Profit from Japan’s Economic Recovery

Article Excerpt

JAPAN EQUITY FUND $8.10 (New York symbol JEQ; CWA Rating: Aggressive) invests mostly in large capitalization stocks on the Tokyo Stock Exchange. The manager of the fund, Daiwa Securities, picks stocks using a “bottom-up” approach (using fundamentals such as earnings, cash flow and low debt). The Japan Equity Fund’s top holdings are: Toyota Motor (automobiles), 5.1%; Mitsubishi UFJ Financial Group (banking), 4.9%; Mizuho Financial Group (banking & finance), 2.8%; Matsushita Electric Industrial (manufacturing congolmerate), 2.7%; Sumitomo Trust & Banking (banking and finance), 2.6%; East Japan Railway (transportation), 2.4%; Shin-Etsu Chemical, 2.4%; Takeda Pharmaceutical, 2.2%; NTT (telecommunications), 2.2%; and Honda Motor (automobiles), 2.1%. The Japan Equity Fund is available for 5% less than the current value of its assets. It’s a buy. JAPAN SMALLER CAP FUND $13.94 (New York symbol JOF; CWA Rating: Aggressive) invests mainly in less-widely-followed Japanese over-the-counter stocks. The fund’s manager is Nomura Capital. The fund’s top holdings are Makino Milling Machine (machinery) at 3.5%; Meiko Electronics (electronic components), 3.4%; Hitachi Construction…