Standard & Poor’s Ratings Services today affirmed its 'AA' and 'AAppt' fund management ratings on three funds managed by Daiwa Asset Management Co. Ltd.: Daiwa Value Kabu Open "Sokojikara", DC Daiwa Value Kabu Open "DC Sokojikara", and Daiwa Value Kabu Open VA "Sokojikara VA". The three funds are baby funds invested in the larger Daiwa Value Stock Open Mother Fund.
The objective of the Daiwa Value Stock Open Mother Fund is to achieve long-term performance in excess of the TOPIX. The fund focuses on companies considered undervalued from the perspective of their technological strengths, market position, business franchise, and restructuring efforts. Manager of the mother fund Takayasu Hirai has built a diversified portfolio that benefits from his extensive investment expertise and prudent investment approach.
Summary of the three baby funds:
Daiwa Value Kabu Open "Sokojikara"
Launched in February 2000, this public placement investment trust has had a cumulative return of 74.69% over the three years ended Nov. 30, 2006. This performance was substantially higher than that of the TOPIX, and the fund ranked 37th out of 139 funds in the Standard & Poor's fund sector.
DC Daiwa Value Kabu Open "DC Sokojikara"
This public placement investment trust was launched in November 2001 and is specifically designed for defined contribution pension plans. It had a cumulative return of 75.06% over the three years ended Nov. 30, 2006. That performance was substantially higher than that of the TOPIX, and the fund ranked 35th out of 139 funds in the Standard & Poor's fund sector.
Daiwa Value Kabu Open VA "Sokojikara VA"
This private placement investment trust was designed for variable annuity insurance plans and had a cumulative return of 77.08% over the three years ended Nov. 30, 2006. This performance was 16.74% higher than that of the TOPIX. The current rating is also based on the fact that the fund is underwritten by Tokio Marine Nichido Financial Life Co. Ltd.
The fund management rating report on these funds will soon be available on Japanese on Standard & Poor’s website at http://www.standardandpoors.co.jp.
| Ratings Affirmed: |
| |
Rating |
Daiwa Value Kabu Open "Sokojikara"
(S&P sector: Equity Japan TSE 1st) |
AA |
DC Daiwa Value Kabu Open "DC Sokojikara"
(S&P sector: Equity Japan TSE 1st) |
AA |
Daiwa Value Kabu Open VA "Sokojikara VA"
Insurance Underwriter: Tokio Marine Nichido Financial Life Co. Ltd.
(S&P sector: Private Placement Investment Trust/Equity Japan TSE 1st) |
AAppt |
―INFORMATION―
Fund Management Ratings Definitions
Standard＆Poor’s Fund Management Ratings are based on an evaluation of quantitative (historic performance, volatility, and portfolio construction) and qualitative (management, corporate status, and investment process) factors that contribute to long-term performance. In Standard & Poor’s opinion, funds that adhere to disciplined processes and exhibit strong management, are more likely, over the long run, to provide consistent above- average volatility adjusted returns relative to funds in the same sector. The differentiation in the rating categories is based on quantitative factors and Standard & Poor’s qualitative assessment of the investment process and management.
AAA
The fund demonstrates the highest standards of quality in its sector based on its investment process and management's consistency of performance as compared to funds with similar objectives.
AA
The fund demonstrates very high standards of quality in its sector based on its investment process and management’s consistency of performance as compared to funds with similar objectives.
A
The fund demonstrates high standards of quality in its sector based on its investment process and management’s consistency of performance as compared to funds with similar objectives.
NR
Funds designated as NR (not rated) currently do not meet the requisite performance standards and/or the minimum qualitative criteria.
Definitions of PPT Fund Management Ratings
Standard＆Poor’s Fund Management Ratings are based on an evaluation of quantitative (historic performance, volatility, and portfolio construction) and qualitative (management, corporate status and investment process) factors that contribute to long-term performance. The quantitative analysis for PPT’s for variable annuity programs are based on relative performance versus the larger universe of funds with similar objectives, and is not therefore limited solely to a peer group of other PPT funds. In Standard & Poor’s opinion, funds that adhere to disciplined processes and exhibit strong management, are more likely, over the long run, to provide consistent above- average volatility adjusted returns relative to funds in the same sector.
AAAppt
The PPT demonstrates the highest standards of quality based on its investment process and management's consistency of performance as compared to funds with similar objectives.
AAppt
The PPT demonstrates very high standards of quality based on its investment process and management's consistency of performance as compared to funds with similar objectives.
Appt
The PPT demonstrates high standards of quality based on its investment process and management's consistency of performance as compared to funds with similar objectives.
NR
Funds designated as NR (not rated) currently do not meet the requisite performance standards and/or the minimum qualitative criteria.
Standard & Poor’s Private Placement Investment Trust (the “PPT”) Fund Management Ratings report the evaluation and analysis of the management process of PPT’s selected by private variable annuity insurance plans. The PPT Fund Management Ratings are not the direct evaluation of financial strength or insurance solvency of insurance companies, nor evaluation of creditworthiness or management of private variable annuity insurance plans and segregated accounts at which assets of such insurance policies are managed. For the Fund Management Ratings assigned to PPT funds, Standard & Poor’s conducts evaluation and analysis of management process of these funds as well as its mother funds, by utilizing the evaluation/analysis technique applied for public-placement investment trusts. It should be noted, however, that performances of PPT funds are different from those of segregated accounts at which assets under private variable annuity insurance policies are managed, as well as those of public-placement investment trusts.
A Standard & Poor’s rating is not a recommendation to purchase, sell or hold any interest in the fund, inasmuch as it does not comment as to market price or suitability for a particular investor. While performance is one of many factors contributing to the ratings, it, in and of itself, is no indication of future results. The ratings are based on current information furnished to Standard & Poor’s by the fund or obtained from sources Standard & Poor’s considers reliable. Standard & Poor’s does not perform an audit in connection with any rating and may rely on unaudited information. Ratings may be changed, suspended or withdrawn as a result of changes in or unavailability of such information, or based on other circumstances, such as a persistent lack of access to fund managers. The ratings do not address market, credit or counter party risk of a fund, nor does it comment on the fund’s suitability as a counter party or obligor.
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