On July 20, 2016, Bayview Asset Management Co., Ltd., (BVAM) launched the European Government Bond Long/Short Fund July 2016, a privately placed investment trust fund that invests mainly in European government bonds with reduced risk of currency fluctuations and rising interest rates by short-selling short-term European government bond futures.

The new fund aims to achieve a stable return by deploying a laddered portfolio (in which almost the same amount of money is invested in securities with different maturity dates), investing in European government bonds, the maturity of which are approximately seven to thirteen years (fully hedged against currency fluctuations in principle), and reducing duration risks by short-selling short-term European government bond futures.

We believe that the new fund, uniquely managed by BVAM with low costs, is the optimal investment product for investors seeking to mitigate currency and interest rate fluctuation risks with the aim to secure steady income gains. BVAM plans to continuously launch products similar to this fund in the months to come.

BVAM will strive to continue to provide investment products that meet investors’ expectations.

For inquiries, please contact the Investment Management Planning Department at 813-5210-3341.