A focus on Asia—and providing compelling investment solutions for our clients—is what we believe distinguishes us among investment managers. Our insights into investment opportunities and risks are backed by proprietary research, a collaborative culture and 30 years of experience.
Investment involves risk. Past performance is not a guide to future performance. It is possible to lose the principal capital of your investment.
The Fund invests primarily in companies located in Japan. The value of the Fund may be more susceptible to adverse economic, political, policy, foreign exchange, liquidity, tax, legal or regulatory event affecting the Japan market.
The Fund invests primarily in equity securities, which may result in increased volatility.
The Fund may invest in smaller companies which are likely to carry higher risks than larger companies.
The Fund may invest in financial derivative instruments (“FDIs”). Risk associated with FDIs include counterparty/credit risk, liquidity risk, valuation risk, volatility risk and over-the-counter transaction risk. Exposure to FDIs may lead to a high risk of significant loss by the Fund.
The Fund may use hedging techniques to attempt to offset certain market risks but there is no guarantee that hedging techniques will fully and effectively achieve their desired result.
Pandemics and other public health emergencies can result in market volatility and disruption.
Investors should not invest in the Fund solely based on the information in this website. Please read the Hong Kong Offering Document carefully for further details including risk factors before investing.
High-conviction growth strategy seeks alpha in Japan
Unconstrained all-cap approach seeking Japanese companies positioned to benefit from Asia's growth
Invests in companies leveraged to the fast growing consumer demand across Asia, global industry leaders and entrepreneurial companies providing innovative domestic solutions
The Fund promotes environmental and social characteristics according to Article 8 of SFDR. Furthermore, the Fund uses both activity- and norm-based exclusions. Information relating to the environmental and social characteristics of this Fund is available in the prospectus.
Strategy
The Fund seeks to achieve its investment objective by investing, directly or indirectly, at least 65% of its total net assets, in publicly traded common stocks, preferred stocks and convertible securities of companies located in Japan, and may invest the remainder of its net assets in other permitted assets on a worldwide basis.
The Fund seeks to achieve its investment objective by investing, directly or indirectly, at least 65% of its total net assets, in publicly traded common stocks, preferred stocks and convertible securities of companies located in Japan, and may invest the remainder of its net assets in other permitted assets on a worldwide basis.
Performance
Monthly
Quarterly
Annual Returns
As of 31/08/2023
Average Annual Total Returns
Name
1MO
3MO
YTD
1YR
3YR
5YR
10YR
Since Inception
Inception Date
Japan Fund (USD)
-2.81%
5.54%
15.45%
15.11%
0.64%
2.06%
n.a.
5.18%
30/04/2015
MSCI Japan Index (USD)
-2.42%
4.67%
13.84%
15.77%
4.26%
3.49%
n.a.
4.48%
Japan Fund (GBP)
-1.39%
2.84%
9.55%
5.48%
2.32%
2.52%
n.a.
7.64%
30/04/2015
MSCI Japan Index (GBP)
-0.92%
2.37%
8.07%
6.31%
6.19%
4.02%
n.a.
6.93%
Japan Fund (USD Hedged)
0.20%
11.69%
31.95%
27.12%
14.03%
9.53%
n.a.
11.23%
03/04/2017
MSCI Japan Index 100% Hedged to USD (USD Hedged)
0.44%
10.39%
29.66%
27.49%
18.24%
11.41%
n.a.
11.83%
Japan Fund (EUR Hedged)
0.00%
10.93%
29.84%
23.58%
12.30%
7.49%
n.a.
9.07%
03/04/2017
MSCI Japan Index 100% Hedged to EUR (EUR Hedged)
0.32%
9.78%
27.88%
24.22%
16.21%
9.08%
n.a.
9.43%
As of 30/06/2023
Average Annual Total Returns
Name
1MO
3MO
YTD
1YR
3YR
5YR
10YR
Since Inception
Inception Date
Japan Fund (USD)
5.19%
7.05%
15.08%
18.12%
3.40%
1.89%
n.a.
5.25%
30/04/2015
MSCI Japan Index (USD)
4.11%
6.45%
13.24%
18.62%
6.09%
3.51%
n.a.
4.51%
Japan Fund (GBP)
2.73%
4.65%
9.43%
13.05%
2.35%
2.65%
n.a.
7.79%
30/04/2015
MSCI Japan Index (GBP)
1.50%
3.53%
7.14%
13.31%
5.08%
4.30%
n.a.
6.96%
Japan Fund (USD Hedged)
9.49%
17.73%
29.35%
31.10%
15.88%
9.09%
n.a.
11.19%
03/04/2017
MSCI Japan Index 100% Hedged to USD (USD Hedged)
7.98%
16.65%
26.83%
31.65%
18.96%
11.17%
n.a.
11.78%
Japan Fund (EUR Hedged)
9.15%
17.04%
27.75%
27.56%
14.19%
7.07%
n.a.
9.05%
03/04/2017
MSCI Japan Index 100% Hedged to EUR (EUR Hedged)
7.69%
16.17%
25.44%
28.14%
17.01%
8.80%
n.a.
9.36%
For the years ended December 31st
Name
2022
2021
2020
2019
2018
2017
2016
2015
2014
2013
Japan Fund (USD)
-26.87%
-1.96%
32.83%
25.54%
-20.58%
33.40%
0.19%
n.a.
n.a.
n.a.
MSCI Japan Index (USD)
-16.31%
2.04%
14.91%
20.07%
-12.58%
24.39%
2.73%
n.a.
n.a.
n.a.
Japan Fund (GBP)
-18.12%
-0.63%
28.30%
21.61%
-16.16%
21.57%
20.43%
n.a.
n.a.
n.a.
MSCI Japan Index (GBP)
-5.76%
2.98%
11.36%
15.44%
-7.14%
13.62%
22.53%
n.a.
n.a.
n.a.
Japan Fund (USD Hedged)
-14.54%
9.63%
25.29%
26.94%
-20.85%
n.a.
n.a.
n.a.
n.a.
n.a.
MSCI Japan Index 100% Hedged to USD (USD Hedged)
-1.62%
13.96%
10.14%
21.81%
-13.31%
n.a.
n.a.
n.a.
n.a.
n.a.
Japan Fund (EUR Hedged)
-15.79%
8.65%
24.18%
23.10%
-23.30%
n.a.
n.a.
n.a.
n.a.
n.a.
MSCI Japan Index 100% Hedged to EUR (EUR Hedged)
-4.06%
13.13%
8.27%
18.17%
-15.92%
n.a.
n.a.
n.a.
n.a.
n.a.
Source: Brown Brothers Harriman (Luxembourg) S.C.A.
Unusually high returns may not be sustainable. Due to current market volatility associated with the COVID-19 pandemic, funds may experience significant negative short-term performance.
Since inception performance for share classes with less than one year of history represents actual performance, not annualised. In addition, for share classes less than a year old, Year to Date Return is calculated since inception.
Performance details provided are based on a NAV-to-NAV basis with any dividends reinvested, and are net of management fees and other expenses. These figures show by how much the share class(es) increased or decreased in value during the period or calendar year being shown, where applicable. Performance data has been calculated in the respective currencies stated above, including ongoing charges and excluding subscription fee and redemption fee you might have to pay.
All performance quoted represents past performance and is not indicative of future performance. Investors may not get back the full amount invested. Investors investing in funds denominated in non-local currency should be aware of the risk of currency exchange fluctuations that may cause a loss of principal.
Where no past performance is shown there was insufficient data available in that year to provide performance.
Additional performance, attribution, liquidity, value at risk (VaR), security classification and holdings information is available on request for certain time periods.
Portfolio Characteristics
(as of 31/08/2023)
Fund
Benchmark
Number of Positions
59
237
Weighted Average Market Cap
$38.1 billion
$51.6 billion
Active Share
69.4
n.a.
P/E using FY1 estimates
16.2x
14.2x
P/E using FY2 estimates
14.8x
13.7x
Price/Cash Flow
10.7
9.2
Price/Book
1.8
1.4
Return On Equity
13.6
12.1
EPS Growth (3 Yr)
16.3%
12.2%
Sources: Factset Research Systems, Inc.
Risk Metrics (3 Yr Return)
(as of 31/08/2023)
Category
3YR Return Metric
Alpha
-3.28%
Beta
1.03
Upside Capture
89.59%
Downside Capture
106.69%
Sharpe Ratio
-0.06
Information Ratio
-0.53
Tracking Error
6.77%
R²
85.51
-3.28%
Alpha
1.03
Beta
89.59%
Upside Capture
106.69%
Downside Capture
-0.06
Sharpe Ratio
-0.53
Information Ratio
6.77%
Tracking Error
85.51
R²
Fund Risk Metrics are reflective of Class I USD ACC shares.
Top 10 holdings may combine more than one security from the same issuer and related depositary receipts.
Source: Brown Brothers Harriman (Luxembourg) S.C.A
Portfolio Breakdown (%)
(as of 31/08/2023)
Sector Allocation
Market Cap Exposure
Sector
Fund
Benchmark
Difference
Consumer Discretionary
20.8
18.7
2.1
Industrials
20.0
23.5
-3.5
Information Technology
18.0
14.0
4.0
Financials
13.2
11.9
1.3
Consumer Staples
7.3
6.3
1.0
Communication Services
6.9
7.2
-0.3
Materials
6.8
4.7
2.1
Health Care
5.6
8.8
-3.2
Real Estate
0.6
3.0
-2.4
Utilities
0.0
1.2
-1.2
Energy
0.0
0.8
-0.8
Cash and Other Assets, Less Liabilities
0.9
0.0
0.9
Sector data based on MSCI’s revised Global Industry Classification Standards. For more details, visit www.msci.com.
Equity market cap of issuer
Fund
Benchmark
Difference
Mega Cap (over $25B)
38.6
57.7
-19.1
Large Cap ($10B-$25B)
28.4
25.4
3.0
Mid Cap ($3B-$10B)
21.9
16.9
5.0
Small Cap (under $3B)
10.2
0.0
10.2
Cash and Other Assets, Less Liabilities
0.9
0.0
0.9
Source: FactSet Research Systems unless otherwise noted. Percentage values in data are rounded to the nearest tenth of one percent, so the values may not sum to 100% due to rounding. Percentage values may be derived from different data sources and may not be consistent with other Fund literature.
Ratings
Ratings based on risk-adjusted return
(as of 31/08/2023)
CATEGORY: Japan Large-Cap Equity
OVERALL
3 YEAR
5 YEAR
OVERALL
2 stars
3 YEAR
2 stars
5 YEAR
2 stars
Past performance is no guarantee of future results. High ratings and rankings does not assure favorable performance.
The Overall Morningstar®️ Rating for a fund is derived from a weighted-average of the performance figures associated with its three-, five- and (if applicable) ten-year ratings.
Morningstar RatingTM for funds, or "star rating", is calculated for managed products (including mutual funds, variable annuity and variable life subaccounts, exchange-traded funds, closed-end funds, and separate accounts) with at least a three-year history. Exchange-traded funds and open-ended mutual funds are considered a single population for comparative purposes. It is calculated based on a Morningstar Risk-Adjusted Return measure that accounts for variation in a managed product's monthly excess performance, placing more emphasis on downward variations and rewarding consistent performance. The Morningstar Rating does not include any adjustment for sales loads. The top 10% of products in each product category receive 5 stars, the next 22.5% receive 4 stars, the next 35% receive 3 stars, the next 22.5% receive 2 stars, and the bottom 10% receive 1 star. The Overall Morningstar Rating for a managed product is derived from a weighted average of the performance figures associated with its three-, five-, and 10-year (if applicable) Morningstar Rating metrics. The weights are: 100% three-year rating for 36-59 months of total returns, 60% five-year rating/40% three-year rating for 60-119 months of total returns, and 50% 10-year rating/30% five-year rating/20% three-year rating for 120 or more months of total returns. While the 10-year overall star rating formula seems to give the most weight to the 10-year period, the most recent three-year period actually has the greatest impact because it is included in all three rating periods.
Taizo Ishida is a Portfolio Manager at Matthews and manages the firm’s Asia Growth and Japan Strategies, and co-manages the firm’s Asia Innovators Strategy. Prior to joining Matthews in 2006, Taizo spent six years on the global and international teams at Wellington Management Company as a Vice President and Portfolio Manager. From 1997 to 2000, he was a Senior Securities Analyst and a member of the international investment team at USAA Investment Management Company. From 1990 to 1997, he was a Principal and Senior Research Analyst at Sanford Bernstein & Co. Prior to beginning his investment career at Yamaichi International (America), Inc. as a Research Analyst, he spent two years in Dhaka, Bangladesh as a Program Officer with the United Nations Development Program. Taizo received a B.A. in Social Science from International Christian University in Tokyo and an M.A. in International Relations from The City College of New York. He is fluent in Japanese.
Shuntaro Takeuchi is a Portfolio Manager at Matthews and manages the firm’s Japan Strategy. Prior to joining Matthews in 2016, he was an Executive Director for Japan Equity Sales at UBS Securities LLC in New York. Beginning in 2003, he worked on both Japanese Equity and International Equity Sales at UBS Japan Securities, based in Tokyo, and held the position of Special Situations Analyst from 2006 to 2008, and Head of International Equity Sales from 2009 to 2013. Before that, he worked at Merrill Lynch Japan from 2001 to 2003 in U.S. Equity Sales. Shuntaro received a B.A. in Commerce and Management from Hitotsubashi University in Tokyo. He is fluent in Japanese.
Donghoon Han is a Portfolio Manager at Matthews and co-manages the firm’s Japan Strategy. Prior to joining Matthews in 2020, Donghoon was Vice President and portfolio manager at Goldman Sachs Asset Management in Tokyo, responsible for investments in technology, automotive and transportation sectors in Japan. From 2014 to 2016, he was a senior associate at Citadel Global Equities researching technology and industrial sectors in Japan. From 2010 to 2014, Donghoon worked at Dodge & Cox as an equity research associate covering global technology sector with a focus on semiconductors and electronic components. He received B.A. in International Liberal Arts from Waseda University in Tokyo. Donghoon is fluent in Japanese and Korean. He is a Chartered Member of the Securities Analysts Association of Japan.
This information contained herein does not constitute or contain an offer, solicitation or investment advice with respect to the purchase of the Fund described herein or any security. This information is not to be construed as a prospectus, a public offering or an offering memorandum as defined under applicable securities legislation. Prospective investors should consult professional legal, tax and financial advisers as to the suitability of any investment in light of your particular circumstances and applicable citizenship, residence or domicile. Investors should carefully consider the investment objectives, risks, charges and expenses of the Fund before making an investment decision. The current prospectus, Supplement for Hong Kong Investors, Product Key Facts Statements ("Hong Kong Offering Document") and other offering documents contain this and other information. Fees and expenses vary among Funds and share classes. Portfolio characteristics for the Fund may vary from time to time from what is shown.
The Markit iBoxx Asian Local Bond Index tracks the total return performance of a bond portfolio consisting of local-currency denominated, high quality and liquid bonds in Asia ex-Japan. The Markit iBoxx Asian Local Bond Index includes bonds from the following countries: China (on- and offshore markets), Hong Kong, India, Indonesia, Malaysia, Philippines, Singapore, South Korea, Taiwan and Thailand.
The J.P. Morgan Asia Credit Index (JACI) tracks the total return performance of the Asia fixed-rate dollar bond market. JACI is a market cap-weighted index comprising sovereign, quasi-sovereign and corporate bonds and is partitioned by country, sector and credit rating. JACI includes bonds from the following countries: China, Hong Kong, India, Indonesia, Malaysia, Philippines, Singapore, South Korea and Thailand.
The MSCI All Country Asia ex Japan Index is a free float–adjusted market capitalization–weighted index of the stock markets of China, Hong Kong, India, Indonesia, Malaysia, Pakistan, Philippines, Singapore, South Korea, Taiwan and Thailand.
The MSCI All Country Asia Pacific Index is a free float–adjusted market capitalization–weighted index of the stock markets of Australia, China, Hong Kong, India, Indonesia, Japan, Malaysia, New Zealand, Pakistan, Philippines, Singapore, South Korea, Taiwan and Thailand.
The MSCI China Index is a free float-adjusted market capitalization-weighted index of Chinese equities that includes H shares listed on the Hong Kong exchange, B shares listed on the Shanghai and Shenzhen exchanges, Hong Kong-listed securities known as Red chips (issued by entities owned by national or local governments in China) and P Chips (issued by companies controlled by individuals in China and deriving substantial revenues in China) and foreign listings (e.g. ADRs).
The MSCI China All Shares Index captures large and mid-cap representation across China A shares, B shares, H shares, Red chips (issued by entities owned by national or local governments in China), P chips (issued by companies controlled by individuals in China and deriving substantial revenues in China), and foreign listings (e.g. ADRs). The index aims to reflect the opportunity set of China share classes listed in Hong Kong,Shanghai, Shenzhen and outside of China.
The S&P Bombay Stock Exchange 100 (S&P BSE 100) Index is a free float–adjusted market capitalization–weighted index of 100 stocks listed on the Bombay Stock Exchange.
The MSCI Japan Index is a free float–adjusted market capitalization–weighted index of Japanese equities listed in Japan.
The MSCI All Country Asia ex Japan Small Cap Index is a free float–adjusted market capitalization–weighted small cap index of the stock markets of China, Hong Kong, India, Indonesia, Malaysia, Pakistan, Philippines, Singapore, South Korea, Taiwan and Thailand.
The MSCI China Small Cap Index is a free float-adjusted market capitalization-weighted small cap index of the Chinese equity securities markets, including H shares listed on the Hong Kong exchange, B shares listed on the Shanghai and Shenzhen exchanges,Hong Kong-listed securities known as Red Chips (issued by entities owned by national or local governments in China) and P Chips (issued by companies controlled by individuals in China and deriving substantial revenues in China), and foreign listings (e.g., ADRs).
The MSCI India Index is a free float-adjusted market capitalization-weighted index of Indian equities listed in India.
Indexes are for comparative purposes only and it is not possible to invest directly in an index.