$500 billion asset manager Nomura to launch Japan’s first multi-asset ETF

Nomura Asset Management Co. Ltd. (“NAM”), the core company within the Investment Management Division of Nomura Group, announced on August 29, that its launching a new exchange-traded fund (ETF) that will track the performance of the S&P Balanced Equity and Bond – Conservative JPY Hedge Index (TTM). 

This new ETF will be the first of its kind, a multi-asset ETF, in Japan, as the approval for listing occurred on the same day at the Tokyo Stock Exchange (TSE), with a listing date of September 16, 2022. Through security dealers and traders in Japan, investors will be able to trade this new ETF.

Furthermore, the minimal investment for the fund will be ¥20,000 (~$144.68), per 10 units, while the management fee will be set at 0.253% annually or 0.23% without tax. 

In light of the new ETF listing, Nomura the $500 billion asset manager, is becoming an innovator in offering their clients new ETFs and services, like the one announced in May that they will offer crypto services to institutions. With the current ETF, the Nomura Exchange Traded Funds (NEXT) have reached a total number of 66 funds.   

ETF Fee structures

Investments in the fund will be subject to trading fees, which are in essence brokerage commissions fees set by a Type-1 financial instrument business provider through which the transaction will go through. Notably, the commissions are separate from the actual transaction value and differ from securities firms. 

In terms of the management fee, Nomura vouches that the management fees will never exceed 1.045% annually or 0.95% when tax is excluded. Other expenses will vary depending on investment circumstances coupled with rates and maximum amounts invested. 

Finally, like any investment, an investment in the fund carries risk as investments in securities and futures contracts carry a risk of the price declining and causing an investment loss.

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