Thursday May 10, 2012
by Jim Lowell, editor Fidelity Investor
In my May Marketwatch investment strategy column I noted, “Set against the backdrop of having already been thrown out with the Eurozone’s bathwater, I like Japan’s marketplace overall and, more specifically, their small cap marketplace which caters to domestic counter traffic.”
Having built bottom line bulwarks to defend against a few years worth of a punishing currency headwind, an anomalously strong yen vs. the dollar hurt Japanese exporters and threatened economic growth enough to likely encourage modes of intervention that weaken the yen and strengthen exports.
Looking at our buy-rated Japanese equity funds, Fidelity Japan (FJPNX) is managed by Rie Shigekawa.
The fund invests in Japanese companies as well as stocks of companies that are tied economically to Japan. It began trading in September 1992 and has a market value of $450 million.
The top three sectors are information technology (25.1%), consumer discretionary (22.4%),
and financials (17.8%).
The top ten holdings are Toyota Motor, Honda Motor, Canon, Mitsubishi UFJ Financial Group, Toshiba, Sumitomo Mitsui Financial Group, Otsuka, Nomura Real Estate, Fujitsu, and Astellas Pharma.
Fidelity Japan Smaller Companies (FJSCX), managed by Nicholas Price, invests in small cap Japanese companies as well as small cap companies that are tied economically to Japan.
It began trading in November 1995 and has a market value of over $280 million. The top three sectors are information technology (21.9%), consumer discretionary (20.2%), and financials (18.9%).
The top ten holdings are Orix, Nintendo, Honda Motor, Takara Leben, Pigeon, Kakaku.com, Kubota, Osaka Securities Exchange, Citizen Holdings, and Stanley Electric.
Learn more about this financial newsletter at Jim Lowell's Fidelity Investor.