Launch of Asia Debt Opportunities Strategy

GI Capital Management Ltd. (“GICAM”) launched its “Asian Debt Opportunities Strategy” on June 1, 2022. The Strategy shall be managed through effective use of investments in non-performing loans (NPLs) and corporate bonds as well as direct lending in Asia.

A yen-denominated locally registered fund was launched as of the end of May with GICAM, GICAM-related parties and Sumitomo Mitsui Trust Bank, Limited as seed investors.

Since its establishment in 2010, GICAM has been a securities and asset management firm focused on alternative investments, providing Japanese investors with innovative management products and solutions from overseas, and as a financial institution specializing in alternative investments, GICAM has been dealing with both financial assets and real assets. GICAM will continue to provide unique investment solutions, including this strategy, to meet the needs of a diverse range of investors.

 

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This page is not intended as a direct solicitation. The following fees and expenses will be incurred if this strategy is offered in the future. However, the fee rate will vary depending on the details of the agreement with the client, and we are unable to provide specifics. The Strategy may charge an investment advisory fee as a contingency fee (or a combination of the above), depending on the agreement with the client. The calculation method, maximum amount, etc. of the success fee cannot be indicated in advance because the investment advisory fee will vary depending on the actual investment performance based on predetermined criteria, etc., and will be determined through separate discussions with the client. In addition to the investment advisory fee, brokerage commissions and other expenses related to the custody of securities will be incurred and deducted from the contracted assets. Since these fees vary depending on investment conditions, we are unable to indicate the specific rate, maximum amount, etc. in advance.

Since this strategy invests in non-performing loans and corporate bonds in Asia, there is a risk that the prices of stocks and other securities in which it invests may fall and losses may be incurred due to the effects of domestic and international economic and political conditions, interest rate fluctuations, and changes in the performance and financial conditions of the issuers. In addition, derivative transactions may be used for currency hedging. The prices of these transactions may fluctuate depending on the underlying securities, indices, etc., and losses may occur in excess of the margin deposited. The leverage ratio cannot be indicated in advance because it may change from time to time depending on the investment policy and changes in the market environment in Japan and overseas. Margin shall be deposited from the contracted assets for the period of derivative transactions in an amount that the Company determines to be appropriate based on the calculations of the securities companies with which the Company places orders.