Japan Fund

Class A: SAESX Class C: SAJCX

Access Growth Opportunities in the World’s 3rd Largest Economy

The SunAmerica Japan Fund seeks long-term capital appreciation by actively trading securities of Japanese companies and other investments that are tied economically to Japan. Using a contrarian investment approach, portfolio management looks to buy fundamentally strong companies it believes have been mispriced. In a broadly diversified portfolio, the Fund could complement an international equity allocation by offering exposure to a region that may be undervalued and underweighted in many client portfolios.

Key Reasons to Invest in Japan

Improving Macroeconomic Factors: The Japanese political environment is stabilizing for the first time in many years and coupled with China’s economic emergence, the Japanese government is pursuing an aggressive growth policy. Additionally, a weakening Yen has benefited Japanese exports as their products are now cheaper and more attractive abroad.
Corporate Strength: After being forced to dramatically cut costs to deal with a prolonged economic downturn, companies may now be well-positioned for a pick-up in earnings and attractive free cash flow generation. Japanese firms are exhibiting a growing focus on returning capital to shareholders, making Japan more appealing to investors globally.

Positioned for Growth: While past performance is no guarantee of future results, portfolio management believes that the recent stock market rally suggests that there may be an opportunity for growth.

 

The SunAmerica Japan Fund Offers:

Asset management expertise: Investors may benefit from the local market knowledge, experience and resources of Wellington Management Company’s Japanese equity team which works on the ground in Asia.
A contrarian style: The Fund seeks to buy misunderstood securities when markets overreact and sentiment turns negative, and sell securities when company news and sentiment become overly positive.
Diversification opportunities: Gain exposure to Japanese companies across all sizes and styles.2

 

Offer more diversification potential by considering an allocation to the Japanese equity market. For more information on the Fund, please talk to your financial advisor today.

 

 

 

 

 

1 Source: Tokyo Stock Price Index (TOPIX), April 1983 - March 2013.
2 Diversification does not ensure a profit or protect against market loss. There is no assurance a
diversified portfolio will outperform a non-diversified portfolio.
 

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.