Today, Nomura Asset Management Co., Ltd. (CEO and President: Hiroyasu Koike, hereafter “the Company”) is pleased to announce that the following 2 strategies managed by the Company were awarded in the defined benefit pension category of the “R&I Fund Awards 2024” selected by the Rating and Investment Information Center Co., Ltd. (R&I).

“Domestic Bond Active” aims to obtain stable excess earnings by combining interest rate strategies that focus on yield curve movements, etc. and credit strategies that selectively invest in corporate bonds of issuers with stable creditworthiness, based on detailed fundamental analysis. The “Japan Stock Dual Alpha” takes a dollar neutral strategy that maintains buy-and-sell positions at almost the same amount. It is a strategy that aims to acquire stable profits regardless of stock market trends by utilizing our traditional active management method, which has a long-term track record of 20 years or more, to buy stocks that are expected to exceed the overall market and sell stocks that are expected to fall below the profit gap in each position. The results of operation in each strategy were evaluated, leading to this award.

Furthermore, in the “R&I Fund Awards 2024,” which was announced on 2024/4/25, 15 funds won awards in the mutual trust-related category^※.

The Japanese government has set up an “Asset Management Nation Realization Plan,” and as the sophistication of asset management business is required, we will continue to provide competitive products and services to investors with the aim of becoming a management company representing Japan, selected by customers around the world.

Announcements from Nomura Asset Management

Risks and expenses related to investment advisory services (investment advisory business and investment management business)

[Risks relating to investment advisory services]

As for financial product transactions carried out for customers, we invest in stocks, corporate bonds with stock acquisition rights, public corporate bonds, etc. (including when investing through mutual funds and limited partnerships, etc.), so there is a risk that the prices of the stocks, currencies, etc. to be invested will fall due to the effects of domestic and international economic/political conditions, interest rate fluctuations, changes in the issuer's performance and financial situation, etc., and losses will occur.
Also, derivative transactions may be used in this product. Since this transaction is carried out using leverage greater than the amount of margin, prices will also fluctuate due to changes in marketable securities, indices, etc. that are the underlying assets, and there is a possibility that losses exceeding the margin pledged will occur. Also, since this leverage ratio changes from time to time due to changes in investment policies and domestic and international market environments, etc., it is not possible to display it in advance. Margin is an amount determined by the Company to be appropriate based on calculations made by the issuing securities company during the period when derivative transactions are carried out, from contract assets.

[Costs related to investment advisory services]

This material is not intended to be a direct solicitation. If management products are provided in the future, the following expenses will be incurred. The general calculation method is outlined below, but the rate varies depending on the details of the contract with the customer, and no specific presentation is possible.

• As compensation for investment advisory services, investment advisory remuneration at a predetermined rate (a%) for the contract asset amount is generally charged according to the contract period.
  Calculation method: Contract asset amount × (a%) × contract period days/365 = investment advisory remuneration for the relevant period
• Within a discretionary investment agreement, mutual funds may be purchased as our investment decision, and in this case, costs associated with purchasing the mutual fund (in addition to mutual fund management fees and sales company/management company expenses, trust property reserves may be charged when exchanging mutual funds). However, when purchasing a mutual fund, if the mutual fund is set by our company and our group, the above investment advisory remuneration will be adjusted to prevent overlapping management rewards. The calculation method for adjustments is determined separately in individual contracts, but adjustments are made by deducting the amount of management remuneration relating to the mutual fund from the investment advisory remuneration amount.
• Depending on the arrangement with the customer, investment advisory fees may be used as success rewards (and may also be combined with the above). Note that with regard to success fees, investment advisory rewards fluctuate according to actual management results, etc. based on pre-determined standards, etc., and since arrangements are made with the customer through separate discussions, etc., it is not possible to indicate calculation methods, maximum amounts, etc. in advance.
• Apart from investment advisory fees, securities trading commission fees and various expenses related to storage of securities etc. are incurred as expenses and are deducted from contract assets. Also, since these costs fluctuate depending on operating conditions, it is not possible to display specific rates, upper limits, etc. in advance.

About this document

This document was prepared by Nomura Asset Management for the purpose of providing reference information on management strategies.
This material is prepared based on information considered reliable, but we do not guarantee the accuracy or completeness of the information.
All matters described in this document are from before the time this document was created, and are subject to change without prior notice.
Nothing in this document suggests or guarantees future operating results or investment returns.

The above is an evaluation of past performance over a certain period of time, and does not suggest or guarantee future operation results.

Company name: Nomura Asset Management Co., Ltd.
Financial Instruments Dealer Kanto Finance Bureau Director (Financial Commerce) No. 373
Member Associations: General Incorporated Association Investment Trusts Association/Japan Investment Advisors Association/General Incorporated Association Type 2 Financial Instruments Dealers Association