The Market Monitor provides fundamental and technical data about the markets in which the Derivative Funds are active. Read more
Intereffekt Japanse Warrants is called Intereffekt Active Leverage Japan from 2 November 2015.
Intereffekt Active Leverage Japan invests in derivatives on the financial markets in Japan. The fund is aiming at a leverage of 2 to 3 times the return on the underlying values. Its investment policy will be aimed primarily at achieving capital growth (the fund will not pay any dividends). The risk profile is high, due to investments being channeled into derivatives. The manager will not use a benchmark as a gauge for the purposes of determining investment policy or comparing the results achieved by the fund.
Intereffekt Active Leverage Japan is a subsidiary fund of Intereffekt Investment Funds N.V. (IIF), established with a so-called umbrella structure.
On a monthly basis the Nikkei index rose by 0.6 percent in euro in January. The fund price fell by 2.1 percent. The yen, which often serves as a proxy for the Japanese equity market, moved within a range of 121-124 against the euro. The value of the yen eventually increased by 1.0 percent. The trading model has generated mixed signals, and so the leverage has been modified several times.
During the first trading day of 2017, the Nikkei index managed to reach the highest level in 13 months. However, the closing level of 19,600 points also seems to be the highest level of the month. From this level the Nikkei index went down 5 percent and then again recovered a few percent.
In particular, the yen has risen a few percent relative to the dollar. Listed export-driven companies reacted negatively to this increase. Japanese exports are up for the first time in fifteen months, according to figures for December. The increase of 5.4 percent was much higher than expected. The growth was mainly caused by increasing demand from China. Inflation in Japan rose by 0.3 percent over the month of December. The BoJ is still targeting a core inflation rate of 2 percent. An objective that continues to be postponed to the future. A more recent macro-figure for January also gives some positive news. It appears that the Japanese Purchasing Managers Index rose to the level of 52.7 as a result of increasing demand from abroad. Moreover, it is the highest level in nearly three years. In addition, the BoJ has revised upwards the growth forecasts for the Japanese economy. Despite this, the central bank leaves the monetary policy unchanged. The BoJ has revised the forecasts for GDP growth in 2017 from 1 to 1.4 percent.
However, the BoJ indicated concerns over possible future protectionist measures from President Trump. Japanese Prime Minister Shinzo Abe however is working on a plan for creating some jobs in the US through the auto industry hoping that Trump will be grateful.
Market Monitor / Trading model
No rights may be derived from this publication. You are referred to the prospectus and Key Investor Information Document for the fund's terms and conditions. These documents may be obtained from the website or the address mentioned below. The manager of IIF has obtained a licence for this fund from the Netherlands Authority for the Financial Markets in accordance with the provisions of the Financial Supervision.