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Basic Principles for Disposal of ETFs and J-REITs

日本語

September 19, 2025
(to be implemented)

Pursuant to the provisions of Paragraph 8. (3) of the "Principal Terms and Conditions for Purchases of ETFs and J-REITs," the basic principles for the disposal of exchange-traded funds (ETFs) and Japan real estate investment trusts (J-REITs) shall be as follows:

1. Framework of disposal

ETFs and J-REITs shall be disposed by means of sales to the market, based on the prices formed in the exchange market.

2. Method of sales

  1. (1) Details of sales of ETFs and J-REITs shall be as follows:
    1. (a) ETFs shall be sold at a pace of about 330 billion yen (book value basis) per year, with consideration to spreading out the timing of the sales.
    2. (b) J-REITs shall be sold at a pace of about 5 billion yen (book value basis) per year, with consideration to spreading out the timing of the sales.
    3. (c) Under the pace of sales stipulated in (a) and (b), the sales amount of each ETF and J-REIT shall be approximately proportionate to the share of each asset in the Bank's holdings, although the Bank shall set a limit to the total number of units sold per business day for each J-REIT, taking into account the market liquidity of each J-REIT.
  2. (2) Under the set of principles stipulated in (1) above, the trustee may temporarily adjust the amount of sales within the range set in prior consultation with the Bank, in response to changes in the condition of the financial markets. The trustee may suspend the sales, especially in the event of a considerable fall in relevant price indexes.

(Supplementary Provision)

The basic principles shall become effective on the date determined by the Governor.