NAVF invests in a highly concentrated portfolio of shares issued by listed or traded companies which have the majority of their operations in, or revenue derived from, Japan. The investment adviser seeks undervalued companies where cash constitutes a significant proportion of the investee company’s market capitalisation; and the relevant company has no controlling or majority shareholders.
The board applies the following restrictions on the size of its investments:
- not more than 30 per cent. of the gross asset value at the time of investment
will be invested in the securities of a single issuer; and
- the value of the four largest investments at the time of investment will not
constitute more than 75 per cent. of the gross asset value.
The Company is not constrained by any index benchmark in its asset allocation.