Made up of 6,852 islands and a population of over 100 million, Japan ranks as one of the world’ s largest and most productive economies. Also, the country has a strong position in the world market as home to some of the most recognizable corporations from automobile manufacturers to electronics.
As these companies identify the needs of their own citizens, as well as citizens of the world, production of solutions to meet such needs increases. We believe Japanese companies are well positioned to benefit from any growth in the Asian region, and many are doing so either through exporting their products or investing in the region. The Advisor believes accessing these Asian markets through the well-established Japanese companies is an underutilized strategy by many investors.
As the investment managers of the Commonwealth Japan Fund seek to determine which companies are worthy of ownership in the portfolio, in addition to the conventional financial company metrics, these are some of the macro factors that could impact investment decisions:
- Government intervention and support of the economy
- Business access to export markets in the region
- Internal and external consumer demand
Commonwealth Funds is proud to be associated with the Japan Fund, established in 1989, providing shareholders the opportunity to bring it home.
The Japan Fund Investment Objective
The Japan Fund seeks to provide long-term capital appreciation and current income by investing primarily in equity and debt securities of Japanese issuers.
Risks of Investment
Learn about the principal risks of investing in the Japan Fund, which includes market, foreign security and geographic risk.