SunAmerica Japan Fund is investment in China's growth, adviser says

By Aleesia Forni

Columbus, Ohio, Nov. 8 - SunAmerica International Small-Cap Fund announced that it will change its principal investment strategy to a focus on the active trading of securities of companies within or primarily operated in Japan, which financial adviser Chuck Thoele believes to be "as much an investment in the strategic growth in China."

"From a standpoint of an investor in that type of fund, it's not just an investment in the Japanese market, in the Japanese economy," Thoele, managing director of the Dallas-based independent financial advisory firm Robertson, Griege & Thoele, told Prospect News, "it's certainly an investment in companies that are supplying goods and services to the Chinese market."

Though Thoele said the Chinese economy is growing "very strongly," he added that it is being affected by the "concern over higher levels of inflation in China," and there is a "desire to try to keep a lid on the inflation."

"An investment in a fund like the Japanese fund would certainly be a vote of confidence that you think the Chinese economy is going to continue to grow at least over the next three to five years," Thoele said.

Wellington Management Co. LLP is the new subadviser for the renamed SunAmerica Japan Fund, and Thoele believes this company to be "an excellent value manager."

"To me, what that means is that they see some real opportunity in that market after a couple of decades of languishing, which is significant," Thoele said.

"If a firm like Wellington sees opportunity there, then there's probably a good chance that it's there."

"So, I guess overall if Wellington feels like there's opportunity and an investor believes that China will continue to grow at sort of the high single-digit rates per year, or even higher, back up into the 10% per year growth, which it has for several years, then it's a reasonable investment thesis," Thoele said.

The fund's adviser is Jersey City-based SunAmerica Asset Management Corp.

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