Matthews Japan Fund

Matthews Japan Fund

Last Update: 2014-07-31
Related: Matthews Pacific Tiger Fund

Number of Stocks: 60
Number of New Stocks: 5

Total Value: $445 Mil
Q/Q Turnover: 8%

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 (%)
201334.0331.552.5
20128.3215.4-7.1
2011-7.722.08-9.8
3-Year Cumulative34 (10.2%/year)55 (15.7%/year)-21 (-5.5%/year)
201019.5815.064.5
200910.0626.46-16.4
5-Year Cumulative76.3 (12%/year)125.5 (17.7%/year)-49.2 (-5.7%/year)
2008-28.38-378.6
2007-10.965.61-16.6
2006-6.4415.79-22.2
200514.834.919.9
200422.031210.0
10-Year Cumulative47.4 (4%/year)104.1 (7.4%/year)-56.7 (-3.4%/year)
200359.5428.730.8
2002-13.39-22.18.7
2001-29.15-11.9-17.2
2000-25.04-9.1-15.9
1999107.352186.3
15-Year Cumulative124.3 (5.5%/year)98.3 (4.7%/year)26 (0.8%/year)

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 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. Read more...
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. Read more...
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. Read more...
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%. Read more...
» More Matthews Japan Fund Articles

Commentaries and Stories

  • Currently 0.00/5

Rating: 0.0/5 (0 votes)

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...

  • Currently 0.00/5

Rating: 0.0/5 (0 votes)

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...

  • Currently 0.00/5

Rating: 0.0/5 (0 votes)

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...

  • Currently 0.00/5

Rating: 0.0/5 (0 votes)

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...

  • Currently 0.00/5

Rating: 0.0/5 (0 votes)

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...

  • Currently 3.00/5

Rating: 3.0/5 (3 votes)

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...

  • Currently 4.00/5

Rating: 4.0/5 (2 votes)

Matthews Asia Perspective - India and Indonesia
Aug. 30, 2013 - Comments from the Federal Reserve to begin reducing its stimulus operations have weighed heavily on markets across Asia in recent weeks. Growing investor concerns have largely centered on those economies that have been running current account deficits and that are likely to be further impacted by lower growth forecasts and reduced capital inflows. More short term, speculative flows from investors into fast-growing Asian economies have also fallen as expectations for higher interest rates in the U.S. have risen. Two of the most affected markets in the region have been India and Indonesia as their economies face similar challenges. In order to grow their economies, both India and Indonesia require sufficient capital inflows in the form of exports and Foreign Direct Investments (FDI). However, with a lackluster manufacturing sector and falling FDI inflows, both countries run the risk of further weakening currencies and higher inflation that will ultimately lead to lower economic growth. A recent World Bank report downgraded Indonesia's growth to 5.9% citing weaker-than-expected Foreign Direct Investment and softer commodity prices. Headline inflation for July also came in at 8.61% year-over-year— much higher than the consensus estimate of 8.04%—driven by the Muslim fasting period, Ramadan and a hike in fuel prices. In June, policymakers in Indonesia aimed to reduce wasteful subsidies by increasing the price of gasoline as much as 44%. Continue reading here. More...

  • Currently 4.00/5

Rating: 4.0/5 (2 votes)

Matthews Japan Fund Second Quarter 2013 Commentary
Period ended June 30, 2013: For the first half of 2013, the Matthews Japan Fund gained 21.19%, outperforming its benchmark, the MSCI Japan Index, which returned 16.64%. For the quarter ended June 30, the Fund returned 5.99% while its benchmark returned 4.42%. More...

  • Currently 2.00/5

Rating: 2.0/5 (4 votes)

Matthews Japan Fund First Quarter Commentary
For the quarter ending March 31, 2013, the Matthews Japan Fund returned 14.35% while its benchmark, the MSCI Japan Index, gained 11.70%. More...

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