Interim Management Statement

RNS Number : 5640D

Atlantis Japan Growth Fund Ld

16 September 2008

 

ATLANTIS JAPAN GROWTH FUND LIMITED

INTERIM MANAGEMENT STATEMENT (UNAUDITED)

For the period 30 April 08 to 31 July 08 

INVESTMENT OBJECTIVE AND POLICIES

The Company aims to achieve long term capital growth through investment wholly or mainly in listed Japanese equities. The Investment Manager follows a stock-driven investment approach. The Company's portfolio is invested in companies quoted on the Tokyo Stock Exchange, the regional stock markets of Fukuoka, Nagoya, Osaka and Sapporo and the Japanese over-the-counter market. The above include the Ambitious market (Sapporo), Mothers (Tokyo), Centrex (Nagoya), Hercules (Osaka) and Q Board (Fukuoka). Investment may also be made in companies listed elsewhere but controlled from Japan or with a material exposure to the Japanese economy. The Company may also invest in securities which are neither listed nor traded on the Japanese over-the-counter market provided that immediately after any such investment is made the Company does not have more than 10 per cent of its Net Asset Value so invested. The Company may borrow money with a view to enhancing the capital returns. The Company may hedge its exposure to Japanese yen.

INVESTMENT MANAGER AND INVESTMENT ADVISER

Atlantis Fund Management (Guernsey) Limited is the Investment Manager of the Company. Atlantis Investment Management Limited acts as Investment Manager to its Investment Adviser. Atlantis Investment Research Corporation, established in Tokyo, through Edwin Merner, advises the Investment Adviser on the day-to-day conduct of the Company's investment business.

PERFORMANCE 

	Apr-08	July-08
Net Asset Value (US$)	15.85	14.43
Mid Share Price (US$)	13.6	13.75
Premium/Discount (%)	-14.2	-4.5
Fund Size (US$m)	323.8	294.9

	3 months	1 year	3 years	5 years
Net Asset Value return (%)	-9.0	-35.0	-32.6	47.1
Mid Share Price return (%)	1.1	-31.7	-36.1	55.8

Source: Bloomberg, in US$ as at 31 July 08

For the period under review, the Fund's NAV was down 9.0%. This compares with a decrease of 7.7% for the large cap-dominated Topix index, a decrease of 7.9% for the Tokyo Second Market and 19.3% for the MOTHERS market, and a decrease of 23.8% for the Osaka Hercules Market. Since inception, the Fund is up 45.5% well ahead of the Topix, down 25.5% and the Tokyo Second Market Index, up 18.4% over the same time frame.

At the end of the period under review, the Fund had Y6.0 billion in borrowings and about Y213.8 million in cash, which means the gearing is around 18.1% on a net basis. Normally high gearing helps the performance when the market is rising and vice versa. During the last year, when the market has been falling, the gearing has been increasing and has had a negative impact on both performance and NAV. 

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Source: Atlantis

All figures in US$ as at 31 July 08 

The Fund has no foreign exchange hedges at this time and none are currently planned. At the end of the quarter, the yen ended at Y108.235 compared with Y104.14 at the end of April, a decrease of 3.9%. 

TOP TEN HOLDINGS 

Company	% of net assets
Nissha Printing	5.5
Seven Bank	3.9
Sumida Corp	2.5
Stanley Electric	2.4
Maxvalu Tokai	2.4
Makita	2.3
Ajis	2.2
Asahi Glass	1.8
Dai-ichi Seiko	1.8
Hamakyorex	1.8
Total	26.4

ASSETS AND GEARING

	Apr-08	July-08
Total Net Assets (US$m)	323.8	294.9
Cash (US$m)	2.0	0.68
Borrowings (US$m)	72.1	55.4

BREAKDOWN BY MARKET

Market	% of Holdings
TSE1	51.2
TSE2	8.3
JASDAQ	21.3
Other	19.2
Total	100

FUND DETAIL
No. shares outstanding: 20,435,627

Changes to share capital - there are no changes

PRICES AVAILABLE FROM:
Bloomberg - AJG LN

Lipper - 60000517

ISIN - GB0000623560

SEDOL - 0062356 (UK)

SEDOL - 0063230 (Guernsey)

Financial Times - FT Managed Funds Services

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Source: Atlantis

All figures in US$ as at 31 July 2008 

 

END

 

 

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