1. What are the principal legal structures used for
Alternative Investment Funds?
The principal legal structure used for Alternative Investment
Funds is an investment trust formed pursuant to the Act on
Investment Trusts and Investment Corporations (Act No. 198 of 1951,
the "AITIC") ("Japanese Investment Trust").
Japanese Investment Trusts are formed when a settlor (i.e.,
manager) enters into a trust agreement with a trustee under which
investors acquire divided beneficiary interests in the trust.
Investment corporations formed under the AITIC ("Japanese
Investment Corporations") are vehicles commonly used for
investment in real property, which is known as a Japanese real
estate investment trust ("J-REIT").
