LONDON (Alliance News) - Atlantis Japan Growth Fund Ltd on Thursday said its net asset value total return fell 1.2% in the six months ended October 31, citing the dilutionary effect of an increase in the number of its shares.
Investment company Atlantis Japan said in the same period, other major indices moved lower during May and June, but then recovered and moved higher during July and October. The Tokyo Stock Exchange Tokyo Price Index climbed 7.2% over the six month-period, whilst the Second Market advanced 12%.
"The company remained concentrated on medium sized and smaller growth companies and cyclical growth companies, all of which underperformed during the period under review," Atlantic Japan said.
"Many of the best performing companies were cyclical lower quality recovery stocks, an area where the company has little or no exposure," the company said.
Atlantis Japan's net asset value per share declined to USD2.14 from USD2.16 over the six month period, but said its net asset value rose to USD97.6 million from USD87.0 million in the period. The number of shares in the group rose to 45.6 million from 40.2 million at the end of April.
However, the group said it was "cautiously optimistic" going forward and plans "slowly to invest some of the available cash the company holds into attractive stocks, but only very selectively".
Atlantis Japan said it expects overseas investors to move to become buyers looking forward, as well as the Japanese government buying to spread to smaller and mid-cap stocks and corporations to continue to remain on the buy side.
Shares in Atlantis Japan were untraded on Thursday, having last traded at 146.00p.
By Hannah Boland; hannahboland@alliancenews.com; @Hannaheboland
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