Interim Management Statement

RNS Number : 6468C

Atlantis Japan Growth Fund Ld

09 March 2011

ATLANTIS JAPAN GROWTH FUND LIMITED

INTERIM MANAGEMENT STATEMENT(UNAUDITED)

For the period 29 October 2010 - 28 February 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, advises the Investment Adviser on the day-to-day conduct of the Company's investment business.

PERFORMANCE

	Oct 10	Feb 11
Net Asset Value (GBP)	0.7495*	0.9059
Mid Share Price (GBP)	0.6578*	0.8275
Premium/Discount (%)	-12.23	-8.65
Fund Size (US$m)	246	299

	4 months	1 year	3 years	5 years
Net Asset Value return (%)	21.6	21.4	-11.0	-48.6
Mid Share Price return (%)	25.8	27.3	16.1	-51.3

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* Adjusted for stock split and redenomination in December 2010. As of 29 October 2010, the NAV was US$12.02 and the mid share price was US$10.55. Both figures were divided by 10 to account for the 10:1 stock split and converted at the 29 October GBP/USD rate of 1.6038 to account for the 10:1 stock split and USD to GBP share price redenomination on 16 December.

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 21.6%. This compares with an increase of 15.0% for the Topix index. Since inception, the Fund is up 47.3%, well ahead of the Topix, which is down 15.4% (all figures in US dollar terms).

At the end of the period under review, the Fund had Y2.5bn in borrowings and about Y1,475m in cash, which means the gearing is around 4.2% on a net basis. Borrowings started the period at Y1bn but were increased to Y2.5bn in January when a new loan was taken out.

The Fund has no foreign exchange hedges at this time and none are currently planned. The yen ended the period at Y81.740 against the dollar compared with Y80.785 at the end of October, weakening by 1.2%. A weaker yen has a negative 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	6.2
Hamakyorex	4.8
Toyota Tsusho	4.1
Sumitomo Mitsui	2.8
Keyence	2.8
Kintetsu World	2.6
Monotaro	2.5
Nippon Electric Glass	2.3
Dai-ichi Seiko	2.3
Asahi Glass	2.3
Total	32.9