REG - JPMorgan Japanese IT - Annual Financial Report
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RNS Number : 0264M JPMorgan Japanese Inv. Trust PLC 18 December 2025
LONDON STOCK EXCHANGE ANNOUNCEMENT
JPMORGAN JAPANESE INVESTMENT TRUST PLC
FINAL RESULTS FOR THE YEAR ENDED 30TH SEPTEMBER 2025
Legal Entity Identifier: 549300JZW3TSSO464R15
Information disclosed in accordance with the DTR 4.1.3
CHAIRMAN'S STATEMENT
Our Company has delivered robust growth in Total Return Net Asset Value (NAV),
measured with debt at fair value(A), of +25.0% decisively ahead of the
benchmark's +16.9% return. This outperformance is a testament to our
investment team's ability to identify and capitalise on opportunities, even as
Value stocks continued to outperform the Quality and Growth stocks usually
favoured by the Portfolio Managers. Their focus on companies which are
enthusiastically embracing corporate reforms and benefiting accordingly,
boosted relative returns. So did the Portfolio Managers' decision to increase
exposure to new growth areas, notably defence. The Portfolio Managers'
stock-picking and use of gearing further amplified returns, against a backdrop
of favourable macro conditions, including structural reform, corporate
modernisation, and a strengthening domestic economy. The Topix and Nikkei
indices closed the Company's financial year at highs, despite a pick-up in
politically-inspired volatility during the period, because corporate reforms
are driving improved shareholder returns.
The past year's strong performance enhances the Company's longer term track
record. The Company's average annualised NAV total return(A) over three years
was +18.8%, compared to the benchmark's +13.9%. Performance still lags the
benchmark over five years, due mainly to the sensitivity of portfolio holdings
to global increases in interest rates during 2021 and 2022, but over ten
years, our annualised NAV total return(A) is +11.4%, ahead of the benchmark's
+9.5% outcome.
The Company's combination with the JPMorgan Small Cap Growth & Income
Trust plc ('JSGI'), completed in October 2024, has further strengthened our
market presence and liquidity. Our net assets now stand at approximately £1.2
billion, and our fee structure is even more competitive. At the same time our
team has been strengthened with the addition of Xuming Tao as a co-manager of
the Company, working alongside the existing team of Nicholas and Miyako.
Xuming has been a member of the Japanese equity team at JPMAM in Tokyo since
2019 and was a co-manager of JSGI.
The Investment Manager's Report sets out details of recent performance and
portfolio activity and discusses the outlook for 2026.
Gearing
The Board of Directors believes that gearing can be beneficial to performance.
It sets the overall strategic gearing policy and guidelines and reviews these
at each Board meeting. The Portfolio Managers then manage the gearing within
the agreed limits of 5% net cash to 20% geared in normal market conditions.
During the review period, gearing ranged from 6.1% to 16.6%, with an average
of 13.1%. As at 30th September 2025, gearing was equivalent to 13.5% of net
assets, a level that reflects the Portfolio Managers' confidence in the
outlook for the Japanese market. At the time of writing this report, the
gearing had increased to 14.2%.
The Board believes it is prudent for the Company's gearing capacity to be
funded from a mix of sources. The Company's gearing strategy is implemented
via the use of two forms of gearing, low-cost long-term fixed rate debt, with
an average coupon rate of 1.1%, and the use of Contracts for Difference
('CFDs'). The short-term revolving facility of JPY 10 billion with ICBC
Limited, London Branch was terminated during the year, as it was no longer
required. More details can be found in the Annual Report of the Company which
is available on the Company's website.
The Company has been using CFDs since 2024. They are a flexible, low-cost,
capital efficient alternative to loan facilities and therefore offer
considerable advantages to the Portfolio Managers. These instruments are a
form of financial derivative which allow investors to gain exposure to stock
price movements without actually owning the individual shares. As such, CFDs
provide the investor with leveraged exposure to the underlying asset. The
Board closely monitors the use and cost effectiveness of this form of gearing.
Discount Management and Share Buybacks
The Board actively and closely monitors the discount to NAV at which the
Company's shares trade. We recognise that a competitive discount with low
volatility is very important for maintaining investor confidence and ensuring
the attractiveness of our shares in the market.
Our current buyback policy has played an important role in managing the
discount. We remain focused on ensuring that our discount remains competitive
with industry and sector equivalent trusts. In addition, we are committed to
dampening the volatility of the discount, which we view as a key factor both
in supporting existing shareholders and attracting new investors. The Board,
after consultation with our advisors and our largest shareholders, who are
supportive of these conclusions, has decided to maintain the current policy
and approach.
The Board remains dedicated to enhancing shareholder value, through a
combination of strong, long term investment performance with effective
promotion of the Company. We believe these efforts, along with our disciplined
buyback policy, will continue to support the objectives set out above.
During the financial year ended 30th September 2025, the Company bought back
5,538,996 shares into Treasury at a total cost of £33,156,000. These
buybacks were executed at an average discount of approximately 11.3% to NAV,
resulting in an immediate increase in NAV per share for remaining
shareholders. As at 30th September 2025, the Company held 23,634,985 shares in
Treasury, representing 12.8% of the total shares in issue. The total shares in
issue stood at 184,613,188, with 160,978,203 ordinary shares in issue
excluding those held in Treasury. Since the end of the financial year the
Company has bought back a further 1,650,000 shares into Treasury.
Share buybacks are only undertaken at a discount to NAV, ensuring value
accretion for continuing shareholders. Shares held in Treasury may be re-sold
at a premium to NAV, providing flexibility in capital management.
Revenues and Dividends
Income received during the year continued to rise, supported by strong balance
sheets and dividend growth among portfolio companies. The Board's policy
remains to pay out the majority of available revenue and subject to
shareholders' approval at the Annual General Meeting to be held on
22nd January 2026, the Board proposes to pay a final dividend of 8.70p per
share (2024: 6.75p) on 12th February 2026 to shareholders on the register at
the close of business on 30th December 2025 (ex-dividend date 29th December
2025). This increase in the dividend follows last year's 3.8% increase.
Japanese companies' dividend payouts and payout ratios have increased
meaningfully in recent years, supported by improved corporate governance,
stronger balance sheets, and a growing focus on shareholder returns. While
this upward trend is encouraging, it should not be assumed that current levels
of dividend income from portfolio holdings will remain constant. So, while the
Board hopes to be able to increase the dividend again in the coming year, as
it has done every year since 2020, this will be dependent on portfolio
revenue.
The Company's investment objective is to seek capital growth from a portfolio
of investment in Japanese companies. Our Portfolio Managers are unconstrained
by the requirement to achieve a certain level of income, and this allows them
to select the 'best' stocks, rather than those that fit a specific income
requirement. At present, the Company pays out the majority of revenue
available each year as a final dividend.
Board Succession Planning
As mentioned in the Company's last Annual Report, George Olcott, who is based
in Japan, will be retiring from the Board following the Annual General Meeting
('AGM') in January 2026. The Board has long benefited from having a director
resident in Japan and hence, as George approached the end of his term, the
Board sought another Japan resident director to replace him. As announced on
3rd June 2025, Takashi Maruyama was appointed to the Board as a Non-Executive
Director with effect from 1st October 2025. Takashi is the former Managing
Executive Officer and Chief Investment Officer (CIO) of Asset Management One
Co., Ltd., one of Japan's largest asset management firms with over US$ 500
billion in assets under management. He held this role from April 2022 until
March 2025 and brings with him more than three decades of experience in the
global investment management industry. For more details please see the full
Annual Report of the Company. My fellow Directors and I thank George for his
many and significant contributions to the Company.
In line with the Company's commitment to good governance and Board continuity,
the Board confirms that I will remain as Chair until the conclusion of the
Annual General Meeting in January 2027, at which point I will step down.
Following a thorough succession planning process, the Board intends to appoint
Sally Duckworth, the current Audit & Risk Committee Chair, as the Board
Chair, on my departure. Sally brings extensive experience in investment
management, governance and Board leadership. In light of these changes, it is
intended that Anna Dingley will take over the role of Remuneration Committee
Chair with effect from the conclusion of the Company's AGM in 2026 and Thomas
Walker will be appointed as the Audit & Risk Committee Chair with effect
from the Company's AGM in 2027.
Following my departure, the Board will comprise six Directors. In the Board's
view, the optimum board size for the Company is five Directors, and it intends
to return to this number over time as other Directors retire. The Board
confirms its ongoing commitment to diversity and independence in line with
regulatory and best practice standards.
Environmental, Social and Governance ('ESG')
As detailed in the Investment Manager's Process included in the full Annual
Report of the Company, financially material ESG considerations are integrated
into its investment process. The Board shares the Investment Manager's view of
the importance of considering financially material ESG factors when making
investments for the long term, and the necessity of ongoing engagement with
investee companies over the duration of the investment.
Further information on JPMAM's ESG process and engagement activities is set
out in the ESG Report in the JPMAM 2024 Investment Stewardship Report, which
can be accessed at
https://www.jpmorganchase.com/content/dam/jpmorganchase/documents/about/jpmc-sustainability-report-2024.pdf
Annual General Meeting
The Company's Annual General Meeting will be held on Thursday, 22nd January
2026 at 12.30 p.m. at 60 Victoria Embankment, London EC4Y 0JP.
Shareholders are invited to join us in person for the Company's Annual General
Meeting, to hear from the Portfolio Managers. Their presentation will be
followed by a question-and-answer session. This will be followed by a lunch
which would provide shareholders with an opportunity to meet the Board and the
Portfolio Managers. For shareholders who wish to follow the Annual General
Meeting proceedings but choose not to attend, we will be able to welcome you
through conferencing software. Details on how to register, together with
access details, will be available on the Company's website:
www.jpmjapanese.co.uk or by contacting the Company Secretary at
jpmam.investment.trusts@jpmorgan.com.
As is best practice, all voting on the resolutions will be conducted by poll.
Please note that shareholders viewing the meeting via conferencing software
will not be able to vote in the poll. We therefore encourage all shareholders,
and particularly those who cannot attend in person, to exercise their votes in
advance of the meeting by completing and submitting their proxy. Your Board
encourages all shareholders to support the resolutions proposed at the Annual
General Meeting.
If there are any changes to the above Annual General Meeting arrangements, the
Company will update shareholders through the Company's website and an
announcement on the London Stock Exchange.
Stay Informed
The Company delivers email updates with regular news and views, as well as the
latest performance. If you have not already signed up to receive these
communications and you wish to do so, you can opt by scanning the QR code on
this page or via
https://web.gim.jpmorgan.com/emea_investment_trust_subscription/welcome?targetFund=JFJ
Outlook
The corporate reforms which began ten years ago are still gathering momentum
and lifting shareholder returns. The Board shares the Portfolio Managers'
conviction that this transformation of Japan's corporate landscape will
continue to accelerate. These reforms are also likely to fuel growing
international interest and encourage foreign investors to reduce their
longstanding underweight to this market.
The Portfolio Managers are supported in their search for such companies by a
large, experienced team based in Japan. The team's on-the-ground presence and
deep local insight enable them to capitalise on the evolution of Japan's
equity market and economy. As ever, there are risks, such as the longer-term
effects of US tariffs and the increasing competitiveness of China.
Nonetheless, we are confident that the Company is well positioned to take full
advantage of the major changes afoot in Japan and to keep delivering long-term
capital growth and investment outperformance.
On behalf of the Board, I would like to thank our shareholders for their
support.
Stephen Cohen
Chairman
INVESTMENT MANAGER'S REPORT
Performance in Sterling Terms
Your Company achieved strong positive returns and outperformance of the
benchmark over the financial year ended 30th September 2025. Returns were
muted in the first half of the year, but performance gained momentum in the
second half, so that for the year as a whole, the portfolio returned +25.0% in
net asset value (with debt at fair value)(A) terms, decisively ahead of the
benchmark return of +16.9%.
This performance further enhanced the Company's longer-term performance track
record. The cumulative NAV total return(A) with debt at fair value over the
three-year period to end September 2025 was +67.8%, compared to a benchmark
return of +47.8% on the same basis. While NAV total returns of +21.0% over the
five-year period lagged the benchmark return of +46.7%, over the ten-year
period, the Company's cumulative NAV return was +194.6%, ahead of the
equivalent benchmark return of +147.5%.
Economic and market background
In common with other major markets, the past year has been a volatile one for
Japanese equities due in large part to anxieties generated by US trade
policies. These concerns peaked in March and April this year. However, both
the Topix and Nikkei indices managed to claw back related losses subsequently
and closed the financial year at all-time highs. Performance for UK investors
was undermined to a degree by yen weakness but returns were still strong.
Investors have good reason to be worried about US tariffs. They are negative
because: (1) they directly impact companies selling in the US; (2) they may
cause global growth to slow; and (3) excess Chinese capacity may flood into
other markets, affecting the profitability of locally based businesses.
However, on the positive side, Japan was one of the first countries to reach a
trade agreement with the US, at a rate that was significantly lower than first
suggested.
Performance attribution
Year ended 30th September 2025
% %
Contributions to total returns
Benchmark return 16.9
Stock selection 5.3
Currency 0.1
Gearing/Cash 2.6
Investment Manager contribution 8.0
Portfolio return(A) 24.9
Management fee and other expenses (0.5)
Share buy backs 0.4
Other effects (0.1)
Return on net asset value - with debt at par value(A) 24.8
Impact of fair value of debt 0.2
Return on net asset value - with debt at fair value(A) 25.0
Return on share price(A) 24.9
Source: Morningstar/J.P.Morgan. All figures are on a total return basis.
Performance attribution analyses how the Company achieved its recorded
performance relative to its benchmark.
(A) Alternative Performance Measure ('APM').
A glossary of terms and APMs is provided in the full Annual Report of the
Company.
Another notable feature of the past year was the ongoing style rotation, which
began in 2021. Your Company's investment style focuses on Premium and Quality
companies (defined in the glossary of terms in the full Annual Report), rather
than Value stocks, as we believe these will deliver the best long-term
performance. However, the chart above shows that Japan's Value companies have
significantly outperformed Growth companies every year since 2021. This
contrasts with the United States, where AI-related stocks and other Growth
companies continue to drive market returns.
The Company's strong relative performance, despite a headwind for our
investment style, is particularly encouraging. This reflects our focus on
companies that are actively transforming their business portfolios and
strengthening their balance sheets to improve capital efficiency and enhance
shareholder returns. Many of these holdings are on the path to our definition
of 'quality', even if they do not yet exhibit all the characteristics we
typically seek. Long-dormant areas such as defence have started to perform
well and we continue to benefit from growth in technology sectors as they
benefit from the expansion of artificial intelligence ('AI'). Our ability to
identify attractive opportunities in these emerging growth segments is
supported by the breadth and experience of our Japanese analyst team.
On the political front, the past year saw a General Election in October 2024
and Upper House elections in July 2025. The Liberal Democratic Party (LDP),
which has dominated Japanese politics in the post war period, suffered
significant losses in both polls and no longer holds a majority in either
chamber. This triggered a vote for a new party leader. In October 2025, Sanae
Takaichi was elected leader of the LDP and subsequently became Japan's first
female prime minister. She is a key proponent of improving governance and
corporate structures, and as such we expect this trend to persist in the
foreseeable future. On fiscal policy, Takaichi is likely to support targeted
government spending to boost growth while keeping debt tolerance in mind. On
monetary policy, she is expected to maintain a cooperative stance with the
Bank of Japan's stimulus measures, balancing support for the economy with
careful management of inflation and financial stability.
The key issue underpinning voter dissatisfaction with the LDP is continued
inflation, particularly food price rises. However, in response to rising
prices and tight labour market conditions, wages have begun to increase after
decades of stagnation. The annual Shunto spring negotiation saw an increase of
over 5% for the second successive year. These increases should help support
real income growth and ease voter disquiet, given that they are significantly
ahead of inflation, as shown in the charts provided in the full Annual Report
of the Company.
Higher inflation may also encourage individuals to reduce their significant
exposure to cash and deposits, in favour of higher-yielding assets such as
equities and investment products.
In response to price and wage pressures, the Bank of Japan (BoJ) ended its
negative interest policy in early 2025, marking a significant shift after
years of ultra loose policy. The official short-term policy rate is currently
0.5%. We see policy normalisation as positive but the BoJ will need to judge
the pace of change carefully.
Although Japanese monetary policy is moving in a different direction to the
majority of countries, the yen has not appreciated significantly. Indeed, the
yen weakened following Takaichi's appointment, due to uncertainty about her
fiscal policies.
Portfolio themes
The portfolio is constructed entirely on a stock-by-stock basis as we seek out
the most attractive companies, regardless of the economic cycle. Nonetheless,
many portfolio holdings offer exposure to key structural themes that should
drive growth over the medium term. Foremost among these themes is the drive to
improve corporate governance, by reducing cash balances and
cross-shareholdings and increasing shareholder returns. The following charts
illustrate the growing pace of corporate reform, evident in rising dividends
and buy backs, increasing shareholder activism and declining
cross-shareholdings. There has also been a surge in unsolicited takeover bids.
The Company has been a beneficiary of the surge in unsolicited takeover bids:
a private equity company bought precision equipment maker Topcon, and
Mitsubishi UFJ acquired robo-advisor Wealthnavi.
Tangible improvements seen in corporate governance
JFJ holds several companies that stand to benefit directly from the
accelerating adoption of AI, automation, and digital transformation across
Japan's economy. A key holding, Advantest, supplies the advanced semiconductor
and testing equipment essential for AI chip production, while Keyence provides
high-precision sensors and machine-vision systems that underpin factory
automation. Hitachi is leveraging AI to enhance industrial efficiency and
smart manufacturing, and Hoya contributes through its dominance in optical
components used in imaging and semiconductor processes. Meanwhile, firms like
Nomura Research Institute support digital strategy and AI integration across
corporate Japan. Together, these holdings position the Company to capture
value from Japan's deep industrial base as it modernises through AI-enabled
technologies, making the portfolio a well-balanced play on the country's
evolving role in the global AI supply chain.
De-globalisation is another trend gathering momentum. The pandemic, and
subsequent events such as widespread supply chain shortages, the conflict in
Ukraine and simmering Sino/US geo-political tensions, have increased
companies' desire to move production nearer to end customers, including to
Japan. For example, TSMC, the Taiwanese semiconductor producer, is building
plants in Japan. Our portfolio holding in Japan Material, which installs and
services infrastructure for semiconductor factories, is benefitting.
Japan is also home to many global leading consumer brands such as Fast
Retailing and computer games companies such as Sony and Nintendo. As in other
sectors, we can find companies that combine long-term structural growth with
significant potential from improved governance. Nintendo, which owns some of
the sector's most valuable intellectual property, with characters such as
Super Mario and Pokemon, has roughly a quarter of its market cap in net cash
and could do much to improve shareholder returns.
Another theme is digitisation and the adoption of technological innovation.
Japan remains well behind most other advanced economies in areas such as
online shopping, digital services and cloud computing and this leaves plenty
of scope for such trends to continue developing over coming years and driving
growth in many portfolio holdings. Japan hosts many world-leading hardware
technology companies, some of which are dominant in their niche markets. One
such example is Advantest, a Quality-rated semiconductor chip tester which has
been a significant contributor to returns over the past year. Chip testing
used to be a fragmented market with many competitors, but it has become a
duopoly over time, with Advantest winning considerable market share. One of
its key customers is Nvidia, the US producer of the most advanced chips.
We have added one new theme over the past year - defence. Like the UK and many
European countries, Japan has begun to spend a larger proportion of its GDP on
defence, in response to the escalation in concerns about Russia's expansionary
ambitions. Some of this government spending is being directed to domestic
Japanese contractors, including IHI, a heavy engineering conglomerate, and
software company NEC. We added both these names to the portfolio during the
past year, and we expect these businesses to see sustained sales growth and
rising margins over time.
Significant contributors and detractors
In fact, along with Advantest, IHI was one of the most significant
contributors to returns over the past year. The market has welcomed the
company's aggressive restructuring efforts. It is now focused on its core,
high-quality aero engineering business. Another key contributor was Mitsui
E&S, a maritime engine and equipment supplier that was another new
addition to the portfolio during the year. This company is also restructuring
to concentrate on ship engines, a business that generates strong recurring
revenues from ongoing maintenance contracts, and port cranes, where it has
begun to win contracts in the US. Rakuten Bank, Japan's largest online bank
also supported performance. It reported strong results and growth in its
customer base. Rakuten is the only Japanese bank we rate as Quality. Each of
these names contributed well over 100bps to returns over the year.
The three main detractors from returns over this period were Keyence, Japan
Exchange and Tokyo Electron, although only Keyence detracted more than 100bps.
Keyence is a Premium-rated maker of sensors used in factory automation. Its
latest results far exceeded those of its peers, but the stock nonetheless came
under sustained downward pressure over the period. Japan Exchange, the
operator of the Japanese stock exchange, is Quality-rated, but its results
have been slightly weaker than expected. Tokyo Electron, a Quality-rated maker
of semiconductor production equipment, reported weak results in China. We
maintained our holdings in Keyence and Japan Exchange but closed our position
in Tokyo Electron.
Portfolio activity
As we noted in our Half-Year Report, corporate governance reforms, including
business re-organisations, are increasing the number of companies we may, in
future, deem to be Premium- or Quality-rated, and this is significantly
expanding our investment universe. Over the past year, we made several
acquisitions, although portfolio turnover, at an annualised rate of 42%, was
in line with the long-term average.
In addition to our acquisitions of IHI, NEC and Mitsui E&S, discussed
above, the most significant new positions over the past year included
Mitsubishi UFJ Financial Group. We expect this company to benefit from higher
Japanese interest rates, and from continued progress with its efforts to
unwind its strategic shareholdings. Its performance is being further boosted
by its 24% holding in Morgan Stanley, a Quality-rated US bank which is
performing well. Other new additions included retailer Ryohin Keikaku, the
operator of global brand Muji stores, which is restructuring to improve
profitability, and construction company Taisei, which is improving its balance
sheet efficiency. We also opened positions in Modec which operates production,
storage and offloading vessels used in ultra deep-sea oil drilling, and
leading online brokerage SBI Holdings, and we added to our existing position
in consumer electronics and gaming giant Sony. Its execution has been
improving, and the company continues to rationalise its operations, with the
recent listing of its financial services business. Sony's valuation is
undemanding, considering the market-leading position of its entertainment
assets.
Aside from the sale of Tokyo Electron, we closed our position in Shin-Etsu
Chemical due to our concerns about rising competition from other producers of
silicon wafers. We also exited auto parts producer Denso, and electronic
components supplier Murata due to the risk of weakness in their end markets.
We took profits by trimming our position in industrial conglomerate Hitachi,
following its strong performance over the past two years. This company has
dramatically changed its business portfolio over the last few years. It is a
major supplier of power grid cables, which are in demand as energy suppliers
around the world upgrade their infrastructure to facilitate rising electricity
usage. Several of Hitachi's other businesses are also global market leaders in
their respective fields.
Portfolio Characteristics
30th September 2025 30th September 2024 30th September 2023
JFJ Index JFJ Index JFJ Index
Forward Price to Earning Ratio(1)
(12 months forward) 19x 15x 21x 14x 20x 14x
Return on Equity(1) 12.1% 8.7% 12.0% 9.0% 12.4% 9.0%
Operating Margin(1) 18.3% 14.0% 18.0% 13.0% 20.0% 13.0%
Active Share(1) 87.0% 86.0% 92.0%
Gearing 14.0% 10.5% 13.7%
(12-month (12-month (12-month
average 13.0%) average 12.3%) average 12.7%)
Turnover (annualised)(1) 42.6% 32.0% 22.0%
Outlook
While the market has performed strongly over the past two and a half years, we
believe the transformation underway in Japan is still in its early stages. The
full impact of corporate governance reforms has yet to be realised, and these
shifts should continue to support dividend payouts and RoE levels. While other
Asian markets have been following Japan's lead in adopting corporate reforms,
the scope of Japan's efforts is unique. In our view, this trend is now
entering a new phase in which the rationalisation of companies' business
portfolios may lead to long-term improvement in profitability levels that will
be a significant market driver for the foreseeable future.
There are, however, several additional sources of optimism that make the
Japanese market particularly exciting at this juncture. Structural trends such
as de-globalisation, supply-chain reshoring, the modernisation of defence
capabilities, and accelerating digitisation are opening new avenues for
growth. These shifts are creating fertile ground for exactly the kind of
high-quality, innovative companies that we own, particularly in technology,
automation, semiconductors and AI-enabled industries. At the same time,
international investor interest is rising. Valuations remain attractive
relative to global peers, with Japanese equities still trading at a meaningful
discount to the US despite the progress already made. Shareholder activism is
also gaining momentum, with M&A activity, especially unsolicited bids,
increasing, injecting further dynamism into the market.
The domestic backdrop is equally encouraging. Japan is decisively moving out
of deflation and wage growth is outpacing inflation. Sustained inflation may
also increase investors' risk appetite, encouraging them to reduce their
significant cash exposure in favour of higher-yielding assets. The government
is encouraging this with schemes such as NISA (Japan's equivalent of the UK
tax-efficient Individual Savings Account (ISA).
Naturally, risks remain. The Bank of Japan must ensure that inflation
stabilises at desirable levels, particularly if yen weakness persists. Rising
US trade barriers present a potential drag on global growth and could strain
geopolitical relationships. However, it is important to keep these risks in
perspective. Japanese corporates generally possess strong balance sheets,
disciplined cost structures, and operational resilience, which position them
well to navigate periods of volatility. Importantly, such volatility often
allows us to initiate or add to positions in exceptional businesses at more
attractive valuations.
Our Tokyo-based investment team is exceptionally well-placed to capture these
opportunities. We have deep, locally-based analytical resources, which enable
us to uncover insights and opportunities that are often overlooked by the
broader market. Against this backdrop of structural reform, technological
innovation and improving domestic fundamentals, we remain confident in the
Company's ability to continue delivering capital growth and sustained
outperformance for shareholders over the long term. We look forward to
reporting on our progress as this exciting transformation continues to unfold.
Thank you for your support.
Nicholas Weindling
Miyako Urabe
Xuming Tao
Portfolio Managers
PRINCIPAL AND EMERGING RISKS
The Directors confirm that they have carried out a robust assessment of the
principal and emerging risks facing the Company, including those that would
threaten its business model, future performance, solvency or liquidity. With
the assistance of the Manager, the Audit & Risk Committee has drawn up a
risk matrix, which identifies the key risks to the Company. These are reviewed
and noted by the Board. The risks identified and the broad categories in which
they fall, and the ways in which they are managed or mitigated are summarised
below. The AIC Code of Corporate Governance requires the Board, via the Audit
& Risk Committee, to put in place procedures to identify and manage
emerging risks. Emerging risks, which are not deemed to represent an immediate
threat, are considered by Audit & Risk Committee as they come into view
and are incorporated into the existing review of the Company's risk register.
The key principal risks identified are summarised below. The Board does not
believe that there are any new emerging risks facing the Company at present.
Principal risk Description Mitigating activities Change in risk status
during
the year
Market and geopolitical
Market Volatility and External Factors Equities are sensitive to external factors, both national and global, Manager employs a strategy of portfolio diversification and continuously ã
including inter alia geopolitical tensions, economic conditions, inflation, monitors these external influences. The Manager reviews portfolio exposure and
fiscal and monetary policies, regulatory shifts, pandemics, conflicts and makes necessary adjustments to align with market conditions. The Board
climate-related events. regularly reviews reports from the Manager on market conditions, outlook, and
portfolio risk assessments. It ensures that the Manager's portfolio
positioning aligns with the agreed strategy, particularly concerning risks.
Investment and Strategy
Poor Strategy Selection Poor strategy selection may result in suboptimal portfolio performance, The Manager conducts stress-testing and detailed analysis of proposed áâ
misalignment with shareholder expectations, and an inability to meet the strategies to ensure their long-term viability. The portfolio is regularly
Company's objectives. It may expose the Company to inappropriate levels of benchmarked against peers and indices to assess performance, and the Manager
risk, underperformance against benchmarks, reduced income, and erosion of monitors demand for competing strategies. The strategy is continuously adapted
capital. in response to market trends and macroeconomic conditions. The Board
periodically reviews the investment strategy and engages in detailed
discussions with the Manager to ensure alignment with objectives. It also
ensures transparent communication of strategy rationale and goals to
shareholders.
Poor Execution of Strategy Ineffective implementation of the investment strategy may lead to poor The Manager employs an experienced investment management team with expertise áâ
performance, misalignment with objectives, and loss of shareholder confidence. in Japanese growth stocks. The Manager carefully monitors investment
Execution issues can stem from poor stock selection, failure to adapt to processes, the success of investment decisions, and performance analytics. The
market conditions, or operational inefficiencies. Board regularly reviews portfolio activity and performance, supported by
detailed analytics, to ensure effective strategy execution.
Discount Widening and Lack of Investor Demand A widening discount between the Company's NAV and its share price, caused by The Manager meets with the Company's major shareholders and provides an áâ
lack of interest in the asset class, lack of interest in the strategy, poor extensive range of investor materials. Broker feedback is obtained to
performance or poor communications. Can lead to pressure from value player understand shareholder views. Nationwide presentations are conducted to raise
shareholders for action or cause other large shareholders to disinvest. the Company's profile and attract new investors. The Board meets with major
shareholders to address concerns and gather insights, sets buyback policies,
and engages with the Manager to discuss potential changes to strategy, the
portfolio management team, and the investment process. Marketing practices and
plans are regularly reviewed to ensure robust engagement with investors.
Liquidity Risks Significant inflows or outflows from OEICs and other open-ended funds within The Manager actively monitors the liquidity of the strategy and conducts áâ
the strategy may affect the Investment Manager's ability to maintain regular capacity reviews to manage inflows and outflows smoothly. The Manager
consistent investment across the strategy, leading to liquidity challenges or ensures alignment with liquidity thresholds and maintains an appropriate
influencing the share price of cross-held assets. allocation to liquid assets. The Board receives regular updates on assets
under management (AUM) and liquidity in Board and Audit Committee packs.
Gearing and Loan Covenants Risks Gearing amplifies both gains and losses, increasing financial risk during The Manager makes investment decisions within the gearing parameters set by áâ
market downturns. Breaching loan covenants, such as maintaining specific the Board and uses robust monitoring systems, including gearing summaries and
gearing limits or asset coverage ratios, could result in penalties, forced monthly Investment Risk Governance (IRG) reports for Board review. A mix of
repayment, or reputational damage. Using CFDs introduces risks such as lenders and financing mechanisms, such as loans and contracts for difference
amplified losses due to leverage, counterparty default risks since CFDs rely (CFDs), is utilised to reduce dependency and improve financial flexibility.
on the financial stability of brokers, and potential liquidity challenges The Manager regularly stress-tests the portfolio to assess covenant compliance
during market stress, which can make it difficult to close or adjust under adverse conditions. The Board reviews gearing levels, covenant
positions. compliance, and associated risks at each meeting, and ensures all loan
agreements and covenants are reviewed by lawyers before approval.
Change in Portfolio Manager A change in Portfolio Manager may lead to changes in the Company's portfolio Manager to ensure there is a contingency plan for sudden departures or áâ
composition, risk profile, and overall investment approach, potentially illnesses of key personnel to ensure smooth operations. The Company has
affecting returns. The market's perception of the Portfolio Manager change broader strengths, such as the wider investment team, investment philosophy,
could influence the Company's valuation. track record, and governance, to reduce dependence on individual leaders.
Additionally, the Board ensures that there is a Tokyo-based director who
should maintain a close relationship with the lead portfolio manager, while
the Chairman stays in touch with the Head of the JPMAM Tokyo Investment team.
Administrative Risks
Admini-strative, Regulatory, Legal, and Accounting Risks Non-compliance with regulations, administrative errors, accounting The Manager maintains up-to-date expertise on regulatory requirements through áâ
inaccuracies, or legal challenges could disrupt operations and damage investor regular attendance at industry forums and close links with the Association of
confidence. Investment Companies (AIC). Manager reviews third-party service providers to
ensure compliance with security and governance standards. The Board oversees a
robust compliance framework and performs annual reviews of audit and
compliance functions, staying informed of regulatory and legal developments to
ensure proactive oversight of the Manager's practices.
Cyber security
Cybercrime and Data Security Risks The Manager is exposed to cyberattacks, including hacking, ransomware, The Manager has an Information Security Program in place to safeguard ã
phishing, malware, and DDoS attacks, which may compromise sensitive data or client and company data. Regular penetration testing, system updates, and
disrupt operations. staff training on cybersecurity risks are conducted. A comprehensive incident
response plan is maintained to minimise the impact of cyberattacks. The Board
receives regular updates on the Manager's cybersecurity strategy and receives
annual attestation from key third-party service providers, ensuring
cybersecurity risks and mitigation strategies are part of the risk management
framework.
The Portfolio Managers address topics such as the risk of cyber incidents
faced by portfolio companies during meetings with company management.
Natural Disasters
Natural Disasters and Climate Change Risks Natural disasters such as earthquakes, typhoons, and climate-related events The Manager provides an annual update to the Board on Business Continuity ã
can disrupt operations at portfolio companies, damage infrastructure, or halt Plans (BCPs) and the approach to those of critical service providers. BCPs are
production, leading to reduced profitability or insolvencies. The Company regularly tested and applied, including split teams, relocation strategies,
itself may also face operational challenges during such events. and third-party risk management. Discussions with investee companies ensure
preparedness for disruptions. The Board monitors climate-related risks in the
portfolio and ensures the Manager adapts strategies to align with evolving
regulations and market conditions. The resilience of the Company's operations
to natural disaster risks is assessed as part of the annual Internal Audit
meeting in Japan.
Change Key
ã Heightened áâ Stable ä Reduced
TRANSACTIONS WITH THE MANAGER AND RELATED PARTIES.
Details of the Investment Management Agreement are set out in the Directors'
Report in the full Annual Report of the Company, which is available on the
Company's website. The management fee payable to the Manager for the year was
£3,574,000 (2024: £4,726,000) of which £nil (2024: £nil) was outstanding
at the year end.
Included in administration expenses in note 6 are safe custody fees amounting
to £104,000 (2024: £87,000) payable to JPMorgan Chase Bank, N.A., of which
£17,000 (2024: £23,000) was outstanding at the year end.
The Manager may carry out some of its dealing transactions through group
subsidiaries. These transactions are carried out at arm's length. The
commission payable to JPMorgan Securities for the year was £1,000 (2024:
£nil) of which £nil (2024: £nil) was outstanding at the year end.
Other capital charges (handling charges) on dealing transactions amounting to
£8,000 (2024: £9,000) were payable to JPMorgan Chase Bank N.A. during the
year of which £1,000 (2024: £1,000) was outstanding at the year end.
At the year end, total cash of £58,286,000 (2024: £23,497,000) was held with
JPMorgan Chase Bank N.A. A net amount of interest of £10,000 (2024: £2,000)
was receivable by the Company during the year from JPMorgan Chase Bank N.A of
which £nil (2024: £nil) was outstanding at the year end.
Stock lending income amounting to £246,000 (2024: £363,000) was receivable
by the Company during the year. Commissions payable to the lending agent,
JPMorgan Chase Bank, N.A., in respect of such transactions amounted to
£27,000 (2024: £40,000).
Full details of Directors' remuneration and shareholdings can be found in the
full Annual Report of the Company and in note 6 .
STATEMENT OF DIRECTORS' RESPONSIBILITIES
The Directors are responsible for preparing the Annual Report & Financial
Statements in accordance with applicable law and regulations.
Company law requires the Directors to prepare financial statements for each
financial year. Under that law, the Directors have elected to prepare the
Annual Report & Financial Statements in accordance with United Kingdom
generally accepted accounting practice (United Kingdom Accounting Standards)
including FRS 102 'The Financial Reporting Standards applicable in the UK and
Republic of Ireland' and applicable laws. Under company law, the Directors
must not approve the Annual Report & Financial Statements unless they are
satisfied that, taken as a whole, Annual Report & Financial Statements
are fair, balanced and understandable, provide the information necessary for
shareholders to assess the Company's position and performance, business model
and strategy and that they give a true and fair view of the state of affairs
of the Company and of the total return or loss of the Company for that period.
In order to provide these confirmations, and in preparing these Annual Report
& Financial Statements, the Directors are required to:
• select suitable accounting policies and then apply them consistently;
• make judgements and accounting estimates that are reasonable and
prudent;
• state whether applicable UK Accounting Standards have been followed,
subject to any material departures disclosed and explained in the financial
statements; and
• prepare the financial statements on a going concern basis unless it is
inappropriate to presume that the Company will continue in business;
and the Directors confirm that they have done so.
The Directors are responsible for keeping proper accounting records that are
sufficient to show and explain the Company's transactions and disclose with
reasonable accuracy at any time the financial position of the Company and to
enable them to ensure that the financial statements comply with the Companies
Act 2006. They are also responsible for safeguarding the assets of the Company
and hence for taking reasonable steps for the prevention and detection of
fraud and other irregularities.
The accounts are published on the www.jpmjapanese.co.uk website, which is
maintained by the Company's Manager. The maintenance and integrity of the
website maintained by the Manager is, so far as it relates to the Company, the
responsibility of the Manager. The work carried out by the Auditors does not
involve consideration of the maintenance and integrity of this website and,
accordingly, the Auditors accept no responsibility for any changes that have
occurred to the accounts since they were initially presented on the website.
The accounts are prepared in accordance with UK legislation, which may differ
from legislation in other jurisdictions.
Under applicable law and regulations the Directors are also responsible for
preparing a Directors' Report, Strategic Report, Statement of Corporate
Governance and Directors' Remuneration Report that comply with that law and
those regulations.
Each of the Directors, whose names and functions are listed in the full Annual
Report of the Company, confirms that, to the best of their knowledge:
• the financial statements, which have been prepared in accordance with
United Kingdom Accounting Standards, and applicable law), (United Kingdom
Generally Accepted Accounting Practice) give a true and fair view of the
assets, liabilities, financial position and net return or loss of the Company;
and
• the Strategic Report includes a fair review of the development and
performance of the business and the position of the Company, together with a
description of the principal risks and uncertainties that the Company faces.
The Board confirms that it is satisfied that the annual report and financial
statements taken as a whole are fair, balanced and understandable and provide
the information necessary for shareholders to assess the Company's position
and performance, business model and strategy.
For and on behalf of the Board
Stephen Cohen
Chairman
STATEMENT OF COMPREHENSIVE INCOME
For the year ended 30th September 2025
2025 2024
Revenue Capital Total Revenue Capital Total
£'000 £'000 £'000 £'000 £'000 £'000
Gains on investments held at fair value
through profit or loss - 190,198 190,198 - 160,568 160,568
Gains on derivative financial instruments - 36,165 36,165 - - -
Foreign currency exchange gains - 3,317 3,317 - 5,954 5,954
Income from investments 17,970 64 18,034 13,664 100 13,764
Income from derivative financial instruments 1,889 - 1,889 - - -
Other interest receivable and similar income 256 - 256 365 - 365
Gross return 20,115 229,744 249,859 14,029 166,622 180,651
Management fee (357) (3,217) (3,574) (473) (4,253) (4,726)
Other administrative expenses (1,332) - (1,332) (1,225) - (1,225)
Net return before finance costs and taxation 18,426 226,527 244,953 12,331 162,369 174,700
Finance costs (176) (1,581) (1,757) (159) (1,430) (1,589)
Net return before taxation 18,250 224,946 243,196 12,172 160,939 173,111
Taxation (1,797) - (1,797) (1,368) (5) (1,373)
Net return after taxation 16,453 224,946 241,399 10,804 160,934 171,738
Return per ordinary share 10.15p 138.75p 148.90p 7.37p 109.82p 117.19p
All revenue and capital items in the above statement derive from continuing
operations. During the year ended 30th September 2025, the Company acquired
the assets of JPMorgan Japan Small Cap Growth & Income plc (JSGI)
following a scheme of reconstruction. No other operations were acquired or
discontinued in the year.
The 'Total' column of this statement is the profit and loss account of the
Company and the 'Revenue' and 'Capital' columns represent supplementary
information prepared under guidance issued by the Association of Investment
Companies.
Net return after taxation represents the profit or loss for the year and
also total comprehensive income/(expense).
STATEMENT OF CHANGES IN EQUITY
Called up Share Capital
share premium redemption Other Capital Revenue
capital account reserve reserve reserve reserve Total
£'000 £'000 £'000 £'000 £'000 £'000 £'000
At 30th September 2023 40,312 - 8,650 166,791 519,304 20,414 755,471
Buyback of ordinary shares into Treasury - - - - (38,949) - (38,949)
Net return after taxation - - - - 160,934 10,804 171,738
Dividend paid in the year (note 2) - - - - - (9,657) (9,657)
At 30th September 2024 40,312 - 8,650 166,791 641,289 21,561 878,603
Buyback of ordinary shares into Treasury - - - - (33,156) - (33,156)
Issue of ordinary shares in respect
of the combination with JSGI(1) 5,841 138,713 - - - - 144,554
Costs in relation to issue of
Ordinary shares - (164) - - - - (164)
Net return after taxation - - - - 224,946 16,453 241,399
Dividend paid in the year (note 2) - - - - - (11,112) (11,112)
At 30th September 2025 46,153 138,549 8,650 166,791 833,079 26,902 1,220,124
( )
1 During the year ended 30th September 2025, the Company acquired
the assets of JPMorgan Japan Small Cap Growth & Income plc (JSGI),
following a scheme of reconstruction ('Combination').
STATEMENT OF FINANCIAL POSITION
At 30th September 2025
2025 2024
£'000 £'000
Fixed assets
Investments held at fair value through profit or loss 1,042,303 881,405
Investments on loan held at fair value through profit or loss 174,115 89,022
Total investments held at fair value through profit or loss 1,216,418 970,427
Current assets
Derivative financial assets 7,952 -
Debtors 7,071 5,422
Cash at bank 58,286 23,497
73,309 28,919
Current liabilities
Creditors: amounts falling due within one year (1,450) (53,269)
Derivative financial liabilities (3,020) -
Net current assets/(liabilities) 68,839 (24,350)
Total assets less current liabilities 1,285,257 946,077
Creditors: amounts falling due after more than one year (65,133) (67,474)
Net assets 1,220,124 878,603
Capital and reserves
Called up share capital(1) 46,153 40,312
Share premium account(1) 138,549 -
Capital redemption reserve 8,650 8,650
Other reserve 166,791 166,791
Capital reserves 833,079 641,289
Revenue reserve 26,902 21,561
Total equity shareholders' funds 1,220,124 878,603
Net asset value per ordinary share 757.9p 613.8p
1 During the year ended 30th September 2025, the Company issued
ordinary shares in exchange for the assets acquired of JPMorgan Japan Small
Cap Growth & Income plc (JSGI), following a scheme of reconstruction
('Combination'), see note 16b of the full Annual Report for further
information.
STATEMENT OF CASH FLOWS
For the year ended 30th September 2025
2025 2024
£'000 £'000
Cash flows from operating activities
Net return before finance costs and taxation 244,953 174,700
Adjustment for:
Net gains on total investments held at fair value through profit or loss (190,198) (160,568)
Net gains on derivative financial instruments (36,165) -
Foreign currency exchange gains (3,317) (5,954)
Dividend income (18,034) (13,764)
Interest and stock lending income (256) (2)
Income from derivative financial instruments (1,889) -
Realised (loss)/gain on foreign exchange transactions (454) 466
Decrease in other debtors 24 1
Increase in accrued expenses 13 65
Net cash outflow from operations before dividends and interest (5,323) (5,056)
Dividends received 16,786 12,167
Interest and stock lending income received 256 2
Net cash inflow from operating activities 11,719 7,113
Purchases of investments (380,539) (293,845)
Sales of investments 463,846 341,969
Net settlement of derivative financial instruments 31,233 -
Income from derivative financial instruments received 1,102 -
Interest paid on CFDs (584) -
Costs paid in respect of the combination with JSGI (882) -
Net cash inflow from investing activities 114,176 48,124
Dividends paid (11,112) (9,657)
Net cash acquired following the combination with JSGI 5,895 -
Costs in relation to issue of Ordinary shares (164) -
Buyback of ordinary shares into Treasury (33,712) (38,393)
Repayment of bank loan (50,958) (26,023)
Drawdown of bank loan - 41,637
Interest paid (1,305) (1,402)
Net cash outflow from financing activities (91,356) (33,838)
Increase in cash and cash equivalents 34,539 21,399
Cash and cash equivalents at start of year 23,497 2,141
Foreign currency exchange movements 250 (43)
Cash and cash equivalents at end of year 58,286 23,497
Cash and cash equivalents consist of:
Cash at bank 58,286 23,497
Total 58,286 23,497
NOTES TO THE FINANCIAL STATEMENTS
For the year ended 30th September 2025
1. Accounting policies
(a) Basis of preparation
The financial statements are prepared under the historical cost convention,
modified to include fixed asset investments at fair value, in accordance with
the Companies Act 2006, United Kingdom Generally Accepted Accounting Practice
('UK GAAP'), including FRS 102 'The Financial Reporting Standard applicable in
the UK and Republic of Ireland' and with the Statement of Recommended Practice
'Financial Statements of Investment Trust Companies and Venture Capital
Trusts' (the 'SORP') issued by the Association of Investment Companies in July
2022. All of the Company's operations are of a continuing nature. The policies
applied in these financial statements are consistent with those applied in the
preceding year with the addition of accounting policies in respect of
Contracts for Difference (CFDs).
Issue of Shares Pursuant to a Scheme of Reconstruction of JPMorgan Japan Small
Cap Growth & Income plc (JSGI) with the Company (the 'Combination')
On 25th October 2024, the Company issued new Ordinary shares to shareholders
of JSGI in consideration for the receipt by the Company of assets pursuant to
the Combination. The Directors have considered the substance of the assets and
activities of JSGI, determining whether these represent the acquisition of a
business. The acquisition is not judged to be an acquisition of a business,
and therefore has not been treated as a 'business combination'. Rather, the
cost to acquire the assets of JSGI has been allocated between the acquired
identifiable assets and liabilities based on their relative fair values on the
acquisition date without attributing any amount to goodwill or to deferred
taxes. Investments, cash and other assets were transferred from JSGI. All
assets were acquired at their fair value. The value of the assets received, in
exchange for shares issued by the Company, have been recognised in share
capital and share premium, as shown in the Statement of Changes in Equity.
Direct costs in respect of the shares issued have been recognised in share
premium, whereas other professional costs in relation to the Combination have
been recognised as transaction costs included within gains and losses on
investments held at fair value through profit or loss.
Going Concern
The financial statements have been prepared on a going concern basis. The
Directors have a reasonable expectation that the Company has adequate
resources to continue in operational existence up to 31st December 2026 which
is at least 12 months from the date of approval of these Financial
Statements. In forming this opinion, the Directors have considered heightened
market volatility and growing geopolitical risk to include the various ongoing
conflicts around the world, but does not believe the Company's going concern
status is affected. The Company's assets, the vast majority of which are
investments in quoted securities which are readily realisable, exceed its
liabilities significantly under all stress test scenarios reviewed by the
Board. In making their assessment, the Directors have also reviewed gearing
levels and compliance with covenants, income and expense projections and the
liquidity of the investment portfolio, and considered the mitigation measures
which key service providers, including the Manager, have in place to maintain
operational resilience in light of disruption. The disclosures on long term
viability and going concern on in the full Annual Report form part of these
financial statements.
In preparing these financial statements the Directors have considered the
impact of climate change risk as a principal risk and have concluded that
there was no further impact of climate change to be taken into account as the
investments are valued based on market pricing, which incorporates market
participants view of climate risk.
2. Dividends
(a) Dividends paid and proposed
2025 2024
Pence £'000 Pence £'000
Dividends paid
Final dividend in respect of prior year 6.75 11,112 6.50 9,657
Dividend proposed
Final dividend proposed in respect of current year 8.70 13,862 6.75 11,125
All dividends paid and proposed in the year have been funded from the revenue
reserve.
The final dividend proposed in respect of the year ended 30th September 2024
amounted to £11,125,000. However, the amount paid amounted to £11,112,000
due to ordinary shares bought back after the balance sheet date but prior to
the record date.
The dividend proposed in respect of the year ended 30th September 2025 is
subject to shareholder approval at the forthcoming Annual General Meeting. In
accordance with the accounting policy of the Company, this dividend will be
reflected in the financial statements for the year ending 30th September 2026.
(b) Dividend for the purposes of Section 1158 of the Corporation Tax Act
2010 ('Section 1158')
The requirements of Section 1158 are considered on the basis of dividends
declared in respect of the financial year, shown below.
2025 2024
Pence £'000 Pence £'000
Final dividend proposed 8.70 13,862 6.75 11,125
Total dividends for Section 1158 purposes 8.70 13,862 6.75 11,125
The revenue available for distribution by way of dividend for the year is
£16,453,000 (2024: £10,804,000). The revenue reserve after payment of the
final dividend will amount to £13,040,000 (2024: £10,436,000).
3. Return per ordinary share
The Revenue, Capital and Total return shown below, is the Net return after
taxation in the Statement of Comprehensive Income.
2025 2024
£'000 £'000
Revenue return 16,453 10,804
Capital return 224,946 160,934
Total return 241,399 171,738
Weighted average number of shares in issue during the year 162,120,253 146,544,521
Revenue return per ordinary share 10.15p 7.37p
Capital return per ordinary share 138.75p 109.82p
Total return per ordinary share 148.90p 117.19p
The total return per ordinary share represents both basic and diluted return
per ordinary share as the Company has no dilutive shares.
4. Net asset value per ordinary share
The net asset value per ordinary share and the net asset value attributable to
the Ordinary shares at the year-end are shown below. These were calculated
using 160,978,203 (2024: 143,152,089) ordinary shares in issue at the year-end
(excluding Treasury shares).
2025 2024
Net asset value attributable Net asset value attributable
£'000 pence £'000 pence
Net asset value - debt at par 1,220,124 757.9 878,603 613.8
¥13 billion senior secured loan notes:
Add: amortised cost 65,133 40.5 67,474 47.1
Less: fair value (51,895) (32.2) (59,622) (41.7)
Net asset value - debt at fair value 1,233,362 766.2 886,455 619.2
JPMORGAN FUNDS LIMITED
17th December 2025
For further information, please contact:
Priyanka Vijay Anand
For and on behalf of
JPMorgan Funds Limited
Telephone: 0800 204020 or +44 1268 44 44 70
E-mail: jpmam.investment.trusts@jpmorgan.com
(mailto:jpmam.investment.trusts@jpmorgan.com)
Neither the contents of the Company's website nor the contents of any website
accessible from hyperlinks on the Company's website (or any other website) is
incorporated into, or forms part of, this announcement.
ENDS
A copy of the full Annual Report will be submitted to the National Storage
Mechanism and will shortly be available for inspection at
https://data.fca.org.uk/#/nsm/nationalstoragemechanism
(https://data.fca.org.uk/#/nsm/nationalstoragemechanism)
The Annual Report will also shortly be available on the Company's website at
www.jpmjapanese.co.uk (http://www.jpmjapanese.co.uk) where up to date
information on the Company, including daily NAV and share prices, factsheets
and portfolio information can also be found
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