Nomura ETF Trust II has announced a major reorganization of its Nomura Diversified Income Fund, converting it into an exchange-traded fund (ETF). This strategic shift is designed to provide shareholders with numerous benefits, including lower expenses, increased transparency, and enhanced trading flexibility. The move reflects a broader trend in the investment industry as more funds transition to ETF structures.

The reorganization will take place on or about February 19, 2027, and will not require a shareholder vote. This decision was made by the Board of Trustees of Nomura ETF Trust II, which concluded that the reorganization is in the best interests of both the Acquired Fund and the Acquiring Fund's shareholders.

Background

Nomura ETF Trust II, classified as an investment entity, is based in Philadelphia, Pennsylvania. The Trust operates under the Central Index Key (CIK) number 0000809064. Its recent filings include a Form 497 submitted on October 30, 2026, which outlines the details of the reorganization.

What the Filing Says

The SEC filing indicates that the Nomura Diversified Income Fund will be converted into the Nomura Diversified Income ETF. The filing states, "The Acquired Fund will continue to be managed by Delaware Management Company and sub-advised by Nomura Corporate Research and Asset Management." The reorganization is expected to enhance shareholder value through lower operating expenses and increased transparency into the fund's holdings.

Impact

This reorganization may significantly affect shareholders of the Nomura Diversified Income Fund, as they will transition to holding ETF shares, which can be traded throughout the day on an exchange. The expected benefits of this transition include lower total annual fund operating expenses and enhanced tax efficiency. Shareholders will not experience dilution of their interests as a result of the reorganization.

What’s Next

The reorganization is set to occur on February 19, 2027, and no shareholder vote is required to complete the process. Shareholders are encouraged to review the Information Statement/Prospectus provided by Nomura ETF Trust II for detailed information regarding the transition.