1Source: Bank of Japan, 6/18/14.
2Source: Bank of Japan, 6/18/14.
3Source: Source: Bloomberg, as of 5/31/14.
4Source: Source: Barclays, as of 5/31/14.
5Source: Bank of Japan, as of 6/18/14.
6Source: The Government Pension Investment Fund (GPIF) is the pension fund for Japanese government employees.
7Source: J.P. Morgan, “Japan: New Growth Strategy Focus on Corporate Governance,” 6/20/14.
Important Risks Related to this Article
There are risks associated with investing, including possible loss of principal. Foreign investing involves special risks, such as risk of loss from currency fluctuation or political or economic uncertainty. Derivative investments can be volatile, and these investments may be less liquid than other securities, and more sensitive to the effects of varied economic conditions. The Fund focuses its investments in Japan, thereby increasing the impact of events and developments in Japan, which can adversely affect performance. Investments in currency involve additional special risks, such as credit risk and interest rate fluctuations. As this Fund can have a high concentration in some issuers, the Fund can be adversely impacted by changes affecting such issuers. This may result in greater share price volatility.
Interest rate risk with respect to the Fund is the risk that fixed income securities will decline in value because of decreases in interest rates in Japan. Fixed income investments are also subject to credit risk, the risk that the issuer of a bond will fail to pay interest and principal in a timely manner or that negative perceptions of the issuer’s ability to make such payments will cause the price of that bond to decline. Please read the Fund’s prospectus for specific details regarding the Fund’s risk profile.