The objective of the Sub-Fund is to seek long term capital growth principally by investing through selected Fund Managers throughout Asia, and more particularly (and up to 100%) in Japan.
The year-end rally triggered by the election of Donald Trump as President of the United States continued through January, with all equity indices ending in positive territory, with the notable exception of European equities, which closed the month down -0.4%. Emerging markets, on the other hand, strongly outperformed their counterparts in the developed markets. In Japan, the country posted a modest gain over the month, while the yen strengthened against the USD from 117.0 to 112.8. The small- and mid-cap indexes outperformed the market as a whole. The cyclical sectors' return to grace seen at the close of 2016, also continued with a sharp rise in sectors linked to maritime and air transport, iron & steel as well as shale & oil products. At the other end of the spectrum, the energy, mining and real estate sectors suffered at the beginning of the year. In this environment, Asian Capital HoldingsJapan Equities slightly outperformed its benchmark. The portfolio was invested in 10 funds by January's end, all denominated in yen. The fund's dollar compartment hedges its yen exposure. Movements within the portfolio were minimal this month.
(1) The rating grades the funds on a scale from 1 to 7. This rating system is based on the average fluctuations of the net asset value over the past five years. It corresponds to the variation range of the portfolio upwards and downwards. If the net asset value is less than 5 years old, the rating is determined by other regulatory calculation methods. Historical data such as those used to calculate the rating may not be a reliable indication of the future risk profile. The current category is neither a guarantee nor an objective. Category 1 does not signify a risk-free investment.