- Compensation and Investment risks
Compensation and Investment risks
The basic annualized maximum amount of compensation for our services is as listed below. The fee structure for investment advisory/investment management services will be determined on a case-by-case basis pending a discussion with the investment party. The method of calculating compensation is based on individual discussions with the customer and cannot be disclosed in advance.
Annual compensation rate
for assets under management
- Annual compensation(*)
By agreeing to our terms, the investor agrees to assume the risks listed below, volatility in which may cause the value of the investment to fall below the principal amount.
- Equity market risk: Equity investments are subject to price volatility in the underlying equity securities market.
- Interest rate risk: The value of fixed income investments is impacted by shifts in interest rates.
- Currency Risk: Shifts in currency exchange rates may materially impact the value of investments with foreign exposure.
- Credit Risk: The value of individual securities is subject to volatility stemming from shifts in the credit status of the issuer.
- Liquidity Risk: Low-liquidity items (private equity funds, etc.) may see transactions executed under unfavorable terms.
- Derivatives Risk: Derivatives (options, futures, etc.) may see the value fluctuations inconsistent with the underlying assets.
- Asset Risk: Private equity funds invest in private companies including venture companies whose risks are generally high.
- Opportunity Risk: Private equity funds may not find enough opportunities to fulfill their commitments.