Method of utilization of Venture Funds

Method of utilization of Venture Funds

To keep the characteristic of Venture Funds, listing criteria requires the applicant for initial listing of Venture Funds to reach the investment ratio above or to be expected to reach the ratio within 6 months after listing.

A rating agency for unlisted stocks, etc.

The disclosure of the fair value of the unlisted stocks, etc. based on appropriate valuation is necessary to obtain accurate information of Venture Funds. For guaranteeing the appropriateness of valuation of unlisted stocks, etc., any operations for valuation of unlisted stocks, etc. is required to be entrusted to a rating agency for unlisted stocks, etc. considered appropriate by Tokyo Stock Exchange (TSE).

Disclosure (abstract)

Timely disclosure is quite important because Venture Funds invest in mainly in unlisted stocks ,etc. The disclosure system of Tokyo Stock Exchange provides information for making a decision to make an investment by requesting following information.

Timely Disclosure
  • In case where funds acquire or transfer more than 5% of total net assets of asset under management.
  • In case where unlisted stocks, etc. of asset under management will be listed
  • In case where stocks of asset under management will be delisted
  • in case where funds file a petition for a procedure, unlisted companies invested by funds go bankrupt, rehabilitation procedures or reorganization procedures are made.
Net asset value per unit
(once a week)
  • Disclose information about unlisted stocks, etc. , unlisted stocks, etc. –related assets , stocks, etc. within 5 years of listing, and other assets separately.
  • Describe the fair value of unlisted stocks, etc. and unlisted stocks, etc. –related assets based on the valuation by rating agencies for unlisted stocks, etc.. (reference information)
The overview of asset under management
(once a month)
  • The list of stock, etc. within five years of listing 【items: Issue, Number of stocks, acquisition cost, etc.】
  • The overview of unlisted companies【items: Name, Capital, Segments, summary of accounting 】
  • The latest detail of fund management and short-term management policy

Example of Timely Disclosure

Net asset value per unit

The transition of net asset value per unit provides the details of fund management. Additionally, the breakdown of unlisted stocks, etc., unlisted stocks, etc. related assets, stocks within 5 years of listing and other assets presents the portfolio of listed funds and far more details of the listed funds by describing the assessed value based on rating agencies for unlisted stocks, etc.

The overview of unlisted companies

Portfolio of a fund gives the current status of funds. While a lot of information about listed companies is available, the access to the information of unlisted companies is quite limited. Therefore, listed funds is required to disclose the overview of the unlisted companies which is the issuer of unlisted stocks, etc.

The latest information of the management of funds and short-term management policy

The information about fund management and fund management policy enable investors to gather information of the details of the fund.