Bayview Asset Management

Monitoring of Derivative Trading, etc.

Investment trusts offered and managed by the Company may use derivative transactions (as prescribed in Article 2, Paragraph 20, of the Financial Instruments and Exchange Act, including transactions involving share option certificates, investment option certificates, securities or certificates indicating options, and bond trading with options) in order to pursue efficient investment or for the purpose of hedging risks.

BVAM manages the risks of derivative trading through the following measures for publicly offered investment trusts in order to limit losses that may occur due to derivative transactions within a precise range.

Specifically, we ensure that the risk equivalent amount calculated with the standardized approach*2 among the calculation methods of market risk equivalent amount as prescribed in the notification by the Financial Services Agency*1 is within 80 percent of the total net assets of the fund.

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