The T Rowe Price Japan Fund has been managed by Archibald Ciganer since December 2013. It seeks long-term growth of capital by investing in Japanese companies that display solid long-term earnings growth.
The fund contains 83 stocks, six of them new in the second quarter, and has the largest weighting in the Consumer Cyclical sector at 23.2%. They discussed their positioning in their first quarter letter:
“The information technology sector continues to be the fund's largest overweight, as we believe our selection of holdings have strong fundamentals and should benefit from industry consolidation. Conversely, we are significantly underweight in banks. Competition within the industry is excessive, and managements are less shareholder friendly than in other areas, with a minimal appetite for buybacks or increasing payouts, for example.”
The largest new positions the fund established in the second quarter are: Hoshizaki Electric Co. Ltd. (TSE:6465), Isuzu Motors Ltd. (TSE:7202), Nippon Kayaku Co. Ltd. (TSE:4272) and Hoshino Resorts REIT Inc. (TSE:3287).
Hoshizaki Electric Co. Ltd. (TSE:6465)
The fund purchased 75,300 shares of Hoshizaki Electric in the second quarter when the price averaged 4,470 yen. The holding is 1.2% of the portfolio.
Hoshizaki Electric Co. Ltd. is engaged in the research, development, manufacturing and selling of ice makers including fully-automatic and large-scale ice makers; freezing and other refrigeration equipment. Hoshizaki Electric Co. Ltd. has a market cap of $376.54 billion; its shares were traded at around $5120.00 with a P/E ratio of 23.50 and P/S ratio of 1.73. The dividend yield of Hoshizaki Electric Co. Ltd. stocks is 0.61%. Hoshizaki Electric Co. Ltd. had an annual average earnings growth of 21.70% over the past five years.
Isuzu Motors Ltd. (TSE:7202)
The fund purchased 402,000 Isuzu Motors Ltd. Shares, whose price averaged 618 yen for the quarter. The holding composes 0.86% of the fund.
Isuzu Motors Ltd. is engaged in manufacturing of commercial vehicles and diesel engines, which includes trucks, bus, automotive engines, industrial engines and marine engines. Isuzu Motors Ltd has a market cap of $1157.4 billion; its shares were traded at around 677.00 yen with a P/E ratio of 9.60 and P/S ratio of 0.66. The dividend yield of Isuzu Motors Ltd. stocks is 1.49%. Isuzu Motors Ltd. had an annual average earnings growth of 8.00% over the past 10 years.
Nippon Kayaku Co. Ltd. (TSE:4272)
The fund bought 161,000 shares of Nippon Kayaku Co., whose quarterly price averaged 1238 yen.
Nippon Kayaku Co. Ltd. is a diversified chemical producer. Nippon Kayaku Co. Ltd. has a market cap of $234.86 billion; its shares were traded at around $1294.00 with a P/E ratio of 14.00 and P/S ratio of 1.47. The dividend yield of Nippon Kayaku Co. Ltd. stocks is 1.62%.
Hoshino Resorts REIT Inc. (TSE:3287)
The fund purchased 207 shares of Hoshino Resorts REIT, whose quarterly price averaged 787,704. The holding is 0.58% of the portfolio.
Hoshino Resorts REIT Inc. invests in hotels, Japanese-Style Inns and related facilities. The dividend yield of Hoshino Resorts Reit Inc. stocks is 1.30%.