Commonwealth Funds : Japan Fund

The Japan Fund invests primarily in equity securities, including common stock, preferred stock, securities convertible into common stock, debt securities denominated in Yen and securities of Japanese issuers. Japanese issuers include issuers that are organized under Japanese law; issuers that are listed on one or more of the Japanese stock exchanges regardless of the country in which the issuer is organized; issuers that derive 50% or more of their total revenue from goods and/or services produced or sold in Japan; and Japanese central and local government entities.

Japan is home to some of the largest and most efficient corporations in the world. It is recognized as a leader in innovative technological products which have successfully become global household names. Japan is also the largest equity market in Asia with significant capital expenditures in research and development and the information technology industry.

Australia/New Zealand Fund | Global Fund | Japan Funds | Real Estate Securities Fund | Prospectus (pdf)

Investing in securities of foreign country issuers involve certain risks that are different from investments in U.S. issuers. The foreign markets are small, their listed securities are generally less liquid, involve higher transaction costs and have greater price volatility due to changes in politics, currency rates, foreign taxation, differences in auditing and other financial standards, etc.

Equity securities are more volatile and carry more risk than other forms of investments, including investments in high-grade fixed income securities. The net asset value per share of the Fund will fluctuate as the value of the securities in the portfolio changes. Common stocks, and funds investing in common stocks, generally provide greater return potential when compared with other types of investments.