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2016, Affin Hwang Japan Growth Fund, funds, Hwang Select Japan Quantum Fund, HWSLJPQ, investment, Japan, mutual fund, mutual fund investment, mutual funds investment, portfolio, supplementary portfolio, theory
With the recent news of Government Pension Investment Fund of Japan (GPIF) to refocus on equities, due mainly to introduction of negative yields on sovereign debts as well as the recent plunge on equities that drive its valuation to three-year low.
At the same time, I’m looking at couple of attractive regions due to low valuations as well as geographical reasons. Japan is one of them, and others are China, India and ASEAN. Right after the announcement of the news, the fund that I’m looking at has surged 6.21%.
I decided to invest into Affin Hwang Japan Growth Fund again, and from my previous experience of this fund as shown in the post, the fund performed well during the QE’s injection of liquidity to the market. Studying the funds portfolio, there’s ~14.5% cash on hand that could be made use of. Hyperinflation is no where to be seen, and in fact Abenomics to push the inflation to 2% has largely failed to do so as well. YEN has been devalued, and exports are looking good and with Japan as a high quality industrial sector player, its products should be highly sort after. Apart from that, the GPIF is injection USD 54billion worth of domestic stocks to fulfill the allocation and the devaluation of equities in recent months, and that’s not a small figure even for Japan’s ~USD3681billion total market capitalization, that’s roughly 1.5%.
The fund will park under my supplementary portfolio due to its risky nature and my goal for this fund is +10% until end of the 2016, and of course, I will revisit my purchase in a regular basis and decision to increase / decrease my investment will be made based on the results of the continuous study.