Interim Management Statement

RNS Number : 5572L

Atlantis Japan Growth Fund Ld

05 September 2012

ATLANTIS JAPAN GROWTH FUND LIMITED

INTERIM MANAGEMENT STATEMENT(UNAUDITED)

For the period to 31 August 2012

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

AFMG Limited is the Investment Manager of the Company. Tiburon Partners LLP acts 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 12	Aug 12
Net Asset Value (GBP)	0.8878	0.8619
Mid Share Price (GBP)	0.8263	0.8125
Premium/Discount (%)	-6.93	-5.73
Fund Size (US$m)	141	97

	6 months	1 year	3 years	5 years	10 years
Net Asset Value return (US$, %)	-3.8	-3.8	6.0	-34.2	38.7
Mid Share Price return (GBP, %)	-1.7	2.2	30.1	-18.6	39.3

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Source for NAV and Fund size: Tiburon Partners LLP, Northern Trust

Source for share price and exchange rates: Bloomberg

For the period under review, the Fund's NAV was down 3.8%. This compares with a decrease of 9.0% for the Topix TR index. Since inception, the Fund is up 37.1%, well ahead of the Topix TR, which is down 27.8% (all figures in US dollar terms).

At the end of the period under review, the Fund had Y1.18 billion in borrowings and about Y314 million in cash, which means the leverage is around 11.4% on a net basis.

The Fund has no foreign exchange hedges at this time and none are currently planned. The yen ended the period at Y78.470 against the dollar compared with Y80.590 at the end of February, strengthening by 2.7%. 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: Tiburon Partners, Northern Trust

Source for Topix TR Index and exchange rates: Bloomberg

TOP TEN HOLDINGS

Company	% of net assets
Toyota Tsusho	4.6
Toyota Motor	4.6
Hamakyorex	4.3
JSR Corporation	4.3
Daikin Industries	3.8
Sumitomo Mitsui Financial Group	3.6
Monotaro	3.2
Sekisui House	3.0
Fuji Pharma	2.7
Lifenet Insurance	2.7
Total	36.8