Listed Index Fund S&P500 Futures Leveraged Two Times ETF · TSE:2239
Listed Index Fund S&P500 Futures Leveraged Two Times ETF — Nikko Asset Management — Corporate Update (June 2025)
40 slides from Listed Index Fund S&P500 Futures Leveraged Two Times ETF's corporate update, Jun 30, 2025
Slide 1: Initiatives for a Business Management Structure That Pursues the Best Interests of Customers (FY2024)
INITIATIVES FOR A BUSINESS MANAGEMENT STRUCTURE THAT PURSUES THE BEST INTERESTS OF CUSTOMERS (FY2024) Nikko Asset Management Co., Ltd. June 30, 2025
Slide 2: Contents
Contents 1. Introduction P03 2. Activities for individual clients P05 3. Initiatives as an institutional investor P15 4. ESG initiatives as a firm P21 5. Product governance initiatives P29 6. In conclusion P39 2
Slide 3: 1. Introduction
1. Introduction nikkoam Nikko Asset Management
Slide 4: Introduction
Principle 2 Principle 1 1 Introduction Principle 2 (Note) We regard acting in the best interests of the customers who entrust us with their assets as our primary mission. This means that we attach the highest importance to fiduciary and ESG principles in our corporate philosophy and business activit
Slide 5: 2. Activities for individual clients
2. Activities for individual clients 2.1 Total AUM of Japan-domiciled publicly offered funds (including ETFs and MRFs) 2.2 Initiatives for cumulative investment including cumulative Nippon Individual Savings Accounts (NISA) 2.3 Fund Efficiency Initiatives 2.4 Change in distribution pattern for mediu
Slide 6: Activities for individual clients
2 Activities for individual clients As an asset management company, our paramount mission is to be useful to our customers in their medium-to long-term asset building. Realizing this mission is not just a case of delivering strong investment management outcomes, however. We also need to put a great
Slide 7: Initiatives for cumulative investment including cumulative NISA
Principle 2 2.2 Initiatives for cumulative investment including cumulative Nippon Individual Savings Accounts (NISA) Principle 2 (Note) In order to meet cumulative investment needs, in addition to cumulative NISAs, we also promote the use of defined contribution plans, personal defined contribution
Slide 8: Fund efficiency initiatives
Principle 2 2.3 Fund efficiency initiatives Principle 2 (Note) We believe that it is imperative for asset managers to constantly develop and manage more attractive and effective products for investors. We strive to achieve this goal through constant efforts to enhance our fund lineups and to expand
Slide 9: Trends in Distribution Patterns for Medium- and Long-Term Investments
Principle 2 2.4 Trends in Distribution Patterns for Medium- and Long-Term Investments Principle 2 (Note) The ratio of publicly offered funds (excluding ETFs) that pay out monthly dividends is falling and stood at 20% as of March 2025. Ratio of monthly dividend funds in open-end equity typed funds (e
Slide 10: Fee transparency
Principle 4 2.5 Fee transparency Given that we develop funds, we are naturally obligated to provide clients with detailed and easy-to-understand explanations of fees and other such costs. We provide this information in delivery prospectuses to enable clients to compare our many publicly offered fund
Slide 11: Easy-to-understand provision of important information to clients
Principle 5 Principle 6 Principle 5 Principle 6 2.6 Easy-to-understand provision of important information to clients (Note 1,3-5) (Note 1, 5) As a creator of funds, We provide fund distributors with product outlines for the creation of Key Investor Information Documents as well as information on ele
Slide 12: Provision of neutral information for investment decisions
Principle 6 Principle 5 Principle 6 2.7 Provision of neutral information for investment decisions (Note 1,3-5) (Note 1, 5) We have a long history of providing information on fundamentals that is not just tied to specific products. In addition, our provision of market information goes beyond simple m
Slide 13: Seminars held and number of fund awards won
Principle 6 Principle 5 Principle 6 2.8 Seminars held (Note1, 3-5) (Note 1,5) We deliver our products via channels including the sales teams of the For distributor salespeople For retail investors 8,000 distributors we work with and the internet. The information we provide to retail investors, as we
Slide 14: ESG funds
2.10 ESG funds Based on a partial revision (establishment of points to consider regarding ESG funds) of the Comprehensive Guidelines for Supervision of Financial Instruments Business Operators etc., nine of our publicly offered funds were recognised as ESG funds in October 2024. For the ESG funds, w
Slide 15: 3. Initiatives as institutional investor
3. Initiatives as institutional investor 3.1 Stewardship activities 3.2 Engagement results 3.3 Voting track record 3.4 ESG initiatives as an institutional investor 3.5 Appropriate management of conflicts of interest
Slide 16: Initiatives as institutional investor
3 Initiatives as institutional investor 3.1 Stewardship Activities We believe that engaging (holding constructive, objective-focused dialogue) with investee firms as well as proactively conducting stewardship activities including proxy voting are extremely important aspects of our responsibilities a
Slide 17: Issue progress management
(Issue progress management) Issues identified in engagement are monitored on the issue progress platform. As of end-March 2025, there were 380 companies and 627 issues managed on the platform.. Progress on issues is analysed annually to assist in planning for the next fiscal year. Issues Handled in
Slide 18: Voting track record
3.3 Voting track record Proxy voting regarding investee companies is a key right granted to shareholders with the aim of growing companies’ medium- and long-term corporate value. We exercise voting rights solely to fulfil our fiduciary duty and solely for the benefit of our clients and beneficiaries
Slide 19: ESG initiatives as an Institutional Investor
3.4 ESG initiatives as an Institutional Investor We launched the Nikko Eco Fund, which invests in companies with strong environmental initiatives in 1999. We have been incorporating ESG factors in all our investment management process since then based on our view that they contribute to medium- and
Slide 20: Appropriate management of conflicts of interest
Principle 3 3.5 Appropriate management of conflicts of interest Principle 3 (Note) Our conflict of Interest Control Policy sets out its approach to conflicts of interest as an asset manager. We impose strict controls on transactions with potential conflicts of interest to prevent unfair harm to clie
Slide 21: 4. ESG Initiatives as a Firm
4. ESG Initiatives as a Firm 4.1 Environmental 4.2 Social 4.2a Establishment of Global D&I Policy 4.2b Increase in ratio of female managers 4.2c Sustainability Working Group activities 4.2d Donations and support activities for charitable organizations 4.3 Governance 4.3a Management governance 4.3b V
Slide 22: ESG Initiatives as a Firm
4 ESG Initiatives as a Firm As an asset manager engaged in ESG initiatives directed at investee companies, we also believe in the importance of implementing our own ESG activities as a firm. 4.1 Environmental We are committed to contributing to the sustainability of the environment by reducing our g
Slide 23: Our Environmental Policy
Our Environmental Policy(https://americas.nikkoam.com/environment-policy?highlight=WyJlbnZpcm9ubWVudGFsIl0=), which we renewed in 2021, shows our environmental approach in its business operations with expanded content and coverage that extends beyond the areas that currently attract the most attenti
Slide 24: Social: Establishment of Global D&I Policy
4.2 Social We strive to enhance social causes, both within the company by supporting a diverse and inclusive environment, and outside of the company through hands- on initiatives and charitable donations. 4.2a Establishment of Global D&I Policy We established our Global D&I Policy in 2021 in order t
Slide 25: Employee Resource Groups and charitable support
4.2c Activities of Employee Resource Groups We operate 11 Employee Resource Groups (ERGs) in which employees with common characteristics and values voluntarily come together to engage in activities. The ERGs discuss sustainability issues and launch bottom-up sustainability initiatives. In the field
Slide 26: Governance: Management governance
4.3 Governance Our role as an asset manager is not only to seek improvements in the governance of investee companies but to continuously ensure that our own governance is at a world-class level. To achieve this, we work on the three governance areas shown below. 4.3a Management governance Our govern
Slide 27: Voting rights governance and fund governance
4.3b Voting rights governance We established the Stewardship and Voting Rights Policy Oversight Committee in June 2016 as a way of improving transparency in our stewardship activities such as engaging with firms and exercising voting rights as well as strengthening our governance. Drawing the majori
Slide 28: Appropriate frameworks for motivating employees
Principle 7 4.4 Appropriate frameworks for motivating employees Principle 7 (Note) We have established six values (Stability, Diversity, Focus, Innovation, Teamwork, and Communication) as key indicators that clearly express who we are, what we achieve, and how we work. They unite all employees inclu
Slide 29: 5. Product governance initiatives
5. Product governance initiatives 5.1 Product governance policy 5.2 Product governance framework 5.3 Product governance committee 5.4 Handling upon creation 5.5 Post-creation handling 5.6 Information disclosure by investment professionals 5.7 Provision of solutions to investors by offering diverse p
Slide 30: Product governance initiatives
5 Product governance initiatives We strive to implement customer-oriented business operations in line with the Supplementary Principles for Financial Product Governance announced by the Financial Services Agency by establishing and operating effective frameworks at each of the product creation, prov
Slide 31: Product governance policy
Supplemental 5.1 Product governance policy principle 1 Policy Title Content 1 Basic policy • We prioritise ensuring the best interests of our customers and establish and maintain transparent product governance. We develop and manage products in response to changes in the market environment and custo
Slide 32: Product governance policy (continued)
Policy Title Content 6 Cooperation with • We monitor sales through distributors and strive to ensure that appropriate products are supplied. distributors • In monitoring, we endeavour to obtain useful information for providing better products by utilising not only information on customer attributes
Slide 33: Product governance framework
Supplemental principle 2 Supplemental principle 2 5.2 Product governance framework (Note 1-2) Supervisory Board of Directors Fund Advisory Board Supervise effectiveness of product governance framework on execution side from perspective of prioritising investor interests. suggestions suggestions and
Slide 34: Product Governance Committee
Supplemental principle 2 Supplemental principle 2 5.3 Product Governance Committee (Note 1-2) We consider how to provide appropriate long-term investment management of the products we create and manage, as well as to deliver the value expected by our customers. From a client suitability perspective,
Slide 35: Handling upon creation
Supplemental principle 3 Principle 6 Supplemental principle 3 5.4 Handling upon creation (Note 3-4) (Note 1-3) When a financial product is created, Product Committee ensures that the proper amount of time is devoted to examining whether a product truly meets client needs and periodically checks the
Slide 36: Post-creation handling
Supplemental principle 4 Supplemental principle 4 5.5 Post-creation handling (Note 1-3) At present, Japan’s Investment Trusts Association is at the centre of work to develop a scheme for sharing information with distributors. Looking ahead, we intend to analyse the data provided to our company and p
Slide 37: Information disclosure by investment professionals
Supplemental principle 5 Supplemental principle 5 5.6 Information disclosure by investment professionals (Note 1-2) We work to provide extensive information on its investment management capabilities to ensure that clients are able to select more suitable financial products. We currently disclose the
Slide 38: Diverse products and strengthening product development capabilities
5.7 Provision of solutions to investors by offering diverse products We offer investment management products in a timely manner to meet the ever-diversifying needs of investors. In addition, we work ensure that our products are of a high quality by using in-house investment management in fields in w
Slide 39: 6. In conclusion
6. In conclusion nikkoam Nikko Asset Management
Slide 40: In conclusion
6 In conclusion Throughout the many changes we have experienced—including changes in the business environment, technological innovations, and growth in financial products—we have consistently striven to act in the best interests of our customers. We strongly believe that continuing to do so is our m
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