code 1681
Targeted Investments The funds seeks to target investment trust securities whereby investment performance tracks the MSCI EMERGING Markets Index (in yen equivalent)
Date Listed 24 February 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) 0.3379% (TER includes Trust Fee, management fee and other costs below)
※This represents the actual TER for the period of January 21,2018 - January 20, 2019
Investment Management Expenses(Trust fee):The Fund

No more than 0.165%(0.15% 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 0.15% as of the date of filing of the securities registration statement:

Annual Trust Fee Rate
Total Management Company Trustee
0.15% 0.12% 0.03%
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.
Investment Management Expenses(Trust fee):Target Investment Trust Securities

Approximately 0.099% (0.09% excluding tax) per annum of net assets.

Investment Management Expenses(Trust fee):Expenses borne bythe investors

Approximately 0.264%(0.24% excluding taxes) per annum of net assets.

※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 daily total NAV of the Fund

Expenses for the preparation and distribution of prospectuses, auditing fee, expenses for listing of the Fund, as well as royalties for the "MSCI EMERGING Market Index" 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, and other fees are paid out of the trust assets each time they are incurred. These fees are incorporated in the TER stated.

*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

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

Trustee Companies

  • The Sumitomo Mitsui Trust Bank, Limited

The MSCI EMERGING Market Index is an equity index developed by MSCI Inc. calculated to be an index of the total return of equities in emerging countries in the world weighted by the market capitalization of each respective market.

What is the MSCI Emerging Markets index?

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.

S&P Global

MSCI Emerging Market Index

  • MSCI Emerging Markets Performance Data
    After clicking the above link, please chose the following criteria.
    Market : Emerging Markets (EM)
    Currency : USD
    Index Level : Price
    Size : Standard
    Style : Core
    Please click "Search" and choose "EM (EMERGING MARKETS)" in the list.

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

*Link to external sites.

Copyrights to the "MSCI EMERGING Market Index"

This Fund is not supported, sold, or promoted by MSCI Inc. (hereinafter referred to as the "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 the "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 trademarks, 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 has 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 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 the 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 obtain written approval from MSCI beforehand.

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
  • 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

Cash Creation/Redemption Type ETF

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 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 and profitability as well as any change 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.

In general, stocks of emerging countries and rights related to stock index futures trading tend to exhibit higher price volatility compared with those of developed countries and rights related to stock index futures trading. This can also have a significant impact on the Fund's NAV.

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.

In general, stocks of emerging countries and rights related to stock index futures trading may exhibit higher liquidity risk compared with those of developed countries and rights related to stock index futures trading due to smaller market scale and trading amount.

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 issuers 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.

In general, currencies of emerging countries may exhibit 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 state of 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, it is possible that the fund cannot be managed in accordance with the investment policy.

Emerging countries in general tend to be insufficient or slow in information disclosure or in the dispatch of accurate information, when compared to advanced countries.

Risk of Discrepancies in yen-converted MSCI-EMERGING Market Index and NAV

This Fund seeks to ensure that its NAV has the same volatility as the yen-converted MSCI EMERGING Market 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 EMERGING Market Index, when portfolio adjustments are made due to changes in selected issues on the MSCI EMERGING Market 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 EMERGING Market Index.

Discrepancies between the market prices at which equities 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 contributes to fluctuations in the NAV are not limited to those listed above.

Additional Considerations

  • This sales promotional material produced by Nikko Asset Management is primarily intended to provide information on the Listed Index Fund International Emerging Countries Equity (MSCI EMERGING). 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.