TIDMPJF
THE PROSPECT JAPAN FUND LIMITED
HALF YEARLY FINANCIAL REPORT
The financial information set out in this announcement does not constitute the
Company's statutory financial statements for the period ended 30 June, 2016.
All figures are based on the 30 June, 2016 unaudited condensed financial
statements, approved by the Board of Directors on 18 August, 2016.
The Company's unaudited condensed financial statements will shortly be
available on the UK Listing Authority's National Storage Mechanism, which is
located at http://www.morningstar.co.uk/uk/NSM.
CHAIRMAN'S REPORT
for the period from 1 January, 2016 to 30 June, 2016
Financial Results
The Prospect Japan Fund Limited (the "Company") results for the first half of
2016 show total comprehensive income of US$1.9 million compared with a loss of
US$15.9 million for the comparable period in 2015. There has been a slight
increase in NAV per share from US cents 135.53 at 31 December 2015 to US cents
137.64 at 30 June, 2016.
Investment Performance
Your Company underperformed over the period with a gain of 0.7% (based on
published NAV) as against the MSCI Japan Small Cap Index (Total Return) for the
six months of 2.1%
After the strong performance of the stock market in 2015, this year has so far
been disappointing. The Tokyo First Section has fallen 19.5% to the end of June
in local currency terms. Two significant sectors, banks and autos, have both
performed very poorly due to the introduction of negative interest rates and
the strength of the yen.
The Bank of Japan surprised markets with a move to a Negative Interest Rate
Policy ("NIRP") at the end of January and it was applied from 16 February. It
has had a number of consequences including the poor performance of bank shares
and yields on 10-year government bonds have turned negative.
The labour market remains tight although wages and wage increases generally
remain on the low side particularly in the auto and banking sectors where the
unions held back partly because of NIRP.
The numbers of foreign visitors continue to rise at a pace easily achieving the
Government targets which will be significant for the Tokyo Olympics in 2020.
A further factor which is positive for Japan is the continued improvement in
corporate governance.
The strengthening yen is taking its toll on the Japanese Economy. Prime
Minister Abe has postponed the scheduled rise in the consumption tax from April
2017 to October 2019. Given the slowdown in the world economies and the need
for growth, a further US$45 billion fiscal stimulus package has recently been
announced.
Apart from global risks, the outlook remains uncertain and questions remain
with the Bank of Japan needing to boost growth and lift inflation towards its 2
per cent target or indeed raise inflation expectations. The move to negative
interest rates has done nothing to arrest the decline in consumer prices.
However, your Board supports the strategy of the Manager with its objective of
capital growth and a wide ranging investment policy seeking to discover
undervalued and special situations.
John Hawkins
Chairman
18 August, 2016
INVESTMENT ADVISOR'S REPORT
for the period from 1 January, 2016 to 30 June, 2016
Market Performance (%), US$ NAV
YTD 2016 1 Year 3 Year 5 Year
30.06.16
THE PROSPECT JAPAN FUND LIMITED 1.6%/0.7%* 12.2% 20.0% 50.0%
MSCI Japan Small Cap Index 2.6% 3.6% 32.0% 48.7%
The Prospect Japan Fund Limited inception date is 20 December 1994. The above
performance of the Fund is net of fees and expenses and includes reinvestment
of dividends and capital gains. (Source: Prospect Asset Management, Inc.)
Although the Company is not managed to a benchmark, it measures its performance
against the MSCI Japan Small Cap Index (Total Return) for comparison purposes
only. The MSCI Developed Markets Small Cap Indices offer an exhaustive
representation of this size segment by targeting companies that are in the
Investable Market Index but not in the Standard Index in a particular developed
market. The indices include Value and Growth style indices and industry indices
based on the Global Industry Classification Standard (GICS®). (Source:
Bloomberg)
*Refers to performance based on published NAV
Investment Manager's Summary
The Prospect Japan Fund Limited's (the "Company") published NAV underperformed
during H1 2016, gaining 0.7% during the period ending 30 June, 2016 vs the MSCI
Japan Small Cap Index's 2.6% total return (the performance based on valuations
produced in accordance with International Financial Reporting Standards
("IFRS") increased by 1.6%). The broader Japanese market performed weakly, with
the Nikkei 225 index reaching lows last seen in 2013.
Global equities entered 2016 with a risk-off period, dragged down by massive
selling in China. Key oil gauges dropped to 12-year lows amidst an ongoing
supply glut, and the cloud of the Chinese economic slowdown drove Yen strength.
Japanese markets experienced the worst start to a year on record, with six
consecutive days of trading losses reversing most of the gains seen in CY 2015.
Toward the end of the half, global currency and equity markets were shaken when
the United Kingdom referendum on European Union membership ended with an
unexpected victory for "Leave". The Yen briefly strengthened past 100 Yen/
dollar following the 23 June result, and 10-year JGB yields reached a record
low of -0.245%. Japanese equity markets experienced their worst one day fall
since the immediate aftermath of the March 2011 earthquake.
Domestically, markets were plagued by political and monetary missteps,
including the resignation of Economic Minister Akira Amari over bribery
allegations and the Bank of Japan ("BoJ") surprising the market by adopting a
negative interest rate policy in late January, while foregoing changes to its
asset purchase program. The new paradigm, entitled "Quantitative & Qualitative
Monetary Easing with a Negative Interest Rate" aims to mirror the multi-tier
system in place at the Swiss National Bank, in which the negative rate is
applied to a portion of a financial institution's current account balance. The
reaction in the market was swift, with the Yen gaining strongly, bond yields
falling to record levels, and shares of financials falling precipitously.
Quantitative & Qualitative Monetary Easing With a Negative Interest Rate
Tier Description Interest
Rate Applied
Basic Balance Existing balances with Bank of Japan +0.1%
Macro Add-on Balance Required reserves and reserves related 0.0%
to BoJ Lending support programs
Policy-Rate Balance Reserves in excess of above tiers -0.1%
Realignment of the regional bank space continued with an announcement that
Fukuoka Financial Group (8354) will absorb Eighteenth Bank (8396). The
consolidation is planned for completion by April 2017, after which Eighteenth
Bank will merge with Fukuoka FG's subsidiary, Shinwa Bank, by April 2018. The
combined entity will have about 70% share of the Nagasaki Prefecture loans
market and 50% of deposits. Additionally, Chiba Bank (8331; Chiba Prefecture)
and Musashino Bank (8836; Saitama Prefecture) announced their intention to
enter into a comprehensive partnership. While the banks will stop short of a
merger, the partnership will include integration of back office operations,
increased cross-shareholdings and joint marketing of financial productions, as
well as an agreement to forego opening new branches in each other's territory.
During the half, the Company received shareholder approval of the Exercise
Agreement for the Prospect Co. (3528) stock acquisition rights ("SARs"), valued
at cost of ¥270 million (US$2.242 million). At the end of the half, the Company
had successfully completed converting 90 of the 1,440 SARs it holds. 90 SARs is
the equivalent of 9 million shares of Prospect Co.
Holdings providing outsized contribution to positive performance during the
period included Fukushima Bank (8562), Shaklee Global Group (8205) and
Maruhachi Warehouse (9313). Fukushima Bank, a regional bank in Fukushima
prefecture, fell sharply in February along with other financial shares due to
the implementation of the BoJ's negative interest rate policy, but rallied
strongly in April and June following technical adjustments by the BoJ that
increased the proportion of current account funds that will be considered part
of the "macro add-on balance" not subject to the negative policy rate. Shaklee
Global Group, a seller of nutrition and personal care products, gained on low
volume towards period end, despite weak FY results. The Company reported lower
revenue and profits due to reduced sales and profits in Asia and a move to
operating loss in the United States. Maruhachi Warehouse, a warehousing and
logistics company, gained strongly towards period end, following efforts to
improve liquidity via a 2-for-1 reverse stock split and lowering of trading
lots to 100 from 1,000 shares.
Weakness during the period came from holdings in Tri-Stage Inc (2178) and
Yasuda Logistics Corporation (9324). Tri-Stage (2178), a marketing consultant
service provider has retreated from its six-year highs last seen in December
2015. Shares have started to recover towards the end of the period, following
strong FY 2016 results and better than expected Q1 2016 results. Yasuda
Logistics, a logistics and real estate leasing company, underperformed
following YoY declines in profits owing to increased operating and personnel
expenses and lower real estate leasing revenue due to a redevelopment project.
The Company maintains ¥15.6 billion in unrealized gains on its rental real
estate holdings, more than 80% of its period end market cap.
The Company raised its holding in Fukushima Bank (8562) during the period from
4.4% of assets to 19.3%. The bank is similar in size and valuation to Daito
Bank (8563), with no large institutional shareholders and is seen as a
potential beneficiary of ongoing regional bank consolidation. Fukushima
prefecture is particularly attractive, in light of the positive impact of
recovery efforts and victim compensation. Residential land price increases led
the nation in 2015, and employment growth has been stronger than the national
average. Fukushima prefecture manufactured goods output growth strongly
outpaced the national rate over the last few years, nearly regaining the share
of total national output seen in 2010, despite a nearly 6% population decline.
In March 2016, the Tokyo High Court announced its decision on the appeal
involving the Toho (9602) TOB of Toho Real Estate. The High Court ruled that
the tender offer price amounted to fair value and has therefore eliminated the
award of ¥100 per share decided by The Tokyo District Court. The Company
summarily submitted an appeal of the High court decision to the Supreme Court,
which accepted the request for appeal in June 2016 (please refer to note 14 for
further information).
The Company is currently engaged in an appraisal rights petition, challenging
the fairness of the JPY 245 per share squeeze out price of Yukiguni Maitake
(1378), a manufacturer and seller of fresh mushrooms and bean sprouts, by Bain
Capital. A decision is expected around mid-October 2016.
The Ministry of Land, Infrastructure, Transport and Tourism (MLIT) published
its 2016 land price data, reporting a 0.1% YoY gain in land prices nationwide
(all types), marking the first gain since 2008.
Principal Risks and Uncertainties
Japan remains vulnerable to slowdown in the global economy and geopolitical
turmoil, particularly in major trading partners, as well as by volatile swings
in currency exchange rates and interest environment due to domestic and
overseas monetary policy.
While the Abe administration and BoJ remain poised to provide additional
stimulus as needed, inflation expectations remain muted, and CPI turned
negative with the largest monthly decline since 2013 recorded during the
period.
While the delay of the consumption tax increase is positive, the Abe
administration's success rollout of stimulus spending and regulatory reform
remain necessary catalysts for long-term economic growth. Fundamentals on the
corporate level remain strong, and while tangible effects of corporate
governance reforms are negligible, a widespread and ingrained refocusing on
investor return should be a long-term positive.
The principal risks facing the Company which include market and financial risk
and portfolio management and performance risk are considered in detail, along
with the risks relating to a vote to wind up the Company, on pages 12 and 13 of
the Company's Annual Report and Audited Financial Statements for the year ended
31 December 2015 which is available on the Company's website
www.prospectjapanfund.com. The Directors do not consider that these risks and
uncertainties have materially changed during the period ended 30 June, 2016 nor
will they materially change for the remaining six months of the financial
period.
The Prospect Japan Fund Limited
Top 10 Holdings
30 June, 2016
Symbol Security % of Total Assets
8563 DAITO BANK LTD/THE 25.45
8562 FUKUSHIMA BANK LTD/THE 19.26
8205 SHAKLEE GLOBAL GROUP INC 10.54
2178 TRI-STAGE INC 8.15
9313 MARUHACHI WAREHOUSE CO LTD 7.89
3001 KATAKURA INDUSTRIES CO LTD 5.08
8521 NAGANO BANK LTD/THE 4.85
1921 TOMOE CORP 4.34
3528 PROSPECT CO LTD 4.29
7404 SHOWA AIRCRAFT INDUSTRY CO LTD 2.57
The Prospect Japan Fund Limited
Sector Weighting**
30 June, 2016
Banks 50.76
Retail 10.54
Storage/Warehousing 9.88
Real Estate 9.37
Advertising 8.15
Engineering & Construction 4.34
Machinery-Diversified 2.57
Diversified Financial Services 0.02
Transportation 0.02
REITs 0.00
Total** 95.65
No of Positions 16
**Percentage weightings are Prospect Asset Management, Inc.'s internal
calculations and have not been reconciled by the administrator. Results of
calculations as presented may not be exact due to rounding and precision of
stored values.
Prospect Asset Management, Inc.
18 August, 2016
PORTFOLIO OF INVESTMENTS
as at 30 June, 2016
Number of Fair Value Percentage
of
Securities Investments in U.S. Net Asset Value
Dollars
Listed investments
Advertising
614,300 Tri-stage Inc 10,365,434 8.15
10,365,434 8.15
Banks
19,428,000 The Daito Bank 32,346,895 25.45
29,234,000 Fukushima Bank Ltd 24,479,081 19.26
3,316,000 The Nagano Bank Ltd 6,166,749 4.85
1,136,000 The Tohoku Bank Ltd 1,526,391 1.20
64,519,116 50.76
Engineering and Construction
1,763,900 Tomoe Corp 5,512,993 4.34
5,512,993 4.34
Machinery
373,800 Showa Aircraft Industry Co Ltd 3,268,316 2.57
3,268,316 2.57
Real Estate
589,600 Katakura Industries Co Ltd 6,458,303 5.08
6,706,000 Prospect Co Ltd+ 2,807,634 2.22
9,265,937 7.30
Retail
999,000 Shaklee Global Group Inc 13,403,651 10.54
13,403,651 10.54
REITs
7,898,895 Prospect Epicure JORD GBP# - -
- -
Storage/warehousing
1,296,100 Maruhachi Warehouse Co Ltd 10,032,613 7.89
425,400 Yasuda Logistics 2,530,738 1.99
12,563,351 9.88
Transportation
5,000 Daiwa Motor Transportation Co 22,394 0.02
Ltd
22,394 0.02
Total listed investments 118,921,192 93.56
Unlisted investments
Corporate bond
315,700,000 Takefuji Corp# 28,017 0.02
28,017 0.02
Real Estate
1,350 Prospect Co Ltd Stock 2,628,889 2.07
Acquisition Rights+
2,628,889 2.07
Total unlisted investments 2,656,906 2.09
Total investments 121,578,098 95.65
Net current assets 5,531,691 4.35
NET ASSETS 127,109,789 100.00
# Currently in liquidation.
+ Prospect Co Ltd is classed as a related party as it is the parent company of
the Company's manager, PAM(CI).
RESPONSIBILITY STATEMENT
for the period from 1 January, 2016 to 30 June, 2016
We confirm that to the best of our knowledge:
(a) the Interim Unaudited Condensed Financial Statements have been
prepared in accordance with IAS 34 - Interim Financial Reporting as adopted in
the European Union;
(b) the Chairman's Report, Investment Advisor's Report and Notes to
the Unaudited Condensed Financial Statements include:
· a fair review of the information required by DTR 4.2.7R (indication of
important events during the first six months and description of principal risks
and uncertainties for the remaining six months of the year); and
· a fair review of the information required by DTR 4.2.8R (disclosure of
related parties' transactions and changes therein).
By order of the Board,
John Hawkins
Director
Richard Battey
Director
18 August, 2016
INDEPENT INTERIM REVIEW REPORT TO THE PROSPECT JAPAN FUND LIMITED
Introduction
We have been engaged by the Company to review the Unaudited Condensed Financial
Statements in the half-yearly Financial Report for the six months ended 30
June, 2016 which comprise the Unaudited Condensed Statement of Comprehensive
Income, the Unaudited Condensed Statement of Financial Position, the Unaudited
Condensed Statement of Changes in Equity, the Unaudited Condensed Statement of
Cash Flows and the related notes 1 to 16. We have read the other information
contained in the half-yearly Financial Report and considered whether it
contains any apparent misstatements or material inconsistencies with the
information in the Unaudited Condensed Financial Statements.
This report is made solely to the Company in accordance with guidance contained
in International Standards on Review Engagements 2410 (UK and Ireland) "Review
of Interim Financial Information Performed by the Independent Auditor of the
Entity" issued by the Auditing Practices Board. To the fullest extent permitted
by law, we do not accept or assume responsibility to anyone other than the
Company, for our work, for this report, or for the conclusions we have formed.
Directors' Responsibilities
The half-yearly Financial Report is the responsibility of, and has been
approved by, the Directors. The Directors are responsible for preparing the
half-yearly Financial Report in accordance with the Disclosure and Transparency
Rules of the United Kingdom's Financial Conduct Authority.
As disclosed in note 1, the Annual Financial Statements of the Company are
prepared in accordance with International Financial Reporting Standards as
adopted by the European Union. The Unaudited Condensed Financial Statements
included in this half-yearly Financial Report have been prepared in accordance
with International Accounting Standard 34, "Interim Financial Reporting", as
adopted by the European Union.
Our Responsibility
Our responsibility is to express to the Company a conclusion on the Unaudited
Condensed Financial Statements in the half-yearly Financial Report based on our
review.
Scope of Review
We conducted our review in accordance with International Standard on Review
Engagements (UK and Ireland) 2410, "Review of Interim Financial Information
Performed by the Independent Auditor of the Entity" issued by the Auditing
Practices Board for use in the United Kingdom. A review of Interim Financial
Information consists of making enquiries, primarily of persons responsible for
financial and accounting matters, and applying analytical and other review
procedures. A review is substantially less in scope than an audit conducted in
accordance with International Standards on Auditing (UK and Ireland) and
consequently does not enable us to obtain assurance that we would become aware
of all significant matters that might be identified in an audit. Accordingly,
we do not express an audit opinion.
Conclusion
Based on our review, nothing has come to our attention that causes us to
believe that the Unaudited Condensed Financial Statements in the half-yearly
Financial Report for the six months ended 30 June, 2016 are not prepared, in
all material respects, in accordance with International Accounting Standard 34
as adopted by the European Union and the Disclosure and Transparency Rules of
the United Kingdom's Financial Conduct Authority.
Ernst & Young LLP
Guernsey
18 August, 2016
The Financial Statements are published on websites maintained by the Investment
Advisor.
The maintenance and integrity of these websites are the responsibility of the
Investment Advisor; the work carried out by the Auditors does not involve
consideration of these matters and, accordingly, the Auditors accept no
responsibility for any changes that may have occurred to the Financial
Statements since they were initially presented on the website.
Legislation in Guernsey governing the preparation and dissemination of
Financial Statements may differ from legislation in other jurisdictions.
UNAUDITED CONDENSED STATEMENT OF COMPREHENSIVE INCOME
for the period from 1 January, 2016 to 30 June, 2016
Revenue Capital Total Revenue Capital Total
01.01.2016 01.01.2016 01.01.2016 01.01.2015 01.01.2015 01.01.2015
to to to to to to
30.06.2016 30.06.2016 30.06.2016 30.06.2015 30.06.2015 30.06.2015
Notes In U.S. In U.S. In U.S. In U.S. In U.S. In U.S.
Dollars Dollars Dollars Dollars Dollars Dollars
Investment income 1,731,104 - 1,731,104 1,274,158 - 1,274,158
Interest income - - - 299 - 299
Foreign exchange movements (204,576) 1,071,626 867,050 378,772 (335,379) 43,393
Gain/(loss) on financial
assets
at fair value through - 1,341,225 1,341,225 - (15,398,127) (15,398,127)
profit or loss
Total income/(loss) 1,526,528 2,412,851 3,939,379 1,653,229 (15,733,506) (14,080,277)
4 Management fee (915,258) - (915,258) (851,576) - (851,576)
5 Other expenses (702,409) - (702,409) (445,308) - (445,308)
Transaction costs - (146,087) (146,087) - (135,870) (135,870)
Total expenses (1,617,667) (146,087) (1,763,754) (1,296,884) (135,870) (1,432,754)
Gain/(loss) for the period (91,139) 2,266,764 2,175,625 356,345 (15,869,376) (15,513,031)
before tax
3 Withholding tax (265,119) - (265,119) (434,415) - (434,415)
Gain/(loss) for the period (356,258) 2,266,764 1,910,506 (78,070) (15,869,376) (15,947,446)
after tax
Total comprehensive
Income/(loss) for the (356,258) 2,266,764 1,910,506 (78,070) (15,869,376) (15,947,446)
period
2 Gain/(loss) per Ordinary
Share -
Basic & Diluted (in cents) (0.39) 2.45 2.06 (0.08) (17.16) (17.24)
The "Total" column of this statement represents the Company's Statement of
Comprehensive Income, prepared in accordance with IFRS. The supplementary
'Revenue' and 'Capital' columns are both prepared under guidance published by
the Association of Investment Companies. There was no comprehensive income
other than the gain/(loss) for the period.
All items in the above statement derive from continuing operations.
The notes form an integral part of the Unaudited Condensed Financial
Statements.
UNAUDITED CONDENSED STATEMENT OF FINANCIAL POSITION
as at 30 June, 2016
30.06.2016 31.12.2015
Notes In U.S. In U.S.
Dollars Dollars
(Unaudited) (Audited)
Non-current assets
6 Financial assets at fair value through profit 121,578,098 106,417,543
or loss
Current assets
8 Receivables 95,707 399,051
Cash and cash equivalents 6,229,913 19,009,538
Total current assets 6,325,620 19,408,589
Current liabilities
9 Payables 793,929 529,153
Net current assets 5,531,691 18,879,436
Net assets 127,109,789 125,296,979
Equity
10 Share capital 92,352 92,452
10 Redemption reserve 85,435,381 85,533,077
10 Capital redemption reserve 323,157 323,057
Other reserves 41,258,899 39,348,393
Total equity 127,109,789 125,296,979
Ordinary Shares in issue 92,352,602 92,452,602
2 Net Asset Value per Ordinary Share (in cents) 137.64 135.53
The Financial Statements were approved by the Board of Directors on 18 August,
2016 and signed on its behalf by:
John Hawkins
Director
Richard Battey
Director
The notes form an integral part of the Unaudited Condensed Financial
Statements.
UNAUDITED CONDENSED STATEMENT OF CHANGES IN EQUITY
for the period from 1 January, 2016 to 30 June, 2016
Capital Capital Capital Capital
Reserve/
Share Redemption Redemption Revenue Reserve/ Reserve/ Exchange
Capital
Account Reserve Reserve Reserve Realised Unrealised Differences Total
In U.S. In U.S. In U.S. In U.S. In U.S. In U.S. In U.S. In U.S.
Dollars Dollars Dollars Dollars Dollars Dollars Dollars Dollars
Balances at 1 January, 92,452 323,057 85,533,077 (16,365,019) 67,395,805 (6,825,610) (4,856,783) 125,296,979
2016
Total comprehensive (loss)/income
for the period
(Loss)/gain for the - - - (356,258) (3,025,661) 4,220,799 1,071,626 1,910,506
period after tax
Capital activities
Repurchase of shares (100) 100 (97,696) - - - - (97,696)
Balances at 30 June, 92,352 323,157 85,435,381 (16,721,277) 64,370,144 (2,604,811) (3,785,157) 127,109,789
2016
Capital Capital Capital Capital
Reserve/
Share Redemption Redemption Revenue Reserve/ Reserve/ Exchange
Capital
Account Reserve Reserve Reserve Realised Unrealised Differences Total
In U.S. In U.S. In U.S. In U.S. In U.S. In U.S. In U.S. In U.S.
Dollars Dollars Dollars Dollars Dollars Dollars Dollars Dollars
Balances at 1 January, 92,452 323,057 85,533,077 (14,905,590) 53,873,130 9,116,533 (4,609,222) 129,423,437
2015
Total comprehensive (loss)/income
for the period
(Loss)/gain for the - - - (78,070) 8,140,362 (23,674,359) (335,379) (15,947,446)
period after tax
Balances at 30 June, 92,452 323,057 85,533,077 (14,983,660) 62,013,492 (14,557,826) (4,944,601) 113,475,991
2015
The notes form an integral part of the Unaudited Condensed Financial
Statements.
UNAUDITED CONDENSED STATEMENT OF CASH FLOWS
for the period from 1 January, 2016 to 30 June, 2016
01.01.2016 to 01.01.2015 to
30.06.2016 30.06.2015
Notes In U.S. In U.S.
Dollars Dollars
Cash flows from operating activities
11 Net cash outflow from operating activities (2,104,435) (1,124,576)
Interest received - 299
Dividends received 1,930,373 1,417,438
Net cash (outflow)/inflow from operating (174,062) 293,161
activities
Cash flows from investing activities
Purchase of investments (57,792,527) (31,721,650)
Sale of investments 44,213,034 34,296,774
Net cash (outflow)/inflow from investing (13,579,493) 2,575,124
activities
Net cash (outflow)/inflow before financing (13,753,555) 2,868,285
activities
Cash flows from financing activities
Repurchase of shares (97,696) -
Net cash outflow from financing activities (97,696) -
(Decrease)/increase in cash and cash (13,851,251) 2,868,285
equivalents
Reconciliation of net cash flow to
movement in net funds
Net cash (outflow)/inflow (13,851,251) 2,868,285
Effects of foreign exchange rate changes 1,071,626 (335,379)
Cash and cash equivalents at beginning of 19,009,538 5,404,636
the period
Cash and cash equivalents at end of the 6,229,913 7,937,542
period
The notes form an integral part of the Unaudited Condensed Financial
Statements.
NOTES TO THE UNAUDITED CONDENSED FINANCIAL STATEMENTS
for the period from 1 January, 2016 to 30 June, 2016
Note 1 Principal Accounting Policies
The Unaudited Condensed Interim Financial Statements for the six months ended
30 June, 2016 have been prepared in accordance with IAS 34 "Interim Financial
Reporting" as adopted by the European Union, the Listing Rules of the London
Stock Exchange ("LSE") and applicable legal and regulatory requirements of the
Companies (Guernsey) Law, 2008.
The Unaudited Condensed Interim Financial Statements do not include all the
information and disclosures required in the Annual Financial Statements and
should be read in conjunction with the Company's Annual Report and Audited
Financial Statements for the year ended 31 December, 2015.
The accounting policies and methods of computation followed in this Interim
Unaudited Condensed set of Financial Statements are consistent with those of
the latest Annual Audited Financial Statements for the year ended 31 December,
2015 which were prepared in accordance with International Financial Reporting
Standards as adopted by the European Union.
The preparation of the Interim Unaudited Condensed Financial Statements
requires management to make estimates and assumptions that affect the reported
amounts of revenues, expenses, assets and liabilities at the date of the
Interim Unaudited Condensed Financial Statements. The estimates and associated
assumptions are based on historical experience and various other factors that
are believed to be reasonable under the circumstances, the results of which
form the basis of making the judgements about carrying values of assets and
liabilities that are not readily apparent from other sources. Actual results
may differ from those estimates.
Presentation of information
The Interim Unaudited Condensed Financial Statements have been prepared on a
going concern basis under the historical cost convention adjusted to take
account of the revaluation of the Company's investments at fair value.
In order to better reflect the activities of an investment company and in
accordance with the guidance issued by the Association of Investment Companies,
supplementary information which analyses the Statement of Comprehensive Income
between items of a capital and revenue nature has been presented within the
Statement of Comprehensive Income.
Going concern
The Directors believe that it is appropriate to continue to adopt the going
concern basis in preparing the Financial Statements because the assets of the
Company consist mainly of securities that are readily realisable and, whilst
the liquidity of these assets needs to be managed, the Company has adequate
financial resources to meet its liabilities as they fall due.
In accordance with the Company's Articles, the Board is required every three
years to include in the business to be considered by shareholders at the Annual
General Meeting ("AGM") a Special Resolution that the Company should be wound
up. This resolution requires 75% of votes in favour for it to be passed. The
next such resolution will be tabled at the Annual General Meeting to be held in
2017.
The last such resolution was tabled at the eighteenth Annual General Meeting
held in 2014. The Shareholders voted against the resolution, and in favour of
the continuation of the Company. Based on this vote and the fact that the
assets of the Company consist mainly of securities that are readily realisable,
whilst the Directors acknowledge that the liquidity of these assets needs to be
managed, the Directors believe that the Company has adequate financial
resources to meet its liabilities as they fall due in the foreseeable future
and at least twelve months from the date of this report, and that it is
appropriate for the Financial Statements to be prepared on a going concern
basis. The Directors have no reason to believe that the Shareholders will not
vote against the resolution at the 2017 AGM to wind up the Company.
Standards, amendments and interpretations effective during the period
The following amendments were applicable for the first time this period but had
no impact on the financial position or performance of the Company.
- IFRS 10 (Amendments) - Consolidated Financial Statements (effective 1
January, 2016)
- IFRS 12 (Amendments) - Disclosure of Interests in Other Entities (effective 1
January, 2016)
- IAS 1 (Amendments) - Disclosure Initiative (effective 1 January, 2016)
- IAS 27 (Amendments) - Separate Financial Statements (effective 1 January,
2016)
- IAS 28 (Amendments) - Investments in Associates and Joint Ventures (effective
1 January, 2016)
Standards, amendments and interpretations issued but not yet effective
- IFRS 9 Financial Instruments - (effective 1 January, 2018)
- IAS 34 - Interim Financial Reporting (Disclosure of information elsewhere in
the interim accounts) (Annual improvements process)
Note 2 Gain/(loss) per Ordinary Share - Basic and Diluted and Net Asset
Value per Ordinary Share - Basic and Diluted
The gain/(loss) per Ordinary Share - Basic and Diluted has been calculated
based on the weighted average number of Ordinary Shares of 92,432,930 and a net
gain of US$1,910,506 (30 June, 2015: 92,452,602 Ordinary Shares and a net loss
of US$15,947,446).
There were no dilutive elements to shares issued or
repurchased during the period.
The Net Asset Value per Ordinary Share - Basic and Diluted has been calculated
based on the number of shares in existence at the period end date of 92,352,602
(31 December, 2015: 92,452,602) and shareholders' funds attributable to equity
interests of US$127,109,789 (31 December, 2015: US$125,296,979).
Note 3 Taxation
The Company has been granted Exempt Status under the terms of The Income Tax
(Exempt Bodies) (Guernsey) Ordinance, 1989 to income tax in Guernsey. Its
liability is an annual fee of GBP1,200
(2015: GBP1,200).
The amount disclosed as withholding tax in the Statement of Comprehensive
Income relates solely to withholding tax suffered at source, on income in the
investing country, Japan.
Note 4 Management Fees
The management fee is payable to the Manager, Prospect Asset Management
(Channel Islands) ("PAM(CI)"), monthly in arrears at a rate of 1.5% per annum
of the Net Asset Value, which is calculated as of the last business day of each
month. Total management fees for the period amounted to US$915,258
(30 June, 2015: US$851,576) of which US$156,517 (30 June, 2015: US$150,262) is
due and payable at the period end. The Management Agreement dated 1 December,
1994 remains in force until determined by the Company or by the Manager giving
the other party not less than three months' notice in writing, subject to
additional provisions included in the agreement regarding a breach by either
party.
Note 5 Other Expenses
01.01.2016 01.01.2015
to to
30.06.2016 30.06.2015
In U.S. In U.S.
Dollars Dollars
Administration and 152,543 141,929
secretarial fees*
Custodian's fees and charges 69,274 53,626
**
General 183,224 119,782
expenses
Directors' remuneration 61,972 61,093
Legal fees 195,294 41,253
Auditors' 21,167 13,875
fees
Non-audit 18,935 13,750
fees
702,409 445,308
*The administration and secretarial fees are payable to Northern Trust
International Fund Administration Services (Guernsey) Limited monthly in
arrears at a rate of 0.25% of the Net Asset Value of the Company as at the last
business day of the month. Total administration and secretarial fees for the
period amounted to US$152,543 (30 June, 2015: US$141,929) of which US$26,086
(30 June, 2015: US$25,044) is due and payable at the period end.
** The custodian's fees and charges are payable to Northern Trust (Guernsey)
Limited monthly in arrears at a rate of 0.08% of the value of the portfolio of
the Company as at the last business day of the month. Total custodian's fees
and charges for the period amounted to US$69,274 (30 June, 2015: US$53,626) of
which US$11,856 (30 June, 2015: US$8,538) is due and payable at the period end.
Note 6 Financial Assets at Fair Value through Profit or Loss
01.01.2016 01.01.2015 to 01.01.2015
to to
30.06.2016 31.12.2015 30.06.2015
In U.S. In U.S. In U.S.
Dollars Dollars Dollars
Opening book cost 113,243,153 114,885,517 114,885,517
Purchases at 57,977,630 109,096,236 31,746,128
cost
Proceeds on (44,158,300) (124,491,720) (50,630,616)
sale
Realised (loss)/gain on sale (2,879,574) 13,753,120 8,276,232
Closing book cost 124,182,909 113,243,153 104,277,261
Unrealised (2,604,811) (6,825,610) (14,557,826)
loss
Fair value 121,578,098 106,417,543 89,719,435
Note 7 Fair Value
Financial assets at fair value through profit or loss are carried at fair
value. The valuation techniques for valuing unlisted corporate bonds are
described below. Listed entities are valued at bid price and other assets and
liabilities are carried at amortised cost which approximate fair value.
IFRS 13 requires the Company to classify fair value measurements using a fair
value hierarchy that reflects the significance of the inputs used in making the
measurements.
Fair value is the price that would be received to sell an asset or paid to
transfer a liability in an orderly transaction between market participants at
the measurement date. The fair value measurement is based on the presumption
that the transaction to sell the asset or transfer the liability takes place
either:
(i) In the principal market for the asset or liability, or
(ii) In the absence of a principal market, in the most advantageous market for
the asset or liability.
The principal or the most advantageous market must be accessible by the
Company.
The fair value of an asset or a liability is measured using the assumptions
that market participants would use when pricing the asset or liability,
assuming that market participants act in their economic best interest.
The Company uses valuation techniques that are appropriate in the circumstances
and for which sufficient data is available to measure fair value, maximising
the use of relevant observable inputs and minimising the use of unobservable
inputs.
All financial instruments for which fair value is recognised or disclosed are
categorised within the fair value hierarchy, described as follows, based on the
lowest level input that is significant to the fair value measurement as a
whole:
Level 1 - Quoted market prices (unadjusted) in an active market for identical
assets or liabilities.
Level 2 - Valuation techniques for which the lowest level input that is
significant to the fair value measurement is directly or indirectly observable.
Level 3 - Valuation techniques for which the lowest level input that is
significant to the fair value measurement is unobservable.
For financial instruments that are recognised at fair value on a recurring
basis, the Company determines whether transfers have occurred between Levels in
the hierarchy by re-assessing categorization, based on the lowest level input
that is significant to the fair value measurement as a whole, at the end of
each reporting period.
The following table analyses within the fair value hierarchy the Company's
financial assets and liabilities (by class) measured at fair value for the
period ended 30 June, 2016.
Significant
Quoted Significant unobservable
prices
in active observable inputs
markets inputs
Level 1 Level 2 Level 3 Total
In U.S. In U.S. In U.S. In U.S.
Dollars Dollars Dollars Dollars
Financial assets at
fair value
through profit or
loss:
-Equity Securities 118,921,192 - - 118,921,192
-Derivative - - 2,628,889 2,628,889
Instruments
-Debt Securities
Corporate bonds - - 28,017 28,017
Total as at 30 June, 118,921,192 - 2,656,906 121,578,098
2016
The following table analyses within the fair value hierarchy the Company's
financial assets and liabilities (by class) measured at fair value for the year
ended 31 December, 2015.
Level 1 Level 2 Level 3 Total
In U.S. In U.S. In U.S. In U.S.
Dollars Dollars Dollars Dollars
Financial assets at fair
value
through profit and
loss:
-Equity Securities 103,898,586 - - 103,898,586
-Derivative - - 2,391,431 2,391,431
Instruments
-Debt Securities
Corporate bonds - - 127,526 127,526
Total as at 31 December, 103,898,586 - 2,518,957 106,417,543
2015
The following table presents the movement in level 3 instruments for the period
ended 30 June, 2016 by class of financial instrument.
Debt Derivative
Securities Securities Total
In U.S. In U.S. In U.S.
Dollars Dollars Dollars
Opening balance 127,526 2,391,431 2,518,957
Purchases - - -
Sales - Takefuji (121,518) - (121,518)
Conversions - Prospect Co Ltd - (294,005) (294,005)
(SAR)
Realised gains during the period 121,518 145,802 267,320
Unrealised (losses)/gains during the (99,509) 385,661 286,152
period
Closing balance 28,017 2,628,889 2,656,906
Net unrealised (loss)/gains for the (99,509) 385,661 286,152
period included in the Statement of
Comprehensive Income for level 3
Investments held at 30 June, 2016
The following table presents the movement in level 3 instruments for the year
ended 31 December, 2015 by class of financial instrument.
Debt Derivative
Securities Securities Total
In U.S. In U.S. In U.S.
Dollars Dollars Dollars
Opening balance 56,008,526 - 56,008,526
Purchases 18,641,413 2,371,249 21,012,662
Sales (52,378,965) - (52,378,965)
Realised gains during 3,131,464 - 3,131,464
the year
Unrealised (losses)/gains (25,274,912) 20,182 (25,254,730)
during the year
Closing balance 127,526 2,391,431 2,518,957
Net unrealised gain for the year 127,526 20,182 147,708
included in the Statement of
Comprehensive Income for level 3
Investments held at 31 December, 2015
Valuation techniques
Listed investments
Securities valued based on quoted market prices, in an active market for
identical assets without any adjustments, are included within Level 1 of the
hierarchy and are valued at bid price.
Unlisted Investments
The Company invests in debt securities and share acquisition rights which are
not quoted in an active market. Transactions in such investments do not occur
on a regular basis. These positions are valued at the Directors estimate of
their fair value in accordance with IFRS 13.
Level 3 valuations are monitored closely by the Investment Advisor who reports
to the Board of Directors on a quarterly basis. Valuations are based on the
most appropriate method for each level 3 investment as at 30 June, 2016 as
discussed below.
As at 30 June, 2016, the Company holds stock acquisition rights ("SARs") in
Prospect Co. Ltd. In accordance with IFRS 13, the Directors have undertaken
their responsibility to approximate a fair value of this level 3 investment by
way of utilising the Black-Scholes-Merton model. The model uses observable,
non-observable and contractual inputs. The observable inputs are the underlying
price of Prospect Co. Ltd (30 June, 2016: ¥43.5, 31 December, 2015: ¥51.5) and
the risk free rate (30 June, 2016: 0.00%,
31 December, 2015: 0.00%). The significant unobservable inputs are the dividend
yield, which is based on historic dividend payments (30 June, 2016:1.95%, 31
December, 2015: 1.95%) and the volatility rate used (30 June, 2016: 23.16%, 31
December, 2015: 15.7%), which was the implied rate of volatility having removed
the peaks created by the previous convertible bond and adjusted for the
dilution impact of the SARs issue on Prospect Co. Ltd. The contractual inputs
are the shares received for each right exercised (100,000), the exercise date
(21 December, 2015) the remaining exercise period (1 January, 2016 to
20 December, 2020), the strike price of the SAR (¥54) and the number of SARs
remaining (1,350). Using this model with the implied rate would result in write
down of US$538,922 (31 December, 2015: US$490,243) in the valuation of the SARs
which the Directors believe to be immaterially different to the cost price of
the SARs. Therefore the Directors believe the cost price of the SARs to
approximate fair value and is the value used in these financial statements. The
uplift in the value in these financial statements is due to foreign exchange
movements.
Note 8 Receivables
30.06.2016 31.12.2015
In U.S. In U.S.
Dollars Dollars
Amounts due from brokers 40,182 151,847
Dividends receivable 24,736 224,005
Other 30,789 23,199
receivables
95,707 399,051
Note 9 Payables
30.06.2016 31.12.2015
In U.S. In U.S.
Dollars Dollars
Amounts due to brokers 446,877 172,618
Other 347,052 356,535
creditors
793,929 529,153
Note 10 Share Capital, Redemption Reserve & Capital Redemption Reserve
Authorised Share Capital 30.06.2016 31.12.2015
Number of shares In U.S. In U.S.
Dollars Dollars
150,000,000 Ordinary Shares of US$0.001 150,000 150,000
each
60,000,000 "C" Ordinary Shares of 600,000 600,000
US$0.01 each
As approved at the AGM on 10 August, 2015, the Company may purchase a maximum
of 13,858,645 Ordinary Shares, equivalent to 14.99% of the issued share capital
of the Company as at the date of the AGM.
During the period, shares were purchased and cancelled as
follows:
Capital
Redemption Redemption
Ordinary Share Reserve Reserve
Shares Capital
Number of In U.S. In U.S. In U.S.
shares Dollars Dollars Dollars
92,452,602 Balance at 1 January, 92,452 85,533,077 323,057
2016
Shares repurchased
and
(100,000) cancelled during the (100) (97,696) 100
period
92,352,602 Balance at 30 June, 92,352 85,435,381 323,157
2016
Capital
Redemption Redemption
Ordinary Share Reserve Reserve
Shares Capital
Number of In U.S. In U.S. In U.S.
shares Dollars Dollars Dollars
92,452,602 Balance at 1 January, 92,452 85,533,077 323,057
2015
92,452,602 Balance at 31 December, 92,452 85,533,077 323,057
2015
The Redemption Reserve account is a distributable reserve account which can be
used for, among other things, the payment of dividends, if any. The Directors
do not recommend the payment of a dividend for the period.
The Capital Redemption Reserve is used to cancel the shares of the Company when
they are redeemed or there is a share buyback.
Ordinary Shares carry the right to vote at general meetings of the Company and
to receive dividends and, in a winding-up will participate in any surplus
assets remaining after settlement of any outstanding liabilities of the
Company.
Note 11 Reconciliation of Return on Ordinary Activities to Net Cash Inflow
from Operating Activities
30.06.2016 30.06.2015
In U.S. In U.S.
Dollars Dollars
Revenue loss on ordinary activities for (356,258) (78,070)
the period
Adjusted
for:
Interest received - (299)
Dividends received (1,731,104) (1,274,158)
Decrease in other (7,590) -
receivables
(Decrease)/increase in other (9,483) 227,951
creditors
Net cash outflow from operating (2,104,435) (1,124,576)
activities
Note 12 Related Party Transactions
Parties are considered to be related if one party has the ability to control
the other party or exercise significant influence over the other party in
making financial or operational decisions.
The Directors are responsible for the determination of the investment policy of
the Company and have overall responsibility for the Company's activities. The
Company's investment portfolio is managed by PAM(CI) (the "Manager") whose
parent company is Prospect Co Ltd (Kabushiki Kaisha Prospect ("KKP"), a
Japanese Company).
Mr Rupert Evans is a Director of the Manager.
Directors' fees are disclosed in note 5. The basic fee payable to Directors in
2016 is GBP25,000 (US$33,420), the Chairman of the Audit Committee GBP27,500
(US$36,762) and the Chairman of the Board GBP30,000 (US$40,104) per annum (2015:
Directors GBP25,000, Chairman of the Audit Committee GBP27,500, Chairman GBP30,000).
At 30 June, 2016, US$30,202 (2015: US$27,349) of the fee remained payable.
No Directors holding office at 30 June, 2016, or their associates, had any
beneficial interest in the Company's shares. There have been no changes in
these interests between the end of the period and up to the date of this
report.
Mr. Curtis Freeze is a Director of PAM(CI), the Manager of The Prospect Japan
Fund Limited, and is the President of Prospect Co Ltd., the owner of PAMI, the
Investment Advisor to The Prospect Japan Fund Limited and PAM(CI), the Manager
of The Prospect Japan Fund Limited.
Management fees are disclosed in note 4.
During 2015, the Company purchased SARs in Prospect Co. Ltd, the value of which
is disclosed in note 7 under Unlisted Investments. During the period, the
Company exercised 90 SARs.
Note 13 Segmental Reporting
The Board is responsible for reviewing the Company's
entire portfolio and considers the business to have a single operating segment.
The Board's asset allocation decisions are based on a single, integrated
investment strategy, and the Company's performance is evaluated on an overall
basis.
The Company invests in a diversified portfolio of
Japanese investments. The total fair value of the financial instruments held by
the Company, and the equivalent percentages of the total value of the Company,
are reported in the Portfolio of Investments.
Revenue earned is reported separately on the face of
the Statement of Comprehensive Income as investment income being dividend
income received from equities, and interest income being interest earned from
convertible and corporate bonds.
Note 14 Contingent asset
The Company declined to tender its shares for Toho Real Estate, as the Company
believed the true value to be considerably higher than that stated in the
tender offer, and entered into an arbitration process. The Company has been
involved in court proceedings with Toho Real Estate arising from the tender
offer. In March 2015 the Company received notice from the court presiding over
its petition that it had ruled in its favour. The court awarded the Company an
aggregate amount of ¥121,600,000 (US$1.01 million). Although an improvement,
this was still significantly discounted to the fair value of Toho Real Estate
and as such, on 8 April, 2015 the Company filed an appeal against the ruling.
On 30 March, 2016, the Company announced that the Tokyo High Court had ruled
that the tender offer price for Toho Real Estate amounted to fair value and
eliminated a previous award of ¥121,600,000 to the Company. The Company has
filed an appeal to this ruling.
With regard to Yukiguni Maitake, the Company feels that a
tender offer was unfair and feels that the shares were artificially depressed
due to poor management, which resulted in an accounting violation around the
payment of dividends. The holding bank sold into the TOB and realised the
collateral at what the Company believes to be an unfair price. Alix Partners
Asia LLC and Nera Economic Consulting have been engaged to provide valuations
and although the results have not yet been received, the Company is convinced
the premium paid by Bain was too small by far. Although at this point it would
be difficult to put a per share value on it, the Company believes a premium
closer to 40% vs. the 18.7% paid would be in line with the market.
Note 15 Reconciliation of Published Valuation to Audited Financial Statements
Prepared under IFRS
30.06.2016 31.12.2015
In U.S. In U.S.
Dollars Dollars
Net assets per Financial 127,109,789 125,296,979
Statements
Writeback of prior year uplift on Toho Real - 1,009,715
Estate (note 14)
Net assets per published valuation 127,109,789 126,306,694
NAV per share per Financial Statements (in 137.64 135.53
cents)
NAV per share per published valuation (in 137.64 136.62
cents)
Note 16 Subsequent Events
These Unaudited Condensed Financial Statements were approved for issuance by
the Board on
18 August, 2016. Subsequent events have been evaluated until this date.
No subsequent events have occurred from the Statement of Financial Position
date up to 18 August, 2016.
GENERAL INFORMATION
General
The Company is a close-ended investment company incorporated in Guernsey in
November 1994 and was launched in December 1994 with an initial asset value of
US$70 million. There are 92,352,602 Ordinary Shares in issue as at 30 June,
2016. The Company's Ordinary Shares are listed on the London Stock Exchange.
The Ordinary Shares of the Company have not been registered under the United
States Securities Act of 1933 or the United States Investment Companies Act of
1940. Accordingly, none of the Ordinary Shares may be offered or sold directly
or indirectly in the United States or to any United States persons (as defined
in Regulation 'S' under the 1933 Act) other than in accordance with certain
exemptions. Investment in the Company is suitable only for sophisticated
investors and should be regarded as long-term. Past performance is no
indication of future results.
The Company is a FATCA compliant organisation with FATCA entity classification
FFI and GIIN L0Q9R3.99999.SL.831.
The Company also complies with the Common Reporting Standard ("CRS"). The CRS
is a standard developed by the Organisation for Economic Co-operation and
Development ("OECD") and is a global approach to the automatic exchange of tax
information. Guernsey has now adopted the CRS which came into effect on 1
January 2016.
Investment Objective
The Company's investment objective is to achieve long-term capital growth from
a portfolio of securities primarily of smaller Japanese companies listed or
traded on Japanese Stock Markets. The aim will be to achieve a long-term
capital return on the Company's portfolio and dividend income will be a
secondary consideration in making investment decisions. Although the Company is
not managed to a benchmark, it measures its performance against the MSCI Japan
Small Cap Index (Total Return) for comparison purposes only.
Investment Restrictions
The following investment restrictions were approved on 5 March, 2014, the
Company will not:
(i) invest in securities carrying unlimited liability; or
(ii) deal short in securities; or
(iii) take legal or management control in investments in its portfolio; or
(iv) invest in any commodities, land or interests in land; or
(v) invest or lend more than 25% of its assets at the time the investment
is made in securities of any one company or single issuer (other than
obligations of the Japanese Government or its agencies or of the US Government
or its agencies); or
(vi) invest more than 10% of its assets at the time the investment is made
in closed-end investment funds which are listed on the Official List maintained
by the Financial Conduct Authority (except to the extent that those investment
funds have state investment policies to invest no more than 15% of their total
assets in other investment funds which are listed on the Official List) and the
Company will not invest more than 15% of its assets at the time the investment
is made in such funds; or
(vii) invest more than 5% of its assets at the time the investment is made
in unit trusts, shares or other forms of participation in managed open-ended
investment vehicles; or
(viii) commit its assets in the purchase of foreign exchange contracts,
financial futures contracts, put or call options or in the purchase of
securities on margin other than in connection with or for the purpose of
hedging transactions effected on behalf of the Company; or
(ix) enter into borrowings in excess of 20% of net assets at the time the
borrowings are drawn down.
NAV and Information
The prices of Ordinary Shares and the latest NAV are published daily in the
Financial Times. The price of the Ordinary Shares appears within the section of
the London Share Service entitled "Investment Companies".
Life of the Company
From inception, the Directors have believed that Shareholders should be able to
review the progress of the Company so that a decision can be taken as to
whether Shareholders should have an opportunity of realising the Company's
underlying investments. Accordingly, at the eighteenth Annual General Meeting
of the Company held on 27 August, 2014, the Board included in the business to
be considered by Shareholders a special resolution that the Company should be
wound up. The resolution was not passed. The Board will include a similar
resolution in the business to be considered at every third Annual General
Meeting held. The next such resolution will be tabled at the Annual General
Meeting to be held in 2017.
Directors
Brief biographical details of the Directors are as follows:
Rupert Evans, age 78, is a Guernsey advocate and former partner in the firm of
the Guernsey legal advisors, Mourant Ozannes. He is now a consultant to Mourant
Ozannes. He is a non-executive director of the Manager and of a number of
investment companies. Mr Evans is resident in Guernsey. Mr Evans was appointed
to the Board on 18 November, 1994.
John Hawkins, age 73, is a Fellow of the Institute of Chartered Accountants in
England and Wales. He was formerly Executive Vice President and a member of the
Corporate Office of The Bank of Bermuda Limited, with whom he spent many years
in Asia. He retired from the Bank of Bermuda in 2001 after 25 years with the
Group. He is a director of a range of funds which include hedge funds and
equity funds investing in Japan and Asia. Mr Hawkins was appointed to the Board
on 4 April, 2004. Mr Hawkins is resident in the United Kingdom.
Richard Battey, age 64, is a qualified chartered accountant. He is a
non-executive director of a number of investment companies and funds. Mr Battey
joined the Schroder Group in December 1977 and was a director of Schroders
(C.I.) Limited from April 1994 to December 2004, where he served as Finance
Director and Chief Operating Officer, and was a director of Schroder Group
Guernsey companies before retiring from his last Schroder directorship in
December 2008. Mr Battey is resident in Guernsey. Mr Battey was appointed to
the Board on
10 February, 2010.
Taxation Status
The Company has obtained exemption from Guernsey Income Tax under The Income
Tax (Exempt Bodies) (Guernsey) Ordinance, 1989. There is no capital gains tax
in Guernsey.
END
(END) Dow Jones Newswires
August 19, 2016 02:00 ET (06:00 GMT)
Prospect Japan (LSE:PJF)
Historical Stock Chart
From Jun 2024 to Jul 2024
Prospect Japan (LSE:PJF)
Historical Stock Chart
From Jul 2023 to Jul 2024
