[Nikko Asset Management] Regarding the establishment of “2050 maturity U.S. government bond fund (distribution type 4 times a year)”
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Press release: June 3, 2024
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[Nikko Asset Management] Regarding the establishment of “2050 maturity U.S. government bond fund (distribution type 4 times a year)” Nikko Asset Management Co., Ltd. (hereinafter referred to as “Nikko Asset”) is an additional investment fund that primarily invests in U.S. government bonds due to mature in 2050, “2050 U.S. Government Bond Fund (distribution type 4 times a year)” – nicknamed : 2050 U.S. Treasury Bonds – is scheduled to be established and begin operation on June 28th. Imamura Securities Co., Ltd., Okaji Securities Co., Ltd., Toyo Securities Co., Ltd., Mito Securities Co., Ltd., and Musashi Securities Co., Ltd. will start handling from June 19th. This fund is a product* eligible for the growth investment limit of the NISA system.
This fund takes full advantage of the characteristics of bonds, such as their “high asset preservation,” which allows bonds to be redeemed at face value at maturity (redemption date), and the “stable income income” that can be obtained by holding them for a long period of time. It was developed as a fund aiming to
Bonds are securities issued by issuers such as countries and companies when they borrow funds from investors. Bonds have a predetermined date (redemption date) for repayment of the principal, and the issuer promises investors to repay the principal and pay interest (coupon). The price of bonds fluctuates depending on trends in interest rates and other factors, but as a general rule, bonds are promised to be redeemed at par on the redemption date, making them relatively safe assets compared to stocks.
In general, bond prices fluctuate due to the effects of interest rate fluctuations, but looking at the price trends of major U.S. government bonds that mature in 2050, the price trend shows that due to the rapid rise in interest rates after issuance, etc. It is at a significantly lower level. Considering the current bond price level, if you hold the bond until maturity, you can expect to earn not only coupon income during the holding period but also redemption profit on a US dollar basis.
The Fund focuses on U.S. government bonds, which are said to be one of the safest financial assets.In principle, the fund invests in U.S. government bonds that mature in 2050, and by continuing to hold them until maturity, it earns continuous coupons. We aim to obtain (interest) income and redemption profits.
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*Handling may vary depending on the sales company.
■About “2050 U.S. Government Bond Fund (distribution type 4 times a year)”
*Summary of fees*
Investors will be responsible for the following costs:
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