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I have been comparing some Japan funds... EWJ, PRJPX, MJFOX & HJPNX. I have small holdings in PRJPX and MJFOX. Does this still appear to be dead money for an extended period of time? It has a 10 yr Treasury type yield (2% in the case of MJFOX) with a lot of downside risk already baked in.
HJPNX, Hennessy Japan, has a nice 3 year catagory performance:
I remain curious about Japanese retailer Fast Retailing and their expansion plans (FRCOY.PK), but that's more of a fundamental case. Seven and I (7-11's parent company) also continues to do well.
A number of Japanese electronics firms (Panasonic, Sony and others) seem troubled at best and disasters at worst. There are probably a number of great companies, but some of the more widely known do seem problematic - I think it's interesting to see the outperformance of actively managed funds in the chart above vs EWJ.
Demographics and other issues in Japan are also concerning to me. Will the country just do whatever it takes and throw the kitchen sink at its issues in order to try to jump start its economy? Probably, but I'm not sure how sustainable or successful they'll be. I don't think there's much downside, but I wouldn't make a huge bet on it and would go with active managers who can navigate the issues with the country versus a broader etf.
Comments
A number of Japanese electronics firms (Panasonic, Sony and others) seem troubled at best and disasters at worst. There are probably a number of great companies, but some of the more widely known do seem problematic - I think it's interesting to see the outperformance of actively managed funds in the chart above vs EWJ.
Demographics and other issues in Japan are also concerning to me. Will the country just do whatever it takes and throw the kitchen sink at its issues in order to try to jump start its economy? Probably, but I'm not sure how sustainable or successful they'll be. I don't think there's much downside, but I wouldn't make a huge bet on it and would go with active managers who can navigate the issues with the country versus a broader etf.
But that's just me.