Japan Fund's Investment Process

Japan Fund

Class A: SAESX

Unique Investment Process

The Fund employs a contrarian approach based on valuation and behavioral finance principles to uncover companies that may be oversold and are attractively valued. Management looks for misunderstood companies that may be experiencing short- term problems, yet maintain strong balance sheets and fundamentals.

 

Manager: Jun Oh, Vice President and Equity Portfolio Manager at Wellington Management
Experience: Over 16 years experience in the investment industry. Joined Wellington in 2001 with an MBA from Massachusetts Institute of Technology (Sloan)

“We think our approach is unique in that it combines analyses of fundamentals with insights from the field of behavioral finance. We think Japanese markets contain hidden opportunities if a company gets things right. Firms with excellent recovery potential pop up across many sectors, industries, macro themes, and cyclical themes—there is never a shortage of opportunities.”

Effective January 27, 2012, the name of the Fund was changed to the SunAmerica Japan Fund and certain corresponding changes were made to the Fund’s investment strategy and techniques. Prior to this date, the Fund was managed as an international small-cap fund. The performance shown represents the performance of the Fund as an international small-cap fund through January 27, 2012.

Investments in stocks are subject to risk, including the possible loss of principal. Stocks of international companies are subject to additional risks including currency risks and geographic concentration. Stocks of small-cap companies, and to a lesser extent, mid-cap companies, may be more volatile than and not as readily marketable as those of larger companies. Under normal circumstances, at least 80% of the Fund’s net assets, plus any borrowings for investment purposes, will be invested in Japanese companies. Because the Fund concentrates its investments in Japan, the Fund’s performance is expected to be closely tied to social, political and economic conditions of that country. As a result, the Fund is likely to be more volatile than more geographically diverse international funds. The Japanese economy faces a number of long-term problems, including massive government debt, the aging and shrinking of the population, an unstable financial sector and low domestic consumption. Japan has experienced natural disasters of varying degrees of severity, and the risks of such phenomena, and damage resulting therefrom, continue to exist. Japan has a growing economic relationship with China and other Southeast Asian countries, and thus Japan’s economy may also be affected by economic, political or social instability in those countries (whether resulting from local or global events).

Wellington Management Company LLP is an independent and unaffiliated investment sub-adviser to SunAmerica.