Interim Management Statement

RNS Number : 8629O

Atlantis Japan Growth Fund Ld

16 March 2009

ATLANTIS JAPAN GROWTH FUND LIMITED

INTERIM MANAGEMENT STATEMENT (UNAUDITED)

For the period 31 October 2008 to 31 January 2009

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-08	Jan-09
Net Asset Value (US$)	9.8	10.2
Mid Share Price (US$)	8.8	8.2
Premium/Discount (%)	-11.8	-24.0
Fund Size (US$m)	200.9	208.7

	3 months	1 year	3 years	5 years
Net Asset Value return (%)	3.9	-37.4	-66.3	-29.2
Mid Share Price return (%)	7.4	-43.7	-74.7	-40.4

Source: Bloomberg, in US$ as at 31 January 09

For the period under review, the Fund's NAV was up 3.9%. This compares with a decrease of 0.4% for the large cap-dominated Topix index, and increase of 4.5% for the Tokyo Second Market, 23.6% for the MOTHERS Market and 14.3% for the Osaka Hercules Market. Since inception, the Fund is up 2.9%, well ahead of the Topix, down 45.2% and the Tokyo Second Market Index, down 2.2% over the same time frame.

At the end of the period under review, the Fund had Y4.5 billion in borrowings and about Y1.9 billion in cash, which means the gearing is around 14.0% on a net basis. Although total borrowings have remained unchanged, we have been decreasing our gearing and considering paying back some of our loans, given the uncertain outlook for corporate earnings. Normally high gearing helps the performance when the market is rising and vice versa, so we believe it prudent to continue to reduce our gearing in the current market.

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Source for AJGF NAV, Topix Index and TSE2 Index: Atlantis Advent System using Yen/US$ exchange rate of Y89.667

Source for MOTHERS Market Index and Osaka Hercules Market Index: AIRC using Yen/US$ exchange rate of Y89.591

All figures in US$ as at 31 January 09

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 Y89.667 compared with Y97.56 at the end of October, strengthening by 8.8%. A strong yen has a positive impact on the dollar NAV of the Fund and vice versa.

TOP TEN HOLDINGS

Company	% of net assets
Seven Bank Ltd	3.8
Hamakyorex Co	3.2
Maxvalu Tokai Co Ltd	2.9
Toyota Tsusho	2.4
Sakai Moving Service	2.3
Ajis Co	2.3
Towa Pharmaceutical	2.2
Makita Corp	2.0
Toyo Tanso Co	1.9
Hiday Hidaka	1.7
Total	24.7