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  6. Characteristic

Overview

What are Country Funds?

Country Funds are the investment trusts for the purpose of the securities investment for the specific country or the area.

Country Funds are the closed-end investment trusts established in a foreign country for the purpose of security investment for a specific country or the area. Operating funds are gathered from investors, and investment securities of the fund are issued. A closed-end investment trusts mean the investment trusts of the type which investors cannot redeem by requesting cancellation of the investment trust agreement, etc. Investors of funds can receive investment profit as a dividend and expect capital gains.

Investors can enjoy economic growth of the whole investment countries.

The management company of funds invests a fund which is gathered from the investors in securities of the investment country or the area that each funds set up (hereinafter “investment country”). As funds generally perform diversified investment for the representative issue of the investment country, investors are able to enjoy the effect of economic growth of the whole investment countries without collecting information about an individual issue.

Listing (Criteria for Listing Examination)

Listing object is investment security of the securities investment corporation which is established in a foreign country, and listed or made listed application in the financial instruments exchange, etc. of the own country.
The main criteria for listing examinations are as follows.

The number of listed investment units At least 4 million units
The Number of Investors in Japan At least 600 investors holding at least trade unit (100units)
Total Net Assets Value At least JPY 5 billion
The Amount of the Profit Recording profit during the last business period before the day of the listing application

Trading

Same Trading Method as Regular Stocks

Trading method of Country Funds is the same as that of Regular Stocks. Both Limit and Market Orders are available.

Margin Trading is also available.

Country Funds are eligible for margin trading as well as stocks. Criteria for selecting of Standardized Margin Trading Issues and loan trading issue is the same as stocks.

How to trade Country Funds?

For trading of Country Funds, opening a foreign securities account in a securities company is necessary. At that time, “Agreement of Foreign Securities Trading Account " that determines agreement which purpose is to make claims and obligations relations about trading between investors and securities company in this account clear is issued to investors.

Agreement of Foreign Securities Trading Account (Reference: Japan Security Dealers Association making) icon-pdf