Interim Management Statement

RNS Number : 7415M

Atlantis Japan Growth Fund Ld

19 August 2011

ATLANTIS JAPAN GROWTH FUND LIMITED

INTERIM MANAGEMENT STATEMENT(UNAUDITED)

For the period to 29 July 2011

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), JASDAQ (Tokyo) 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 supported by Taeko Setaishi and Sean Lenihan, advises the Investment Adviser on the day-to-day conduct of the Company's investment business.

PERFORMANCE

	Feb 11	Jul 11
Net Asset Value (GBP)	0.9059	0.9123
Mid Share Price (GBP)	0.8275	0.8438
Premium/Discount (%)	-8.65	-7.51
Fund Size (US$m)	299	167

	5 months	1 year	3 years	5 years	10 years
Net Asset Value return (US$, %)	1.7	21.8	3.0	-39.4	45.2
Mid Share Price return (GBP, %)	2.0	29.7	21.6	-37.7	37.4

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Source for NAV and Fund size: Atlantis Advent System

Source for share price and exchange rates: Bloomberg

For the period under review, the Fund's NAV was up 1.7%. This compares with an decrease of -4.8% for the Topix index. Since inception, the Fund is up 49.9%, well ahead of the Topix, which is down 19.5% (all figures in US dollar terms).

At the end of the period under review, the Fund had Y1.85 billion in borrowings and about Y691 million in cash, which means the leverage is around 9.0% on a net basis. Borrowings started the period at Y2.5 billion but were reduced in June to maintain leverage at around the same level following a redemption.

The Fund has no foreign exchange hedges at this time and none are currently planned. The yen ended the period at Y77.590 against the dollar compared with Y81.740 at the end of February, strengthening by 5.3%. A stronger yen has a positive impact on the dollar NAV of the Fund and vice versa.

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Source for AJGF NAV and Topix Index: Atlantis Advent System

Source for exchange rate: Bloomberg

TOP TEN HOLDINGS

Company	% of net assets
Makita	5.7
Hamakyorex	5.2
Monotaro	4.6
Kintetsu World	3.6
Toyota Tsusho	3.4
Sumitomo Mitsui Financial	3.4
Keyence	3.4
Bit-Isle	3.3
Toyota Motor	3.1
Calbee	2.6
Total	38.2