SPARX Group Co., Ltd. Consolidated Financial Results for FY2012 (April 2012 – March ... · 2016....
Transcript of SPARX Group Co., Ltd. Consolidated Financial Results for FY2012 (April 2012 – March ... · 2016....
SPARX Group Co., Ltd.
May 16, 2013May 16, 2013
SPARX Group Co., Ltd. SPARX Group Co., Ltd. Consolidated Financial Results for Consolidated Financial Results for FY2012 (April 2012 FY2012 (April 2012 –– March 2013)March 2013)
© 2013 SPARX Group Co.,Ltd.
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IntroductionIntroduction:: Towards the VTowards the V--shaped Recoveryshaped Recovery
Break-even points has been significantly reduced as a result of continuation of cost reduction over the past few years.
New businesses, which was focused on last fiscal year (especially real asset investment) will contribute to its profitability.Moreover, among others, the following business areas represent a large part of our performance.
Japanese equity investment business – rapid・continuous recovery of Japanese equity investment business (Equity Investment).
Significant shifts in market trend ・・・increase in management feeAccumulation of solid investment performance ・・・realization of performance fee
Returning to profitability and restarting dividend payment is noReturning to profitability and restarting dividend payment is no longer longer our new goal to be aimed for this upcoming year (2013) since we our new goal to be aimed for this upcoming year (2013) since we
anticipate with much certainty already that the goal can be achianticipate with much certainty already that the goal can be achieved.eved.
The current year (2013) is the year to show the results of concrete measures that we have taken over the past few years of hardship
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Financial Results for FY 2012 Financial Results for FY 2012
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Year to show the achievement of rebuilding the business portfoliYear to show the achievement of rebuilding the business portfolios, which to supports the reos, which to supports the re--growth of companygrowth of company’’s s businesses by both improving market environment and starting up businesses by both improving market environment and starting up of the new business.of the new business.
⇒⇒Business recovery is definitely foreseeable. However, it became Business recovery is definitely foreseeable. However, it became clear in the second half of the fiscal year 2012 clear in the second half of the fiscal year 2012 and therefore, it turned out to be insufficient for the businesand therefore, it turned out to be insufficient for the business recovery of the entire year.s recovery of the entire year.
・ Operating revenue turned around in the second half of the year.
(3.767B JPY(Second half:2.062B JPY、First half:1.704B JPY)、FY2011:4.493B JPY)
・ Clear improvement although recording operating loss(▲0.843B JPY、FY2011:▲1.413B JPY)
⇒ Increase in operating revenue w/o goodwill amortization(+0.284B JPY、FY2011:+0.078B JPY)
・ Net loss has been reduced although extraordinary loss has been recorded due to the temporary factors.
(▲2.203B JPY、FY2011:▲4.539B JPY)
⇒ mainly due to the impairment of investment securities (which was to sell from the beginning) and recording of income taxes for prior periods.
⇒ As of now, no extraordinary loss is expected in this fiscal year.
Executive SummaryExecutive Summary
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Management fee : 3.153B JPY (PY: 3.871B JPY) ( <reference>3rd quarter:2.281B JPY)
Performance fee : 0.040B JPY (PY: 0.454B JPY)( <reference>3rd quarter: 0.034B JPY)
Other Revenue : 0.573B JPY (PY: 0.167B JPY)( <reference>3rd quarter:0.465B JPY)
Operating Revenue Total : 3.767B JPY (PY: 4.493B JPY) ( <reference>3rd quarter:2.781B JPY)
Asset(AUM):
・Quarter-end AUM has rapidly recovered due to significant weakening of yen, appreciation of stocks, which started around mid-November last year.
⇒However as a result of weakened market condition from the beginning of the fiscal year 2012, average AUM for the year has still decreased compared to prior year.
・Reflecting the progress of new businesses, significant cash inflow from investors and increase in AUM for Clean Tech./Real Estate/Other investment strategies.
Operating Revenue:
・ Decrease in average AUM and net management fee rate, as well as, substantial decrease in COSMO’sperformance fee revenue.
On the other hand, fees related to consultation (SAM) has been recognized (“other revenue”)
Summary of FY2012 (April 2012 Summary of FY2012 (April 2012 –– March 2013)(P/L)(1)March 2013)(P/L)(1)
Year-end AUM : approximately 25% increase・・・535.4B JPY(2012/3 end) ⇒669.3B JPY(2013/3 end)
Average AUM : approximately 8% decrease・・・570.6B JPY(FY2012/Mar-end)⇒526.1B JPY(FY2013/Mar-end)
Clean Tech. Strategy: 26.1B JPY(2012/Mar-end)⇒55.4B JPY(2013/Mar-end)
Japanese Real Estate Investment Strategy: Nil B JPY(2012/Mar-end)⇒21.4B JPY(2013/Mar-end)
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Operating & General Admin Exp: Improvement of break-even point by its corporate streamlining initiatives + decreased amount in goodwill amortization
⇒ One more step to turn around from operating loss to operating profit
Ordinary expenses : 2.678B JPY (PY: 3.548B JPY) approximately 25% decrease
Amortization of goodwill : 1.128B JPY (PY: 1.492B JPY)※ Amount of goodwill amortization has been reduced due to SPARX Asia’s goodwill impairment recorded at 3Q last year
Other (extraordinary): Sales and impairment of investment securities
Income tax for prior periods: Recognized additional taxes payable relating to the transfer pricing taxation for subsidiary (0.32B JPY)
Summary of FY2012 (April 2012 Summary of FY2012 (April 2012 –– March 2013)(P/L)(2)March 2013)(P/L)(2)
Operating Loss: ▲0.843B JPY (PY:▲1.413B JPY)
(Simplified) Operating CF: 0.284B JPY (PY: 0.078B JPY)
(Note 1) 「(Simplified) Operating CF] is calculated by adding back amortization of goodwill to its operating income.
Net Loss: ▲2.203B JPY (PY: ▲4.539B JPY)
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P/L SummaryP/L Summary:: Expanded positive operating cash flow (w/o goodwill amortizationExpanded positive operating cash flow (w/o goodwill amortization))
Operating cashflow (w/o goodwill amortization):+284MM JPYOperating cashflow (w/o goodwill amortization):+78MM JPY
SPARX Asia’s goodwill impairment: 2.271B JPY Impairment loss on investment securities and loss on sales: 1.424B JPY
(Note1) The figures above, excluding “YoY change” are truncated. “YoY change” is rounded to the nearest tenth of a percent.
(Note2) Number of employees (period-end) shows the figure that does not include the number of “directors and corporate auditors”. The total headcount as of 4Q-end is 141.
(Note3) AUM figures shown above include those of Korean subsidiary (COSMO Asset Management Co., Ltd.) and Hong Kong subsidiary (and SPARX Asia Capital Management Limited, as its parent). The figures for March 31, 2013 are based on in-house calculations and should be regarded as preliminary.
(Note4) Operating cashflow (w/o goodwill amortization) is calculated by adding back 「amortization of goodwill」 to its 「operating income(loss)」.
Apr -Mar 2011 Apr -Mar 2012 YoY change
Average AUM (100MM JPY) 5 ,706 5 ,261 -7 .8%
Operating Revenue (MMJPY ) 4 ,493 3 ,767 -16 .2%
Operating General&Administrative Expenses
(MM JPY) 5 ,907 4 ,610 -22 .0%
Operating Loss (MM JPY) -1 ,413 -843 -
Ordinary Loss (MM JPY) -1 ,262 -568 -
Net Profit (MM JPY) -4 ,539 -2 ,203 -
Number of Employees(period-end) 142 122 -14 .1%
TOPIX(period-end) 854 .35 1 ,034 .71 21 .1%
FY 2012FY 2011
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Apr2011-Mar2012 Apr2012-Mar2013 YoY change (%)
Management fees (MM JPY) 3,871 3,153 -18.5%
Net management fee rate (%) 0.60% 0.53% -0.07
Performance fees (MM JPY) 454 40 -91.1%
Percenrage of AUM eligile toearn performance fees (%) 55.7% 48.9% -6.8
Other operating revenue (MM JPY) 167 573 241.6%
Total operating revenue (MM JPY) 4,493 3,767 -16.2%
Breakdown of Operating RevenueFY2011 FY2012
Breakdown of operating revenue & percentage of AUM eligible to earn performance fees
Breakdown of Operating RevenueBreakdown of Operating Revenue:: Anticipating its business recovery, Anticipating its business recovery, which is driven by Japan (SAM)which is driven by Japan (SAM)
Cosmo did not reach a level where performance fee revenue is recorded including index investment strategy due to the weakening of Korea market over all
Investment strategies related to new business are expected to have higher fee rate and contribute to the improvement of its average rate.
・Due to decrease in AUM of investment strategies with higher management fee rate at Cosmo.
・Due to lower AUM of L/S strategy with higher management fee at SAM.
SAM’s investment performance has been preferable , which is supported by upturned market environment and recorded performance fee revenue, which is expected to expand in the next year. (Partially recognized already)。
Various projects have been steadily realized.
Strive to increase further in revenue in addition to the certain recognizable revenue as a result of focusing on last fiscal
(Note1) The figure stated above are truncated excluding “YoY change,” “Net management fee rate (%) and “percentage of AUM eligible to earn performance fees (%).” “YoY change” is rounded to the nearest tenth of a percent. “YoY change” of “net management fee rate” and “percentage of AUM eligible to earn performance fee (%)” shows the amount of decrease/increase instead of percentage of change.
(Note 2) Net management fee rate = (Management fee – Related commissions and charges) / Average AUM
(Note 3) The figures for March 31, 2013 are based on in-house calculations and should be regarded as preliminary.
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Cost BreakdownCost Breakdown ::Continuation of further corporate streamlining Continuation of further corporate streamlining initiativesinitiatives、、approximately approximately 25% decrease25% decrease in ordinary expenses on in ordinary expenses on YoYYoY basisbasis
(Units: MM JPY)
YoY change
Commissions paid Operating
Personnel exp. General admin
Entrusted fund admin fees Operating
Travel exp. General admin
Property rent General admin
Entrusted business expenses General admin
Depreciation on fixed assets General admin
Other expenses General admin
Amortization of goodwill General admin
Total: Operating and general administrativeexpenses
Category FY2011 FY2012
Q4 Q4
483 459 -5.1%
2,176 1,651 -24.1%
71 23 -67.2%
136 98 -27.8%
429 262 -39.0%
260 235 -9.4%
74 42 -42.7%
782 708 -9.4%
1,492 1,128 -24.4%
5,907 4,610 -22.0%
3.54B JPY(PY)
2.67B JPY(CY)
24.5%decrease
in ordinary expenses
(Note1)The figures above, excluding “YoY change”, are truncated. “YoY change” is rounded to the nearest tenth of a percent.
(Note2)The “Personnel Expenses” data includes payments for temporary staff, etc.
(Note3)99 MM JPY (full year 2011) and 99 MM JPY (full year 2012) of amortization of negative goodwill are recorded in non-operating income.
Bonus 382MM JPY Bonus 344MM JPY
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+110
2,678
2,788
0.53
5,261
FY2012FY2012
3,548(MM JPY)Annualized ordinary expenses
0.60(%)Net management fee rate(After the deduction of commissions paid)
Full Year
▲126(MM JPY)Annualized “Base Earnings”
3,421(MM JPY)Annualized net management fee revenue (After the deduction of commission paid)
5,706(100 MM JPY)Average AUM
FY2011FY2011
(Note1) The figures above truncated. As preliminary figures, the “Annualized net management fee revenue” is calculated by multiplying the “Net management fee rate” and
the “Average AUM” for the period.
(Note2) The “Annualized ordinary expenses” is calculated by deducting (1) Commissions paid, (2) Bonuses (including allowance for bonuses), (3) Severances package for
key members of overseas subsidiaries and (4) Amortization of goodwill, from total operating and general administrative expenses.
Base EarningsBase Earnings::base earnings have finally been turned over to base earnings have finally been turned over to positive due to the improvement of breakpositive due to the improvement of break--even pointeven point
Full Year
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Quarterly change (Average AUM、Management fees (net basis)、Ordinary expenses、Base earning)
(Note1)The figures above are truncated. As preliminary figures, the 「Annualized net management fee revenue」 is calculated by multiplying the net management fee rate and the average AUM for the period.
(Note2)The 「Annualized ordinary expenses」 is calculated by deducting the followings from total operating and general administrative expenses; ① Commissions fee paid, ② Actual bonuses (including allowance for bonuses), and ③ temporary retirement benefits for both directors and employees of foreign subsidiaries, ④Amortization of goodwill.
Average AUM
(Unit: MM JPY)
Yellow:bar graph
(Unit: MM JPY)
Base EarningsBase Earnings::Turned into steady positive trendTurned into steady positive trend
300,000
350,000
400,000
450,000
500,000
550,000
600,000
650,000
700,000
600
700
800
900
1,000
1,100
1,200
-24
3
17 15
-20 -24
-77
-6
-35
-2
64
84
-100
-80
-60
-40
-20
0
20
40
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Management fees・Ordinary expenses
(Unit: MM JPY)
Blue/Brown:line graph
Management Fee (by quarterly)
Ordinary Expenses (by quarterly)
基礎収益
March 2013March 2012March 2011
March 2011 March 2012 March 2013
Average AUM(by quarterly)
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<Management Fee>
AUM as of April 2013,
6,900×53bps = JPY 3.6B
Image of business recovery for the next fiscal yearImage of business recovery for the next fiscal year
ordinary expense:
JPY 2.7~2.8B
Goodwill amortization:
JPY 0.95B
Solid reduction of goodwill amortization amount
(refer to:p.15)
Although it is business expansion phase, cost control will be strictly carried out continuously
Expected to record performance fee by the accumulated solid investment performance (Partially realized already)
Expanded its base earnings
Able to secure operating profit with foreseeable revenue with certainty
RevenueRevenue
Increase AUM by capturing current strong interest in Japanese stocks and a strong tailwind market trend
Various projects focused on last fiscal year have been steadily realized. Will be expanded by new business projects
Operating revenue:JPY ?B
Entering the trend where continuous profitability is recorded
ExpenseExpense
Add’l expense:JPY? BLooking at the profit level, incur reasonable・add’lexpenses which contribute to the further revenue growth
<Other Revenue>
As a result of last year, for those revenues which will be definitely
recognized Approx JPY 0.3B
Management Fee
Ordinary expense will be covered by existing AUM. Base earnings became at the level of JPY 0.8B+
Performance Fee
<<ReiterateReiterate>> Returning to profitability and restarting dividend payment is noReturning to profitability and restarting dividend payment is no longer our new goal to be aimed for this upcoming year longer our new goal to be aimed for this upcoming year (2013) since we anticipate with much certainty already that the (2013) since we anticipate with much certainty already that the goal can be achieved. goal can be achieved.
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0%
5%
10%
15%
20%
25%
30%
35%
40%
Apr.-Jun. Jul.-Sep Oct.-Dec Jan.-Mar. Other
((SAMSAM))Funds with Performance Fees Funds with Performance Fees --Distribution of Base Distribution of Base Date for Calculation (by Quarter)Date for Calculation (by Quarter)
SAM % of AUM eligible to earn performance fees (as of Mar. 31, 2013)
(Note 1) All funds managed by SPARX Asset Management Co., Ltd. (investment trusts and discretionary investment accounts) as of March 31, 2013, are classified by the performance fee value date in the graph above. Among these, performance fee is recorded only if it has met the requirements specified in the contract in each calculation value date. Please note that it is not intended to demonstrate how definite performance fee to occur in the future.
(Note 2) In calculating these percentages, the following adjustments are made: (1) For funds with multiple payment periods, the equally divided values of the funds are allocated to the amount in the month of each value date, (2) Funds without performance fees are excluded from the total AUM.
(Note 3) The figures above % are rounded to the nearest tenth of a percent. In addition, the figures are estimated based on in-house calculation.
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Summary of FY2012 (April 2012 Summary of FY2012 (April 2012 –– March 2013)March 2013)((B/SB/S))
External debt is small, sufficient liquidity on handRemaining interest-bearing debt:1.5B JPY + AP:0.93B JPY = approximately 2.4B JPY, while having cash & cash equivalent:5.9B JPY+ investment securities:0.40B JPY + AR:0.85B JPY = Approximately 7.1B JPY (maintaining sufficient level)
Net asset, itself has maintained the level to cover necessary working capital6.4B JPY of net asset remains after considering fixed amount for goodwill and fixed assets (excluding the investment securities) of 1.72B JPY and 0.59B JPY, respectively from net asset of 8.75B JPY.Improvement of equity ratio as a result of full bond redemption (PY 4Q-end 45.0% ⇒CY 4Q-end 67.6%)
BS streamlining ⇒ Financial base is more stable
When it is confident for further business expansion, we will carWhen it is confident for further business expansion, we will carefully consider for efully consider for external financingexternal financing
Interest-bearing debt has been decreased to the level where it can be repaid by the operating cashflow
+
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BB//SS SummarySummary::maintain its stability while financial base has become shrunkmaintain its stability while financial base has become shrunk
Includes purchased bonds 1,904MM JPY (treasury of bond)
(Units: MM JPY)
Current assetsCash and cash equivalentsSecuritiesReceivables
Fixed assetsGoodwillInvestment securities
Total assets
Short-term borrowingsCorporate bond due within 1yrPayablesCorporate bond
Total liabilities
Common stockAdd'l paid-in-capitalRetained earningsCommon stock in treasure at costValuation difference on AFS securitiesForeign currency translation adjustmentMinority interests
Total net assets
Mar. 2012 Mar. 2013 YoY change
12,304 7,787 -4,5175,926 -1,982
2,047 408 -1,6397,908
845 -8358,018 5,165 -2,8531,680
2,599 1,728 -8714,992 2,844 -2,148
20,323 12,952 -7,370
320 - -3204,900 - -4,9002,769 931 -1,8381,500 1,500 -
9,771 2,921 -6,849
12,451 12,456 414,307 14,309 2
-12,106 -14,310 -2,203-4,438 -4,438 -
182 1,33075 560 484
10,552 10,030 -521
1,317 1,160 -157
-1,148
Includes purchase proceeds of bond of 1,904MM JPY
Includes corporate bond (face value) 2,000MM JPY before purchase and cancellation
Excludes investment securities 872MM JPY (FMV) having agreed to sell
Includes proceeds from selling short-term securities of 872MM JPY (FMV) having agreed to sell
Bond has been fully redeemed prior to 2Q-end by purchase and cancellation and maturity repayment
Schedule for goodwill amortization
2014/3: 955MM JPY
2015/3: 570MM JPY
2016/3: 202MM JPY
Coupon Rate: 1.15%
Maturity date: September 2014
Rapidly recovered due to significant weakening of yen, appreciation of stocks
Unrealized loss has been realized by the sales and impairment of investment securities
(Note1) The figures above are truncated.
(Note2) The investment securities includes the seed money of SPARX Group funds.
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Progress of each businessProgress of each business&&
Future PlansFuture Plans
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Equity InvestmentEquity Investment
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Equity InvestmentEquity Investment
Revival of Japanese equity investment businessSPARX shows the validity of our investment strategy (through bottom-up research & catalyst) based on our corporate philosophy of “Macro is the aggregate of micro” by long-term favorable investment performance.
⇒Won awards given by research company overseas⇒Strive to increase AUM by new subscriptions from investors (especially overseas) by more aggressive
dissemination of information while responding to the strong tailwind of Japanese equity market as well as gain on currency evaluation
⇒Recognition of substantial performance fee has become foreseeable since there are several investment strategies with/beyond HWM(High-Water-Mark)
Development of operational ability in OneAsia investmentImprove its investment performance for One Asia L/S. Tracking records have been accumulated.
⇒It has reached the stage where investors are evaluating our efforts to offer new products which are established by using all the group companies’ resources Japan/Korea/Hong Kong as a result of anticipation of integration of Asian market (corporate evaluation)
⇒Won awards given by research company in Japan for the SPARX investment trust securities (Japan) which is investing in equities in the Asia ・Middle-East countries http://www.sparxgroup.jp/press/uploads/pressE20130422-01.pdf
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Press release of SPARX Group Co., Ltd. dated January 22, 2013
http://www.sparx.jp/press/uploads/pressE20130122-01.pdf
JapaneseCorporate
Value CreationInvestment
Value Enhancement
Business Partners
Investors
Value Enhancement
Source:SPARX
Equity InvestmentEquity Investment -- Value EnhancementValue Enhancement InvestmentInvestment
Proactive approach for corporate value enhancementprovide consultation services to investors who are seeking to increase corporate value of particular company over the medium to long term as well as large-scale investment ⇒Through this experience, we will strive to launch investment strategy “value-enhancement type fund” which invests aiming long-term returns through communications with the management of the investment target
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Real Asset InvestmentReal Asset Investment
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Reconstruction Fund 1(Natori, Sendai-shi 314 rooms. Total asset size 1.1B JPY)・・・Opened at Oct. 1, 2012. Utilization rate is as originally expected due to the increase in its awareness.Reconstrution Fund 2(Sanbongi, Osaki-shi 545 rooms,Yamoto, Higashimatsushima-shi 455 rooms. Total asset size JPY 3.6B)・・・As planned, Hotel at Sanbongi opened on April 30, 2013 and at Yamoto will be opened in July 2013.
Business partnersSPC
Business hotels For
reconstructionworkers
(Business Partners)
investors
Loan lenders
Source:SPARX
Real Asset Investment(1)Real Asset Investment(1)-- Northeast Japan Reconstruction FundNortheast Japan Reconstruction Fund
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Establishment of Japanese Real Estate FundEpochal example on introducing foreign investors to Japanese real estate fund.⇒Asset has been increased to 21.4B JPY as of March 31, 2013. We have received additional commitment from existing investor. Therefore, it is expected to expand up to 40B JPY (over 5 year period) in the future.⇒In addition, we are in the process of preparing the fund which targets on investment in the Japanese commercial properties with the other foreign investor.
For the funds managed by SPARX Asia, the joint project by the Chinese companies to invest in real estate (Investment amount was USD 500 million expected).
REITAsset Manager
Residential FundReal Estate
Market
Overseas investor
Bridge・finance functionAdjust the timing difference of capital financing by this fund
Source:SPARX
Real Asset Investment(2) Real Asset Investment(2) --Real Estate FundReal Estate Fund
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Investment Partnership
(LPS)
Other power generationbusiness
InvestmentLimited
PartnershipWind PowerSystem
PhotovoltaicPowerSystem
Possibility of providing Japanese version
of infrastructure fund(Brown・Field market)
Possible formation of 2nd fund
Source:SPARX
Real Asset Investment(3) Real Asset Investment(3) --Infrastructure FundInfrastructure FundAppointed as fund operating manager for public-private partnership infrastructure fund which was established bythe Tokyo Metropolitan Government. Participation and investment into this LPS is still on-going up to July 2013 by way of private placement made by Nomura Securities Co., Ltd. Its first investment project has been made in January 2013 and will be executed sequentially. Total projects cost is scheduled to be approximately JPY 30B. Meanwhile, will be working on to meet the need from oversea investors as wellPossibility of forming 2nd fund or listed infrastructure REIT through know-how that we acquired through this public-private infrastructure fund. Also, it will consider the investment into wind power system in addition to photovoltaic power system.
SGET Ashikita Mega Solar conceptual design
Ashikita Mega Solar Power Plant Facilities construction site(as of 2013.4.19)
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AppendixAppendix
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SAM: Annualized performance by strategy since inceptionSAM: Annualized performance by strategy since inception
(From Composite Start Date to Mar. 31, 2013)(Annualized)
(Note1) The figures in the table above are calculated using the composite performance data of the major investment strategies and are based on the internal data. The “Reference index” is shown to facilitate comparisons and is not necessarily a representative of the “benchmark” indexes requested by clients. (Note2) The calculation methods used for the annualized returns above are as follows: the modified Dietz method (pre-deduction of management related fees) is applied to Long-only Active (Commingled funds), Mid & Small Caps, and Strategic Investment. The NAV per share method (management fee deducted) is applied to the Long-Short (JPY, Lev.1). The above figures are rounded to the nearest tenth of a percent.
Source: SPARX Group Co., Ltd (Tokyo, Japan), as of March 31, 2013.
TOPIX cum dividendTOPIX cum dividendRussell/Nomura Mid-Small Cap IndexTOPIX cum dividendReference Index
21.32%7.56%18.50%22.45%Volatility of Composite Return (Annualized)
July 1999June 2000January 2000May 1997Start Date
6.71%4.56%2.91%8.67%Excess Return
-0.71%
7.96%
Long-only Active (Commingled funds)
-0.82%-1.49%1.50%Reference Index
5.89%
Strategic Investment
3.07%4.41%Composites
Long-Short(JPY, Lev. 1)Mid & Small capsJapanese equities
The data of this page does not include Korean subsidiary (Cosmo Investment Management Co., Ltd.) and Hong Kong subsidiary (SPARX Asia Capital Management Limited).
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SAM: Annualized performance by strategySAM: Annualized performance by strategy1. Each composite includes portfolios managed by companies of the SPARX group, excluding Cosmo and SPARX Asia.
2. Investment strategies of each composite are described below.
Investment strategy identifying and investing in undervalued companies through a concentrated portfolio.Strategic (or “Focused”) Investment
Investment strategy combining long and short positions. Leveraged within NAV, and aims to achieve stable absolute returns.
Long-Short (JPY, Lev.1)
Investment strategy of investing companies in the medium and small cap stock universe. Mid & Small Caps
Investment strategy of active, long-only portfolio management of commingled funds. The universe of this strategy includes all of the listed equity securities on Japanese exchanges.
Active Long-only (commingled funds)
Type of investment strategyName of CompositeJapanese equity
3. Investment strategy performance appendix (annual returns for the past five fiscal years)
The data of this page does not include Korean subsidiary (Cosmo Investment Management Co., Ltd.) and Hong Kong subsidiary (SPARX Asia Capital Management Limited).
23.82%0.59%-9.23%28.47%-34.78%Strategic Investment (TOPIX-Benchmark)
23.82%0.59%-9.23%28.47%-34.78%Long-short (TOPIX-Benchmark)
22.26%1.92%-7.52%29.14%-31.00%Mid&Small Caps (RNMS-Benchmark)
30.31%5.71%-1.76%23.14%-25.67%Strategic Investment
17.24%-8.29%4.00%6.03%-4.13%Long-short (JPY, Lev1)
26.48%8.80%-1.87%33.32%-25.64%Mid&Small Caps
0.59%
3.54%
FY2011
-9.23%
-5.74%
FY2010
23.82%
33.69%
FY2012
-34.78%
-34.48%
FY2008
28.47%
34.27%
FY2009
Active Long-only (TOPIX-Benchmark)
Active Long-only (Commingled funds)
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This report is prepared solely for the purpose of providing information in English to shareholders of SPARX Group Co., Ltd. (“SPARX”) and other interested parties and is not intended to be a recommendation or solicitation to buy or sell SPARX shares or any other securities. SPARX and its group companies do not warrant the accuracy, completeness, or appropriateness of any data, information, opinions or other statements contained in this report (which remain subject to auditing), and are not liable for any damage, loss and/or other results caused by any reliance on or use of any of the said data, information, opinions or other statements. Past results are not indicative of future performance.
This report contains forward-looking statements that reflect SPARX’s plans and expectations. These forward-looking statements are not guarantees of future performance and involve known and unknown risks, uncertainties and other factors that may cause SPARX’s actual results, performance, achievements or financial position to be materially different from any future results, performance, achievements or financial position expressed or implied by these forward-looking statements. A discussion of these factors which may affect SPARX’sactual results, performance, achievements or financial position is contained in SPARX’s annual securities report, which is on file with the Kanto Finance Bureau of the Japanese MOF. Further, the content of this report may be altered without any prior notice. SPARX owns the copyright of this report. No part of this report may be transmitted, reproduced, quoted, cited or otherwise used for any purpose whatsoever without the prior written permission of SPARX.
SPARX Asset Management Co., Ltd. has prepared and presented the relevant part of this report in compliance with the Global Investment Performance Standards (GIPS®). The Firm to which GIPS® is applied has been defined as SPARX, comprising SPARX Asset Management Co., Ltd. and SPARX Overseas Ltd. SPARX Asset Management Co., Ltd. is registered with Japanese authority to conduct the Investment Management Business, the Investment Advisory and Agency Business, the Type 1 Financial Instruments Business and the Type 2 Financial Instruments Business.
SPARX Group Co., Ltd.
Tennoz First Tower 16F2-2-4, Higashi Shinagawa, Shinagawa-ku, Tokyo 140-0002, JapanTel: +81-(0)3-6711-9100