Risk Factors

The following risks mainly exist associated with investments in Japanese equity securities.

1. Price volatility risk
Changes in prices of portfolio holdings may cause the value of a client’s assets to fall below the original investment and result in a loss (a value below principal). In addition, price volatility risk is generally higher for stocks with low liquidity and after an initial public offering.

2. Credit risk
Changes in the business operations or financial condition of stock issuers as well as revisions in external evaluations of these issuers resulting from these changes may cause the value of a client’s assets to fall below the original investment and result in a loss (a value below principal).

*Please contact Nippon Value Investors for more information about risk factors.