ATLANTIS JAPAN GROWTH FUND LIMITED
INTERIM MANAGEMENT STATEMENT (UNAUDITED)
For the period to 29 August 2014
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, 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
Tiburon Partners LLP is the Investment Manager of the Company. Atlantis
Investment Research Corporation, established in Tokyo, acts as its Investment
Adviser who through Edwin Merner supported by Taeko Setaishi, advises the
Investment Manager on the day-to-day conduct of the Company's investment
business.
PERFORMANCE
Feb 14 Aug 14
Net Asset Value (GBP) 1.2297 1.3033
Mid Share Price (GBP) 1.195 1.191
Premium/Discount (%) -2.82 -8.60
Fund Size (US$m) 95 95
6 months 1 year 3 years 5 years 10 years
Net Asset Value return 5.1 20.7 52.9 68.5 15.4
(US$, %)
Mid Share Price return -0.3 5.7 49.8 90.8 19.0
(GBP, %)
__________________________________________________________
Source for NAV and Fund size: Tiburon Partners LLP, Northern Trust
Source for share price and exchange rates: Bloomberg
For the period under review, the Fund's NAV was up 5.1%. This compares with an
increase of 4.5% for the Topix TR index. Since inception, the Fund is up 118.1%
well ahead of the Topix TR, which is down 0.6% (all figures in US dollar
terms).
At the end of the period under review, the Fund had JPY1.25 billion in
borrowings and about JPY112 million in cash, which means the leverage is around
11.3% on a net basis.
The Fund has no foreign exchange hedges at this time and none are currently
planned. The yen ended the period at JPY103.825 against the US dollar compared
with JPY101.745 at the end of February 2014, weakening by 2.0%. A stronger yen
has a positive impact on the dollar NAV of the Fund and vice versa.
________________________________________
Source for AJGF NAV: Tiburon Partners LLP, Northern Trust
Source for Topix TR Index and exchange rates: Bloomberg
TOP TEN HOLDINGS
Company % of net assets
Nihon M&A Center 3.7
Hito Communications 3.6
Kito Corporation 3.6
Tokio Marine Holdings 3.3
Ai Holdings 3.1
TDK Corp 3.0
Aeon Delight 3.0
Sakai Moving Service 2.8
Kokusai 2.8
Moresco 2.7
Total 31.6
ASSETS AND GEARING
Feb 14 Aug 14
Total Assets (US$m) 95.1 95.0
Cash (US$m) 1.6 1.4
Borrowings (US$m) 12.9 12.0
BREAKDOWN BY MARKET
Market % of Holdings
TSE1 90.0
Jasdaq 11.3
TSE2 6.6
Mothers 2.4
NGY1 0.6
Jasdaq Growth 0.5
NGY2 0.1
Total 111.6
FUND DETAIL
No. shares outstanding: 43,894,158
Changes to share capital - the number of shares reduced following a redemption point.
PRICES AVAILABLE FROM:
Bloomberg: AJG LN
Lipper: 60000517
ISIN: GG00B61ND550
SEDOL: B61ND55
____________________________________
Source: Tiburon Partners LLP, Northern Trust
All figures in US$ as at 29 August 2014
Tiburon Partners LLP is authorised and regulated by the Financial Conduct Authority
