FJP attempts to improve upon the NASDAQ Japan index (the parent index) by rescreening each security twice, by both growth and value characteristics assigning whatever score is highest as the stock's style score. The underlying index selects 100 stocks by factors such as recent price appreciation, price/sales, sales growth, price/book value, price/cash flow and return on assets. The stocks are further divided into quintiles after the growth and value screens, overweighting the highest scoring securities. The underlying index is subject to sector weighting constraints, which are set at 15% above the sector percentages of the parent index. Its weighting scheme leads to a perpetual small-cap tilt, which along with sector biases, raises the fund's market risk. The index is reconstituted and rebalanced semi-annually.
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