Nomura to Convert Two Mutual Funds Into Active ETFs

Nomura plans to convert its Strategic Income Fund and SMID Cap Core Fund into actively managed ETFs through tax-free reorganizations expected to close around Nov. 6, 2026. Existing shareholders will receive ETF shares of equal value, with no shareholder vote required. The firm expects the ETF structure to lower expenses, increase portfolio transparency and provide intraday trading flexibility. The Small and Mid Cap ETF is also expected to benefit from greater tax efficiency through in-kind creations and redemptions, while the Strategic Income ETF will continue to rely more heavily on cash transactions.