PHILADELPHIA, Dec. 19, 2013 /PRNewswire/ -- The Japan Equity Fund, Inc. (NYSE: JEQ; "The Japan Fund" or the "Fund") announced today that its stockholders have approved an Investment Management Agreement with Aberdeen Asset Management Asia Limited ("AAMAL"). AAMAL will assume investment management responsibility for the Fund from Daiwa SB Investments (USA) Ltd., the Fund's current investment manager, effective January 6, 2014. The Japan Equity Fund is a closed-end investment company with total assets of $107 million (as of October 31, 2013). Its investment objective is to outperform over the long term, on a total return basis (including appreciation and dividends), the Tokyo Stock Price Index ("TOPIX"). The Fund seeks to achieve its investment objective by investing substantially all of its assets, but under normal circumstances at least 80% of its assets, in equity securities of companies listed on the Tokyo Stock Exchange or listed on the over-the-counter market in Japan or listed on other stock exchanges in Japan. There can be no assurance the Fund will achieve its investment objective.
Expertise in the Asia-Pacific Region
"We are truly delighted to assume responsibility for the management of The Japan Fund. We look forward to bringing our long-established experience of investing in the Asia-Pacific region to the Fund's current and future stockholders," says Hugh Young, Managing Director and Global Head of Equities for Aberdeen, an affiliate of AAMAL. "Aberdeen established its presence in Asia in 1992 when we set up our Asian regional headquarters in Singapore and have expanded our capabilities throughout the Asia-Pacific region ever since. We are particularly excited about the economic reforms taking place in Japan today and look forward to bringing our extensive due diligence in identifying quality Japanese companies to the Fund's stockholders."
Aberdeen Asset Management PLC ("Aberdeen") is the parent company of an asset management group managing assets for both institutional and private clients from offices around the world. Aberdeen Asset Management Asia Limited, based in Singapore and a subsidiary of Aberdeen, is the Fund's manager. Aberdeen's Asian operations include more than 150 investment professionals in offices across the Asia region including Bangkok, Hong Kong, Singapore, Shanghai, Sydney, Taiwan, Tokyo, and Melbourne.
"Closed-end funds, one of the oldest types of investment vehicles, have been a key focus of Aberdeen since the firm was founded. We believe that our familiarity with their structure, coupled with our extensive experience and presence in Asia, will help deliver long-term investment opportunities to the stockholders of The Japan Equity Fund, Inc.," concluded Mr. Young.
Aberdeen – simply asset management
Aberdeen is an independent asset management company. Formed out of a management buy-out in Aberdeen, Scotland, in 1983, we are now a FTSE 100 company operating on-the-ground in 25 countries across Europe, Asia and the Americas.
We are defined by our pure focus on asset management, including equities, fixed income, property and multi-asset portfolios. All our investment solutions are driven by our commitment to straightforward, transparent investment approaches that stress intensive, first-hand research and a long-term view.
As of September 30, 2013, we manage assets of $324.6 billion on behalf of institutional and private investors.
Foreign securities are more volatile, harder to price and less liquid than U.S. securities. They are subject to different accounting and regulatory standards, and political and economic risks. These risks may be enhanced in emerging markets countries. Concentrating investments in a single country subjects the portfolio to more volatility and greater risk of loss than geographically diverse investments.
Closed-end funds are traded on the secondary market through one of the stock exchanges. The Fund's investment return and principal value will fluctuate so that an investor's shares may be worth more or less than the original cost. Shares of closed-end funds may trade above (a premium) or below (a discount) the net asset value (NAV) of the fund's portfolio. There is no assurance that the Fund will achieve its investment objective. Past performance does not guarantee future results.
In the United States, AAM is the marketing name for the following affiliated, registered investment advisers: Aberdeen Asset Management Inc., Aberdeen Asset Managers Ltd, Aberdeen Asset Management Ltd and Aberdeen Asset Management Asia Ltd, each of which is wholly owned by Aberdeen Asset Management PLC. "Aberdeen" is a U.S. registered service mark of Aberdeen Asset Management PLC.
SOURCE The Japan Equity Fund, Inc.