Nomura Asset Management U.K. Ltd Nomura Funds JAPAN EQUITY Fund Price Changes The fund outperformed the benchmark by 6 basis po Since inception the fund has underperformed the benchm 38.91% verses 38.99% for the benchmark. In the year to date the fund has outperformed the benchmark by 54 basis points, delivering a performance of -1.58% versus -2.12 % for the benchmark. Performance for the Fund since Inception (Yen basis) NAVps** % change Index (MSCI Japan)*** ints over one month from 28 April to 31 May 2006. 1 month Excess Return ark by 8 basis points, delivering a performance of 28/4-31/5 *Inception date: 12 prospectus and market standards in Luxembourg. ***MSCI Japan is3 month Index Source: Nomura Asset Management U.K. Ltd-7.88 Source: Nomura Asset Management U.K. Ltd 22/2-31/5 -7.94 th April 2005. **Net Asset Value per share (NAVps) is calculated6 monthby Nomura Bank (Luxembourg) S.A. according to the 0.06 -0.13 30/11-31/5 May 2006 -0.95 0.82 6.11 1 Year 162 25/5-31/5 152 4.83 142 132 1.27 44.89 YTD Investment Objective Nomura Japan Fund vs MSCI Japan (Total Return - Net Div) 31/12-31/5 122 45.02 To achieve long term capital growth 112 the Morgan Stanley Capital Intern Since Inception* 102 -0.13 -1.58 through investment in an actively 92 managed portfolio of Japanese -2.12 12/4-31/5 06-Apr-05 securities listed/dealt on Regulated 27-Apr-05 0.54 38.91 Markets in Japan and to outperform the Benchmark [Being the Morgan 18-May-05 ational Japan Total Return (Ne38.99 Source: Nomura Asset Management08- JU.K.un-0 5Ltd based on Net Asset Va Stanley Capital International Japan 2 -0.08 Total Return (Net of Tax) Index]. 9-Jun-05 20-Jul-05 Monthly Performance Review for May 2006 Launch date: 12 April 2005 10-Aug-05 The portfolio outperformed the MSCI Japan Index31 -byAug -605 basis points (bp) in May. Positive stock selection t of Tax) Base Currency: Japanese Yen results outweighed the negative outcome 21-Sep-05 ISIN Code: LU0217998821 12-Oct-05 Amid a downturn in the Japanese stock market, defensive sectors remained02-Nov-0 5relatively firm and made up for Bloomberg Code: some of the underperformance they experienced during Fund 23-Nov-05 14-Dec-05 Reference Index04-Jan-06 The portfolio’s underexposure to the Medical and the Infrastructureslue sectors per share had calculated a negative by Nomura impact Bank (Luxembourg) on the S.A. NOMJAEQ LX Equity DES relative performance. As for the stock selection results 25-Jan-06 Total Net Assets as at 31 May 06: 15-Feb-06 Yamaha, became a leading contributor, outperforming due to its reasonable valuatio 08-Mar-06 from the sector allocation strategy. within the Information/System sector, Nintendo, posted remarkable gains and added to the relative 29-Mar-06 performance due to robust sales of its portable game equipment and the unveiling of a new game console 19-Apr-06 NAV Per Share asJPY at 318,145,283,082.00 May 06: along with updated popular software titles. 10-May-06 31-May-06 Market Outlook Contact Following the steep sell-off in May, the Japanese eq the bullish market conditions over the past year. Yuhki King expected trading range. Providing the Bank of Japa JPY 138,905 adjustment and long-term interest ra +44 (0)20 7521 2635 ，our favoured holding within the Consumption sector, market forecast for the TOPIX index of approximately 1650. [email protected] term trend, we can expect elevated levels of volatility over the next few weeks. Web site address http://www.nomura.com/nam-europe/funds This newsletter was prepared by ns. Also, our core holding tes remain steady, then we are able to uphold our existing year-end Nomura Asset Management U.K. uity market is now approaching the bottom of our Ltd. The contents of this report are n maintains its prudent approach to monetary policy not intended in any way to indicate or guarantee future investment results as the value of investments may go down as well as up. Nevertheless, as with any interruption to a long- 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 documentation in order to form your own assessment and judgement and, to make an investment decision. The prospectus is available from the Nomura Asset Management U.K. Ltd website. Nomura Asset Management U.K. Ltd. is authorised and regulated by the Financial Services Authority. Nomura Funds May 2006 Sector Allocation Top 5 Holdings (as at May 2006) % of MSCI Portfolio Company Name Equity Portion NAM 10 Cluster % May 06 May 06 1 MITSUBISHI UFJ FG 6.16 Consumption 7.80 7.16 2 SUMITOMO MITSUI FG 5.20 Medical 5.39 3.07 3 NISSAN MOTOR 4.98 Infrastructures 12.40 6.30 4 JFE HOLDINGS 4.05 Machinery 5.80 9.02 5ROHM 3.99 Automobiles 10.69 12.47 Electronics 17.81 19.66 Commodities 13.65 16.79 Financials 19.69 18.67 Communication 2.49 2.35 Inform/System 4.27 4.50 Source: Nomura Asset Management Co. Ltd Top 3 Positive Contributors* Top 3 Negative Contributors* Company Name Company Name 1JFE HOLDINGS 1ROHM 2 YAMAHA 2 DOWA MINING 3 NINTENDO 3 TAKEDA PHARMACEUTICAL *Performance contributors of the fund relative to the benchmark. Source: Nomura Asset Management Co. Ltd Top 10 Positive Positions Top 10 Negative Positions Company Name % of Betting Company Name % of Betting 1 NISSAN MOTOR 3.97 1 TOYOTA MOTOR -5.77 2 ROHM 3.60 2 MIZUHO FINANCIAL GR -2.80 3 JFE HOLDINGS 3.31 3 CANON -1.97 4 SUMITOMO MITSUI FG 2.98 4 TAKEDA PHARMACEUTICAL -1.86 5 DOWA MINING 2.11 5 MATSUSHITA ELECTRIC -1.72 6 ITOCHU 1.95 6 SONY -1.72 7 YAMAHA 1.68 7 NOMURA HOLDINGS -1.37 8 SUMITOMO TRUST & BANKING 1.61 8 MITSUBISHI -1.11 9 FUJITSU 1.61 9 TOKYO ELECTRIC POWER -1.01 10 MITSUBISHI UFJ FG 1.59 10 MILLEA HOLDINGS -1.00 *Active weight of the fund relative to the benchmark. Source: Nomura Asset Management Co. Ltd All proprietary of the MSCI indices are the property of MSCI. Reproduction, redistribution or any other form of transmission, in whole or in part, of any information concerning the MSCI Indices without MSCI’s prior written consent is strictly prohibited. Although MSCI obtains information for inclusion in or for use in the calculation of the MSCI indices from sources that MSCI considers reliable, MSCI does not warrant or guarantee the originality, accuracy and/or the completeness of any of the information. .