Portfolio using Exchange Traded Funds (ETF's) and NYSE traded American Depository Receipts (ADR's) to provide exposure to a limited group of stocks with headquarters located in Japan. (According to Morningstar Xray software, the FOLIO includes positions in more than 600 stocks thru the diversification provided by the ETF's. The style is more toward Value than Growth and more than 10% of holdings are Mid-Cap.) Most of these companies have a demonstrated track record of success in global trade in a variety of diversified industries requiring advanced technology. One major theme regarding this FOLIO is that for various reasons, prices for Japanese equities are thought to be significantly undervalued. The NIKKEI 225, below 10,000 is now less than 30% of the peak level of 35,000 more than 20 years ago in 1990. Another theme is the continued trend of growing global trade and that these companies who excel in global trade, grow at a pace that is faster than other companies in the developed countries like the US and Europe. Also, but to a lesser extent, it assumes that the Japanes Yen currency tends to rise in value, over the long run relative to the US dollar--hence the value of equities and debt securities in US $ terms may rise. Standard Deviation ranges 100-115% of S&P500. The benchmark is the MSCI World (Ex US) Index.
Past performance does not predict future performance. This FOLIO tends to be more volatile than domestic equity and is subject to concerns regarding issues related to management of Japan's economy and currency by the Japanese government. Short term fluctuation in the relative value of the Japanese Yen could significantly affect this FOLIO.
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