Similarity Across Top-10 Holdings of Largest Japanese Mutual Funds in U.S.


This post probably about does it for now in terms of looking at the Japanese mutual fund universe in the U.S. For reference, also see:Cash Inflows/Outflows in Sept. for Largest Japanese Mutual Funds in U.S. and Ranking of Japanese Mutual Funds in the U.S..

Among the 8-largest funds reviewed in each of the two prior posts, there were a number of similar holdings among the top-10 components of each fund. This is not exactly surprising since (1) these companies are the largest in Japan based on market-cap and (2) most/all of them had posted big gains through early 2006, making them must-haves for portfolio managers. If these large cap blue chips rally in Q4 and into 2008, then these funds will likely do quite well. If not, it could be a continuation of the frustration felt in much of 2007.

Toyota is the top holding for four of the eight-largest funds and also held in two other funds. Nintendo is the second-largest holding in three funds. Mizuho Financial Group is the third-largest holding in three funds and also held in another fund. Sumitomo Mitsui Financial Group is the second-largest holding for two funds and is held in three other funds. Mitsubishi UFJ Financial Group and Sony are each the largest holding of one fund and held in another. Canon is held in three funds. Nomura Holdings and Komatsu are held in two funds. Sumitomo Metal Industries is held in four funds.