Matthews Japan Fund Adjusts Portfolio, Exits Sumitomo Mitsui Financial Group with a -3.35% Impact
Insight into Matthews Japan Fund (Trades, Portfolio)'s Q4 2023 Investment Moves and Strategy
Matthews Japan Fund (Trades, Portfolio), known for its strategic investments in Japanese equities, has revealed its N-PORT filing for the fourth quarter of 2023. The Fund, which launched on December 31, 1998, is committed to long-term capital appreciation, focusing on companies located in Japan. With a bottom-up, fundamental investment philosophy, Matthews Japan Fund (Trades, Portfolio) is dedicated to uncovering the potential of undervalued companies and capitalizing on Asia's growth through a long-term, experienced approach. The Fund's rigorous research process involves extensive company meetings, aiming to identify sustainable growth opportunities and robust business models.
Summary of New Buys
Matthews Japan Fund (Trades, Portfolio) expanded its portfolio with 9 new stocks in the fourth quarter. Noteworthy additions include:
Recruit Holdings Co Ltd (TSE:6098), purchasing 463,000 shares, which now comprise 3.03% of the portfolio, valued at 19.36 billion.
Mitsui Fudosan Co Ltd (TSE:8801), acquiring 668,900 shares, making up 2.56% of the portfolio, with a total value of 16.35 billion.
Terumo Corp (TSE:4543), adding 471,600 shares, accounting for 2.42% of the portfolio, valued at 15.42 billion.
Key Position Increases
Matthews Japan Fund (Trades, Portfolio) also bolstered its stakes in 16 stocks, with significant increases in:
Keyence Corp (TSE:6861), adding 23,400 shares, bringing the total to 72,300 shares. This represents a 47.85% increase in share count, impacting the portfolio by 1.61%, and a total value of 31.77 billion.
Shin-Etsu Chemical Co Ltd (TSE:4063), with an additional 241,700 shares, increasing the total to 874,500. This adjustment marks a 38.2% increase in share count, with a total value of 36.57 billion.
Summary of Sold Out Positions
Matthews Japan Fund (Trades, Portfolio) exited 22 holdings in the fourth quarter of 2023, including:
Sumitomo Mitsui Financial Group Inc (TSE:8316), selling all 422,300 shares, which had a -3.35% impact on the portfolio.
Sega Sammy Holdings Inc (TSE:6460), liquidating all 669,300 shares, resulting in a -1.99% portfolio impact.
Key Position Reductions
Matthews Japan Fund (Trades, Portfolio) reduced its position in 18 stocks, with notable reductions in:
Toyota Tsusho Corp (TSE:8015) by 136,700 shares, leading to a -48.58% decrease in shares and a -1.3% impact on the portfolio. The stock traded at an average price of 8,343.48 during the quarter and has returned 14.39% over the past 3 months and 16.15% year-to-date.
ITOCHU Corp (TSE:8001) by 200,800 shares, resulting in a -35.28% reduction in shares and a -1.17% impact on the portfolio. The stock's average trading price was 5,667.26 during the quarter, with returns of 21.48% over the past 3 months and 16.99% year-to-date.
Portfolio Overview
As of the fourth quarter of 2023, Matthews Japan Fund (Trades, Portfolio)'s portfolio consisted of 43 stocks. The top holdings included 5.73% in Shin-Etsu Chemical Co Ltd (TSE:4063), 4.98% in Keyence Corp (TSE:6861), 4.16% in Tokio Marine Holdings Inc (TSE:8766), 4.01% in Sony Group Corp (TSE:6758), and 3.82% in Hitachi Ltd (TSE:6501). The investments are primarily concentrated across 9 industries, including Technology, Industrials, Consumer Cyclical, Financial Services, Consumer Defensive, Communication Services, Basic Materials, Healthcare, and Real Estate.
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