Nomura Funds Ireland plc

Japan Strategic Value Fund - A Class

Fund Review March 2016 The fund outperformed the benchmark by 0.24% in March (net of fees and other expenses).

Having fallen heavily in the previous two months the Japanese equity market staged something of a recovery Investment Objective over the course of March even if the rebound appeared to be losing momentum by the end of the month. To achieve long-term capital growth through Equity investors in Japan and elsewhere reacted positively to a modest reversal in the oil price and gains in investment in a portfolio of Japanese equity emerging markets, hoping that this might mark the beginning of better news on global growth. In addition, securities. sentiment in Japan was buoyed by a stabilisation in the yen, which had appreciated strongly the previous month despite the announcement by the Bank of Japan of the imposition of negative interest rates on commercial bank cash holdings at the central bank. A further incentive for equity investors was a noticeable slowing in downward revisions to corporate earnings forecasts, particularly by the exporters. Investment Style

Stock positions providing the biggest positive contributions to performance over the period included an • Bottom up stock selection. overweight in consumer electronics company Sony and metal shutter maker Sanwa Holdings along with underweights in mobile phone provider Softbank and Astellas Pharmaceutical. Major detractors from • Strong value emphasis. performance included overweight positions in plant engineer Chiyoda Corp, auto components supplier Aisin Not constrained by sector weightings. Seiki, semiconductor wafer grinder Disco Corp and non-life insurer Tokio Marine Holdings. •

Performance of JPY 10,000 since inception against Benchmark Benchmark 22000 Topix (total return)

20000 Key Facts

Launch Date 26th August 2009

18000 Fund Type ICVC Domicile Ireland Base Currency JPY 16000 NAV Currencies EUR,GBP,JPY,USD Year End 31 December Morningstar Sector Japan Eq 14000 Bloomberg Code NOMJSJA (JPY, A) ISIN Code IE00B3VTHJ49 (JPY, A) 12000 Trading Cutoff 12:00 GMT Trading Frequency Daily Valuation Daily 10000 Frequency Valuation Time 15:00 GMT Settlement T + 4 8000 JPY 298.60 bn 01/2010 05/2011 09/2012 01/2014 05/2015 03/2016 Fund Size USD 2.66 bn ■ ■ Japan Strategic Value Fund - A Class TOPIX Number of holdings 170 NAV JPY 16,423.97 (A Class) Cumulative performance in JPY (%) of Class A shares 1 Mth 3 Mth 6 Mth YTD 1 Yr 3 Yr Since Inception Risk Statistics Fund 5.07 -14.72 -7.37 -14.72 -13.94 31.21 64.24 Benchmark 4.83 -12.04 -3.39 -12.04 -10.82 37.91 68.47 Fund Benchmark Alpha -0.09% 0.00% Beta 1.01 1.00 Standardised performance as at 31 March 2016 in JPY (%) of Class A shares Information Ratio -2.60 - 2016/2015 2015/2014 2014/2013 2013/2012 Tracking Error 3.35% - Fund -13.94 28.78 18.38 19.54 Standard Deviation 17.57% 17.11% Benchmark -10.82 30.69 18.33 24.07

Source: Nomura Asset Management U.K. Ltd based on Net Asset Value per share calculated by BBH, in JPY. Performance is shown since the inception date, 4th January 2010, of the Class A shares. All performance presented is net of fees and other expenses.

www.nomura-asset.co.uk [email protected] +44 207 521 1043 Nomura Funds Ireland plc

Japan Strategic Value Fund - A Class

Top 10 Holdings Top 10 Overweight Top 10 Underweight Investment Manager

% % % Nomura Asset Management Co Ltd active active active weight weight weight NT&T 3.57 NT&T 1.71 Japan Tobacco Inc. -1.56 Toyota Motor Corp. 3.54 Electric Power Dev. 1.43 SoftBank Group Corp. -1.51 Mitsubishi UFJ Fin Group 2.46 Daicel Corporation 1.20 Honda Motor Co. -1.39 Fund Manager Seven & I Holdings Co. 2.09 Mitsui Chemicals 1.11 Mizuho Financial Group -1.18 Sumitomo Mitsui Financial 1.73 Seven & I Holdings Co. 1.10 Takeda Pharmaceutical Co. -1.08 Kentaro Takayanagi Electric Power Dev. 1.58 ORIX Corporation 0.96 KDDI -1.01 has 20 years Bridgestone Corporation 1.58 Sompo Japan Nipponkoa 0.95 Canon Inc. -0.91 of investment Sony Corporation 1.54 Teijin Limited 0.95 Fanuc Corp. -0.90 experience and has ORIX Corporation 1.52 Toray Industries 0.95 Central Japan Railway Co. -0.90 been at Nomura Tokio Marine Holdings 1.52 Ebara Corporation 0.93 East Japan Railway Co. -0.89 since 1991.

Sector Breakdown

50%

40% Share Class Details

30% Management Fee 0.85% (I Class) 1.40% (A Class) 20% Min Initial Sub $1m (I Class) 10% $5,000 (A Class) Min Further Sub $250k (I Class) 0% Other Electric Transport. Info & Chemicals Retail TradeConstruction Banks Machinery Insurance $2,500 (A Class) Appliances Equip. Comms Initial Commission 0.00% (I Class) Max 5.00% (A Class) ■ Fund 36.15 10.57 10.15 8.80 7.46 7.01 5.71 5.20 5.12 3.84 ■ Benchmark 41.66 11.62 9.82 8.17 6.12 5.08 3.18 7.40 4.63 2.32

The fund is a sub-fund of Nomura Funds Ireland plc, which is authorised by the Central Bank of Ireland as an open-ended umbrella investment Registered for sale company with variable capital and segregated liability between its sub-funds, established as an undertaking for Collective Investment in Transferable Securities under the European Communities (Undertakings for Collective Investment in Transferable Securities) Regulations 2011. Austria, Belgium, Denmark, Finland, France, This document was prepared by Nomura Asset Management U.K. Ltd and is not intended for distribution to or use by any person or entity in any jurisdiction or country where such distribution or use would be contrary to law or regulation. The shares in the fund have not been and will not be Germany, Ireland, Italy, Netherlands, Norway, offered for sale in the United States of America, its territories or possessions and all areas subject to its jurisdiction, or to United States Persons. Singapore, South Korea, Spain, Sweden, This document is not intended in any way to indicate or guarantee future investment results as the value of investments may go down as well as Switzerland, United Kingdom up. Values may also be affected by exchange rate movements and investors may not get back the full amount originally invested. Before purchasing any investment fund or product, you should read the related prospectus and fund documentation, including full details of all the risks associated with it, to form your own assessment and judgement on whether this investment is suitable in light of your financial knowledge and experience, investment objectives and financial or tax situation and whether to obtain specific advice from an investment professional. The prospectus and Key Investor Information Document are available in English from the Nomura Asset Management U.K. Ltd website at www. nomura-asset.co.uk Fund Dealing Nomura Asset Management U.K. Ltd. is authorised and regulated by the Financial Conduct Authority. Portfolio data source: Nomura Asset Nomura Funds Ireland plc Management U.K. Ltd c/o Brown Brothers Harriman Fund Administration Services (Ireland) Limited 30 Herbert Street Dublin 2 Ireland Telephone: 353-1- 603 6273 Fax: 353-1- 603 6310

www.nomura-asset.co.uk [email protected] +44 207 521 1043