Disclosure for the Financial Instruments and Exchange Act
Investment trusts we manage predominantly invest in domestic and foreign equities as well as public and corporate debt securities whose prices and values may fluctuate. There is no guarantee that the principal amount invested to be preserved, and the invested value per unit will fluctuate according to the changes in market prices of the securities and foreign exchange rates. Therefore, there is a risk that the current value of your investments may be less than what you originally invested.
Also the risk profile and characteristics of the investment trust products vary depending on the type of invested assets, investment restrictions, and principal market and countries to be invested. Please read the prospectus, trust deed and pre-transaction information sheet carefully before making an investment decision.
- Fees and other costs to be paid at the time of investment
- (* For details please refer to the information memorandum prepared by the distributor or the one that describes the subscription fee in detail)
- Subscription Fee
- Less than 3.85% (3.5% without consumption tax) and the rate applied to be set by the distributor
- Cost to be borne at the time of redemption
- Redemption Retention Fee
- Less than 0.3%
- Cost to be paid while investing in the product
- Investment Management Fee
- Less than 2.31% (2.1% without consumption tax) of the Net Asset Value
- Performance Fee (Only in those investment trusts with such features)
- 22%(20% without consumption tax) of the amount that Net Asset Value are in excess of the high water mark price.
(* High water mark prices are to be reset at the time the performance fee is accrued.)
- Other Costs
- Brokerage fees charged with securities transactions of the securities and derivatives invested by the product as well as consumption tax regarding such transactions
- Securities lending fee for short positions
- Custodian fee, lending fee and commitment charge for credit lines and other administrative fees (including those with the management of the interest held)
- * The exact amount of those other fees depends on the volume of transactions and other various factors and cannot be specifically explained here in advance as the maximum rate or amount to be incurred.
The description of risks and costs shown above are of those on investment trust products in general. Rate of fees and costs are those of the highest among all the investment trust products Bayview Asset Management Co., Ltd. manages. The risks and costs involved for each individual investment product vary significantly from product to product, therefore, you are strongly advised to read and consult with the prospectus, trust deed and the pre-transaction information thoroughly upon making the investment decision of your own.
BVAM solicits investors with respect to the handling of private placements based on the business agreement with the general partners of the fund of investment limited partnerships and foreign limited partnerships (hereinafter referred to as the "partnerships"). Partnerships predominantly invest in securities, including domestic and foreign unlisted shares whose prices and values may fluctuate; therefore, there is no guarantee that the principal amount invested is to be preserved. In particular, the appraised values of unlisted shares not only fluctuate reflecting the business activities and performance of the issuer of the said shares and the market/economic situation, but also are likely to vary depending on which type of calculation method is to be adopted since there exist several types of calculation methods for appraisal values. Under such circumstances, when the appraisal value of invested securities decreases because of the influence of such elements, the appraisal value of the partnerships also decreases, which may cause a loss of the principal.
In addition, with regard to foreign currency-denominated securities among the securities invested by the partnership s and the partnerships themselves held by the investors, if the value of the yen increases against a foreign currency (the yen gets stronger) compared to the value of the yen at the time of having initially acquired such securities, there is a possibility of a foreign exchange loss.
In general, the period for investment (capital contribution) in partnerships tends to be long and restrictions are imposed on a cancellation before maturity or a transfer/reselling of an equity interest. Therefore, this involves a huge liquidity risk.
General partners of the partnership are to bear the fees and other commissions under the business agreements with us, BVAM. However, the amounts thereof are to be determined through individual consultations with general partners of the fund; therefore, it is not possible to state here in advance the rates, calculation methods, and maximum size.Please note that, BVAM does not receive any fees or other commissions directly from our customers.
Although the description of the risks shown above represents major risks on the assumption of partnerships in general, risks are not necessarily limited to those listed above. The risks involved with partnerships in general vary significantly in the risk profile and characteristics depending on each partnership; therefore, you are strongly advised to read and refer to the pre-transaction information and the relevant partnership agreements thoroughly upon making the investment decision on your own.
Investment objectives and types of transactions to be made for the investment advisory or discretionary investment management agreement are to be determined upon consultation with clients. However, the value of financial instruments and derivative products are to be influenced by various indices and market fluctuations. Therefore, the value of the asset of clients to be managed in the investment advisory or discretionary investment management agreement may become less than originally invested.
Investment advisory fee and discretionary investment management fee as compensation for relative services provided are to be determined based on the company's prefixed fee table based on the asset amount to be managed, investment objectives, method of investment and duration of the management services, and will be determined for each case individually. (It will be less than 1.925% (1.75% without the consumption tax) for domestic and foreign equities, less than 2.75% (ditto 2.5%) for private equities and emerging market, less than 1.375% (ditto 1.25%) for fixed income, and less than 1.10% (ditto 1%) for domestic and overseas investment trust and/or funds)
Other fees and costs involved with execution of the discretionary investment (brokerage fees of the securities to be invested in the discretionary account, custodian fee, and other administrative and management fees involved) also are to be borne by clients, but those are paid out of the asset kept by the trustee (not directly by the client).
The total amount of fees and costs varies due to the asset amount to be managed, duration and other conditions of the investment management, and cannot be expressed in the total or maximum amount. For details, please refer to the pre-transaction information sheet and those additional disclosure statements to be provided at the time of executing the discretionary investment management agreement.
Bayview Asset Management Co., Ltd.
Financial Instruments Firm Registration Kanto Local Finance Bureau Director-General (FIF) No. 397
Member of the Japan Investment Trust Association and Japan Investment Advisers Association