The top five holdings of this Japanese closed-end fund are: Ryoden Corp (2.94% of assets); Trancom (2.89%); Siix Corp (2.89%); Amiyaki Tei Co Ltd (2.59%); and Hisaka Works Ltd (2.56%).
Japan Smaller Capitalization Fund, Inc. (JOF)
From The Personal Capitalist
Trump’s import tariffs have prompted some U.S. fund managers to look overseas. Overseas stocks are benefiting from synchronized economic growth in Europe, Asia, and the Americas.
Japan (JOF) seems ready to rise. Japanese stocks are reasonably priced trading at just 15 times this year’s earnings forecasts and 13.8 times next year’s expectations. Corporate earnings are predicted to grow 11% this year following 20% growth last year. Prime Minister Shinzo
Abe’s initiatives seem to be working. And, despite a changing global backdrop, more volatility, and higher U.S. bond yields, the outlook for Japan continues to improve.
Japanese companies have $940 billion in cash on their balance sheets which they are likely to deploy by boosting dividends, buybacks, and wages now that they are more confident about the overall outlook.
Sean Christian, The Personal Capitalist, 9524 East 81st Street, Suite B #1715, Tulsa, OK 74133, March 15, 2018