Commonwealth Funds: Japan Fund
The Country of Japan represents one of the world's largest, most productive economies. We believe its relationship to America, its position within the world's markets and its manufacturing, technological and exporting capabilities are legend. It is home to some of the world's largest and most efficient corporations whose names are among the most recognizable anywhere. However, the last twenty years have proven difficult at best for many who have sought to benefit from investments in this fabled country.
As the East Asian market rapidly expands, the economic integration among countries within the region continues to strengthen. The sustained high growth of the region has resulted in an ever increasing influence on the world's economy. Regional exchanges of personnel, goods and capital are intensifying as economic relationships become stronger on every level of industry. Against this backdrop, Japan provides an ideal location for many companies seeking regional headquarters and/or research and development centers supporting their efforts of expansion into Asia.
The Japan Fund seeks to provide long-term capital appreciation and current income by investing primarily in equity and debt securities of Japanese issuers.
As the investment managers of the Commonwealth Japan Fund seek to determine which companies are worthy of ownership (investment), there are many basic factors to be considered. The economy of Japan is certainly a capitalist based economy. As such, the money supply, the government intervention and support of the economy, the sovereign debt load and tax burdens of the people, the consumer demand both internally and from abroad as well as the willingness of the Japanese consumer to borrow and invest/spend for goods and services are all important to the analysis function.
As these companies identify the needs for goods and services for their own citizens as well as citizens of the world, their ability to produce solutions to meet the future needs such as medical research, biotechnology, energy, foods and items beneficial to the betterment of the quality of life often result in opportunities for public ownership.
The investment portfolio of the Commonwealth Japan Fund has been built through time and only diligence and perseverance allows its constant exposure to concepts and ideas we believe will be promising long term.
Risks of Investment: Learn about the principal risksof investing in the Japan Fund, which includes market, foreign security and geographic risk.