News Release Nomura Securities Nomura Individual Investor Survey February 2016 (PDF)


News Release


Nomura Individual Investor Survey

February 2016


12 February 2016


Global Research Division Nomura Securities Co., Ltd.


The Nomura Individual Investor Survey is a monthly survey conducted with the aim of better understanding investing activity by individuals and providing information on related trends.

  1. Survey overview
    1. Nomura I-View Index falls for the first time in four months, to 54.6

      The Nomura Individual Investor Market View Index (Nomura I-View Index), based on respondents' three-month outlook for share prices and calculated by subtracting the percentage of responses for "fall" from that for "rise," was 54.6 in February 2016, falling m-m for the first time in four months. The Nikkei Average reference level (1 February 2016 close) was 17,865.23, down

      585.75 from the previous survey (4 January 2016 close of 18,450.98).

    2. Increased investor interest in domestic interest rates

      Respondents were asked to select the factor most likely to affect the stock market over the next three months. The response rate for "domestic interest rates" rose 7.4ppt m-m, to 11.8%, which we see as reflecting the Bank of Japan's (BOJ's) decision on 29 January to adopt a negative interest rate policy. The response rate for "forex trends" rose 2.2ppt, to 14.8%. In contrast, the response rate for "international affairs" declined 6.5ppt, to 57.5%.

    3. Investment appeal of pharmaceuticals sector rises while that of financials sector declines

      Respondents were asked to choose one sector as an "appealing" investment target and one as "unappealing" over a timeframe of about three months. We then calculated a diffusion index (DI) for each sector by subtracting the percentage of responses for "unappealing" from that for "appealing." The pharmaceuticals sector was the most appealing, with its DI rising 4.8ppt m-m, to

      12.7. The DI for the automobiles sector, which topped the ranking last month, rose 1.1ppt m-m, to 10.7, while the DI for the electrical equipment/precision equipment sector recovered 5.6ppt m-m, to -3.2. The DI for the financials sector fell 19.9ppt m-m, to 24.3, its lowest level since December 2011.

    4. Higher proportion of investors expect yen to appreciate against US dollar

      On the outlook for USD/JPY over the next three months, the combined percentage of respondents expecting the yen to appreciate against the US dollar was 55.2%, up 6.6ppt from the previous month (48.6%). The response rate for "rise of about ¥5 against the dollar" rose 6.6ppt m-m, to 42.3%, while that for "rise of about ¥10 against the dollar" increased 0.9ppt m-m. In contrast, the response rate for "rise of more than ¥10 against the dollar" fell 0.9ppt. Among responses anticipating a weakening of the yen versus the dollar, the response rate for "fall of about ¥5 against the dollar" declined 6.5ppt m-m, to 39.2%, while that for "fall of more than ¥10 against the dollar" fell 0.5ppt m-m.

    5. Investment appeal of US dollar rises

      Respondents were asked to choose one currency as an "appealing" investment target and one as "unappealing" over a timeframe of approximately three months. We then calculated a DI for each currency by subtracting the percentage of responses for "unappealing" from that for "appealing." This month the DI for the US dollar rose 1.8ppt m-m, to 38.4, topping the list.

    6. Appeal of Japanese equities among financial instruments rises

      To give an indication of plans for holding financial instruments, we calculate DIs for each type of financial instrument by subtracting the percentage of respondents planning to cease holding the instrument or decrease their holdings from the percentage planning to hold the instrument for the first time or increase their holdings. The DI for Japanese equities rose 1.7ppt m-m, to 38.6. The DI for foreign investment trusts, at 3.1, was down 3.2ppt, representing the largest decline of all the options.

    7. Higher percentage of respondents expect prices to be unchanged one year out

      When asked for their outlook for prices of regularly purchased goods and services one year out, 45.6% of respondents selected the response "no change," up 3.7ppt from the previous month. The combined response rate for the "rise" options declined 6.1ppt m-m, to 37.5%, and that for the "fall" options rose 2.4ppt, to 16.9%.

    8. Investment policy and investment action in response to share price falls

    9. For this month's spot question, we asked investors about their investment policy and investment action in the context of falls in share prices. Questioned about their equity investments over the most recent month, the largest percentage of respondents, at 37.5%, said that returns had been "broadly in negative territory, but with losses less than the decline in the Nikkei Average" (6.14%). The second-highest response rate was for "broadly in negative territory, with losses greater than the decline in the Nikkei Average," at 26.7%, followed by "broadly breaking even," at 26.4%. Of all respondents, 73.3% indicated that their returns on equity investments over the past month had been higher than the Nikkei Average's returns.

      Next, we asked respondents for their views with regard to losses (unrealized losses) on equity investments. The highest response rate was for "wait for a share price recovery rather than cut losses," at 42.3%, followed by "no particular strategy; decisions taken on a case-by-case basis," at 32.4%. Questioned about their investment activity during the most recent month, the highest response rate was for "no action taken," at 51.5%.

    10. Survey results
      1. Nomura I-View Index falls for the first time in four months, to 54.6

        The Nomura Individual Investor Market View Index (Nomura I-View Index), based on respondents' three-month outlook for share prices and calculated by subtracting the percentage of responses for "fall" from that for "rise," was 54.6 in February 2016, falling m-m for the first time in four months (Figure 1).

        The Nikkei Average reference level (1 February 2016 close) was 17,865.23, down 585.75 from the previous survey (4 January 2016 close of 18,450.98).


        Fig. 1: Nomura I-View Index and reference level of Nikkei Average at time of survey


        (DI) 80


        70


        Nomura I-View Index (lhs) Past average for index (lhs)

        Nikkei Average at time of survey (rhs)

        (¥) 22,000


        20,000


        60 18,000


        50 16,000


        40 14,000


        30 12,000


        20 10,000


        10

        (yy/m)

        0

        8,000


        6,000

        06/4 07/1 07/10 08/7 09/4 10/1 10/10 11/8 12/5 13/2 13/11 14/8 15/5 16/2


        Note: (1) The Nomura I-View Index is based on data collected by this survey and expressed as a DI. The calculation method is as follows: ([(number of responses indicating expected rise in share prices in the next three months) minus (number of responses indicating expected fall in share prices in the next three months)] divided by [number of respondents]) x 100. The figure for Jan 2010 used here excludes those respondents who projected that the Nikkei Average would be flat. (2) The Nomura I-View Index ranges from -100 to +100. The closer to +100, the more bullish the outlook held by individual investors. The closer to -100, the more bearish the outlook held by individual investors.


        The combined proportion of respondents expecting the Nikkei Average to rise over the next three months was 77.3%, down 0.4ppt from the last survey (77.7%). The proportion of respondents expecting a "rise of more than 2,000 points," at 18.9%, rose 9.4ppt m-m, the largest increase for all the response options. The response rate for "rise of about 2,000 points" fell 5.7ppt m-m, to 27.4%, while that for "rise of about 1,000 points" fell 4.1ppt, to 31.0% (Figure 2).


        Fig. 2: Outlook for the Nikkei Average during the next three months


        Rise of more than 2,000 points


        Rise of about 2,000 points


        Rise of about 1,000 points


        Fall of about 1,000 points


        Fall of about 2,000 points

        Jan 2016


        Fall of more than 2,000 points


        Feb 2016


        0 5 10 15 20 25 30 35 40

        (% of responses)


        Note: Respondents were asked to share their outlook for the Nikkei Average over the next three months based on the 1 Feb 2016 close of 17,865. Respondents could choose one answer from six possible responses ranging from a rise of more than 2,000 points to a fall of more than 2,000 points, with 1,000-point increments in between.


      2. Increased investor interest in domestic interest rates

        Respondents were asked to select the factor most likely to affect the stock market over the next three months. The response rate for "domestic interest rates" rose 7.4ppt m-m, to 11.8%, which we see as reflecting the BOJ's decision on 29 January to adopt a negative interest rate policy. The response rate for "forex trends" rose 2.2ppt, to 14.8%. In contrast, the response rate for "international affairs" declined 6.5ppt, to 57.5% (Figure 3).


        Fig. 3: Impact of factors on the stock market




        Jan 2016

        Feb 2016

        Domestic interest rates


        Forex trends Domestic politics

        Domestic corporate earnings


        International affairs

        Weather & natural disasters Market factors & psychological factors

        0 10 20 30 40 50 60 70

        (% of responses)


        Note: Respondents were asked to choose one answer from seven possible responses concerning factors likely to impact the stock market over the next three months or so.

      3. Investment appeal of pharmaceuticals sector rises while that of financials sector declines

        Respondents were asked to choose one sector as an "appealing" investment target and one as "unappealing" over a timeframe of about three months. We then calculated a DI for each sector by subtracting the percentage of responses for "unappealing" from that for "appealing." The pharmaceuticals sector was the most appealing, with its DI rising 4.8ppt m-m, to 12.7.The DI for the automobiles sector, which topped the ranking last month, rose 1.1ppt m-m, to 10.7, while the DI for the electrical equipment/precision equipment sector recovered 5.6ppt m-m, to -3.2. The DI for the financials sector fell 19.9ppt m-m, to 24.3, its lowest level since December 2011 (Figures 4, 5).


        Fig. 4: Investment appeal by sector


        Sector

        DI

        Breakdown of DI (% of responses)

        (Ref) Previous DI

        Appealing

        Unappealing

        Pharmaceuticals

        12.7

        15.6

        2.9

        7.9

        Automobiles

        10.7

        17.2

        6.5

        9.6

        Capital goods/other

        6.2

        11.5

        5.3

        5.1

        Telecommunications

        2.6

        6.3

        3.7

        -1.0

        Transportation and utilities

        0.8

        9.3

        8.5

        0.2

        Consumer goods

        -2.0

        11.8

        13.8

        -3.7

        Electrical equipment/precision equipment

        -3.2

        7.3

        10.5

        -8.8

        Materials

        -3.5

        11.2

        14.7

        -4.9

        Financials

        -24.3

        9.8

        34.1

        -4.4


        Note: Respondents were given nine sectors and asked to choose one they viewed as an appealing investment target and one they viewed as unappealing. For each sector, we then calculated a DI by subtracting the percentage of responses for unappealing from that for appealing. The materials sector comprises mining, textiles, paper & pulp, chemicals, oil, ceramics, steel, nonferrous metals, and trading houses. The financials sector comprises banks, miscellaneous finance, securities, and insurance. The capital goods/other sector comprises construction, machinery, shipbuilding, transportation equipment, miscellaneous manufacturing, and real estate. The transportation and utilities sector comprises railroads & buses, trucking, shipping, airlines, warehousing, electric power, and gas. The consumer goods sector comprises marine products, food, retail, and services.



        Fig. 5: DIs for selected sectors


        (DI) 30


        20


        10


        0


        -10


        -20


        -30


        12/1

        12/3

        12/5

        12/7

        12/9

        12/11

        13/1

        13/3

        13/5

        13/7

        13/9

        13/11

        14/1

        14/3

        14/5

        14/7

        14/9

        14/11

        15/1

        15/3

        15/5

        15/7

        15/9

        15/11

        16/1

        -40










        (yy/m)


        Automobiles Financials

        Capital goods/other


        Pharmaceuticals


        Electrical equipment/precision equipment Materials


        Telecommunications


        Transportation and utilities


        Consumer goods

      4. Most-watched stocks

        Respondents were asked to name one stock they would like to have in their portfolio, or that they found appealing, whether for the short or the long term (including stocks actually held). Figure 6 shows the most popular responses.


        Fig. 6: Name a stock with appeal (1,000 valid responses)


        Code

        Company

        No. of respondents

        7203

        Toyota Motor

        139

        6758

        Sony

        27

        9984

        Softbank Group

        23

        4502

        Takeda Pharmaceutical

        16

        8411

        Mizuho Financial Group

        16

        9437

        NTT Docomo

        16

        8267

        Aeon

        15

        8306

        Mitsubishi UFJ Financial Group

        15

        9202

        Ana Holdings

        15

        4661

        Oriental Land

        13

        7201

        Nissan Motor

        10

        7270

        Fuji Heavy Industries

        10

        6501

        Hitachi

        9

        7011

        Mitsubishi Heavy Industries

        9

        2327

        NS Solutions

        8

        4503

        Astellas Pharma

        8

        Code

        Company

        No. of respondents

        5401

        Nippon Steel & Sumitomo Metal

        8

        6752

        Panasonic

        8

        6954

        Fanuc

        8

        7751

        Canon

        8

        8058

        Mitsubishi

        8

        8750

        The Dai-Ichi Life Insurance

        8

        9501

        Tokyo Electric Power

        8

        9503

        The Kansai Electric Power

        8

        2931

        Euglena

        7

        3402

        Toray Industries

        7

        4901

        Fujifilm Holdings

        7

        6502

        Toshiba

        7

        7261

        Mazda Motor

        7

        7267

        Honda Motor

        7

        9432

        Nippon Telegraph & Telephone

        7


        Note: Not included in valid responses were answers of "none" or clearly mistaken responses.


      5. Higher proportion of investors expect yen to appreciate against US dollar

        On the outlook for USD/JPY over the next three months, the combined percentage of respondents expecting the yen to appreciate against the US dollar was 55.2%, up 6.6ppt from the previous month (48.6%). The response rate for "rise of about ¥5 against the dollar" rose 6.6ppt m-m, to 42.3%, while that for "rise of about ¥10 against the dollar" increased 0.9ppt m-m. In contrast, the response rate for "rise of more than ¥10 against the dollar" fell 0.9ppt. Among responses anticipating a weakening of the yen versus the dollar, the response rate for "fall of about ¥5 against the dollar" declined 6.5ppt m-m, to 39.2%, while that for "fall of more than ¥10 against the dollar" fell 0.5ppt m-m (Figure 7).


        Fig. 7: Respondents' three-month outlook for USD/JPY


        Fall of more than ¥10 against the dollar


        Fall of about ¥10 against the dollar


        Fall of about ¥5 against the dollar


        Rise of about ¥5 against the dollar


        Rise of about ¥10 against the dollar


        Rise of more than ¥10 against the dollar


        Jan 2016


        Feb 2016


        0 5 10 15 20 25 30 35 40 45 50

        (% of responses)


        Note: Respondents were asked to share their outlook for USD/JPY over the next three months, referencing a 1 Feb 2016 indicative rate of 121.24. They could choose one answer from six possible responses ranging from a rise of more than ¥10 against the dollar to a fall of more than ¥10 against the dollar, with ¥5 increments in between.

      6. Investment appeal of US dollar rises

        Respondents were asked to choose one currency as an "appealing" investment target and one as "unappealing" over a timeframe of approximately three months. We then calculated a DI for each currency by subtracting the percentage of responses for "unappealing" from that for "appealing." This month, the DI for the US dollar rose 1.8ppt m-m, to 38.4, topping the list. The DI for the euro, at -2.5, recovered 1.3ppt from the previous month's -3.8. In contrast, the DI for the Brazilian real declined 1.5ppt m-m while that for the Australian dollar fell 1.1ppt (Figures 8, 9).


        Fig. 8: Investment appeal by currency


        Currency

        DI

        Breakdown of DI (% of responses)

        (Ref) Previous DI

        Appealing

        Unappealing

        US dollar

        38.4

        42.6

        4.2

        36.6

        Japanese yen

        27.7

        34.8

        7.1

        27.6

        Australian dollar

        11.5

        13.3

        1.8

        12.6

        Pound sterling

        0.1

        1.1

        1.0

        -0.2

        Canadian dollar

        0.1

        0.9

        0.8

        0.8

        Euro

        -2.5

        3.3

        5.8

        -3.8

        Brazilian real

        -18.3

        2.2

        20.5

        -16.8

        Chinese yuan

        -57.5

        0.8

        58.3

        -57.4


        Note: Respondents were given nine possible responses, consisting of the above eight currencies and "other," and asked to choose one they viewed as an appealing investment target and one they viewed as unappealing. Those selecting "other" were asked to specify a currency.



        Fig. 9: DIs for investment appeal of selected currencies

        (DI)

        60


        40


        20


        0


        -20


        -40


        -60


        10/1

        10/4

        10/7

        10/10

        11/1

        11/4

        11/7

        11/10

        12/1

        12/4

        12/7

        12/10

        13/1

        13/4

        13/7

        13/10

        14/1

        14/4

        14/7

        14/10

        15/1

        15/4

        15/7

        15/10

        16/1

        -80


        USD


        JPY


        AUD


        CAD


        GBP


        EUR


        BRL


        CNY


        (yy/m)


      7. Appeal of Japanese equities among financial instruments rises

        To give an indication of plans for holding financial instruments, we calculate DIs for each type of financial instrument by subtracting the percentage of respondents planning to cease holding the instrument or decrease their holdings from the percentage planning to hold the instrument for the first time or increase their holdings. The DI for Japanese equities rose 1.7ppt m-m, to 38.6.The DI for foreign investment trusts, at 3.1, was down 3.2ppt, the largest decline of all the options (Figures 10, 11).


        Fig. 10: Financial instruments for which investors are planning either to increase or to decrease their holdings


        Financial instrument

        DI

        Breakdown of DI (% of responses)

        (Ref) Previous DI

        Plan to increase

        Plan to decrease

        Japanese equities

        38.6

        51.8

        13.2

        36.9

        Cash & deposits

        28.3

        33.8

        5.5

        29.0

        Japanese investment trusts

        11.6

        18.6

        7.0

        12.6

        Gold

        9.2

        9.3

        0.1

        9.6

        Foreign equities

        7.9

        9.1

        1.2

        8.9

        Japanese bonds

        4.5

        6.6

        2.1

        4.6

        Foreign investment trusts

        3.1

        5.6

        2.5

        6.3

        Foreign bonds

        3.1

        4.6

        1.5

        3.8

        Hybrid securities

        2.0

        2.4

        0.4

        2.3

        Other

        1.0

        1.3

        0.3

        0.7

        None

        -45.3

        28.5

        73.8

        -45.1


        Note: Respondents were given a list of 11 responses and asked to choose those financial instruments for which they planned to increase their holdings and those for which they planned to decrease their holdings (multiple responses were allowed). "Plan to increase" refers to financial instruments that investors plan to hold for the first time or for which they plan to increase their holdings, while "plan to decrease" refers to instruments that investors plan to cease holding or for which they plan to decrease their holdings. Hybrid securities and gold were added to the list of choices from the Feb 2012 survey. Since the Apr 2013 survey, we have divided the former category of "Securities issued overseas" into foreign equities, foreign investment trusts, and foreign bonds.



        Fig. 11: DIs for financial instruments in which investors are planning either to increase or to decrease their holdings

        (DI) 50

        Japanese equities

        45


        40

        Cash & deposits

        35


        30

        Securities issued

        25overseas


        20

        Japanese

        15 investment trusts


        10

        Japanese bonds

        5


        0


        Note: "Securities issued overseas" is the total for foreign equities, foreign investment trusts, and foreign bonds.


        (yy/m)

      8. Higher percentage of respondents expect prices to be unchanged one year out

        When asked for their outlook for prices of regularly purchased goods and services one year out, 45.6% of respondents selected the response "no change," up 3.7ppt from the previous month. The combined response rate for the "rise" options declined 6.1ppt m-m, to 37.5%, and that for the "fall" options rose 2.4ppt, to 16.9% (Figure 12).


        Fig. 12: Outlook for prices one year out



        Choices


        % of responses

        (Ref)

        Previous % of responses

        1

        Fall of 5% or more

        2.1

        2.5

        2

        Fall of 2% up to 5%

        4.4

        3.7

        3

        Fall of less than 2%

        10.4

        8.3

        4

        No change (0%)

        45.6

        41.9

        5

        Rise of less than 2%

        26.5

        31.9

        6

        Rise of 2% up to 5%

        8.1

        10.3

        7

        Rise of 5% or more

        2.9

        1.4

        Total

        100

        100


        Note: Respondents were asked to select one response to the question: "How do you expect prices of regularly purchased goods and services to differ from current levels one year out?"


      9. Investment policy and investment action in response to share price falls

      10. For this month's spot question, we asked investors about their investment policy and investment action in the context of falls in share prices. Questioned about their equity investments over the most recent month, the largest percentage of respondents, at 37.5%, said that returns had been "broadly in negative territory, but with losses less than the decline in the Nikkei Average" (6.14%). The second-highest response rate was for "broadly in negative territory, with losses greater than the decline in the Nikkei Average," at 26.7%, followed by "broadly breaking even," at 26.4%. Of all respondents, 73.3% indicated that their returns on equity investments over the past month had been higher than the Nikkei Average's returns (Figure 13).



        Fig. 13: Returns on equity investments over the past month


        Choices

        No. of respondents

        % of responses

        1. Broadly in positive territory

        94

        9.4

        2. Broadly breaking even

        264

        26.4

        3. Broadly in negative territory, but with losses less than the decline in the Nikkei Average

        375

        37.5

        4. Broadly in negative territory, with losses greater than the decline in the Nikkei Average

        267

        26.7

        Total

        1,000

        100.0


        Note: Respondents were asked to select one response to the question: "The Nikkei Average fell by 6.14% over the one- month period to 1 February. Select from the following the response that most accurately reflects the situation regarding gains or losses on your equity investments over the month." This can include both realized and unrealized profits and losses.


        Next, we asked respondents for their views with regard to losses (unrealized losses) on equity investments. The most popular response was "wait for a share price recovery rather than cut losses," at 42.3%. The second-most frequent response, at 32.4%, was "no particular strategy; decisions taken on a case-by-case basis." Only 25.3% of respondents said that they would cut their losses at a certain level (total of responses 1-5) (Figure 14).


        Fig. 14: Investors' basic stances on losses (unrealized losses) on their equity investments


        Choices

        No. of respondents

        % of responses

        1. Cut losses at -1% to -10%

        65

        6.5

        2. Cut losses at -11% to -20%

        90

        9.0

        3. Cut losses at -21% to -30%

        68

        6.8

        4. Cut losses at -31% to -50%

        25

        2.5

        5. Cut losses at more than -50%

        5

        0.5

        6. Wait for a share price recovery rather than cut losses

        423

        42.3

        7. No particular strategy; decisions taken on a case-by-case basis

        324

        32.4

        Total

        1000

        100.0


        Note: We asked investors to choose one item from the list shown in the table regarding their basic stance concerning gains (unrealized gains) when investing in equities.


        Questioned about their investment activity during the most recent month, the highest response rate was for "no action taken," at 51.5%. This was followed by "acquired shares not in my portfolio" (17.7%) and "increased holdings of shares already in my portfolio" (14.2%) (Figure 15).


        Fig. 15: Investment activity over most recent month


        Choices

        No. of respondents

        % of responses

        1. Acquired shares not in my portfolio

        208

        17.7

        2. Increased holdings of shares already in my portfolio

        167

        14.2

        3. Sold shares to secure gains

        120

        10.2

        4. Sold shares to cut losses

        73

        6.2

        5. No action taken

        604

        51.5

        Total

        1,172

        100.0


        Note: We asked respondents to indicate which of the actions listed in the table they had undertaken relating to Japanese cash equities in the past two months (multiple response possible).

      11. Nomura Individual Investor Survey

        With the aim of better understanding investing activity by individuals and providing information on those trends, Nomura Securities conducts a monthly survey-the Nomura Individual Investor Survey. The results of the survey have been published monthly since April 2006.


        Survey method: Questionnaire conducted electronically using the internet monitor questionnaire service administered by Nomura Investor Relations Co., Ltd.

        Survey target: Survey sent to 3,000 individual investors randomly selected from the approximately 24,000 with equity investment experience participating in Nomura Investor Relations' internet monitor questionnaire service.

        Number of responses: 1,000 (survey closed when 1,000 responses received).

        Survey period: Survey distributed on 1 February, with deadline for responses on 2 February.

        Survey content: Questions included each month are (1) share price outlook, (2) factors expected to impact the stock market,

        (3) attractive sectors and stocks, (4) USD/JPY outlook and attractive currencies, (5) financial instruments for which investors plan to change their holdings, and (6) inflation outlook (since July 2013). Respondents are also asked spot questions each month and queried about their personal profiles.


      12. Nomura Individual Investor Survey (February 2016) respondents
      13. Gender: Male (83.3%), Female (16.7%)

        Age: Under 30 (0.7%), 30-39 (8.6%), 40-49 (23.6%), 50-59 (30.2%), 60 and above (36.9%)

        Occupation: Self-employed/fisheries, agriculture, forestry (8.5%), professional (physician/medical professional, lawyer, etc) (3.2%), company management/corporate officer (3.5%), company employee/public servant (48.1%), student (0.0%), full-time homemaker (8.2%), part-time worker/casual worker/job-hopper (5.2%), unemployed/pensioner (21.7%), other (1.6%)

        Region: Kanto (51.7%), Kinki (19.1%), Tokai/Koshinetsu/Hokuriku (15.6%), Hokkaido/Tohoku (4.3%), Chugoku/Shikoku/Kyushu

        (9.3%)

        Financial assets held: Less than ¥1,000,000 (6.2%), ¥1,000,000-¥2,999,999 (8.0%), ¥3,000,000-¥4,999,999 (10.4%),

        ¥5,000,000-¥9,999,999 (16.5%), ¥10,000,000-¥29,999,999 (31.8%), ¥30,000,000-¥49,999,999 (12.9%), ¥50,000,000 or more

        (14.2%)

        Value of domestic stocks held: Less than ¥500,000 (9.4%), ¥500,000-¥999,999 (10.9%), ¥1,000,000-¥2,999,999 (20.2%),

        ¥3,000,000-¥4,999,999 (18.6%), ¥5,000,000-¥9,999,999 (16.2%), ¥10,000,000-¥29,999,999 (18.2%), ¥30,000,000 or more

        (6.5%)

        Investment experience: Less than three years (1.7%), three years to less than five years (5.1%), five years to less than 10 years (25.2%), 10 years to less than 20 years (35.4%), 20 years or more (32.6%)

        Investment plan for domestic stocks: Mainly for long-term holding (42.5%), pursuit of gains from short-term appreciation (13.7%), pursuit of dividends and shareholder perks (27.9%), no particular plan (15.9%)


        Notice

        The next Nomura Individual Investor Survey (March 2016) is scheduled for release on Thursday, 17 March 2016.

        Any Authors named on this report are Research Analysts unless otherwise indicated Important Disclosures

        The lists of issuers that are affiliates or subsidiaries of Nomura Holdings Inc., the parent company of Nomura Securities Co., Ltd., issuers that have officers who concurrently serve as officers of Nomura Securities Co., Ltd., issuers in which the Nomura Group holds 1% or more of any class of common equity securities and issuers for which Nomura Securities Co., Ltd. has lead managed a public offering of equity or equity linked securities in the past 12 months are available at http://www.nomuraholdings.com/jp/report/. Please contact the Research Product Management Dept. of Nomura Securities Co., Ltd. for additional information.


        Online availability of research and conflict-of-interest disclosures

        Nomura research is available on www.nomuranow.com/research, Bloomberg, Capital IQ, Factset, MarkitHub, Reuters and ThomsonOne. Important disclosures may be read at http://go.nomuranow.com/research/globalresearchportal/pages/disclosures/disclosures.aspx or requested from Nomura Securities International, Inc., on 1-877-865-5752. If you have any difficulties with the website, please email grpsupport@nomura.com for help.


        The analysts responsible for preparing this report have received compensation based upon various factors including the firm's total revenues, a portion of which is generated by Investment Banking activities. Unless otherwise noted, the non-US analysts listed at the front of this report are not registered/qualified as research analysts under FINRA rules, may not be associated persons of NSI, and may not be subject to FINRA Rule 2241 restrictions on communications with covered companies, public appearances, and trading securities held by a research analyst account.


        Nomura Global Financial Products Inc. ("NGFP") Nomura Derivative Products Inc. ("NDPI") and Nomura International plc. ("NIplc") are registered with the Commodities Futures Trading Commission and the National Futures Association (NFA) as swap dealers. NGFP, NDPI, and NIplc are generally engaged in the trading of swaps and other derivative products, any of which may be the subject of this report.


        Any authors named in this report are research analysts unless otherwise indicated. Industry Specialists identified in some Nomura International plc research reports are employees within the Firm who are responsible for the sales and trading effort in the sector for which they have coverage. Industry Specialists do not contribute in any manner to the content of research reports in which their names appear.


        Distribution of ratings (Global)

        The distribution of all ratings published by Nomura Global Equity Research is as follows:

        48% have been assigned a Buy rating which, for purposes of mandatory disclosures, are classified as a Buy rating; 40% of companies with this rating are investment banking clients of the Nomura Group*.

        43% have been assigned a Neutral rating which, for purposes of mandatory disclosures, is classified as a Hold rating; 54% of companies with this rating are investment banking clients of the Nomura Group*.

        9% have been assigned a Reduce rating which, for purposes of mandatory disclosures, are classified as a Sell rating; 18% of companies with this rating are investment banking clients of the Nomura Group*.

        As at 31 December 2015. *The Nomura Group as defined in the Disclaimer section at the end of this report.


        Explanation of Nomura's equity research rating system in Europe, Middle East and Africa, US and Latin America, and Japan and Asia ex-Japan from 21 October 2013

        The rating system is a relative system, indicating expected performance against a specific benchmark identified for each individual stock, subject to limited management discretion. An analyst's target price is an assessment of the current intrinsic fair value of the stock based on an appropriate valuation methodology determined by the analyst. Valuation methodologies include, but are not limited to, discounted cash flow analysis, expected return on equity and multiple analysis. Analysts may also indicate expected absolute upside/downside relative to the stated target price, defined as (target price - current price)/current price.


        STOCKS

        A rating of 'Buy', indicates that the analyst expects the stock to outperform the Benchmark over the next 12 months. A rating of 'Neutral', indicates that the analyst expects the stock to perform in line with the Benchmark over the next 12 months. A rating of 'Reduce', indicates that the analyst expects the stock to underperform the Benchmark over the next 12 months. A rating of 'Suspended', indicates that the rating, target price and estimates have been suspended temporarily to comply with applicable regulations and/or firm policies. Securities and/or companies that are labelled as 'Not rated' or shown as 'No rating' are not in regular research coverage. Investors should not expect continuing or additional information from Nomura relating to such securities and/or companies. Benchmarks are as follows: United States/Europe/Asia ex- Japan: please see valuation methodologies for explanations of relevant benchmarks for stocks, which can be accessed at: http://go.nomuranow.com/research/globalresearchportal/pages/disclosures/disclosures.aspx; Global Emerging Markets (ex-Asia): MSCI Emerging Markets ex-Asia, unless otherwise stated in the valuation methodology; Japan: Russell/Nomura Large Cap.


        SECTORS

        A 'Bullish' stance, indicates that the analyst expects the sector to outperform the Benchmark during the next 12 months. A 'Neutral' stance, indicates that the analyst expects the sector to perform in line with the Benchmark during the next 12 months. A 'Bearish' stance, indicates that the analyst expects the sector to underperform the Benchmark during the next 12 months. Sectors that are labelled as 'Not rated' or shown as 'N/A' are not assigned ratings. Benchmarks are as follows: United States: S&P 500; Europe: Dow Jones STOXX 600; Global Emerging Markets (ex-Asia): MSCI Emerging Markets ex-Asia. Japan/Asia ex-Japan: Sector ratings are not assigned.


        Explanation of Nomura's equity research rating system in Japan and Asia ex-Japan prior to 21 October 2013 STOCKS

        Stock recommendations are based on absolute valuation upside (downside), which is defined as (Target Price - Current Price) / Current Price, subject to limited management discretion. In most cases, the Target Price will equal the analyst's 12-month intrinsic valuation of the stock, based on an appropriate valuation methodology such as discounted cash flow, multiple analysis, etc. A 'Buy' recommendation indicates that potential upside is 15% or more. A 'Neutral' recommendation indicates that potential upside is less than 15% or downside is less than 5%. A 'Reduce' recommendation indicates that potential downside is 5% or more. A rating of 'Suspended' indicates that the rating and target price have been suspended temporarily to comply with applicable regulations and/or firm policies in certain circumstances including when Nomura is acting in an advisory capacity in a merger or strategic transaction involving the subject company. Securities and/or companies that are labelled

        as 'Not rated' or shown as 'No rating' are not in regular research coverage of the Nomura entity identified in the top banner. Investors should not expect continuing or additional information from Nomura relating to such securities and/or companies.


        SECTORS

        A 'Bullish' rating means most stocks in the sector have (or the weighted average recommendation of the stocks under coverage is) a positive absolute recommendation. A 'Neutral' rating means most stocks in the sector have (or the weighted average recommendation of the stocks under coverage is) a neutral absolute recommendation. A 'Bearish' rating means most stocks in the sector have (or the weighted average recommendation of the stocks under coverage is) a negative absolute recommendation.


        Target Price

        A Target Price, if discussed, reflect in part the analyst's estimates for the company's earnings. The achievement of any target price may be impeded by general market and macroeconomic trends, and by other risks related to the company or the market, and may not occur if the company's earnings differ from estimates.


        Disclaimers

        This document contains material that has been prepared by the Nomura entity identified on page 1 and/or with the sole or joint contributions of one or more Nomura entities whose employees and their respective affiliations are also specified on page 1 or identified elsewhere in the document. The term "Nomura Group" used herein refers to Nomura Holdings, Inc. or any of its affiliates or subsidiaries and may refer to one or more Nomura Group companies including: Nomura Securities Co., Ltd. ('NSC') Tokyo, Japan; Nomura International plc ('NIplc'), UK; Nomura Securities International, Inc. ('NSI'), New York, US; Nomura International (Hong Kong) Ltd. ('NIHK'), Hong Kong; Nomura Financial Investment (Korea) Co., Ltd. ('NFIK'), Korea (Information on Nomura analysts registered with the Korea Financial Investment Association ('KOFIA') can be found on the KOFIA Intranet at http://dis.kofia.or.kr); Nomura Singapore Ltd. ('NSL'), Singapore (Registration number 197201440E, regulated by the Monetary Authority of Singapore); Nomura Australia Ltd. ('NAL'), Australia (ABN 48 003 032 513), regulated by the Australian Securities and Investment Commission ('ASIC') and holder of an Australian financial services licence number 246412; P.T. Nomura Indonesia ('PTNI'), Indonesia; Nomura Securities Malaysia Sdn. Bhd. ('NSM'), Malaysia; NIHK, Taipei Branch ('NITB'), Taiwan; Nomura Financial Advisory and Securities (India) Private Limited ('NFASL'), Mumbai, India (Registered Address: Ceejay House, Level 11, Plot F, Shivsagar Estate, Dr. Annie Besant Road, Worli, Mumbai- 400 018, India; Tel: +91 22 4037 4037, Fax: +91 22 4037 4111; CIN No: U74140MH2007PTC169116, SEBI

        Registration No. for Stock Broking activities : BSE INB011299030, NSE INB231299034, INF231299034, INE 231299034, MCX: INE261299034; SEBI Registration No. for Merchant Banking : INM000011419; SEBI Registration No. for Research: INH000001014 and NIplc, Madrid Branch ('NIplc, Madrid'). 'CNS Thailand' next to an analyst's name on the front page of a research report indicates that the analyst is employed by Capital Nomura Securities Public Company Limited ('CNS') to provide research assistance services to NSL under a Research Assistance Agreement. 'NSFSPL' next to an employee's name on the front page of a research report indicates that the individual is employed by Nomura Structured Finance Services Private Limited to provide assistance to certain Nomura entities under inter-company agreements.

        THIS MATERIAL IS: (I) FOR YOUR PRIVATE INFORMATION, AND WE ARE NOT SOLICITING ANY ACTION BASED UPON IT; (II) NOT TO BE CONSTRUED AS AN OFFER TO SELL OR A SOLICITATION OF AN OFFER TO BUY ANY SECURITY IN ANY JURISDICTION WHERE SUCH OFFER OR SOLICITATION WOULD BE ILLEGAL; AND (III) BASED UPON INFORMATION FROM SOURCES THAT WE CONSIDER RELIABLE, BUT HAS NOT BEEN INDEPENDENTLY VERIFIED BY NOMURA GROUP.

        Nomura Group does not warrant or represent that the document is accurate, complete, reliable, fit for any particular purpose or merchantable and does not accept liability for any act (or decision not to act) resulting from use of this document and related data. To the maximum extent permissible all warranties and other assurances by Nomura group are hereby excluded and Nomura Group shall have no liability for the use, misuse, or distribution of this information.

        Opinions or estimates expressed are current opinions as of the original publication date appearing on this material and the information, including the opinions and estimates contained herein, are subject to change without notice. Nomura Group is under no duty to update this document.

        Any comments or statements made herein are those of the author(s) and may differ from views held by other parties within Nomura Group. Clients should consider whether any advice or recommendation in this report is suitable for their particular circumstances and, if appropriate, seek professional advice, including tax advice. Nomura Group does not provide tax advice.

        Nomura Group, and/or its officers, directors and employees, may, to the extent permitted by applicable law and/or regulation, deal as principal, agent, or otherwise, or have long or short positions in, or buy or sell, the securities, commodities or instruments, or options or other derivative instruments based thereon, of issuers or securities mentioned herein. Nomura Group companies may also act as market maker or liquidity provider (within the meaning of applicable regulations in the UK) in the financial instruments of the issuer. Where the activity of market maker is carried out in accordance with the definition given to it by specific laws and regulations of the US or other jurisdictions, this will be separately disclosed within the specific issuer disclosures.

        This document may contain information obtained from third parties, including ratings from credit ratings agencies such as Standard & Poor's. Reproduction and distribution of third-party content in any form is prohibited except with the prior written permission of the related third-party. Third-party content providers do not guarantee the accuracy, completeness, timeliness or availability of any information, including ratings, and are not responsible for any errors or omissions (negligent or otherwise), regardless of the cause, or for the results obtained from the use of such content. Third-party content providers give no express or implied warranties, including, but not limited to, any warranties of merchantability or fitness for a particular purpose or use. Third-party content providers shall not be liable for any direct, indirect, incidental, exemplary, compensatory, punitive, special or consequential damages, costs, expenses, legal fees, or losses (including lost income or profits and opportunity costs) in connection with any use of their content, including ratings. Credit ratings are statements of opinions and are not statements of fact or recommendations to purchase hold or sell securities. They do not address the suitability of securities or the suitability of securities for investment purposes, and should not be relied on as investment advice.

        Any MSCI sourced information in this document is the exclusive property of MSCI Inc. ('MSCI'). Without prior written permission of MSCI, this information and any other MSCI intellectual property may not be reproduced, re-disseminated or used to create any financial products, including any indices. This information is provided on an "as is" basis. The user assumes the entire risk of any use made of this information. MSCI, its affiliates and any third party involved in, or related to, computing or compiling the information hereby expressly disclaim all warranties of originality, accuracy, completeness, merchantability or fitness for a particular purpose with respect to any of this information. Without limiting any of the foregoing, in no event shall MSCI, any of its affiliates or any third party involved in, or related to, computing or compiling the information have any liability for any damages of any kind. MSCI and the MSCI indexes are services marks of MSCI and its affiliates.

        The intellectual property right and any other rights, in Russell/Nomura Japan Equity Index belong to Nomura Securities Co., Ltd. ("Nomura") and Frank Russell Company ("Russell"). Nomura and Russell do not guarantee accuracy, completeness, reliability, usefulness, marketability, merchantability or fitness of the Index, and do not account for business activities or services that any index user and/or its affiliates undertakes with the use of the Index.

        Investors should consider this document as only a single factor in making their investment decision and, as such, the report should not be viewed as identifying or suggesting all risks, direct or indirect, that may be associated with any investment decision. Nomura Group produces a number of different types of research product including, among others, fundamental analysis and quantitative analysis; recommendations

        contained in one type of research product may differ from recommendations contained in other types of research product, whether as a result of differing time horizons, methodologies or otherwise. Nomura Group publishes research product in a number of different ways including the posting of product on Nomura Group portals and/or distribution directly to clients. Different groups of clients may receive different products and services from the research department depending on their individual requirements.

        Figures presented herein may refer to past performance or simulations based on past performance which are not reliable indicators of future performance. Where the information contains an indication of future performance, such forecasts may not be a reliable indicator of future performance. Moreover, simulations are based on models and simplifying assumptions which may oversimplify and not reflect the future distribution of returns.

        Certain securities are subject to fluctuations in exchange rates that could have an adverse effect on the value or price of, or income derived from, the investment.

        The securities described herein may not have been registered under the US Securities Act of 1933 (the '1933 Act'), and, in such case, may not be offered or sold in the US or to US persons unless they have been registered under the 1933 Act, or except in compliance with an exemption from the registration requirements of the 1933 Act. Unless governing law permits otherwise, any transaction should be executed via a Nomura entity in your home jurisdiction.

        This document has been approved for distribution in the UK and European Economic Area as investment research by NIplc. NIplc is authorised by the Prudential Regulation Authority and regulated by the Financial Conduct Authority and the Prudential Regulation Authority. NIplc is a member of the London Stock Exchange. This document does not constitute a personal recommendation within the meaning of applicable regulations in the UK, or take into account the particular investment objectives, financial situations, or needs of individual investors. This document is intended only for investors who are 'eligible counterparties' or 'professional clients' for the purposes of applicable regulations in the UK, and may not, therefore, be redistributed to persons who are 'retail clients' for such purposes. This document has been approved by NIHK, which is regulated by the Hong Kong Securities and Futures Commission, for distribution in Hong Kong by NIHK. This document has been approved for distribution in Australia by NAL, which is authorized and regulated in Australia by the ASIC. This document has also been approved for distribution in Malaysia by NSM. In Singapore, this document has been distributed by NSL. NSL accepts legal responsibility for the content of this document, where it concerns securities, futures and foreign exchange, issued by their foreign affiliates in respect of recipients who are not accredited, expert or institutional investors as defined by the Securities and Futures Act (Chapter 289). Recipients of this document in Singapore should contact NSL in respect of matters arising from, or in connection with, this document. Unless prohibited by the provisions of Regulation S of the 1933 Act, this material is distributed in the US, by NSI, a US-registered broker-dealer, which accepts responsibility for its contents in accordance with the provisions of Rule 15a-6, under the US Securities Exchange Act of 1934. The entity that prepared this document permits its separately operated affiliates within the Nomura Group to make copies of such documents available to their clients.

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        Disclaimers required in Japan

        Credit ratings in the text that are marked with an asterisk (*) are issued by a rating agency not registered under Japan's Financial Instruments and Exchange Act ("Unregistered Ratings"). For details on Unregistered Ratings, please contact the Research Product Management Dept. of Nomura Securities Co., Ltd.

        Investors in the financial products offered by Nomura Securities may incur fees and commissions specific to those products (for example, transactions involving Japanese equities are subject to a sales commission of up to 1.404% on a tax-inclusive basis of the transaction amount or a commission of ¥2,808 for transactions of ¥200,000 or less, while transactions involving investment trusts are subject to various fees, such as commissions at the time of purchase and asset management fees (trust fees), specific to each investment trust). In addition, all products carry the risk of losses owing to price fluctuations or other factors. Fees and risks vary by product. Please thoroughly read the written materials provided, such as documents delivered before making a contract, listed securities documents, or prospectuses.


        Transactions involving Japanese equities (including Japanese REITs, Japanese ETFs, and Japanese ETNs) are subject to a sales commission of up to 1.404% of the transaction amount (or a commission of ¥2,808 for transactions of ¥200,000 or less). When Japanese equities are purchased via OTC transactions (including offerings), only the purchase price shall be paid, with no sales commission charged. However, Nomura Securities may charge a separate fee for OTC transactions, as agreed with the customer. Japanese equities carry the risk of losses owing to price fluctuations. Japanese REITs carry the risk of losses owing to fluctuations in price and/or earnings of underlying real estate.

        Japanese ETFs carry the risk of losses owing to fluctuations in the underlying indexes or other benchmarks.

        Transactions involving foreign equities are subject to a domestic sales commission of up to 1.026% of the transaction amount (which equals the local transaction amount plus local fees and taxes in the case of a purchase or the local transaction amount minus local fees and taxes in the case of a sale) (for transaction amounts of ¥750,000 and below, maximum domestic sales commission is ¥7,668). Local fees and taxes in foreign financial instruments markets vary by country/territory. When foreign equities are purchased via OTC transactions (including offerings), only the purchase price shall be paid, with no sales commission charged. However, Nomura Securities may charge a separate fee for OTC transactions, as agreed with the customer. Foreign equities carry the risk of losses owing to factors such as price fluctuations and foreign exchange rate fluctuations.

        Margin transactions are subject to a sales commission of up to 1.404% of the transaction amount (or a commission of ¥2,808 for transactions of

        ¥200,000 or less), as well as management fees and rights handling fees. In addition, long margin transactions are subject to interest on the purchase amount, while short margin transactions are subject to fees for the lending of the shares borrowed. A margin equal to at least 30% of the transaction amount and at least ¥300,000 is required. With margin transactions, an amount up to roughly 3.3x the margin may be traded. Margin transactions therefore carry the risk of losses in excess of the margin owing to share price fluctuations. For details, please thoroughly read the written materials provided, such as listed securities documents or documents delivered before making a contract.

        Transactions involving convertible bonds are subject to a sales commission of up to 1.08% of the transaction amount (or a commission of

        ¥4,320 if this would be less than ¥4,320). When convertible bonds are purchased via OTC transactions (including offerings), only the purchase price shall be paid, with no sales commission charged. However, Nomura Securities may charge a separate fee for OTC transactions, as agreed with the customer. Convertible bonds carry the risk of losses owing to factors such as interest rate fluctuations and price fluctuations in the underlying stock. In addition, convertible bonds denominated in foreign currencies also carry the risk of losses owing to factors such as foreign exchange rate fluctuations.

        When bonds are purchased via public offerings, secondary distributions, or other OTC transactions with Nomura Securities, only the purchase price shall be paid, with no sales commission charged. Bonds carry the risk of losses, as prices fluctuate in line with changes in market interest rates. Bond prices may also fall below the invested principal as a result of such factors as changes in the management and financial circumstances of the issuer, or changes in third-party valuations of the bond in question. In addition, foreign currency-denominated bonds also carry the risk of losses owing to factors such as foreign exchange rate fluctuations.

        When Japanese government bonds (JGBs) for individual investors are purchased via public offerings, only the purchase price shall be paid, with no sales commission charged. As a rule, JGBs for individual investors may not be sold in the first 12 months after issuance. When JGBs for individual investors are sold before maturity, an amount calculated via the following formula will be subtracted from the par value of the bond plus accrued interest: (1) for 10-year variable rate bonds, an amount equal to the two preceding coupon payments (before tax) x 0.79685 will be used, (2) for 5-year and 3-year fixed rate bonds, an amount equal to the two preceding coupon payments (before tax) x 0.79685 will be used.

        When inflation-indexed JGBs are purchased via public offerings, secondary distributions (uridashi deals), or other OTC transactions with Nomura Securities, only the purchase price shall be paid, with no sales commission charged. Inflation-indexed JGBs carry the risk of losses, as prices fluctuate in line with changes in market interest rates and fluctuations in the nationwide consumer price index.The notional principal of inflation-indexed JGBs changes in line with the rate of change in nationwide CPI inflation from the time of its issuance. The amount of the coupon payment is calculated by multiplying the coupon rate by the notional principal at the time of payment. The maturity value is the amount of the notional principal when the issue becomes due. For JI17 and subsequent issues, the maturity value shall not undercut the face amount. Purchases of investment trusts (and sales of some investment trusts) are subject to a purchase or sales fee of up to 5.4% of the transaction amount. Also, a direct cost that may be incurred when selling investment trusts is a fee of up to 2.0% of the unit price at the time of redemption. Indirect costs that may be incurred during the course of holding investment trusts include, for domestic investment trusts, an asset management fee (trust fee) of up to 5.4% (annualized basis) of the net assets in trust, as well as fees based on investment performance. Other indirect costs may also be incurred. For foreign investment trusts, indirect fees may be incurred during the course of holding such as investment company compensation.

        Investment trusts invest mainly in securities such as Japanese and foreign equities and bonds, whose prices fluctuate. Investment trust unit prices fluctuate owing to price fluctuations in the underlying assets and to foreign exchange rate fluctuations. As such, investment trusts carry the risk of losses. Fees and risks vary by investment trust. Maximum applicable fees are subject to change; please thoroughly read the written materials provided, such as prospectuses or documents delivered before making a contract.

        In interest rate swap transactions and USD/JPY basis swap transactions ("interest rate swap transactions, etc."), only the agreed transaction payments shall be made on the settlement dates. Some interest rate swap transactions, etc. may require pledging of margin collateral. In some of these cases, transaction payments may exceed the amount of collateral. There shall be no advance notification of required collateral value or collateral ratios as they vary depending on the transaction. Interest rate swap transactions, etc. carry the risk of losses owing to fluctuations in market prices in the interest rate, currency and other markets, as well as reference indices. Losses incurred as such may exceed the value of margin collateral, in which case margin calls may be triggered. In the event that both parties agree to enter a replacement (or termination) transaction, the interest rates received (paid) under the new arrangement may differ from those in the original arrangement, even if terms other than the interest rates are identical to those in the original transaction. Risks vary by transaction. Please thoroughly read the written materials provided, such as documents delivered before making a contract and disclosure statements.

        In OTC transactions of credit default swaps (CDS), no sales commission will be charged. When entering into CDS transactions, the protection buyer will be required to pledge or entrust an agreed amount of margin collateral. In some of these cases, the transaction payments may exceed the amount of margin collateral. There shall be no advance notification of required collateral value or collateral ratios as they vary depending on the financial position of the protection buyer. CDS transactions carry the risk of losses owing to changes in the credit position of some or all of the referenced entities, and/or fluctuations of the interest rate market. The amount the protection buyer receives in the event that the CDS is triggered by a credit event may undercut the total amount of premiums that he/she has paid in the course of the transaction. Similarly, the amount the protection seller pays in the event of a credit event may exceed the total amount of premiums that he/she has received in the transaction. All other conditions being equal, the amount of premiums that the protection buyer pays and that received by the protection seller shall differ. In principle, CDS transactions will be limited to financial instruments business operators and qualified institutional investors.

        No account fee will be charged for marketable securities or monies deposited. Transfers of equities to another securities company via the Japan Securities Depository Center are subject to a transfer fee of up to ¥10,800 per issue transferred depending on volume.


        Nomura Securities Co., Ltd.

        Financial instruments firm registered with the Kanto Local Finance Bureau (registration No. 142)

        Member associations: Japan Securities Dealers Association; Japan Investment Advisers Association; The Financial Futures Association of Japan; and Type II Financial Instruments Firms Association.

        Nomura Group manages conflicts with respect to the production of research through its compliance policies and procedures (including, but not limited to, Conflicts of Interest, Chinese Wall and Confidentiality policies) as well as through the maintenance of Chinese walls and employee training.

        Additional information is available upon request and disclosure information is available at the Nomura Disclosure web page:

        http://go.nomuranow.com/research/globalresearchportal/pages/disclosures/disclosures.aspx Copyright © 2016 Nomura Securities Co., Ltd. All rights reserved.

      Nomura Holdings Inc. issued this content on 12 February 2016 and is solely responsible for the information contained herein. Distributed by Public, unedited and unaltered, on 12 February 2016 04:07:22 UTC

      Original Document: http://www.nomuraholdings.com/news/nr/nsc/20160212/20160212.pdf