Investment Risks and Costs

 

◆Explanation on Risk Matters

The following risks may be involved in transactions of any securities, market derivative products, over the counter derivative products and/or foreign market derivative products (hereinafter collectively referred to as “financial products”) which our discretionary investment management business provides.

  1. Price Fluctuation Risk (Risks caused by or arising out of changes in interest rates, foreign exchange rates, or other market prices and indices in the financial or commodity markets).
  1. Credit Risk (Risks caused by or arising out of changes in operational/financial conditions of issuers of any securities, others involved in securities or any other financial products, or counterparties of privately negotiated transactions).
  1. Liquidity Risk (Risks that market participants may not be able to trade financial products at appropriate prices or they find it difficult to liquidate their holdings smoothly because the financial markets don’t have sufficient volume of transactions).

Other specific risks may occur arising out of specific investment operations.

◆Fees, Remunerations and Expenses

[Investment Management and Advisory]

  1. Fees and Remunerations

Remunerations pursuant to discretionary investment contact (“investment advisory fees”) are comprised of two separate charges; basic fee and performance fee, which will be determined, in principle, through individual negotiations between you and our company.

 

Investment Strategy            (per annual)

Renumeration

Hedge Funds

Private Asset Investment

Basic fee

0.5-5% per annum of the assets under contract. (1)

(subject to consumption tax)

0.5-3% per annum of the assets under contract. (1)

Performance fee

10-35%(2) of the increased portion of the assets under contract at fair value for the period of any pre-determined fiscal term under the contract. (subject to consumption tax)

5.0%~30.0% of the excess return to hurdle rate (2)

Note(Common)

(1): Provided, however, that we might offer you a fixed fee.

(2):Investment advisory agreement may be subjec to basic fee only.

(3):This table will be reviewed and amended from time to time subject to investment environment and business circumstances.

Note

(4): We will not charge you any performance fee in any fiscal term unless the value of the assets under contract exceeds the highest asset value in the case of a continuing contract.

(5): You will be required to pay the basic fee on a monthly basis and the performance fee on a yearly basis.

(6): Where we invest your funds in an investment fund for which we act as investment manager, we will adjust the rate or amount of our investment advisory fees payable by you after taking into account our investment management fees receivable from such investment fund. However, we cannot indicate in advance the size of such an adjustment because such adjustment is affected by the ratio of your assets invested in such investment fund to your total assets under our management.

(7): We may charge you separate fees, after consultation with you, depending on specific situations, including, without limitation, situations where unique investment approaches are utilized or unique assets are managed.

(4):We may determine your fees, through individual negotiations between you and us, more than (or less than) above, subject to your characteristics, our operational load, contract amount and others.

(5):Fees in this table is before consumption tax in Japan.  Domestic services in Japan is subject to consumption tax.

(6):You will be required to pay the basic fee on quarterly basis in principal, however supersedes respective investment management agreement.

Basic Fee

1-5% per annum of the assets under contract. Provided, however, that we might offer you a   fixed fee.

Performance Fee

10-35% of the increased portion of the assets under contract at fair value for the period of any pre-determined fiscal term under the contract. Provided, however, that we will not charge you any performance fee in any fiscal term unless the value of the assets under contract exceeds the highest asset value in the case of a continuing contract.

Expenses

You will be responsible for bearing the following expenses that are deducted from your investment assets.

◆Attorney’s fees, accountant fees and administrative and general expenses in connection with creation of the investment funds, etc., and sale of the beneficiary rights.

◆Any relevant expenses in connection with investment into securities by the investment funds, etc (commission on purchase or sale of securities, stock loan commission, interest expense on debt outstanding and any other expenses including system cost for investment programs and research expenses).

◆Administrative expenses on the investment funds, etc (expenses on accounting, auditing and any other administrative matters, attorney’s fees including its research expense, as well as cost for reporting or providing information to existing and prospective investors).

◆Investment fees incurred by the investment funds, etc.
You will be responsible for bearing additional custodian fees if you entrust your assets to the care of any trust banks.

【Intermediary】

1.Fee and remuneration

It will be determined through individual negotiations between you and us, and will be reviewed and amended from time to time, subject to investment environments and business circumstances.

【Type 2 Financial Instruments Business Operator】

Applicable to the following fee table:

Investment Amount (JPY)

Fee

From

Up to

Ratio

Surcharge (JPY)

 

10,000,000

3.00%

300,000

10,000,000

50,000,000

2.00%

800,000

50,000,000

100,000,000

1.00%

500,000

100,000,000

500,000,000

0.50%

2,000,000

500,000,000

1,000,000,000

0.30%

1,500,000

1,000,000,000

 

0.20%

0

Minimum Fee

JPY 1,000,000

Example of our remunerations to investment amount

Investment Amount (JPY)

Fee

Actual Ratio

10,000,000

1,000,000

10.00%

20,000,000

1,000,000

5.00%

50,000,000

1,100,000

2.20%

80,000,000

1,400,000

1.75%

100,000,000

1,600,000

1.60%

200,000,000

2,100,000

1.05%

300,000,000

2,600,000

0.87%

400,000,000

3,100,000

0.78%

500,000,000

3,600,000

0.72%

600,000,000

3,900,000

0.65%

700,000,000

4,200,000

0.60%

800,000,000

4,500,000

0.56%

900,000,000

4,800,000

0.53%

1,000,000,000

5,100,000

0.51%

2,000,000,000

7,100,000

0.36%

3,000,000,000

9,100,000

0.30%

4,000,000,000

11,100,000

0.28%

5,000,000,000

13,100,000

0.26%

6,000,000,000

15,100,000

0.25%

7,000,000,000

17,100,000

0.24%

10,000,000,000

23,100,000

0.23%

We may, however, review and apply the revised fees in consideration of:

・  Target investments

・   Marketing

・   Due Diligence

・   Documentation works, and

・ operational efforts

3.Other important matters

About Discretionary Investment Contract

A discretionary investment contract with us provides that, with respect to your assets described in the said agreement, you will leave any investment decision to us after you set your investment policy in advance, and authorize us to execute the investment based on such decision on the basis of analysis of the value of securities, etc.

Name

Aizawa Asset Management Co., Ltd.

Location

Uchisaiwaicho Daibiru Bldg. 6th Floor 1-3-3, Uchisaiwai-cho, Chiyoda-ku Tokyo, Japan 100-0011

E-Mail

asuka-info@asuka-asset.com 

Business Activities

Investment Advisory Business, Investment Management Business, Type II Financial Instruments Business

Registration Number: Kanto Local Finance Bureau No. 2076 (October 31, 2008)

A member of Japan Investment Advisers Association; Type II Financial Instruments Firms Association

Investment Risks and Costs

 

  1. Explanation on Risk Matters

 

The following risks may be involved in transactions of any securities, market derivative products, over the counter derivative products and/or foreign market derivative products (hereinafter collectively referred to as “financial products”) which our discretionary investment management business provides.

  1. Price Fluctuation Risk (Risks caused by or arising out of changes in interest rates, foreign exchange rates, or other market prices and indices in the financial or commodity markets).
  1. Credit Risk (Risks caused by or arising out of changes in operational/financial conditions of issuers of any securities, others involved in securities or any other financial products, or counterparties of privately negotiated transactions).
  1. Liquidity Risk (Risks that market participants may not be able to trade financial products at appropriate prices or they find it difficult to liquidate their holdings smoothly because the financial markets don’t have sufficient volume of transactions).
  1. Other specific risks may occur arising out of specific investment operations.
  1. Fees, Remunerations and Expenses

[Investment Management and Advisory]

  1. Fees and Remunerations

Remunerations pursuant to discretionary investment contact (“investment advisory fees”) are comprised of two separate charges; basic fee and performance fee, which will be determined, in principle, through individual negotiations between you and our company.

 

Investment Strategy            (per annual)

Renumeration

Hedge Funds

Private Asset Investment

Basic fee

0.5-5% per annum of the assets under contract. (1)

(subject to consumption tax)

0.5-3% per annum of the assets under contract. (1)

Performance fee

10-35%(2) of the increased portion of the assets under contract at fair value for the period of any pre-determined fiscal term under the contract. (subject to consumption tax)

5.0%~30.0% of the excess return to hurdle rate (2)

Note(Common)

(1): Provided, however, that we might offer you a fixed fee.

(2):Investment advisory agreement may be subjec to basic fee only.

(3):This table will be reviewed and amended from time to time subject to investment environment and business circumstances.

Note

(4): We will not charge you any performance fee in any fiscal term unless the value of the assets under contract exceeds the highest asset value in the case of a continuing contract.

(5): You will be required to pay the basic fee on a monthly basis and the performance fee on a yearly basis.

(6): Where we invest your funds in an investment fund for which we act as investment manager, we will adjust the rate or amount of our investment advisory fees payable by you after taking into account our investment management fees receivable from such investment fund. However, we cannot indicate in advance the size of such an adjustment because such adjustment is affected by the ratio of your assets invested in such investment fund to your total assets under our management.

(7): We may charge you separate fees, after consultation with you, depending on specific situations, including, without limitation, situations where unique investment approaches are utilized or unique assets are managed.

(4):We may determine your fees, through individual negotiations between you and us, more than (or less than) above, subject to your characteristics, our operational load, contract amount and others.

(5):Fees in this table is before consumption tax in Japan.  Domestic services in Japan is subject to consumption tax.

(6):You will be required to pay the basic fee on quarterly basis in principal, however supersedes respective investment management agreement.

Basic Fee

1-5% per annum of the assets under contract. Provided, however, that we might offer you a   fixed fee.

Performance Fee

10-35% of the increased portion of the assets under contract at fair value for the period of any pre-determined fiscal term under the contract. Provided, however, that we will not charge you any performance fee in any fiscal term unless the value of the assets under contract exceeds the highest asset value in the case of a continuing contract.

Expenses

You will be responsible for bearing the following expenses that are deducted from your investment assets.

  1. Attorney’s fees, accountant fees and administrative and general expenses in connection with creation of the investment funds, etc., and sale of the beneficiary rights.
  1. Any relevant expenses in connection with investment into securities by the investment funds, etc (commission on purchase or sale of securities, stock loan commission, interest expense on debt outstanding and any other expenses including system cost for investment programs and research expenses).
  1. Administrative expenses on the investment funds, etc (expenses on accounting, auditing and any other administrative matters, attorney’s fees including its research expense, as well as cost for reporting or providing information to existing and prospective investors).
  1. Investment fees incurred by the investment funds, etc.

You will be responsible for bearing additional custodian fees if you entrust your assets to the care of any trust banks.

【Intermediary】

1.Fee and remuneration

It will be determined through individual negotiations between you and us, and will be reviewed and amended from time to time, subject to investment environments and business circumstances.

【Type 2 Financial Instruments Business Operator】

Applicable to the following fee table:

Investment Amount (JPY)

Fee

From

Up to

Ratio

Surcharge (JPY)

 

10,000,000

3.00%

300,000

10,000,000

50,000,000

2.00%

800,000

50,000,000

100,000,000

1.00%

500,000

100,000,000

500,000,000

0.50%

2,000,000

500,000,000

1,000,000,000

0.30%

1,500,000

1,000,000,000

 

0.20%

0

Minimum Fee

JPY 1,000,000

Example of our remunerations to investment amount

Investment Amount (JPY)

Fee

Actual Ratio

10,000,000

1,000,000

10.00%

20,000,000

1,000,000

5.00%

50,000,000

1,100,000

2.20%

80,000,000

1,400,000

1.75%

100,000,000

1,600,000

1.60%

200,000,000

2,100,000

1.05%

300,000,000

2,600,000

0.87%

400,000,000

3,100,000

0.78%

500,000,000

3,600,000

0.72%

600,000,000

3,900,000

0.65%

700,000,000

4,200,000

0.60%

800,000,000

4,500,000

0.56%

900,000,000

4,800,000

0.53%

1,000,000,000

5,100,000

0.51%

2,000,000,000

7,100,000

0.36%

3,000,000,000

9,100,000

0.30%

4,000,000,000

11,100,000

0.28%

5,000,000,000

13,100,000

0.26%

6,000,000,000

15,100,000

0.25%

7,000,000,000

17,100,000

0.24%

10,000,000,000

23,100,000

0.23%

We may, however, review and apply the revised fees in consideration of:

・  Target investments

・   Marketing

・   Due Diligence

・   Documentation works, and

・ operational efforts

3.Other important matters

About Discretionary Investment Contract

A discretionary investment contract with us provides that, with respect to your assets described in the said agreement, you will leave any investment decision to us after you set your investment policy in advance, and authorize us to execute the investment based on such decision on the basis of analysis of the value of securities, etc.

Name

Aizawa Asset Management Co., Ltd.

Location

Uchisaiwaicho Daibiru Bldg. 6th Floor 1-3-3, Uchisaiwai-cho, Chiyoda-ku Tokyo, Japan 100-0011

E-Mail

asuka-info@asuka-asset.com 

Business Activities

Investment Advisory Business, Investment Management Business, Type II Financial Instruments Business

Registration Number: Kanto Local Finance Bureau No. 2076 (October 31, 2008)

A member of Japan Investment Advisers Association; Type II Financial Instruments Firms Association

Explanation on Risk Matters 

 

The following risks may be involved in transactions of any securities, market derivative products, over the counter derivative products and/or foreign market derivative products (hereinafter collectively referred to as “financial products”) which our discretionary investment management business provides. 

 

  1. Price Fluctuation Risk (Risks caused by or arising out of changes in interest rates, foreign exchange rates, or other market prices and indices in the financial or commodity markets). 

 

  1. Credit Risk (Risks caused by or arising out of changes in operational/financial conditions of issuers of any securities, others involved in securities or any other financial products, or counterparties of privately negotiated transactions). 

 

  1. Liquidity Risk (Risks that market participants may not be able to trade financial products at appropriate prices or they find it difficult to liquidate their holdings smoothly because the financial markets don’t have sufficient volume of transactions). 

 

  1. Other specific risks may occur arising out of specific investment operations. 

 

Fees, Remunerations and Expenses 

 

  1. Fees and Remunerations 

Remunerations pursuant to discretionary investment contact (“investment advisory fees”) are comprised of two separate charges; basic fee and performance fee, which will be determined, in principle, through individual negotiations between you and our company. 

Basic Fee  

1-5% per annum of the assets under contract. Provided, however, that we might offer you a   fixed fee. 

Performance Fee 

10-35% of the increased portion of the assets under contract at fair value for the period of any pre-determined fiscal term under the contract. Provided, however, that we will not charge you any performance fee in any fiscal term unless the value of the assets under contract exceeds the highest asset value in the case of a continuing contract. 

*Consumption tax is excluded from the amounts above. 

*You will be required to pay the basic fee on a monthly basis and the performance fee on a yearly basis. 

 

With respect to the investment advisory fees for the investment in which we advise you to choose any investment funds under our management, we will adjust the rate or amount of such fees, considering the management fees we will receive, as the investment manager of such funds, from such funds (In this case, we can’t indicate any rate or maximum amounts, etc. of the investment advisory fees because they may change depending on the funds we advise you to choose.) We may charge you separate fees, through consultation with you, depending on specific situations, including, without limitation, characteristics of the assets under contract or investment approaches. 

 

Expenses 

You will be responsible for bearing the following expenses that are deducted from your investment assets. 

 

  1. Attorney’s fees, accountant fees and administrative and general expenses in connection with creation of the investment funds, etc and sale of the beneficiary rights. 

 

  1. Any relevant expenses in connection with investment into securities by the investment funds, etc (commission on purchase or sale of securities, stock loan commission, interest expense on debt outstanding and any other expenses including system cost for investment programs and research expenses). 

 

  1. Administrative expenses on the investment funds, etc (expenses on accounting, auditing and any other administrative matters, attorney’s fees including its research expense, as well as cost for reporting or providing information to existing and prospective investors). 

 

  1. Investment fees incurred by the investment funds, etc. 

 

You will be responsible for bearing additional custodian fees if you entrust your assets to the care of any trust banks. 

 

Other important matters 

 

About Discretionary Investment Contract 

A discretionary investment contract with us provides that, with respect to your assets described in the said agreement, you will leave any investment decision to us after you set your investment policy in advance, and authorize us to execute the investment based on such decision on the basis of analysis of the value of securities, etc. 

Name 

Aizawa Asset Management Co., Ltd. 

Location 

Uchisaiwaicho Daibiru Bldg. 6th Floor 1-3-3, Uchisaiwai-cho, Chiyoda-ku Tokyo, Japan 100-0011 

E-Mail 

asuka-info@asuka-asset.com

Business Activities 

Investment Advisory Business, Investment Management Business, Type II Financial Instruments Business 

Registration Number: Kanto Local Finance Bureau No. 2076 (October 31, 2008) 

A member of Japan Investment Advisers Association; Type II Financial Instruments Firms Association