Interim Management Statement

RNS Number : 2038H

Atlantis Japan Growth Fund Ld

16 February 2010

ATLANTIS JAPAN GROWTH FUND LIMITED

INTERIM MANAGEMENT STATEMENT(UNAUDITED)

For the period 30 October 2009 - 29 January 2010

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 as 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

	Oct 09	Jan 10
Net Asset Value (US$)	12.4	12.2
Mid Share Price (US$)	10.2	10.5
Premium/Discount (%)	-18.2	-14.2
Fund Size (US$m)	254	250

	3 months	1 year	3 years	5 years
Net Asset Value return (%)	-1.4	19.9	-48.5	-38.8
Mid Share Price return (%)	3.5	27.6	-57.0	-48.3

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Source for NAV and Fund size: Atlantis Advent System using Yen/US$ exchange rate of 91.215 as at 30 October 2009 and 90.290 as at 29 January 2010.

Source for Share price: Bloomberg using Yen/US$ exchange rate of 90.09 as at 30 October 2009 and 90.27 as at 29 January 2010.

All figures in US$.

For the period under review, the Fund's NAV was down 1.4%. This compares with an increase of 1.8% for the large cap-dominated Topix index, a decrease of 2.6% for the Tokyo Second Market, a decrease of 4.8% for the MOTHERS Market and a decrease of 0.3% for the Osaka Hercules Market. Since inception, the Fund is up 23.4%, well ahead of the Topix, down 38.3% and the Tokyo Second Market Index, up 7.5% over the same time frame.

At the end of the period under review, the Fund had Y3bn in borrowings and about Y100m in cash, which means the gearing is around 13% on a net basis. Borrowings remained unchanged throughout the period.

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Source for AJGF NAV, Topix Index, TSE2 Index, MOTHERS Market Index and Osaka Hercules Market Index: Atlantis Advent System using Yen/US$ exchange rate of 90.290 as at 29 January 2010.

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 Y90.290 compared with Y91.215 at the end of October, strengthening by 1.0%. A stronger yen has a positive impact on the dollar NAV of the Fund and vice versa.

TOP TEN HOLDINGS

Company	% of net assets
Makita Corp	5.8
Toyota Tsusho	3.9
Hamakyorex	3.7
Dai-Ichi Seiko	3.7
Nippon Electric Glass	2.5
Ain Pharmaciez	2.4
Kintetsu World	2.2
Shin-Etsu Chemical	2.2
Osaka Secs Exchange	2.2
Sakai Moving Service	2.1
Total	30.7