Mizuho

Japan Fund Management (Luxembourg) S.A.

Judiciousness. Attention to detail. Passion. Adaptability. No shortcuts.

TRADITIONAL STRATEGIES
  • Market Risk. We evaluate dispersion risk (fund, benchmark, and active volatility), tail risk (Value at Risk, Expected Shortfall, P&L stress testing), leverage risk, and concentration risk.
  • Sustainability Risk. We assess exposures to environmental, social and governance risk through proprietary methodologies based on several factors including issuer-level, industry-level and country-level ESG indicators. We also assess the sustainability of the investment strategy itself in terms of complexity, use of derivatives, short-selling / SFTs, leverage, high-frequency trading, etc.
  • Credit Risk. We assign internal credit scores through proprietary methodologies based on several factors including external credit ratings, CDS spreads and risk neutral default probabilities.
  • Counterparty Risk. We appraise the creditworthiness of OTC counterparties, prime brokers, and depositaries through proprietary methodologies.
  • Liquidity Risk. We monitor asset side liquidity risk (bid-ask spread, bid-ask spread volatility, expected trading volume, etc.), liability side liquidity risk (redemption risk, unitholders investment horizon, unitholders concentration, etc.), and overall liquidity risk under normal and stressed market conditions through proprietary methodologies.
  • Operational Risk. We gauge valuation risk, operational risk arising from delegates, and operational risk related to internal functions (AML risk, tax risk, legal and regulatory risk, fraud and misconduct risk, key person risk, business execution risk, cybersecurity risk, etc.).
PRIVATE EQUITY STRATEGIES
  • Market Risk. We evaluate private equity risk (cash flows estimation risk, cash flows volatility, macroeconomic risk, exit strategy risk, etc.), exchange rate risk, interest rate risk, leverage risk, clustering risk and concentration risk.
  • Sustainability Risk. We assess exposures to environmental, social and governance risk through proprietary methodologies based on several factors including company-level, industry-level and country-level ESG indicators.
  • Credit Risk. We analyse debt sustainability risk (LTV, DSCR, Net Debt to EBITDA, etc.) and credit spread risk.
  • Counterparty Risk. We appraise the creditworthiness of OTC counterparties, prime brokers, and depositaries through proprietary methodologies.
  • Liquidity Risk. We monitor asset side liquidity risk (secondary markets' trends, cash buffers, etc.), liability side liquidity risk (undrawn commitments, debt schedule and covenants assessment, etc.), and overall liquidity risk under normal and stressed market conditions through proprietary methodologies.
  • Operational Risk. We gauge valuation risk, operational risk arising from delegates (in particular external appraisers), and operational risk related to internal functions (AML risk, tax risk, legal and regulatory risk, fraud and misconduct risk, key person risk, business execution risk, cybersecurity risk, etc.).
REAL ESTATE STRATEGIES
  • Market Risk. We evaluate real estate risk (exposure to developments, vacancy, ERV, rent collection, WAULB, etc.), exchange rate risk, interest rate risk, leverage risk, clustering risk and concentration risk.
  • Sustainability Risk. We assess exposures to environmental, social and governance risk through proprietary methodologies based on several factors including asset-level, sector-level and country-level ESG indicators.
  • Credit Risk. We analyse debt sustainability risk (LTV, ICR, DSCR, etc.) and credit spread risk.
  • Counterparty Risk. We appraise the creditworthiness of OTC counterparties, prime brokers, and depositaries through proprietary methodologies.
  • Liquidity Risk. We monitor asset side liquidity risk (property transactions' trends, marketing period trends, cash buffers, etc.), liability side liquidity risk (undrawn commitments, debt schedule and covenants assessment, etc.), and overall liquidity risk under normal and stressed market conditions through proprietary methodologies.
  • Operational Risk. We gauge valuation risk, operational risk arising from delegates (in particular external appraisers), and operational risk related to internal functions (AML risk, tax risk, legal and regulatory risk, fraud and misconduct risk, key person risk, business execution risk, cybersecurity risk, etc.).
INFRASTRUCTURE STRATEGIES
  • Market Risk. We evaluate infrastructure risk (exposure to greenfield investments; demand risk; income risk; macroeconomic, political and innovation risk; etc.), exchange rate risk, interest rate risk, leverage risk, clustering risk and concentration risk.
  • Sustainability Risk. We assess exposures to environmental, social and governance risk through proprietary methodologies based on several factors including asset-level, sector-level and country-level ESG indicators.
  • Credit Risk. We analyse debt sustainability risk (LTV, DSCR, TVPI, etc.) and credit spread risk.
  • Counterparty Risk. We appraise the creditworthiness of OTC counterparties, prime brokers, and depositaries through proprietary methodologies.
  • Liquidity Risk. We monitor asset side liquidity risk (infrastructure market trends, cash buffers, etc.), liability side liquidity risk (undrawn commitments, debt schedule and covenants assessment, etc.), and overall liquidity risk under normal and stressed market conditions through proprietary methodologies.
  • Operational Risk. We gauge valuation risk, operational risk arising from delegates (in particular external appraisers), and operational risk related to internal functions (AML risk, tax risk, legal and regulatory risk, fraud and misconduct risk, key person risk, business execution risk, cybersecurity risk, etc.).
OTHER ALTERNATIVE STRATEGIES

We have the necessary skills, knowledge, and expertise to manage other alternative investment strategies such as: non-performing loans, project finance, mezzanine investing, fund of funds, arbitrage strategies, volatility strategies, etc. Our risk management systems are flexible and we can easily integrate ad-hoc and tailor-made approaches into our monitoring and reporting tools.