Comprehensive Risk Information on Traditional Investment Strategies for Japan/Non-Japan Equities and Fixed Income
As our investment strategies are intended to invest in securities with variable prices including equities and bonds (foreign-currency securities also contain exchange rate fluctuation risks), the net asset value (NAV) of investment assets that we manage on behalf of clients may fluctuate. Therefore, the principal investment is not guaranteed at any moment.
Major risks involved in those investment strategies are:
[ Price Volatility Risk ]
Generally speaking, the price trends of equities fluctuate in response to the impacts of economy and political situation within/outside of Japan. In particular, small-and-mid cap stocks and start-up companies’ stocks tend to show high fluctuation in prices compared to the broad stock market average and the NAV of investment assets including those stocks may be affected to a large extent. Also, debts, non-listed stocks, and partnership assets of limited liability partnership (LLP) tend to show big price fluctuations.
Corporate and government bonds may have price volatility risks in response to the change in general interest rate environment. Normally, if the interest rate rises, prices fall, but a range of the price fluctuation varies according to the remaining period to maturity and the conditions of issuance.
Emerging countries’ equities and bonds tend to show high price volatilities compared to developed countries’ equities and bonds.
[ Liquidity Risk ]
In terms of sell-offs of portfolio stocks, if those stocks’ market size and the amount of transactions are small, investors may not be able to sell those stocks at prevailing market prices and consequently suffer unforeseen losses.
[ Credit Risk ]
If a serious crisis happens to the business of invested companies directly or indirectly, there may be a risk of significant losses in the assets under the relevant investment strategies.
[ Exchange Rate Fluctuation Risk ]
There is a possibility that market trends and funding flows may change suddenly due to emergency situations (financial crisis, default, critical shift in policy, introduction of regulations including asset freeze, natural disaster, coups, critical change in political system, and wars, etc.) in invested emerging countries. Based on this, the investment strategies may contain a risk of significant losses as well as a risk of failing to manage the investment assets in line with the investment policy. Furthermore, as the emerging countries have different standards for information disclosure from developed countries, accurate information for investment decision makings may not be assured fully.
Summary of Management Fees
- Investment Advisory Fees:
Fixed fees: less than 3% per annum (in principle, this applies to an investment amount of over 500 million yen)
Contingent fees: Clients may be charged a contingent bonus fee depending on the fund performance result.
- Other fees: Brokerage fees for portfolio stocks, custodian fees, audit fees, fund establishment fees, interest rates of borrowings, and borrowed stock fees, etc.
*The contingent fees and other fees vary depending on the investment strategies and management conditions and therefore we can not show the amount of those fees and the limit beforehand.
Based on the investment discretionary agreement, investment assets under those investment strategies may be invested in investment trusts.
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Comprehensive Risk Information on Alternatives Investment Strategies for Japan/Non-Japan Equities and Fixed Income
As our investment strategies are intended to invest in securities with variable prices including equities, bonds, and derivatives (foreign-currency securities also contain exchange rate fluctuation risks), the net asset value (NAV) of investment assets that we manage on behalf of clients may fluctuate. Therefore, the principal investment is not guaranteed at any moment.
Major risks involved in those investment strategies are:
[ Price Volatility Risk ]
Generally speaking, the price trends of equities fluctuate in response to the impacts of economy and political situation within/outside of Japan. In particular, small-and-mid cap stocks and start-up companies’ stocks tend to show high fluctuation in prices compared to the broad stock market average and the NAV of investment assets including those stocks may be affected to a large extent. Also, debts, non-listed stocks, and partnership assets of limited liability partnership (LLP) tend to show big price fluctuation.
Corporate and government bonds may have price volatility risks in response to the general interest rate environment. Normally, if the interest rate rises, prices fall but a range of the price fluctuation varies according to the remaining period to maturity and the conditions of issuance.
Emerging countries’ equities and bonds tend to show a big price volatility compared to developed countries’ equities and bonds.
In terms of derivatives transactions, cash flows of receipt and/or payment fluctuate depending on the change in underlying asset’s value and/or related matters to underlying assets (including, without limitation, interest rates, foreign exchange, stock index, the business and financial conditions as well as those external evaluation of issuers of underlying assets) and consequently investors may suffer a loss.
In case of redemption before the maturity, extra fees may be incurred as a result of calculating a receipt/payment amounts
[ Liquidity Risk ]
In terms of sell-offs of portfolio stocks, if those stocks’ market size and the amount of transactions are small, investors may not be able to sell those stocks at the prevailing market prices and consequently suffer unforeseen losses. In terms of derivatives transactions, the period of execution of rights may be limited.
[ Credit Risk ]
If a serious crisis happens to the business of invested companies directly or indirectly, there may be a risk of significant losses in the assets under relevant investment strategies.
If a counterparty or a broker went bankrupt or goes into insolvency in the derivatives transactions, transactions will not be completed or honoured and consequently investors may suffer excessive losses. Also, the derivatives transactions contain an impact of credit risks as to underlying assets including bankruptcy and insolvency of issuers of underlying assets.
[ Country Risk ]
There is a possibility that market trends and funding flows may change suddenly due to emergency situations (financial crisis, default, critical shift in policy, introduction of regulations including asset freeze, natural disaster, coups, critical change in political system, and wars, etc.) in invested emerging countries. Based on this, the investment strategies may contain a risk of significant losses as well as a risk of failing to manage the investment assets in line with the investment policy. Furthermore, as the emerging countries have different standards for information disclosure from developed countries, accurate information for investment decision makings may not be assured fully.
Summary of Management Fees
Clients are charged the following fees.
- Investment Advisory Fees:
Fixed fees: less than 3% per annum (in principle, this applies to an investment amount of over 500 million yen)
Contingent fees: Clients may be charged a contingent bonus fee depending on the fund performance result.
- Other fees: Brokerage fees for portfolio stocks, custodian fees, audit fees, fund establishment fees, interest rates of borrowings, and borrowed stock fees, etc.
*The contingent fees and other fees vary depending on the investment strategies and management conditions and therefore we can not show the amount of those fees and the limit beforehand.
Based on the investment discretionary agreement, investment assets under those investment strategies may be invested in investment trusts
The Brokerage commission specified by a counterparty may be incurred for the derivatives transactions.
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