The top three sectors of this small-cap Japanese closed-end fund are Consumer Cyclical (25% of assets), Industrials (22.29%), and Technology (15.49%).
Japan Smaller Capitalization Fund Inc. (JOF)
From The Personal Capitalist
Stock prices are by no means cheap. Yet, there are still few decent investment alternatives so stocks continue to win by default. We do expect a Federal Reserve interest rate hike in December. Even that is subject to change, however, if the markets weaken further. The Fed has painted itself into a corner for sure.
We will continue to watch the markets and the economy. Another drop like we had in August and September could create some great opportunities and we will be watching for them.
Japan looks great to us, as global outperformance of Japanese equities appears poised to continue in 2016. Abenomics is slowly transforming inflation expectations, corporate governance and prospects of equity ownership, while monetary policy should remain accommodative.
Privatization is likely to spur individual investors’ interest in the market. Japan Smaller Capitalization Fund Inc. (JOF) is now our best closed in fund with a 52-week total market return of 15.4%.
We continue to feel that foreign exposure is essential to achieve positive long term results.
Sean Christian, The Personal Capitalist, 9524 East 81st Street, Suite B #1715, Tulsa, OK 74133, November 15, 2015