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Basic Policy on Handling Differences in NAV (Materiality Policy)

Amova Asset Management Co., Ltd.（hereinafter referred to as the Company"）has put in place a policy on handling differences in NAV (materiality policy) to improve and enhance the level of protection provided to beneficiaries. The policy sets forth requirements including the maintenance of an appropriate threshold for NAV errors and other such occurrences. It is also intended to ensure that necessary action can be taken in line with pre-determined handling methods in view of considerations such as customer protection requirements. The policy is set forth in internal regulations* formulated by the Company in line with stipulations in the Japan Financial Services Agency’s Comprehensive Guidelines for Supervision of Financial Instruments Business Operators and the Japan Investment Trusts Association’s Policy on Calculations of Investment Trust NAV by Single Trustees.

The Company has publicly released the below “Materiality Policy” to ensure that the investors and beneficiaries who use the Company’s funds understand the above-mentioned policy on handling differences in NAV (materiality policy).

*The internal regulations on handling differences in NAV (materiality policy) include the below stipulations. The Company determined their content based on due steps with management involvement.　

 

  1. A standard threshold for NAV errors.
    The Company has stipulated 50 basis points as its standard threshold for NAV errors. It judges this level to be appropriate in consideration of the need to protect investors and beneficiaries, substantive economic rationality, as well as other considerations including the Company’s duty of care as a good manager and its fiduciary duty. The Company also referred to overseas laws, regulations, and common practice in determining the threshold.

     

  2. Responses to NAV errors that are at, exceeding or below the threshold level.
    If the Company detects a NAV error that equals or exceeds the threshold level, in principle, it compensates for losses experienced by investors and beneficiaries who conducted subscriptions or redemptions during the time of the error. In principle, the Company also offsets the losses attributable to the subscriptions or redemptions conducted by investors and beneficiaries during the applicable period and compensates for the resulting losses to trust assets. 

    In the case of errors that are below the threshold, in principle, the Company offsets losses attributable to the subscriptions or redemptions conducted by investors and beneficiaries during the time the error occurred and compensates for the resulting losses to trust assets. 

     

  3. The Company has stipulated a requirement to take proper measures, such as reversing losses to trust assets and beneficiaries, as soon as possible if a NAV error attributable to the Company has been detected, in accordance with the level of the error. The Company also reviews its NAV calculation process as necessary. 

     

  4. The method for processing NAV errors if they occur in Japan-domiciled funds launched and managed by the Company.  

     

  5. A stipulation that the Company is to act fairly and properly based on its duty of care as a good manager as well as its fiduciary duty towards investors and beneficiaries.

 

Supplementary Provisions

Approval from the Compliance Oversight Committee (GEC Committee) shall be required to revise or abolish this policy. However, changes such as minor wording amendments may be made based on approval by the head of the Business & Regulatory Compliance Department.

Established: September 17, 2024; Enforced: September 17, 2024

Revised: August 15, 2025; Enforced: September 1, 2025

 

Important Information

The funds mentioned are Japan registered funds approved for sale or purchase in Japan. By proceeding, you are representing and warranting that you are either resident in Japan or the applicable laws and regulations of your jurisdiction allow you to access the information.

The information on this website is not intended to be an offer, or a solicitation of an offer, to buy or sell any product or service to any person in any jurisdiction where such offer, solicitation, purchase or sale would be unlawful under the laws of such jurisdiction.

This website may contain links to the website of certain overseas affiliates of Amova Asset Management Asia Limited ("Amova Asia"). However, providing such links should not be considered as offering or solicitation by Amova Asia of any product or service of its affiliates to any person.

This website is purely for informational purposes only with no consideration given to the specific investment objective, financial situation and particular needs of any specific person. It should not be relied upon as financial advice. The mention of individual securities, sectors, regions or countries within this website are for illustration purposes only and does not imply a recommendation to buy or sell. You should seek advice from a financial adviser before making any investment. In the event that you choose not to do so, you should consider whether the investment selected is suitable for you. Investments in funds are not deposits in, obligations of, or guaranteed or insured by Amova Asia.

Past performance or any prediction, projection or forecast is not indicative of future performance. The Funds or any underlying funds may use or invest in financial derivative instruments. The value of units and income from them may fall or rise. Investments in the Funds are subject to investment risks, including the possible loss of principal amount invested. You should read the relevant prospectus (including the risk warnings) and product highlights sheet of the Funds, which are available and may be obtained from appointed distributors of Amova Asia or our website www.amova.com.sg before deciding whether to invest in the Funds.

The information contained herein may not be copied, reproduced or redistributed without the express consent of Amova Asia. While reasonable care has been taken to ensure the accuracy of the information as at the date of publication, Amova Asia does not give any warranty or representation, either express or implied, and expressly disclaims liability for any errors or omissions. Information may be subject to change without notice. Amova Asia accepts no liability for any loss, indirect or consequential damages, arising from any use of or reliance on this website.