Category: Open Ended Investment Company
The fund is passively managed. The aim is for your investment to reflect the performance, before fees and expenses, of the total return version of the JPX-Nikkei Index 400 (index), while seeking to minimise foreign currency fluctuations at share class level. The index is designed to reflect the performance of the shares of certain Japanese companies, namely those which trade on the JASDAQ stock exchange and the following sections of the Tokyo Stock Exchange: the first section (for large companies), the second section (for middle-sized companies) and the Mothers (market for high-growth and emerging stocks). The index comprises of shares in 400 companies. Companies are only eligible for selection if for the past 3 (fiscal) years (1) they were listed; (2) had more assets than liabilities; (3) have no operating or overall deficit; and (4) they are not marked for delisting. Companies are ranked according to (1) their trading value over three years and (2) their size (as of the index base date). This ranking is then adjusted by looking at the company’s return on equity, its 3 year operating profits and its size, and certain qualitative criteria such as the appointment of independent outside directors and reporting and disclosure standards. The index is calculated on a total return basis. This means that all dividends and distributions by the companies are reinvested in the shares. The index is reviewed and rebalanced annually. To achieve the aim, the fund will i) attempt to replicate the index, before fees and expenses, by buying all or a substantial number of the securities in the index and ii) enter into financial contracts (derivatives) which attempt to reduce the effect of exchange rate fluctuations between the currency of the index components and the currency of your shares. The fund may employ techniques and instruments in order to manage risk, reduce costs and improve results. These techniques and instruments may include the use of derivatives. The fund may also engage in secured lending of its investments to certain eligible third parties to generate additional income to offset the costs of the fund. The currency of the fund is JPY. The fund distributes up to four times per annum. You may request the redemption of shares generally on a daily basis.