Disclosures:

The information contained on this website is for informational purposes only and is intended for institutional investors resided in the United States.

No information on this website should be considered an offer, solicitation, recommendation or investment advice.

Bloomberg Barclays US Aggregate Index:
The Bloomberg Barclays US Aggregate Index represents securities that are SEC-registered, taxable, and dollar denominated. The index covers the US investment grade fixed rate bond market, with index components for government and corporate securities, mortgage pass-through securities, and asset-backed securities. These major sectors are subdivided into more specific indices that are calculated and reported on a regular basis.

Bloomberg Barclays US Credit Index:
The Bloomberg Barclays US Credit Index represents securities that are publicly issued US corporate and specified foreign debentures and secured notes that meet the specified maturity, liquidity, and quality requirements. To qualify, bonds must be SEC-registered.  You cannot invest directly in an index.  Index results assume the re-investment of all dividends and capital gains. In addition, the representative account’s holdings may differ significantly from the securities that comprise the index.

<Investment Risk>

Investors may suffer losses of principal and a decline in the value of assets under management due to various risk factors.  Listed below are general risks related to the investment strategies discussed on this website. Not all possible risks are listed below.

Price Volatility Risk:
Prices of stocks and securities are known to fluctuate widely and such price fluctuations in individual stocks and the stock market overall may contribute to a decline in the value of assets under management.

Securities Selection Risk:
Securities selection may contribute to a decline in the value of assets under management irrespective of overall securities market trends.
 

Liquidity Risk:
An inability to execute trades at the most advantageous time due to low trading volume may contribute to a decline in the value of assets under management.
 

Interest Risk:
Bond prices generally fall as interest rates rise, and such price fluctuations may contribute to a decline in the value of assets under management.
 

Credit Risk (Fixed Income):
Invested assets may become unrecoverable if issuers of corporate/sovereign bonds, commercial paper or short-term financial instruments become insolvent or experience calamitous declines in creditworthiness. Market anticipation of such declines may also contribute to a decline in the value of assets under management.
 

Credit Risk (Equity):
In such a case when the issuer of the stock goes into financial difficulty or default etc, invested assets may become unrecoverable. Additionally, in the case when the issuer is expected to go into such situation, the price of the stock issued by the issuer will decline and it may be the factor for the depreciation in the assets under management.

Non-U.S. Securities Risk:
Investments in securities of companies domiciled or operating in one or more foreign countries. Investing in these securities involves considerations and possible risks not typically involved in investing in securities of companies domiciled and operating in the United States, including instability of some foreign governments, the possibility of expropriation, limitations on the use or removal of funds or other assets, changes in governmental administration or economic or monetary policy (in the United States or abroad) or changed circumstances in dealings between nations.

Foreign Currencies Risk:
Fluctuations in the currency market may have an impact on the value of assets under management. As a result, investors may suffer losses arising from foreign exchange fluctuations. Investment in foreign currency denominated assets may also be affected by regional political and economic conditions, currency and capital regulations and other factors that may contribute to a decline in the value of assets under management.
 

Income Risk:
A portfolio’s income may decline when interest rates decrease. During periods of falling interest rates an issuer may be able to repay principal prior to the security’s maturity, causing the portfolio to have to reinvest in securities with a lower yield, resulting in a decline in the portfolio’s income.
 

Municipal Securities Risk:
Municipal securities may be significantly affected by political or economic changes as well as uncertainties in the municipal market related to taxation, interest rate changes, the relative lack of information about certain municipal securities issuers, legislative changes or the rights of municipal security holders. Municipal securities backed by current or anticipated revenues from a specific project or specific assets may be affected adversely by the inability to collect revenues for the project or from the assets.
 

Country Risk:
Financial market turbulence caused by country-specific political, economic or regulatory changes may constrain fund management and contribute to a decline in the value of assets under management.
 

Derivative Risk:
As for derivative trading and margin trading ( hereinafter referred to as “derivative trading, etc.”), there are various risks such as the possibility of lack of correlativity between hedging products and hedged assets, the possibility of lack of  liquidity and the risk of re-margin. These investment methods are utilized not only for the purpose of avoiding price volatility risk of the assets which belong to contract assets but also for the purpose of efficiency investment management. However, investors may suffer losses if the firm’s outlook of financial instruments differs from the actual variation in assets price which belong to derivative trading, etc. and contract assets.  The sum of derivative trading, etc. may exceed the sum of clearing margin, etc. (hereinafter referred to as “margin, etc.”) in regard with such derivative trading, etc. In addition, if the fluctuation in interest rates, currency, financial product or other relevant market variables may lead loss of principal and decline in the value of assets under management, the sum of loss may exceed the sum of margin, etc. In this case, investors may suffer losses more than the original principal, and may be required re-margin by the broker. Furthermore, the ratio of such derivative trading, etc. to margin, etc. is not disclosed primarily due to the difference of the content of trading and condition.

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