- The objective of the fund is to achieve capital appreciation by
investing in Japanese equities and equity-related securities.
- The Fund is construed as an Absolute Return vehicle destined to
enable Institutional and High Net Worth Individual investors to
build a core exposure to Japanese equities whilst benefitting
from a favorable risk reward ratio.
- The manager of the fund aims at delivering superior performances
and to keep maximum cumulative draw downs within -10 %.
- Up to 80 % of the Fund will be invested through equity indices,
with constant stop losses and the ability to remain in cash during
negative market trends.
- This provides investors with the assurance that they are exposed at
all times to the core of the Japanese economic story, without
having to rely on the talents of any particular stock picker.
- As such 788 Japan Fund is a core investment vehicle in Japan.
Tight Risk Management
- Conceived as an absolute return fund, the manager has the ability
to go back to cash partially or entirely, and to remain liquid for as
long as deemed necessary.
- This provides investors with the assurance that the downside risk
will remain contained and that their assets will be protected in
down phases.
- As a consequence, the fund should outperform its peers and most
Japanese equity indices during NEGATIVE market phases.
- The manager can leverage the fund 1.5 times to 1, i.e. invest USD
1.5 Million for each USD 1 Million of shareholders money invested
into the fund.
- The leverage provides the opportunity for the fund to capture
additional ALPHA in rising markets and deliver superior returns.
- As such, the fund should outperform its peers and most Japanese
equity indices during POSITIVE market phases, as well.
- Up to 40 % of the Funds assets may be invested in individual
stocks, with a high level of diversification.
- The stock picking part is construed as an index tilting
mechanism destined to overweight or underweight specific
industrial sectors on the basis of our top down macro industrial
analysis.
- The fund will also participate in I PO s and may try from time to
time to capitalise on specific situations of extreme undervaluation.