NOMURA FUNDS

An Investment Company
(Société d’Investissement à Capital Variable)
with two active Sub-Funds

CHINA OPPORTUNITIES
JAPAN ACTIVE OPEN

organised under the Laws of

the Grand Duchy of Luxembourg

SEMI ANNUAL REPORT AND UNAUDITED

FINANCIAL STATEMENTS

for the period ended June 30, 2010

This report shall not constitute an offer or a solicitation of an offer to buy shares of the Fund. Subscriptions are
to be made only on the basis of the current Prospectus, accompanied by the latest available annual report and
accounts of the Fund and the latest semi-annual report if published thereafter.
 NOMURA FUNDS

Index
Page

Organisation of the Fund ....................................................................................................................................................... 3

Shareholders’ Information..................................................................................................................................................... 4

Report of the Board of Directors - CHINA OPPORTUNITIES ........................................................................................... 5

Report of the Board of Directors - JAPAN ACTIVE OPEN ................................................................................................ 6

Combined Statement of Net Assets ....................................................................................................................................... 8

Statement of Changes in the Number of Shares Outstanding................................................................................................ 9

Statistical Information ........................................................................................................................................................... 9

CHINA OPPORTUNITIES

Statement of Investments..................................................................................................................................................... 10

Economic and Geographical Division of Investments ........................................................................................................ 12

JAPAN ACTIVE OPEN

Statement of Investments..................................................................................................................................................... 13

Economic and Geographical Division of Investments ........................................................................................................ 15

Notes to the Financial Statements........................................................................................................................................ 16

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 NOMURA FUNDS

Organisation of the Fund

R.C.S Luxembourg B 107 078
Registered office: 33, rue de Gasperich L - 5826 Hesperange

BOARD OF DIRECTORS

Chairman Custodian
Tamon WATANABE Nomura Bank (Luxembourg) S.A.,
Chairman 33, rue de Gasperich
Nomura Asset Management U.K. Limited L - 5826 Hesperange
Grand Duchy of Luxembourg
Directors
Koichi MATSUMOTO Administrator, Domiciliary, Registrar and
President and Managing Director Transfer Agent
Nomura Bank (Luxembourg) S.A. Nomura Bank (Luxembourg) S.A.,
33, rue de Gasperich
Koichi SUDO L - 5826 Hesperange
Director, General Manager, Grand Duchy of Luxembourg
Nomura Bank (Luxembourg) S.A
Auditor
Yoshikazu CHONO Deloitte SA
Managing Director, 560, rue de Neudorf,
Nomura Asset Management Co., Ltd L - 2220 Luxembourg
Grand Duchy of Luxembourg
Management Company
RBS (Luxembourg) S.A. Legal Advisors
33, rue de Gasperich in Luxembourg
L - 5826 Hesperange Elvinger, Hoss & Prussen,
Grand Duchy of Luxembourg 2, Place Winston Churchill,
L - 1340 Luxembourg
Investment Manager Grand Duchy of Luxembourg
Nomura Asset Management U.K. Limited,
Nomura House Distributors
1, St Martin’s-le-Grand,
London EC1A 4NT Distributor for China Opportunities and Japan
United Kingdom Active Open Sub-Funds
Nomura Asset Management U.K. Limited,
Investment Adviser to Japan Active Open Sub-Fund Nomura House
Nomura Asset Management Co.,Ltd., 1, St Martin’s-le-Grand,
12-1 Nihonbashi 1-chome, Chuo-ku, London EC1A 4NT
Tokyo 103-8260, Japan United Kingdom

Investment Adviser to China Opportunities Sub-Fund Distributor for Japan Active Open Sub-Fund
Nomura Asset Management Hong Kong Ltd, Nomura International Plc,
30/F, Two International Finance Centre, Nomura House
8 Finance Street, Central 1, St Martin’s-le-Grand,
Hong Kong London EC1A 4NT
United Kingdom

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 NOMURA FUNDS

Shareholders’ Information

Nomura Funds (the “Fund”) is an open-ended investment company and an umbrella company. As of June 30, 2010, the Fund
comprised the following sub-funds: Japan Active Open and China Opportunities.

Unaudited semi-annual reports and audited annual reports are available at the registered office of the Company, 33, rue de
Gasperich, L - 5826 Hesperange.

The annual general meeting of shareholders of the Fund will be held at the registered office of the Fund in Luxembourg
normally on the last Monday in June at 11:00 a.m. in each year or, if any such day is not a bank business day in Luxembourg,
on the next following bank business day. Notices of all general meetings will be given to the extent required by Luxembourg
law by publication in the legal gazette Mémorial and in such other newspapers as the Directors shall determine.

The Net Asset Value per Share of each Class, as well as the Subscription Price and Redemption Price, may be obtained from
the registered office of the Fund. The combined financial statements are presented in Euro.

4
 NOMURA FUNDS

Report of the Board of Directors - China Opportunities

To Our Shareholders

We hereby present the semi-annual report of the Nomura Funds China Opportunities (the “Sub-Fund”) for the period
ended June 30, 2010.

The Net Asset Value per Share (NAV) of the Sub-Fund as of June 30, 2010 was USD 122,830, which is an increase of
145.66% from the initial subscription price of USD 50,000 and a decrease of 9.28% from the Net Asset Value per Share
(NAV) of the Sub-Fund as of December 31, 2009 of USD 135,388. Total net assets of the Sub-Fund on the same date were
USD 55,955,473 and the total number of shares outstanding was 455.55127.

Below are some considerations from the Investment Manager of the Sub-Fund on past performance and market outlook:

Performance Review

The objective of the Sub-Fund is to achieve long-term capital growth. During the period from 31 December 2009 to 30
June 2010, the Sub-Fund’s unit NAV fell -9.28% relative to the -6.13% return of the MSCI China Total Return Index,
underperforming it by 3.15%. Sector allocation made a negative contribution to the fund’s performance during this period,
as the portfolio was overweight in the underperforming financial, consumer and energy sectors. The stock contribution
from the consumer and financial sectors was also negative. However, the utilities sector made a positive contribution for
the period. In terms of sector weighting, the portfolio increased its exposure to the telecom and utilities sectors for the
period, largely at the expense of the other sectors.

Market Outlook and Strategy

China’s recovery remained solid, but it is clearly moderating from its very rapid pace at the start of the year, as indicated in
the latest Purchasing Managers’ Index (PMI). China’s PMI figure for June was 52.1 against a May figure of 53.9, the
decline mainly due to a drop in new orders for components. Despite this, trade data remained strong in June with export
growth surging to 43.9% year-on-year and imports growing 34.1%. Also, strong money supply growth in June for M1 and
M2 of 24.6% and 18.5% year-on-year, respectively, was accompanied by a high 2.9% CPI inflation rate. Retail sales
growth was strong too, rising 18.3% during the month. Chinese policymakers have maintained a cautious approach by
adopting a relatively accommodative monetary policy and by keeping fiscal stimulus policies in place. We remain
optimistic about the medium-term buoyancy of the Chinese economy. However, in the very short-term, given the trend of
rising CPI and wage inflation, the government’s measures to curb property speculation and its continued dilemma about
macro policy, we will adopt a less aggressive position.

Our investment strategy choices within sectors will be dictated by bottom-up decisions and will focus on the value plays in
each industry. We also prefer companies which, due to their competitive positions and management quality, have clear
strategies to take advantage of the economic growth in China. We have selected the utilities and financial sectors to be
overweight within the Fund for the time being.

The information stated in this report is historical and not necessarily indicative of future performance.

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 NOMURA FUNDS

Report of the Board of Directors - Japan Active Open

To Our Shareholders

We hereby present the semi-annual report of the Nomura Funds Japan Active Open (the “Sub-Fund”) for the period ended
June 30, 2010.

The Net Asset Value per Share (NAV) of the Euro share class of the Sub-Fund as of June 30, 2010 was EUR 950.07, which
is a decrease of 4.99% from the initial subscription price of EUR 1,000 but an increase of 15.01% from the Net Asset
Value per Share (NAV) of the Euro share class of the Sub-Fund as of December 31, 2009 of EUR 826.07. Total net assets
of the Euro share class of the Sub-Fund on the same date were EUR 950.07 and the total number of shares outstanding was
1.

The Net Asset Value per Share (NAV) of the Japanese Yen share class of the Sub-Fund as of June 30, 2010 was JPY 59,014,
which is a decrease of 40.99% from the initial subscription price of JPY 100,000 and a decrease of 5.7% from the Net
Asset Value per Share (NAV) of the Japanese Yen share class of the Sub-Fund as of December 31, 2009 of JPY 62,582.
Total net assets of the Japanese Yen share class of the Sub-Fund on the same date were JPY 3,273,577,833 and the total
number of shares outstanding was 55,471.0207.

The Net Asset Value per Share (NAV) of the US Dollar share class of the Sub-Fund as of June 30, 2010 was USD 798.68,
which is a decrease of 20.13% from the initial subscription price of USD 1,000 and a decrease of 1.94% from the Net
Asset Value per Share (NAV) of the US Dollar share class of the Sub-Fund as of December 31, 2009 of USD 814.48. Total
net assets of the US Dollar share class of the Sub-Fund on the same date were USD 3,514,184 and the total number of
shares outstanding was 4,400.

Below are some considerations from the Investment Manager of the Sub-Fund on past performance and market outlook:

Performance for six-month period to the end of June 2010:

The fund outperformed the benchmark by 0.66% for the semi-annual review period to the end of June 2010. While the
sector allocation had a negative effect, the stock selection contributed positively to the performance.
In terms of sector allocation, the fund held overweight positions in the economic sensitive sectors such as Machinery,
Automobiles, Electronics, and Commodities. Stocks within these sectors have become more attractive as companies have
increased their earnings projections.
However, these sectors have fallen sharply since May, which has had a negative impact on the performance of the fund.
On the other hand, our continued underweight exposure to the Financials sector and overweight exposure to the
Communications sector contributed positively.
We have mainly focused our attention on stocks that we considered undervalued in terms of their P/E ratio (Price to
Earnings) or P/BV (Price to Book Value). As corporate earnings have started to improve, we have placed more emphasis
on P/E valuations.
Leading contributors to the relative performance during the six-month review period were Alps Electric, which raised its
earnings forecast significantly, JS Group, which we bought on the basis of rising expectations for home renovation
demand, and Softbank which had strong pre-orders for the iPhone 4. The underweight positions in Toyota and Honda,
which declined due to the strengthening of the yen, contributed positively.
Market Outlook and Strategy
Japan’s GDP growth rate for the first quarter of 2010 was +5.0% (quarter-on-quarter, annualised). This continued growth
can be attributed to an increase in net exports of +2.7% (quarter-on-quarter, annualised) and rising personal consumption,
which increased +1.7% (quarter-on-quarter, annualised). External demand was driven by the growth in exports to Asia,
which accounted for 54% of total exports.
While Capital Spending for the first quarter of 2010 was +2.6% (quarter-on-quarter, annualised), recurring profit
margins, which tend to be a leading indicator of capital spending, have improved significantly, which could suggest
future growth in capital investment. In addition, labour costs/wages for the first quarter of 2010 have improved compared
to the corresponding period last year. This suggests that a recovery in personal consumption could support the economy
despite the scaling back of the government’s economic stimulus packages.

The information stated in this report is historical and not necessarily indicative of future performance.

6
 NOMURA FUNDS

Report of the Board of Directors - Japan Active Open (continued)

Market Outlook and Strategy (continued)

The P/E ratio of the Japanese equity market based on estimated earnings for FY2010 is approximately 16.6 times. If the
economic recovery continues, the P/E ratio is expected to fall further as corporate earnings are expected to increase in
FY2011. As such, we believe the stock market is currently undervalued. Current stock price levels would be justified only
under conditions where the global financial crisis and a global economic slowdown are expected to continue for much
longer. We have to monitor the market closely to determine whether or not the recent fall in stock prices was a temporary
dip.

While the investment policy of holding stocks that are undervalued in terms of their P/E ratio or P/BV remains
unchanged, we would like to place more emphasis on P/E valuations in view of the trend towards a corporate earnings
recovery. As for external demand related or economic sensitive stocks, our selection activity will take account of the
growth potential and earnings forecasts for 2011. For external demand related stocks, we aim to place more emphasis on
stocks with exposure to emerging countries rather than developed countries. In addition, we would like to keep the
portfolio’s sensitivity to currency fluctuations as low as possible in order to reduce the impact of the strengthening
Japanese yen. We will also hold domestic demand related stocks or defensive stocks, taking into account the risk control
perspective of the total portfolio as well as the probability of downward earnings revisions.

The information stated in this report is historical and not necessarily indicative of future performance.

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 NOMURA FUNDS

Combined Statement of Net Assets

at June 30, 2010

China Opportunities Japan Active Open Combined

(in USD) (in JPY) (in Euro)

ASSETS

Investment in securities at market value 55,085,984 3,551,728,000 77,893,517

Cash at banks 436,361 43,173,540 755,936
Formation expenses (note 2) 7,693 6,909,982 70,121
Receivable from brokers 276,273 -- 226,129
Prepaid expenses -- 268,161 2,477
Accrued securities lending income -- 19,958 184
Accrued income 386,874 4,608,890 359,226

Total Assets 56,193,185 3,606,708,531 79,307,590

LIABILITIES

Payable to brokers -- 768,500 7,098

Accrued expenses (note 8) 237,712 20,849,823 387,147

Total Liabilities 237,712 21,618,323 394,245

TOTAL NET ASSETS 55,955,473 3,585,090,208 78,913,345

NUMBER OF SHARES OUTSTANDING

China Opportunities Class I Shares 455.55127
Japan Active Open Class I - EUR 1.0000
Japan Active Open Class I - JPY 55,471.0207
Japan Active Open Class I - USD 4,400

NET ASSET VALUE PER SHARE

China Opportunities Class I Shares 122,830
Japan Active Open Class I - EUR 950.07
Japan Active Open Class I - JPY 59,014
Japan Active Open Class I - USD 798.68

The accompanying notes form an integral part of these financial statements.

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 NOMURA FUNDS

Statement of Changes in the Number of Shares Outstanding

for the period ended June 30, 2010
China Japan Active Japan Active Japan Active
Opportunities Open Open Open
Class I Shares Class I - EUR Class I - JPY Class I - USD

Number of shares
outstanding at the beginning
of the period 542.57941 1 51,536.7277 4,400

Number of shares issued -- -- 14,864.2930 --

Number of shares redeemed (87.02814) -- (10,930.0000) --

Number of shares
outstanding at the end of the
period 455.55127 1 55,471.0207 4,400

Statistical Information

June 30, 2010 December 31, 2009 December 31, 2008

China
Opportunities Class
I Shares Net Assets at the end of the year/period 55,955,473 73,458,556 53,231,852
Net Asset Value per share at the end of
(in USD) the year/period 122,830 135,388 83,606

Japan Active Open

Class I - EUR Net Assets at the end of the year/period 950.07 826.07 774.59
Net Asset Value per share at the end of
(in EUR) the year/period 950.07 826.07 774.59

Japan Active Open

Class I - JPY Net Assets at the end of the year/period 3,273,577,833 3,225,288,201 3,849,174,625
Net Asset Value per share at the end of
(in JPY) the year/period 59,014 62,582 56,530

Japan Active Open

Class I - USD Net Assets at the end of the year/period 3,514,184 3,583,702 3,963,501
Net Asset Value per share at the end of
(in USD) the year/period 798.68 814.48 750.35

The accompanying notes form an integral part of these financial statements.

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 NOMURA FUNDS

NOMURA FUNDS-CHINA OPPORTUNITIES

Statement of Investments at June 30, 2010
(expressed in USD DOLLARS)

Quantity Description Cost Market in % of

Value Net
Assets

TRANSFERABLE SECURITIES ADMITTED TO OFFICIAL EXCHANGE LISTING

BERMUDA
ORDINARY SHARE
410,000 HOPSON DEVELOPPEMENT HLDS LTD 749,181 510,260 0.91
Country Total 749,181 510,260 0.91

CAYMAN ISLANDS
ORDINARY SHARE
78,600 TENCENT HOLDINGS LTD 682,708 1,317,399 2.35
216,000 KINGBOARD CHEMICALS HOLDINGS LTD 900,674 937,680 1.68
520,500 SHIMAO PROPERTY HOLDING LTD 786,974 819,588 1.46
89,000 HENGAN INTL GROUP CO LTD 297,432 726,423 1.30
353,500 XTEP INTERNATIONAL HOLDINGS 295,375 293,296 0.52
Country Total 2,963,163 4,094,386 7.31

CHINA
ORDINARY SHARE
5,668,000 CHINA CONSRUCTION BANK H 3,888,856 4,615,336 8.25
940,000 CHINA LIFE INSURANCE CO LTD H 1,534,574 4,183,265 7.48
5,683,000 IND & COMM BANK OF CHINA LTD H 3,226,014 4,175,014 7.46
2,298,000 PETROCHINA CO LTD H 2,305,859 2,588,415 4.63
4,226,000 BANK OF CHINA LTD H 1,756,206 2,154,787 3.85
1,672,000 DONGFENG MOTOR GP CO H 2,035,793 1,971,348 3.52
2,268,000 CHINA PETROLEUM & CHEMICAL CORP H 1,745,004 1,849,699 3.31
2,382,000 CHINA TELECOM CORP LTD H 1,143,360 1,150,307 2.06
979,000 BANK OF COMMUNICATIONS CO LTD H 1,067,577 1,042,369 1.86
788,500 CHINA RAILWAY CONSTR CORP -H 927,857 998,534 1.78
1,572,000 HUANENG POWER INTL H 947,589 936,817 1.67
985,200 CHINA MINSHENG BANKING CORP H 885,835 864,230 1.54
206,600 CHINA PACIFIC INSURANCE CO LTD H 852,054 826,557 1.48
858,000 JIANGSU EXPRESSWAY CO LTD H 781,186 781,300 1.40
638,500 BBMG CORPORATION H 671,477 665,888 1.19
341,000 JIANGXI COPPER CO LTD H 632,288 643,807 1.15
690,000 CHINA COMMUNICATION CONSTRUCTION 684,963 638,066 1.14
H
247,922 CHINA MERCHANTS BANK H 651,546 601,812 1.08
90,000 WEICHAI POWER CO LTD H 539,053 587,206 1.05
170,000 ANHUI CONCH H 561,349 499,999 0.89
700,000 CHINA RAILWAY GOUP LTD H 446,639 453,120 0.81
326,000 CHINA COAL ENERGY CO H 466,445 414,093 0.74
340,000 CHINA OILFIELD SERVICES LTD H 418,221 402,182 0.72
806,000 CHINA COMMUNICATIONS SVCS CORP H 418,290 393,372 0.70
230,000 CHINA NATIONAL BUILDING MA H 330,834 370,433 0.66
294,930 CHINA VANKE CO LTD B 314,364 310,232 0.55
208,000 CHINA SHIPPING DEVELOPMENT CO LTD H 340,337 265,810 0.48
570,000 MAANSHAN IRON & STEEL CO LTD H 356,432 251,836 0.45
386,000 CHINA CITIC BANK CORP H 216,568 247,384 0.44
202,000 AIR CHINA LIMITED H 220,804 201,844 0.36
The accompanying notes form an integral part of these financial statements.

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 NOMURA FUNDS

NOMURA FUNDS-CHINA OPPORTUNITIES

Statement of Investments at June 30, 2010 (continued)
(expressed in USD DOLLARS)

Quantity Description Cost Market in % of

Value Net
Assets

TRANSFERABLE SECURITIES ADMITTED TO OFFICIAL EXCHANGE LISTING (continued)

CHINA (CONTINUED)
ORDINARY SHARE (CONTINUED)
55,000 CHINA SHENHUA ENERGY CO LTD H 141,231 201,322 0.36
308,000 CHINA BLUECHEMICAL LTD H 208,753 172,473 0.31
122,800 GUANGZHOU R&F PROPERTIES CO LTD H 130,059 157,561 0.28
4,000 ZTE CORP-H 12,929 12,304 0.02
30,860,346 35,628,722 63.67
RIGHTS
52,950 BANK OF COMMUNICATION RTS10 0 21,218 0.04
0 21,218 0.04
Country Total 30,860,346 35,649,940 63.71

HONG KONG
ORDINARY SHARE
584,500 CHINA MOBILE LTD 4,216,301 5,870,506 10.49
1,624,000 CNOOC LTD 2,400,655 2,790,785 4.99
295,500 HONGKONG ELECTRIC HOLDING LTD 1,750,723 1,762,899 3.15
1,146,000 CHINA AGRI INDUSTRIES LTD 1,186,238 1,336,456 2.39
587,880 CHINA OVERSEAS LAND&INVEST LTD 648,824 1,108,406 1.98
428,000 CN RESOURCES POWER HOLDING 751,952 976,272 1.74
478,800 CHAODA MODERN AGRICULTURE LTD 578,358 473,510 0.85
140,000 CHINA EVERBRIGHT LIMITED 206,523 322,938 0.58
191,000 POLY HONG KONG INVESTMENT LTD 199,885 189,626 0.34
Country Total 11,939,459 14,831,398 26.51

TOTAL INVESTMENTS 46,512,149 55,085,984 98.44

The accompanying notes form an integral part of these financial statements.

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 NOMURA FUNDS

NOMURA FUNDS-CHINA OPPORTUNITIES

Economic and Geographical Division of Investments at June 30, 2010

Economic and Geographical Division in % of

Net Assets

BERMUDA
REAL ESTATE 0.91
0.91

CAYMAN ISLANDS
INTERNET & SOFTWARE SERVICES 2.35
ELECTRONICS & SEMICONDUCTORS 1.68
BUILDING MATERIALS & TRADE 1.46
PHARMACEUTICALS,COSMETICS & MEDICAL 1.30
TEXTILE,CLOTHING & LEATHER GOODS 0.52
7.31

CHINA
BANKS & OTHER CREDIT INSTITUTIONS 24.08
INSURANCES 8.97
PETROLEUM 8.64
BUILDING MATERIALS & TRADE 5.34
MECHANICAL ENGINEERING & IND. EQUIP 4.57
TRANSPORTATION 3.37
TELECOMMUNICATIONS 2.78
UTILITIES 2.41
NON-FERROUS METALS 1.15
REAL ESTATE 0.84
MINING, COAL & STEEL 0.81
FINANCIAL,INVEST & OTHER DIV CO 0.44
CHEMICALS 0.31
63.71

HONG KONG
TELECOMMUNICATIONS 10.49
PETROLEUM 4.99
UTILITIES 4.89
MISCELLANEOUS SERVICES 2.39
REAL ESTATE 1.98
FINANCIAL,INVEST & OTHER DIV CO 0.92
AGRICULTURE AND FISHERY 0.85
26.51

TOTAL INVESTMENTS 98.44

The accompanying notes form an integral part of these financial statements.

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 NOMURA FUNDS

NOMURA FUNDS-JAPAN ACTIVE OPEN

Statement of Investments at June 30, 2010
(expressed in JAPANESE YEN)

Quantity Description Cost Market in % of

Value Net
Assets

TRANSFERABLE SECURITIES ADMITTED TO OFFICIAL EXCHANGE LISTING

JAPAN
ORDINARY SHARE
55,100 SOFTBANK CORP 110,878,159 130,642,100 3.64
20,000 EAST JAPAN RAILWAY CO 119,544,655 118,600,000 3.31
280,800 MITSUBISHI UFJ FINANCIAL GROUP 216,473,287 113,724,000 3.17
331,000 HITACHI LTD 123,111,125 107,244,000 2.99
28,000 NIPPON TELG & TEL CORP NTT 121,608,681 101,920,000 2.84
40,100 DENSO CORP 103,545,917 99,287,600 2.77
321 JAPAN TOBACCO INC 102,554,445 89,141,700 2.49
48,100 JS GROUP CORP 77,623,246 82,058,600 2.29
601 NTT DOCOMO 94,732,520 80,834,500 2.25
140,000 FUJITSU LTD 80,537,938 78,540,000 2.19
70,000 KIRIN HOLDINGS CO LTD 84,596,343 78,540,000 2.19
41,100 MITSUBISHI CORP 96,233,764 76,610,400 2.14
30,000 SUMITOMO MITSUI FINANCIAL GROUP INC 175,167,625 76,140,000 2.12
120,300 NISSAN MOTOR CO LTD 93,703,568 75,307,800 2.10
88,000 ASAHI GLASS CO LTD 88,752,823 74,184,000 2.07
10,000 KYOCERA CORP 84,237,981 72,600,000 2.03
18,000 SECOM CO LTD 74,273,535 71,190,000 1.99
7,000 FANUC LTD 65,276,222 70,980,000 1.98
220,000 MITSUBISHI HEAVY IND LTD 88,651,212 67,980,000 1.90
461,400 MIZUHO FINANCIAL GROUP INC 176,226,689 67,825,800 1.89
16,000 SHIN-ETSU CHEMICAL CO LTD 87,011,476 66,800,000 1.86
58,100 PANASONIC CORP 97,087,825 65,188,200 1.82
22,000 EISAI CO LTD 77,637,301 65,010,000 1.81
22,000 TSUMURA & CO 59,992,431 59,796,000 1.67
20,000 FAMILYMART CO LTD 58,661,078 58,720,000 1.64
15,000 LAWSON INC 60,866,258 58,275,000 1.63
22,000 FUJIFILM HOLDINGS CORP 72,839,110 56,936,000 1.59
40,100 BRIDGESTONE CORP 64,956,616 56,701,400 1.58
128,800 JX HOLDINGS INC 64,388,590 56,285,600 1.57
20,000 ELECTRIC POWER DEVELOPMENT C 55,586,622 56,280,000 1.57
58,100 AEON CO LTD 58,948,751 54,904,500 1.53
120,000 SUMITOMO TRUST & BANKING CO LTD 55,182,169 54,840,000 1.53
51,100 MITSUI & CO LTD 81,966,774 53,859,400 1.50
8,020 ORIX CORP 96,667,708 52,130,000 1.45
26,000 HOYA PENTAX HD CORP 55,493,570 49,556,000 1.38
134,000 SUMITOMO CHEMICAL CO LTD 70,913,902 46,498,000 1.30
140 WEST JAPAN RAILWAY COMPANY 44,344,888 45,500,000 1.27
100,000 OJI PAPER CO LTD 42,469,133 43,700,000 1.22
50,000 DAIHATSU MOTOR CO LTD 45,148,117 41,500,000 1.16
14,000 NITTO DENKO CORP 46,761,715 41,146,000 1.15
48,000 AJINOMOTO CO INC 38,221,164 38,736,000 1.08
20,000 T&D HOLDINGS INC 60,821,291 38,380,000 1.07
24,000 SUMITOMO REALTY & DEV CO LTD 40,277,921 36,648,000 1.02

The accompanying notes form an integral part of these financial statements.

13
 NOMURA FUNDS

NOMURA FUNDS-JAPAN ACTIVE OPEN

Statement of Investments at June 30, 2010 (continued)
(expressed in JAPANESE YEN)

Quantity Description Cost Market in % of

Value Net
Assets

TRANSFERABLE SECURITIES ADMITTED TO OFFICIAL EXCHANGE LISTING (CONTINUED)

JAPAN (CONTINUED)
ORDINARY SHARE (CONTINUED)
100,000 TOKYU CORP 37,441,749 36,200,000 1.01
300,000 HITACHI ZOSEN CORPORATION 36,413,571 36,000,000 1.00
38,100 BROTHER INDUSTRIES LTD 41,814,575 35,471,100 0.99
160,000 KAWASAKI HEAVY INDUSTRIES LTD 43,820,245 34,720,000 0.97
50,000 KAMIGUMI CO LTD 38,389,877 34,200,000 0.95
30,000 TOSHIBA PLANT SYSTEMS & SERVICES 32,173,700 33,420,000 0.93
200,000 SHOWA DENKO KK 39,522,605 32,400,000 0.90
40,100 SUMITOMO RUBBER INDUSTRIES LTD 27,827,065 31,598,800 0.88
13,800 TOYODA GOSEI CO LTD 32,613,006 30,649,800 0.85
22,000 JGC CORP 36,057,064 30,008,000 0.84
6,000 TDK CORP 29,520,000 29,490,000 0.82
56,000 ZEON CORPORATION 24,672,973 29,288,000 0.82
36,100 AEON CREDIT SERVICE LTD 38,680,902 28,699,500 0.80
40,100 ITOCHU CORP 29,140,165 28,270,500 0.79
60,000 MARUBENI CORP 41,025,727 27,660,000 0.77
12,000 EXEDY CORP 24,694,598 27,528,000 0.77
32,100 ALPS ELECTRIC CO LTD 18,097,920 24,684,900 0.69
16,000 JSR CORPORATION 29,890,876 24,096,000 0.67
18,000 TOYOTA BOSHOKU CORP 29,714,682 23,562,000 0.66
4,810 POINT INC 23,392,904 23,472,800 0.65
8,000 KURITA WATER INDUSTRIES LTD 23,672,159 19,568,000 0.55
Country Total 4,292,550,508 3,551,728,000 99.06

TOTAL INVESTMENTS 4,292,550,508 3,551,728,000 99.06

The accompanying notes form an integral part of these financial statements.

14
 NOMURA FUNDS

NOMURA FUNDS-JAPAN ACTIVE OPEN

Economic and Geographical Division of Investments at June 30, 2010

Economic and Geographical Division in % of

Net Assets

JAPAN
FINANCIAL,INVEST & OTHER DIV CO 12.02
ELECTRONICS & SEMICONDUCTORS 9.73
VEHICLES 8.31
BUILDING MATERIALS & TRADE 6.67
TRANSPORTATION 6.54
CHEMICALS 5.55
MISCELLANEOUS TRADE COMPANIES 5.20
TELECOMMUNICATIONS 5.10
RETAIL TRADE, DEPARTMENT STORES 4.79
ELECTRICAL APPLIANCES & COMPONENTS 4.12
MECHANICAL ENGINEERING & IND. EQUIP 3.87
BANKS & OTHER CREDIT INSTITUTIONS 3.78
INTERNET & SOFTWARE SERVICES 3.64
PHARMACEUTICALS,COSMETICS & MEDICAL 3.48
TOBACCO & ALCOHOLIC DRINKS 2.49
RUBBER & TIRES 2.46
COMPUTER HARDWARE & NETWORKING 2.19
MISCELLANEOUS SERVICES 1.99
PHOTOGRAPHIC & OPTICS 1.59
UTILITIES 1.57
FORESTRY, PAPER & FOREST PRODUCTS 1.22
FOOD & SOFT DRINKS 1.08
REAL ESTATE 1.02
TEXTILE,CLOTHING & LEATHER GOODS 0.65
99.06

TOTAL 99.06

The accompanying notes form an integral part of these financial statements.

15
 NOMURA FUNDS

Notes to the Financial Statements

for the period ended June 30, 2010

Note 1 - Organisation

NOMURA FUNDS (the “Fund”) was incorporated as an open-ended investment company (Société d’Investissement à
Capital Variable – SICAV) with multiple compartments on April 6, 2005. The duration of the Fund is indefinite. The initial
capital on incorporation was JPY 5,000,000. On incorporation all the shares representing the initial capital were subscribed
for and were fully paid. The Fund has designated a management company subject to chapter 13 of the Luxembourg law of
December 20, 2002 regarding undertakings for collective investment as amended.

The Articles of Incorporation were published in the Mémorial C, Recueil des Sociétés et Associations on April 18, 2005.
The Articles of Incorporation are on file with the Registre de Commerce et des Sociétés of Luxembourg. The notice
required by Luxembourg law relating to the issue of Shares in the Fund has been deposited with the Registre de Commerce
et des Sociétés of Luxembourg.

The Fund is designed to offer investors, within the same investment vehicle, a choice between several Sub-Funds, which
are managed separately and are distinguished principally by their specific investment policy and/or by the currency in
which they are denominated.

The Fund is registered under Part I of the Luxembourg law of December 20, 2002 relating to undertakings for collective
investment as amended.

At June 30, 2010, the Fund comprised two active Sub-Funds:

(i) China Opportunities.

The Sub-Fund's investment objective is to achieve long term capital growth through investment in an actively managed
portfolio of Chinese securities, including primarily equities issued by companies based in or listed/dealt on Regulated
Markets in the People's Republic of China (PRC), comprising Hong Kong SAR ("Special Administrative Region"). The
Sub-Fund may also invest in companies carrying out a preponderant part of their business activities in the PRC.

(ii) Japan Active Open.

The Sub-Fund's investment objective is to achieve long term capital growth through investment in an actively managed
portfolio of Japanese securities, listed/dealt on Regulated Markets in Japan and to outperform the Benchmark (being the
TOPIX). It is anticipated that the Sub-Fund will invest across the entire range of capitalizations (from small cap to large
cap).

16
 NOMURA FUNDS

Notes to the Financial Statements

for the period ended June 30, 2010 (continued)
Note 2 - Significant Accounting Policies

The Fund maintains the books and records of each individual Sub-Fund in its respective currency, Japanese Yen for Japan
Equity Sub-Fund and the consolidated Japan Active Open Sub-Fund and U.S. Dollar for China Opportunities Sub-Fund,
and prepares combined financial statements in Euro.

The financial statements are prepared in accordance with Luxembourg regulations relating to investment funds, including
the following significant accounting policies:

INVESTMENTS IN SECURITIES
(a) Securities listed on Regulated Markets, which operate regularly and are recognised and open to the public, are valued at
the last available closing price; in the event that there should be several such markets, on the basis of the last available
closing price of the main market for the relevant security. Should the last available closing price for a given security not
truly reflect its fair market value, then that security is valued on the basis of the probable sales prices which the Board of
Directors deems is prudent to assume;

(b) Securities not listed on Regulated Markets, which operate regularly and are recognised and open to the public, are
valued on the basis of their last available closing price. Should the last available closing price for a given security not truly
reflect its fair market value, then that security is valued by the Board of Directors on the basis of the probable sales price
which the Board of Directors deems is prudent to assume;

(c) Shares or units in underlying open-ended investment funds are valued at their last available net asset value;

(d) Liquid assets and money market instruments may be valued at nominal value plus any accrued interest or on an
amortised cost basis. All other assets, where practice allows, may be valued in the same manner. Short-term investments
that have a remaining maturity of one year or less may be valued (i) at market value, or (ii) where market value is not
available or not representative, at amortised cost;

(e) The value of any cash on hand or on deposit, bills and demand notes and accounts receivable, prepaid expenses, cash
dividends and interest declared or accrued as aforesaid, and not yet received is deemed to be the full amount thereof,
unless, however, the same is unlikely to be paid or received in full, in which case the value thereof is determined after
making such discount as the Board of Directors may consider appropriate in such case to reflect the true value thereof.

In the event that extraordinary circumstances render such a valuation impracticable or inadequate, the Board of Directors
may, at their discretion, prudently and in good faith follow other methods of valuation to be used if they consider that such
method of valuation better reflects value and is in accordance with good accounting practice in order to achieve a fair
valuation of the assets of the Fund.

SECURITY TRANSACTIONS AND INVESTMENT INCOME

Security transactions are recorded on the trade date. Realised profits and losses on sales of portfolio securities are
calculated on a weighted-average cost basis. Dividend income is recorded on the ex-dividend date and interest income is
recorded on the basis of interest accrued, premiums amortised and discounts earned. Dividend income is recorded net of
withholding tax.

17
 NOMURA FUNDS

Notes to the Financial Statements

for the period ended June 30, 2010 (continued)

Note 2 - Significant Accounting Policies (continued)

FOREIGN CURRENCY TRANSLATION

The market value of securities as well as other assets and liabilities stated in currencies other than the reporting currency of
the respective sub-funds have been translated at the exchange rates prevailing at the date of the semi-annual accounts.
Income and expenses not denominated in the reporting currency of the respective Sub-Funds have been translated at the
rate prevailing at the date of transaction.

For the preparation of combined financial statements in Euro, the statements of each Sub-Fund denominated in currencies
other than Euro have been translated at the exchange rates prevailing at the period-end.

The following exchange rates were used:

1 EUR = 1.22175 USD

1 EUR = 108.2654148 JPY

FORMATION EXPENSES
The cost incurred in the setting-up of the Fund and the Sub-Funds are amortised on a straight-line basis over 5 years from
the date on which the Fund and the Sub-Funds commenced business.

COMBINED FINANCIAL STATEMENTS

The Fund’s total net assets are expressed in EUR and correspond to the difference between the total assets and the total
liabilities of the Fund. In order to calculate this value, the net assets of each Sub-Fund are, unless they are already
expressed in EUR, converted into EUR and added together.

Note 3 - Management and Advisory Fees

The Management Company is entitled to a maximum management fee at an annual rate of 0.15% of the average net assets
of the Fund for the provision of its services.

Funds managed by the Management Company: the list of the funds managed by the Management Company, may be
obtained, on simple request, at the registered office of the Management Company.

The different Sub-Funds and Classes will incur an annual investment management fee payable to the Investment Manager,
which reflects all expenses related to the investment management of the Sub-Funds and Classes. The investment
management fee which is expressed as a percentage of the Net Asset Value is specified in the relevant Annex of the
Prospectus as follows:

JAPAN ACTIVE OPEN

The Investment Manager was entitled to receive out of the monies of this Sub-Fund, an investment management fee
accrued daily and payable quarterly, not exceeding 0.50 % per annum of the average total net assets of the Sub-Fund
attributable to Class I.

CHINA OPPORTUNITIES
The Investment Manager is entitled to receive out of the monies of this Sub-Fund, an investment management fee accrued
daily and payable quarterly, not exceeding 1 % per annum of the average total net assets of the Sub- Fund attributable to
Class I.

The Investment Advisers are paid by the Investment Manager.

Note 4 - Custodian, Administrator, Domiciliary, Registrar and Transfer Agent Fees

The Custodian, Administrator, Registrar and Transfer Agent are entitled to receive out of the monies of each Sub-Fund a
combined fee in accordance with usual practice in Luxembourg for custody, administration, domiciliary and registrar and
transfer agent services. Such fee is based on the total net assets of each Sub-Fund and is payable quarterly, in arrears.

In addition, the Custodian will be reimbursed for the reasonable out-of-pocket expenses relating to the services thereto.

18
 NOMURA FUNDS

Notes to the Financial Statements

for the period ended June 30, 2010 (continued)

Note 5 - Subscription and Redemption of Shares

CHINA OPPORTUNITIES

Classes of Shares
Class I Shares are available for subscription and are reserved to institutional investors as defined from time to time by the
Luxembourg Supervisory Authority. The minimum subscription and minimum holding amounts are of USD 3 million and
the subsequent minimum investment amounts are USD 1 million unless the Board of Directors resolve otherwise.

Class A Shares are currently not available. The minimum subscription and minimum holding amounts are of USD 50,000.

Subscriptions
Investors should be aware that subscription to the Shares may be made directly through the Registrar and Transfer Agent
as described in the Chapter on Subscriptions.

The Initial Offering Period commenced on May 10, 2005 and has closed on June 6, 2005. During the Initial Offering
Period, Class I Shares were subscribed at a price of USD 50,000 plus the applicable subscription charge. Following the
close of the Initial Offering Period, Shares are available for subscription on each Valuation Day. Applications for Shares
must be received by the Registrar and Transfer Agent by no later than 8 a.m. (Luxembourg time) on the relevant Valuation
Day to be dealt with on the basis of the Net Asset Value per Share calculated on that Valuation Day. Subscription proceeds
must be received by the Custodian on an account of the Fund no later than the fifth Business Day following the relevant
Valuation Day. Applications for Shares received by the Registrar and Transfer Agent after 8.00 a.m. (Luxembourg time)
will be dealt with on the basis of the Net Asset Value per Share of the next Valuation Day.

A subscription charge, not exceeding 5 per cent of the fixed price at which Shares are offered during the Initial Offering
Period and thereafter of the Subscription Price, may be added for the purpose of compensating financial intermediaries and
other agents who assist in placing the Shares. This charge is to be considered a maximum rate and the intermediaries and
other agents may decide at their discretion to waive this charge in whole or in part. No subscription charge was charged on
subscriptions recorded during the year under review.

Redemptions
Shares are redeemable at the option of the Shareholders. Completed redemption requests should be sent to the Registrar
and Transfer Agent to be received no later than 8 a.m. (Luxembourg time) on the relevant Valuation Day in order to be
dealt with on the basis of the Net Asset Value per Share calculated on that Valuation Day. Redemption requests received
by the Registrar and Transfer Agent after 8.00 a.m. (Luxembourg time) will be dealt with on the basis of the Net Asset
Value per Share of the next Valuation Day. No Redemption Charge will be levied for the Sub-Fund.

Payment of redemption proceeds will normally be made within six Business Days after the relevant Valuation Day.

JAPAN ACTIVE OPEN

Classes of Shares
Class I EUR Shares are available for subscription and are reserved to Institutional Investors as defined under section
"Subscriptions" of this Prospectus. The minimum subscription and minimum holding amounts are of EUR 1 million and
the subsequent minimum investment amounts are EUR 10,000 unless the Board of Directors resolve otherwise.

Class I JPY Shares are available for subscription and are reserved to Institutional Investors as defined under section
"Subscriptions" of this Prospectus. The minimum subscription and minimum holding amounts are of JPY 100 million and
the subsequent minimum investment amounts are JPY 1 million unless the Board of Directors resolve otherwise.

Class I USD Shares are available for subscription and are reserved to Institutional Investors as defined under section
"Subscription" of this Prospectus. The minimum subscription and minimum holding amounts are of USD 1 million and the
subsequent minimum investment amounts are USD 10,000 unless the Board of Directors resolve otherwise.

Class A Shares are currently not available. The minimum subscription and minimum holding amounts are of JPY
10,000,000.

19
 NOMURA FUNDS

Notes to the Financial Statements

for the period ended June 30, 2010 (continued)

Note 5 - Subscription and Redemption of Shares (continued)

JAPAN ACTIVE OPEN (CONTINUED)

Subscriptions
The Initial Offering Period commenced on June 26, 2006 and closed on July 21, 2006 provided that the Board of Directors
may extend the Initial Offering Period in their sole discretion to a maximum of 6 months, in which case the Shareholders
will be specifically informed and the Prospectus will be updated accordingly. During the Initial Offering Period, Class I
EUR shares may be subscribed at a price of EUR 1,000 plus the applicable subscription, Class I JPY Shares may be
subscribed at a price of JPY 100,000 plus the applicable subscription charge and Class I USD shares may be subscribed at
a price of USD 1,000 plus the applicable subscription charge.

Subscription proceeds were to be received by the Custodian on an account of the Sub-Fund on July 25, 2006. By
derogation to the provisions under the section "Subscription" in the main part of the Prospectus, applications for Shares
must be received by the Sub-Registrar and Transfer Agent and subscription proceeds must be paid to the Custodian on an
account of the Sub-Fund by no later than 5 p.m. (Luxembourg time) on the last day of the Initial Offering Period.

Following the close of the Initial Offering Period, Shares are available for subscription on each Valuation Day. By
derogation to the provisions under the section "Subscription" in the main part of the Prospectus, applications for Shares
must be received by the Sub-Registrar and Transfer Agent by no later than 5 p.m. (Luxembourg time) one Luxembourg
business day prior to the Valuation Day to be dealt with on the basis of the Net Asset Value per Share calculated on that
Valuation Day. Subscription proceeds must be received by the Custodian on an account of the Sub-Fund no later than the
fifth Business Day following the relevant Valuation Day.

Applications for Shares received by the Sub-Registrar and Transfer Agent after 5 p.m. (Luxembourg time) one
Luxembourg business day prior to the Valuation Day will be dealt with on the basis of the Net Asset Value per Share of
the next Valuation Day.

A subscription charge, not exceeding 5 per cent of the fixed price at which Shares are offered during the Initial Offering
Period and thereafter of the Subscription Price, may be added for the purpose of compensating financial intermediaries and
other agents who assist in placing the Shares. This charge is to be considered a maximum rate and the intermediaries and
other agents may decide at their discretion to waive this charge in whole or in part. No subscription charge was charged on
subscriptions recorded during the year under review.A request for a partial redemption of Shares may be treated as a
request for the redemption of the entire holding if, as a result of such partial redemption, the total Net Asset Value of the
Shares retained by the Shareholder in the Sub-Fund would be less than the minimum holding.

Redemptions
Shares are redeemable at the option of the Shareholders. By derogation to the provisions provided under the section
"Redemption" in the main part of the Prospectus, completed redemption requests should be sent to the Sub-Registrar and
Transfer Agent to be received no later than 5 p.m. (Luxembourg time) one Luxembourg business day prior to the Valuation
Day in order to be dealt with on the basis of the Net Asset Value per Share calculated on that Valuation Day.

Redemption requests received by the Sub-Registrar and Transfer Agent after 5 p.m. (Luxembourg time) one Luxembourg
business day prior to the Valuation Day will be dealt with on the basis of the Net Asset Value per Share of the next
Valuation Day.

No Redemption Charge will be levied for the Sub-Fund.

Payment of redemption proceeds will normally be made within five Business Days after the relevant Valuation Day.

A request for a partial redemption of Shares may be treated as a request for the redemption of the entire holding if, as a
result of such partial redemption, the total Net Asset Value of the Shares retained by the Shareholder in the Sub-Fund
would be less than the minimum holding.

20
 NOMURA FUNDS

Notes to the Financial Statements

for the period ended June 30, 2010 (continued)

Note 6 - Distribution policies

CHINA OPPORTUNITIES
The Sub-Fund offers the Shares in the form of accumulation shares. The Sub-Fund shall not distribute any dividend and all
net investment income and all net realised and unrealised capital gains will be accumulated and will increase the Net Asset
Value of the Shares of the Sub-Fund.

JAPAN ACTIVE OPEN

The Sub-Fund offers the Shares in the form of accumulation shares. The Sub-Fund shall not distribute any dividend and all
net investment income and all net realised and unrealised capital gains will be accumulated and will increase the Net Asset
Value of the Shares of the Sub-Fund.

Note 7 - Taxation

Under current law and practice the Fund is not liable to any Luxembourg income tax, nor are dividends (if any) paid by the
Fund liable to any Luxembourg withholding tax. However, the Fund is liable in Luxembourg to a taxe d’abonnement of
0.05 per cent per annum of its net assets, such tax being payable quarterly and calculated on the Net Asset Value of the
Fund at the end of the relevant quarter. The reduced taxe d’abonnement rate of 0.01 per cent per annum will be applicable
to the Classes of Shares which are exclusively held by Institutional Investors. To the extent that the assets of the Fund are
invested in investment funds which are established in Luxembourg, no such tax is payable.

No stamp duty or other tax is payable in Luxembourg on the issue of Shares in the Fund except for an initial tax of 1,250
Euro which was paid upon incorporation.

Under current law and practice, it is anticipated that no Luxembourg capital gains tax will be payable on the realised or
unrealised capital appreciation of the assets of the Fund.

Note 8 - Accrued expenses

China
Opportunitie Japan Combine
s Active Open d
(in USD) (in JPY) (in Euro)

Management and advisory fees 155,502 5,232,883 175,613

Printing and publication fees -- 7,955,929 73,485
Custodian, Administrator, Domiciliary, Registar and Transfer Agent
fees 41,580 1,893,472 51,522
Other expenses -- 2,634,473 24,333
Professional fees 14,404 1,216,451 23,025
Formation expenses 22,327 -- 18,275
Agent company fees -- 1,630,095 15,056
Out-of-pocket expenses 2,975 190,895 4,198
Subscription tax 924 95,625 1,640

Total Accrued Expenses 237,712 20,849,823 387,147

21
 NOMURA FUNDS

Notes to the Financial Statements

for the period ended June 30, 2010 (continued)

Note 9 - Statement of changes in the investment portfolio

The statement of changes in the investment portfolio for the period ended June 30, 2010 for each active Sub-Fund is
available free of charge at the Registered Office of the Company.

Note 10 – Securities lending

The Fund has appointed Nomura Bank (Luxembourg) S.A. as Securities Lending Agent by an agreement dated October 31,
2005. Securities lending income is fixed under such agreement and is recorded on a daily basis in arrears.

JAPAN ACTIVE OPEN

As of June 30, 2010, the Sub-Fund had lent securities with a market value of JPY 300,613,200.

QUANTIT MARKET
Y SECURITY NAME VALUE
In JPY
5,031 ORIX CORP 32,701,500
41,700 SOFTBANK CORP 98,870,700
87,000 KAWASAKI HEAVY INDUSTRIES LTD 18,879,000
36,400 AEON CO LTD 34,398,000
465,000 MIZUHO FINANCIAL GP INC 68,355,000
189,800 HITACHI ZOSEN CORP 22,776,000
2,000 TOCHIBA PLANT SYSTEMS& SERVICES 2,228,000
10 NTT DOCOMO INC 1,345,000
65,000 HITACHI LTD 21,060,000

300,613,200

As at June 30, 2010, the Sub-Fund received cash collateral for the above securities for the amount of USD 3,708,232.

CHINA OPPORTUNITIES

As at June 30, 2010, the China Opportunities sub-fund did not have any securities lent.

Note 11 – Liquidation of Nomura Funds – Japan Active Open sub-fund

By Circular Resolution as of July 30, 2010 and in accordance with article 29 of the articles of incorporation of the Fund,
the Board of Directors resolved to put the Sub-Fund into liquidation on August 31, 2010 (the “Effective Date”) and to
compulsory redeem all the shares in issue as of the Effective Date.

22