Okasan Asset Management's Smile Three 0908 has matured after 15 months returning capital plus 4.45%. The fund initially raised JPY370m (USD4.5m).
The three-year income fund, which struck in August 2009, offers capital return upon maturity and a semi-annual coupon of 4.2% pa for the first year, thereafter 0.5% pa, and 0.2% pa for the second year and the rest of the tenor, respectively.
The product was linked to the Nikkei225 index and was set to mature early when the index level was above its initial level of JPY10,518.91 (an average taken on 28, 31 August and 1 September 2009) on 9 February 2011. It was around JPY10,617.83 on that day, slightly above its strike.
2011 has seen a number of Okasan products maturing early. On 2 February, income products Three Doors 0912, which raised JPY3.2bn (USD39.5m) in December, and Minori-chan 1002, which raised JPY4.5bn (USD55m) in February 2010, knocked out when Nikkei index levels were above their initial levels by 22% and 20%, respectively, returning 102.65% and 105.4% of capital.
Finally, on 21 January, Future Creation 0912, which raised JPY1bn (USD12m) in December 2009, and Nikkei Linked 1002, which raised JPY4.8bn (USD59m) in January 2010, redeemed early after the local index level grew slightly above initial levels, returning 102.29% and 103.31%, respectively.
These products appear on the Japan database.