GCI Asset Management｜About Us

1. Discretionary Asset Management

GCI levies an investment management fee either at a pre-determined fixed rate or as a variable success-based reward depending on the performance of the investment.
The fixed rate fee is normally calculated as the amount of the mandated mark-to-market asset value on a certain date, multiplied by 1.05% per annum (inclusive of taxes). The applicable rate can be negotiable under certain special circumstances, e.g. in relation to the method of investment.
The success-based fee is normally calculated as net profits (profits after the dealing commissions) of the mandated asset multiplied by 21% per annum (inclusive of taxes), based on the mandated mark-to-market asset value on a certain date. The applicable rate can be negotiable under certain special circumstances, e.g. in relation to the method of investment.
In addition to the above, when securities dealing commissions and any expenses in relation to the foreign-registered investment trusts incur, they are deducted from the mandated assets. The amount of such expenses fluctuates according to the investment management and therefore such rates cannot be quoted in advance.

2. Advisory Asset Management

1）When the advisory asset management agreement is exchanged on the mandated asset,: ・The same fee structure, as explained for Discretionary Asset Management above, applies.
2）When the advisory asset management agreement is exchanged not based on the mandated asset,: ・The annual fee is normally ￥10.5mn (inclusive of taxes).

■Stock price fluctuation risks

When investing in equities, losses may incur as the share price may be influenced by changes in domestic and overseas economic/political situations as well as deteriorating /deteriorated earnings of the issuer.

■Interest rate fluctuation risks

When investing in fixed income products, losses may incur, as the fixed income instrument’s price normally declines when interest rate rises.

■Foreign exchange fluctuation risks

When investing in assets denominated in foreign currencies, losses may incur when JPY appreciates against the currency of the investment asset.

■Credit risks

When investing in fixed income products, losses may incur because of a lower fixed income instrument’s price and following a delay in coupon payments or in redemption proceeds when the financial condition of the issuer deteriorate.