Matthews Japan Fund

Matthews Japan Fund Premium Guru

Last Update: 02-02-2015
Related: Matthews Pacific Tiger Fund

Number of Stocks: 104
Number of New Stocks: 49

Total Value: $610 Mil
Q/Q Turnover: 23%

Countries: JPN
Details: Top Buys | Top Sales | Top Holdings  Embed:

Matthews Japan Fund' s Profile & Performance

Profile

Matthews Japan Fund Investor Class (MJFOX) was established on 12/31/1998. The Fund seeks long-term capital appreciation by investing at least 80% of its total net assets, which include borrowings for investment purposes, in the common and preferred stocks of companies located in Japan.

Web Page:http://matthewsasia.com/our-funds/f-8/matthews-japan-fund/overview.fs

Investing Philosophy

Matthews employs a bottom-up, fundamental investment philosophy with a focus on long-term investment performance.
(1) Active management
“We believe many of the regions’ widely used equity indices are backward looking and are not representative of the industries and companies that will be successful in the future. With respect to the region’s debt indices, we believe they are representative of the most indebted countries as opposed to the most creditworthy.”
(2) Long-term focus on Asia
“We believe a long-term approach is the most effective way to capitalize on Asia’s evolution.”
(3) Bottom-up research
“We employ a fundamental, bottom-up investment process. For equities, we seek to identify companies with sustainable long-term growth prospects, strong business models, quality management teams and reasonable valuations.”
(4) Defining Asia investment strategies
“We strive to provide investors a range of Asia strategies across the risk-reward spectrum and launch new strategies when there are compelling investment opportunities in the region.”

Historical Allocation of Stock, Bonds, Cash

Total Holding History

Performance of Matthews Japan Fund

YearReturn (%)S&P500 (%)Excess Gain (%)
2014-2.5913.69-16.3
201334.0332.391.6
20128.3216-7.7
3-Year Cumulative41.4 (12.2%/year)74.6 (20.4%/year)-33.2 (-8.2%/year)
2011-7.722.11-9.8
201019.5815.064.5
5-Year Cumulative56.1 (9.3%/year)105.1 (15.5%/year)-49 (-6.2%/year)
200910.0626.46-16.4
2008-28.38-378.6
2007-10.965.49-16.4
2006-6.4415.79-22.2
200514.834.919.9
10-Year Cumulative17.7 (1.6%/year)109.4 (7.7%/year)-91.7 (-6.1%/year)
200422.0310.8811.2
200359.5428.6830.9
2002-13.39-22.18.7
2001-29.15-11.89-17.3
2000-25.04-9.1-15.9
15-Year Cumulative5.4 (0.3%/year)86.4 (4.2%/year)-81 (-3.9%/year)
1999107.3521.0486.3

Top Ranked Articles

Matthews Japan Fund: New Buys
Abenomics, the Bank of Japan’s quantitative easy and a weakening yen propelled the MSCI Japan Index up 27.35% for 2013. The Matthews Japan Fund (Trades, Portfolio) beat the index for the year, delivering a 34.03% return, primarily on the back of Japanese financial stocks. The firm continues to believe that Japan’s loose economic policy will be a net positive for the country’s fundamentals, saying in their fourth-quarter letter: Read more...
Matthews Japan Fund's Top New Stock Buys of Q3
The Matthews Japan Fund (Trades, Portfolio), founded in December 1998, has $571.9 million in assets as of Sept. 31, 1998. With all of the changes taking place in Japan’s economy, including Prime Minister Shinzo Abe deciding whether to raise the country’s consumption tax to 10% from 8% by mid-December, which the fund managers believe would have an “undesirable impact on consumption,” they said in their third quarter commentary they “intend to focus our research efforts on capable managed companies with strong pricing power that can navigate these rough waters.” Read more...
5 Popular Asian Stocks Held By the Gurus
While American stocks are currently pricey due to the rising dollar, Asian stocks are rallying as investors look overseas. Japan’s Nikkei Stock Average broke 20000 for the first time in 15 years on April 9, while Hong Kong’s Hang Seng Index ended the week of April 6 with the largest gain in three years. Read more...
Matthews Japan Fund Adds 49 Japanese Companies to Portfolio
A pillar of the Matthews Japan Fund (Trades, Portfolio)’s investment philosophy is a laser-like, long-term focus on Asian stocks, almost exclusively Japan-based companies. There may have been a quarter when the Fund invested in a non-Japanese stock or two – but not recently and certainly not in the fourth quarter of 2014 when the Fund bought shares in 49 Japanese companies that are new to its portfolio. Read more...
Matthews Japan Fund Comments on SoftBank
Internet and telecom giant SoftBank (TSE:9984) ended the year on a sour note despite the successful IPO of its largest investment—Chinese e-commerce giant Alibaba (BABA). Poor performance of SoftBank’s U.S. telecom unit, Sprint (S), also weighed on investor sentiment. Read more...
» More Matthews Japan Fund Articles

Commentaries and Stories

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5 Popular Asian Stocks Held By the Gurus Vanguard Health Care Fund,Matthews Japan Fund,Mart - 5 Popular Asian Stocks Held By The Gurus
While American stocks are currently pricey due to the rising dollar, Asian stocks are rallying as investors look overseas. Japan’s Nikkei Stock Average broke 20000 for the first time in 15 years on April 9, while Hong Kong’s Hang Seng Index ended the week of April 6 with the largest gain in three years. More...

ASIA, JAPAN, HONG KONG, INTERNATIONAL, GLOBAL


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Matthews Japan Fund Adds 49 Japanese Companies to Portfolio Matthews Japan Fund, Signature select canadian fun - Matthews Japan Fund Adds 49 Japanese Companies To Portfolio
A pillar of the Matthews Japan Fund (Trades, Portfolio)’s investment philosophy is a laser-like, long-term focus on Asian stocks, almost exclusively Japan-based companies. There may have been a quarter when the Fund invested in a non-Japanese stock or two – but not recently and certainly not in the fourth quarter of 2014 when the Fund bought shares in 49 Japanese companies that are new to its portfolio. More...

INTERNATIONAL STOCK


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Matthews Japan Fund Comments on SoftBank
Internet and telecom giant SoftBank (TSE:9984) ended the year on a sour note despite the successful IPO of its largest investment—Chinese e-commerce giant Alibaba (BABA). Poor performance of SoftBank’s U.S. telecom unit, Sprint (S), also weighed on investor sentiment. More...

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Matthews Japan Fund Comments on Orix Corp
On the other hand, non-bank financial company ORIX (TSE:8591) was the biggest detractor to Fund performance, despite delivering solid earnings returns. The poor performance likely had more to do with the weak macroeconomic environment, rather than any individual issues with the business. More...

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Matthews Japan Fund Comments on Sysmex
Our holdings in the health care sector were leading contributors to performance in 2014. Long-term holding Sysmex (TSE:6869), a global leader in hematology equipment, performed well on the back of solid growth globally, particularly in China where growing household incomes are driving demand for health care services. More...

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Matthews Japan Fund Q4 2014 Commentary
For the year ending December 31, 2014, the Matthews Japan Fund (Trades, Portfolio) returned -2.60% (Investor Class) while its benchmark, the MSCI Japan Index, returned -3.72%. For the fourth quarter of the year, the Fund returned -4.19% (Investor Class) versus -2.40% for the Index. More...

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Matthews Japan Fund's Top 5 New Holdings in Q4 Matthews Japan Fund - Matthews Japan Fund's Top 5 New Holdings In Q4
Like other Matthews funds, the Matthews Japan Fund (Trades, Portfolio) aims to invest at least 80% of its assets in the region of focus — in this case, Japan. As of Dec. 31, the fund had $622.6 million in assets under management. More...

MATTHEWS JAPAN FUND, JAPAN, ASIA


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Rating: 5.0/5 (1 vote)

Matthews Asia Insight - 'Asia's Deepening Capital Markets'
November 2014 More...

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Matthews Japan Fund's Top New Stock Buys of Q3 Matthews Japan Fund - Matthews Japan Fund's Top New Stock Buys Of Q3
The Matthews Japan Fund (Trades, Portfolio), founded in December 1998, has $571.9 million in assets as of Sept. 31, 1998. With all of the changes taking place in Japan’s economy, including Prime Minister Shinzo Abe deciding whether to raise the country’s consumption tax to 10% from 8% by mid-December, which the fund managers believe would have an “undesirable impact on consumption,” they said in their third quarter commentary they “intend to focus our research efforts on capable managed companies with strong pricing power that can navigate these rough waters.” More...

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Matthews Japan Fund Comments on VT Holdings
VT Holdings (TSE:7593), an automobile dealership, was the largest detractor to Fund performance. The firm hit an operational snag with a decline in its profitable maintenance service business stemming primarily from weaker auto sales that followed the 2011 Fukushima earthquake. In Japan, new cars are required to be inspected after three years, however, since 2011 auto sales were so low, the firm’s revenues from inspections this year sagged. We believe this is a temporary issue and have added to our position with a cautious eye on VT’s progress. More...

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Matthews Japan Fund Comments on Murata Manufacturing
The top contributor to Fund performance during the quarter was Murata Manufacturing (TSE:6981), a leading supplier of electronic components. Murata’s business is expanding briskly, driven by demand from smartphone producers for its technologically advanced components, particularly for the company’s ceramic condensers, saw filters and communication modules. The firm has also benefited from the weaker yen, and has regained market share from South Korean competitors. More...

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Matthews Japan Fund Q3 2014 Commentary
For the quarter ending September 30, 2014, the Matthews Japan Fund (Trades, Portfolio) returned -1.26%, while its benchmark, the MSCI Japan Index, declined -2.19%. More...

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Matthews Japan Fund Comments on Mabuchi Motor
During the quarter, we initiated a position in Mabuchi Motor (TSE:6592), a manufacturer of miniature motors used primarily in automobiles. Mabuchi’s business has struggled over the past decade as demand for CD and DVD players contracted sharply. Mabuchi had a virtual monopoly on motors used in such products, which led to a significant decline in revenue. The bulk of its business now comes from the automotive industry, within which the adoption of certain motors is rising, and revenues seem to have finally turned a corner. More...

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Matthews Japan Fund Comments on Yokogawa Electric
Yokogawa Electric (TSE:6841), an electrical engineering and software company, had the largest negative impact on relative returns. Orders for Yokogawa’s components, used in the oil, gas and petrochemical industries, have been weak in recent months compared to the market as well as against our expectations. However, orders in this business tend to be lumpy, and we do not expect any trend of weakness. Thus, we added to this position during the quarter. More...

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Matthews Japan Fund Comments on Workman
During the second quarter, specialty retailer Workman (TSE:7564) was a top contributor to Fund performance. Workman operates a chain of retail outlets that caters mainly to construction workers for uniforms and such related goods as gloves and safety shoes. The firm has been taking market share from mom-and-pop operators while demand remains firm due to increased construction spending. Japan has been experiencing an acute shortage of construction workers and the resulting higher wages should be an added bonus for this solidly managed retailer. More...

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Matthews Japan Fund Second Quarter 2014 Commentary
For the first half of 2014, the Matthews Japan Fund (Trades, Portfolio) gained 2.96%, outperforming its benchmark, the MSCI Japan Index, which returned 0.85%. For the quarter ending June 30, the Fund returned 5.30%, underperforming the benchmark, which returned 6.69%. More...

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Matthews Japan Fund First Quarter 2014 Commentary
For the quarter ending March 31, 2014, the Matthews Japan Fund (Trades, Portfolio) declined -2.22% while its benchmark, the MSCI Japan Index, lost -5.47%. Japan’s equity market corrected during the quarter as the country readied itself for its April 1 sales tax hike. There was some undue speculation late last year that the Bank of Japan would preemptively expand its quantitative easing policy before the tax hike. Those policies did not materialize, prompting the unwinding of long positions in Japan by short-term investors. Net selling by overseas investors totaled more than US$18 billion during the quarter, the first quarterly outflow since mid-2012. During the quarter, stock selection in health care was the top contributor to the Fund’s relative outperformance. We had increased our exposure to health care names toward the end of last year after the sector underperformed in anticipation of drug More...

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Matthews Japan Fund Fourth Quarter Commentary
For the year ending December 31, 2013, the Matthews Japan Fund (Trades, Portfolio) returned 34.03% while its benchmark, the MSCI Japan Index, returned 27.35%. For the fourth quarter of the year, the Fund returned 0.28% versus 2.31% for the Index. More...

  • Currently 4.67/5

Rating: 4.7/5 (3 votes)

Matthews Japan Fund: New Buys Matthews Japan Fund - Matthews Japan Fund: New Buys
Abenomics, the Bank of Japan’s quantitative easy and a weakening yen propelled the MSCI Japan Index up 27.35% for 2013. The Matthews Japan Fund (Trades, Portfolio) beat the index for the year, delivering a 34.03% return, primarily on the back of Japanese financial stocks. The firm continues to believe that Japan’s loose economic policy will be a net positive for the country’s fundamentals, saying in their fourth-quarter letter: More...

  • Currently 4.00/5

Rating: 4.0/5 (1 vote)

Matthews Japan Fund Third Quarter 2013 Commentary
For the quarter ending September 30, 2013, the Matthews Japan Fund gained 10.29% outperforming its benchmark, the MSCI Japan Index, which rose 6.71%. More...

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