XXXXX | Japan Equity Engagement Fund
Important Notes
- The Fund will primarily invest in equity securities issued by small and mid-capitalisation companies which either have their head office or exercise an overriding part of their economic activity in Japan and which are listed or traded on recognised markets globally.
- The risk associated with investments in small-capitalisation / mid-capitalisation companies is greater than the risk which is customarily associated with investments in larger, more established companies. The securities of small or medium-sized companies are often traded over-the-counter, and may not be traded in volumes typical of securities traded on a national securities exchange. Therefore, the securities of small or medium-sized companies may have limited market stability and may be subject to more abrupt or erratic market movements than securities of larger, more established companies or the market averages in general. In a declining market, these stocks can also be hard to sell at a price that is beneficial to the Fund.
- The Fund’s investments are concentrated in Japan and will have greater exposure to adverse market, political, policy, foreign exchange, liquidity, tax, legal, regulatory, economic and social risks of Japan than a fund which diversifies country risk across a number of countries. As a result, the value of the Fund may be more volatile than a fund which diversifies across a larger number of countries.
- The Fund may use financial derivative instruments (“FDIs”) for hedging, efficient portfolio management and/or investment purposes and therefore may be subject to higher counterparty/credit, liquidity, valuation, volatility, valuation and over-the-counter transaction risks. The Fund may have a net derivative exposure of up to 50% of its NAV and may result in a significant loss of the Fund.
- In respect of the distributing shares, the Fund aims to pay dividend on a monthly basis. However, the distribution rate is not guaranteed. The Fund may at its discretion pay dividends out of the capital of the Fund. Dividends paid out of capital amount to a return or withdrawal of part of an investor’s original investment or from any capital gains attributable to that original investment. Such dividends may result in an immediate decrease in the net asset value of the relevant shares.
- Investors should not solely rely on this document to make any investment decision. Please refer to the Prospectus and Key Fact Statement for details including the risk factors before making any investment decision.
Why Invest
Aims to outperform the benchmark by investing in quality SMID-cap Japanese equity “hidden gem” stocks, and to support their sustainable growth through engagement of financially material issues
Inefficient and Undervalued Market Provides Opportunities
Japan is a highly inefficient market with undervalued and under-researched opportunities, with SMID-cap companies’ prospects for long-term value creation often overlooked
Proprietary Scoring Process to Find “Hidden Gem” Companies
Our unique proprietary scoring model based on fundamentals, valuation, ESG and engagement potential aims to identify “hidden gem” companies
Shareholder Value Creation through Engagement
We engage companies on financially material issues such as capital management and ESG, corporate governance and sustainability topics to help companies achieve long-term sustainable growth