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Mar. 07, 2022 TSE Alert Concerning "NEXT FUNDS Russia RTS Linked Exchange Traded Fund(1324)"

 

With regard to the ETF "NEXT FUNDS Russia RTS Linked Exchange Traded Fund " (Securities Code: 1324) listed on the Tokyo Stock Exchange, the management company of the ETF has been suspending applications for creation and redemption of the ETF since February 24, 2022, due to difficulties in trading Russian stocks. As a result, the balance of supply and demand for the ETFs in the secondary market of the Exchange has been affected, and the market price and NAV tend to deviate from each other.

In the event that rebalancing trading of stocks included in the trust assets of such ETFs becomes impossible, the linkage between the NAV and the underlying index may decrease. In addition, due to the suspension of trading on the Moscow Exchange, many of the stocks included in the trust assets of such ETFs may not be able to recognize their most recent market value, and the NAV itself may not properly reflect the most recent value of such ETFs.

Market participants are again urged to be aware of these and other conditions.

The Exchange and Nomura Asset Management Co., Ltd, the management company of the ETFs, have also alerted investors to the above points through their websites and timely disclosures.

The market environment for ETFs investing in Russian equities is rapidly changing, with some major overseas exchanges suspending trading, in addition to the discrepancies between the market price and NAV mentioned above. Please be aware that TSE may also suspend trading of such ETFs depending on future market conditions, etc. and careful when conducting transactions.

Inquiries

＜Trading related matters＞
Equities Department, Strategic Planning Group
TEL：03-3666-0141(switchboard)
E-mail：kabuso-kaigi@jpx.co.jp

＜Listing related matters＞
Product Development Group, New Listings Department
TEL：03-3666-0141(switchboard)
E-mail：product_01@jpx.co.jp


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