REG - Schroder Japan Trust - Half-year Report
14/04/2025 07:00
For best results when printing this announcement, please click on link below:
https://newsfile.refinitiv.com/getnewsfile/v1/story?guid=urn:newsml:reuters.com:20250414:nRSN7796Ea&default-theme=true
RNS Number : 7796E Schroder Japan Trust PLC 14 April 2025
Schroder Japan Trust plc
Half Year Report
Schroder Japan Trust plc (the "Company") hereby submits its Half Year Report
for the six months ended 31 January 2025 as required by the Financial Conduct
Authority's Disclosure Guidance and Transparency Rule 4.2.
Key highlights
· The Company achieved a net asset value ("NAV") total return of
4.0%, surpassing the Benchmark return of 1.4%.
· The Board previously announced that it was adopting an enhanced
dividend policy to pay out 4% of the average NAV in each financial year, on
quarterly basis.
· The Investment Manager actively geared the portfolio using
contracts for difference ("CFDs") and this gearing had a positive effect on
performance during the period. The gearing level (including CFDs) at the
period end was 15.3%.
· The underlying fundamentals of the Japanese equity market remain
strong, with corporate governance reforms continuing to gain momentum. We
expect improved shareholder returns to further enhance Japan's appeal.
· The portfolio is biased towards value opportunities and is
overweight small and mid-cap stocks, where we believe valuations look
particularly attractive, given the improving domestic economic backdrop.
Philip Kay, Chairman of Schroder Japan Trust plc, commented:
"The Board is confident that Japan remains a compelling investment
opportunity. We believe that Masaki Taketsume, supported by his team of
Tokyo-based research analysts, continues to be very well-placed to outperform
the Company's Benchmark, as he has done for the last five years. The bias
towards value that is inherent in his approach combined with his disciplined
bottom-up stock picking is precisely the strategy that should perform well in
uncertain times."
The Half Year Report is also being published in hard copy format and an
electronic copy of that document will shortly be available to download from
the Company's web pages: www.schroders.com/japantrust
(http://www.schroders.com/japantrust)
The Company has submitted a copy of its Half Year Report to the National
Storage Mechanism and it will shortly be available for inspection
at https://data.fca.org.uk/#/nsm/nationalstoragemechanism
(https://data.fca.org.uk/#/nsm/nationalstoragemechanism)
Enquiries:
Schroder Investment Management Limited
Charlotte Banks / Kirsty Preston (Press) 020 7658 2000
Katherine Fyfe (Company Secretarial) 020 7658 6000
Half Year Report for the six months ended 31 January 2025
Chairman's Statement
Performance
I am pleased to report that our Investment Manager's strategy has continued to
deliver a solid performance over the six-month period ending 31 January 2025.
The Company achieved a net asset value ("NAV") total return of 4.0%,
surpassing the Benchmark return of 1.4%. The share price delivered a total
return of 3.2%. While the financial year began with a sharp market correction
following an unexpected interest rate hike from the Bank of Japan ("BOJ"),
resilient corporate fundamentals and stabilising conditions enabled a recovery
throughout the remainder of the period.
Masaki Taketsume's disciplined approach to stock selection proved effective
once again, with strong contributions from holdings exposed to the generative
artificial intelligence ("AI") value chain and continuing corporate governance
reforms.
More details on the Company's investment strategy and recent portfolio
activity can be found in the Investment Manager's Review.
Discount management
During the period, the Company's shares continued to trade at a discount to
NAV. The Board exercised its buy-back authority to acquire 1,617,260 shares to
be held in treasury, at an average discount of 12.5%. The discount started at
11.0% and changed to 12.3% by period-end. We remain committed to monitoring
and addressing the discount through share repurchases as appropriate.
Enhanced dividend policy
The Board previously announced that it was adopting an enhanced dividend
policy to pay out 4% of the average NAV in each financial year. The Board has
begun declaring dividends on a quarterly basis and, in calculating the NAV in
relation to quarterly dividends, the average NAV of the 12 months trailing the
quarter will be used. It is important to note that the enhanced dividend
policy will not result in a change to the Company's investment approach and
strategy. The Company's focus will continue to be on well-managed,
high-quality companies where the current share price does not yet fully
reflect their potential, across the complete spectrum of Japanese companies.
Gearing
At the 2023 AGM, shareholders approved a change of the investment policy to
allow the Company to use contracts for difference ("CFDs") to provide exposure
to Japanese equities on a geared basis, as an alternative to utilising bank
borrowings. During the period under review, the Investment Manager actively
geared the portfolio by using CFDs and this gearing had a positive effect on
performance during the period. The Company's gearing continues to operate
within its pre-agreed limit of 125% of NAV and the gearing level (including
CFDs) at the period end was 15.3%.
Outlook
The Japanese equity market has performed well over the last couple of years,
with the Nikkei 225 surpassing its bubble-era high from the late 1980s. The
Board shares the Investment Manager's optimism that this marks the start of an
exciting new phase for the Japanese stock market, supported by structural
improvements in corporate governance and capital efficiency. It is clear that
the Japanese government, the BOJ and the Tokyo Stock Exchange ("TSE") are as
one in championing these improvements and that large sections of corporate
Japan are now focusing on effective capital allocation and profitability
increases. Japan's economic backdrop also remains supportive, with rising
wages, increased business investment and positive inflation helping to sustain
earnings momentum.
Although the world faces several geopolitical and macroeconomic uncertainties
at the time of writing, not least the economic impact of the introduction of
tariffs by an unpredictable Trump administration, the Board is confident that
Japan remains a compelling investment opportunity We believe that Masaki
Taketsume, supported by his team of Tokyo-based research analysts, continues
to be very well-placed to outperform the Company's Benchmark, as he has done
for the last five years. The bias towards value that is inherent in his
approach combined with his disciplined bottom-up stock picking is precisely
the strategy that should perform well in uncertain times.
PHILIP KAY
Chairman
11 April 2025
Investment Manager's Review
Our investment approach
We believe the Japanese equity market ultimately acts efficiently in
reflecting the intrinsic value of companies. In the short-to-medium term,
however, considerable inefficiencies are frequently evident in individual
stocks. These inefficiencies provide repeatable opportunities to identify and
invest in undervalued stocks, with the aim of delivering a better return than
the market as a whole on a rolling three-to-five year view.
Our investment resource is entirely devoted to this aim, focusing on
individual company fundamentals to understand the true worth of a stock and
investing in a portfolio of 60-70 of the highest conviction ideas. These then
tend to be held for the long term, with value being realised as the market
gradually reflects their true value more efficiently.
Portfolio holdings tend to fall into three categories of inefficiency:
1. Market misperception - companies with self-improving credentials,
with management initiatives to sustainably enhance operational performance
being under-appreciated by other investors.
2. Market oversight - undervalued companies, especially among small
and mid-caps where research coverage is less widespread, with strong and
defendable business franchises in niche product areas.
3. Short-term overreaction - ideas arising from abrupt but transitory
events which push valuations of quality companies temporarily to unsustainably
low levels.
Outside these three categories, the balance of the portfolio represents "best
in class" stocks with reasonable valuations. The weighting given to each of
these segments evolves over time, but a reasonable exposure to each category
ensures a good level of diversification for the portfolio as a whole.
Meanwhile, the approach tends to result in a bias towards value stocks(1) and
smaller companies, as well as an overall focus on quality.
The portfolio tends to exhibit a high "active share", which means that its
constituents deviate significantly from the Benchmark index. Gearing
(financial leverage) typically ranges between 10% and 17.5%, allowing
shareholders to potentially benefit even more as the inefficiencies we have
identified become more appropriately priced by the market.
Manager's review
Over the first six months of the Company's financial year, the Company's NAV
total return increased by 4.0%, while its benchmark rose by 1.4%.
The Japanese stock market experienced a significant decline at the beginning
of the period under review, with an unexpected interest rate hike from the BOJ
triggering strength in the Yen and a sudden unwinding of carry trades.(2)
Global growth concerns added to the volatility, but resilient corporate
fundamentals and stabilising market conditions supported a steady recovery
throughout the remainder of the period.
Recent performance drivers
Despite macroeconomic uncertainties - including the BOJ's evolving monetary
policy outlook, the US presidential election outcome and the US economic
outlook - which contributed to volatility in the Japanese equity market, the
structural trends that have supported Japan's recent renaissance continued.
Ongoing efforts by regulators and investors to change the culture of corporate
Japan and improve governance and company profitability have maintained their
strong momentum. With more and more businesses stepping up their efforts to
structurally improve their behaviour and returns, global investors are
becoming increasingly confident in the opportunity to drive a meaningful and
sustainable revaluation of the Japanese equity market.
Meanwhile, although domestic consumer spending has remained lacklustre, the
overall Japanese economic performance has been robust, helped by positive
inflation, rising wages, increased business investment and export growth. This
has allowed many Japanese businesses to maintain solid earnings growth.
1 The term 'value stocks' refers to shares of a company that appear to
trade at a lower price relative to their fundamentals, such as dividends,
earnings, or sales, making it appealing to value investors.
2 Carry trades involve borrowing money in a low interest rate currency
such as the yen, to invest in higher-yielding currencies or assets. The
strategy profits from the rate differential but can be undermined by sudden,
unexpected changes in foreign exchange and interest rates.
Within the market, value stocks continued to outperform growth stocks, which
assisted the Company's performance given the bias towards value that is
inherent in our investment approach. Smaller companies, however, generally
lagged their larger counterparts, because inflows from overseas investors
initially tend to focus on large-cap stocks. This underperformance of
small-cap stocks represented a modest headwind. There was a beneficial impact
from gearing and helpful contributions from a range of individual stocks as
explained below.
Two key developments contributed positively to performance during the period.
Firstly, ongoing investor enthusiasm for the boom in generative AI
technologies has driven outperformance of related stocks including, but not
limited to, providers of semiconductor manufacturing equipment, optical
components and power grid infrastructure. The portfolio's exposure to these
types of businesses added value during the period. We tend to view these
companies as market misperception stocks, as the market has not yet fully
reflected their ability to participate in the AI growth opportunity. For
example, Fujikura, an optical cable / component maker, performed strongly as
the market started to realise how important its advanced optical connectivity
solutions could be for AI infrastructure. Meanwhile, Hitachi, a large cap
industrial conglomerate, also performed strongly as investors increasingly
recognised the growth potential of its power grid business.
Secondly, ongoing improvements in corporate governance standards were evident
in the increasing use of share buybacks and dividend hikes as companies sought
to deploy capital more effectively. The portfolio benefited from this trend,
with holdings such as Sanki Engineering and Nittera delivering strong
performance after significantly improving shareholder returns.
By contrast, some of our holdings faced earnings pressure as their end markets
went through a period of destocking and lower demand. For example, our market
misperception holdings in electronic component maker Rohm and chemical
business Mitsui Chemicals, both underperformed after posting
weaker-than-expected earnings. General weakness in small and mid-sized stocks,
such as Tazmo and Fukushima Galilei, also detracted from performance.
Top 10 contributors and detractors
Six months to 31 January 2025
Top 10 contributors Portfolio weight Benchmark weight Portfolio return Benchmark return Total effect
Fujikura Ltd 2.8% 0.2% 108.0% 107.7% 1.9%
Hitachi Ltd 5.3% 2.5% 20.3% 20.5% 0.6%
Sanki Engineering Ltd 1.7% 0.0% 36.3% 35.7% 0.5%
Daiichi Sankyo Ltd 0.0% 1.2% 0.0% -29.8% 0.4%
Shin Etsu Chemical Ltd 0.0% 1.3% 0.0% -26.9% 0.4%
Ricoh Ltd 1.9% 0.1% 28.4% 28.4% 0.4%
Mitsubishi Corp 0.0% 1.5% 0.0% -19.4% 0.3%
Nec Networks & System Integration Corp 0.8% 0.0% 20.4% 20.6% 0.3%
Niterra Ltd 2.0% 0.1% 16.3% 16.2% 0.3%
Ly Corp 1.7% 0.2% 22.5% 22.5% 0.3%
========= ========= ========= ========= =========
Top 10 detractors Portfolio weight Benchmark weight Portfolio return Benchmark return Total effect
Sony Group Corp 0.0% 2.7% 0.0% 28.1% -0.7%
Mitsubishi UFJ Financial Group Inc 0.0% 2.7% 0.0% 15.2% -0.4%
Rohm Ltd 1.1% 0.1% -26.0% -26.1% -0.4%
Tazmo Ltd 1.0% 0.0% -32.3% -33.0% -0.4%
Mitsui Chemicals Inc 1.5% 0.1% -20.3% -20.4% -0.3%
Nintendo Ltd 0.0% 1.4% 0.0% 23.3% -0.3%
Fukushima Galilei Ltd 1.0% 0.0% -21.6% -21.5% -0.3%
Tokio Marine Holdings Inc 3.2% 1.4% -13.3% -12.9% -0.3%
Orix Corp 2.9% 0.5% -8.2% -8.5% -0.2%
Kokusai Electric Corp 0.4% 0.0% -32.2% -41.4% -0.2%
========= ========= ========= ========= =========
Source: FactSet, GBP, TOPIX. Stocks mentioned are show for illustrative
purposes only and should not be viewed as a recommendation to buy/sell. Past
performance is not a guide to future performance and may not be repeated. The
value of investment can go down as well as up and is not guaranteed. The
return may increase or decrease as a result of currency fluctuations.
Portfolio strategy
Currently, the biggest category within the portfolio is market misperception
which accounts for approximately 40% of assets. This includes companies such
as Nippon Steel, Japan Post Holdings, and Rohm, where management efforts are
paving the way for sustainable improvements in returns which are not yet
reflected in valuations.
For example, we expect to see profitability improvements from Japan Post as it
implements price increases in its postal services division. A cyclical
recovery should also benefit its financial subsidiaries, Yucho Bank and Kampo
Life. Additionally, we expect management to enhance shareholder returns,
though regulatory constraints and complex stakeholder relationships could
hinder progress. This represents a classic market misperception opportunity,
as these improving fundamentals have not yet been fully priced into the stock.
Almost 30% of the portfolio is in market oversights, such as Fukushima
Galilei, Hosokawa Micron and Kohoku Kogyo, where we find highly competitive
smaller businesses trading at a significant discount to their large cap and
global peers. For example, Kohoku Kogyo's two main businesses - lead terminals
and optical components - are experiencing rapid growth. Demand for its lead
terminals, which are used in high-end capacitors, is rising as the expansion
of electric and electrified vehicles drives the need for more advanced
electronic components. Meanwhile, its optical components business is
benefiting from surging global data traffic, which is prompting increased
investment in subsea optical networks. Despite these strong and sustainable
tailwinds, we believe its shares continue to trade at an unwarranted discount
to similar companies worldwide.
Around 10% of the portfolio is invested in short-term overreactions, including
out-of-favour technology opportunities such as Recruit Holdings and the frozen
food maker Nichirei Corporation. These businesses are beneficiaries of
long-term structural tailwinds, but their shares were sold down aggressively -
in our view, too aggressively - over the last couple of years. Nichirei
Corporation, a leading frozen food and cold chain logistics provider in Japan,
is well positioned to capture structural demand growth driven by labour
shortages in B2B categories and lifestyle changes in B2C categories. The
company's profitability was temporarily pressured by Yen depreciation, which
led to higher raw material costs. However, these costs have been passed on to
customers through price increase, with little impact on underlying volume
growth. Despite this, the company's valuation has contracted significantly,
leading to what we consider to be an attractive entry point.
The remaining portfolio is invested in what we consider to be best in class
operators, such as Sumitomo Mitsui Financial Group, Asahi Breweries and Orix.
From a sector perspective, this results in a bias towards machinery, glass
& ceramic products, chemicals and services. As is typical, the portfolio
is also biased towards value opportunities and overweight to small and mid-cap
stocks, where we believe valuations look particularly attractive given the
improving domestic economic backdrop.
SECTOR POSITIONS - TOP 10 AND BOTTOM 10
Schroder Japan Trust plc
As at 31 January 2025
Source: Schroders, FactSet. (1)TOPIX.
The accounting data used by FactSet is un-audited, therefore any subsequent
cleaning data will not be reflected in FactSet.
The sectors, securities, regions and countries shown above are for
illustrative purposes only and are not to be considered a recommendation to
buy or sell.
Portfolio activity
We initiated a new market misperception position in Mizuho Financial. Due to a
series of mis-executions in the past, Mizuho has been seen as a laggard on
returns and shareholder remunerations, when compared to other Japanese 'mega'
bank groups such as MUFG and SMFG. We have held a series of meetings with
Mizuho management and have been closely following their recent track record.
In our view, Mizuho's strategic discipline has improved significantly and its
business qualities are now, in several respects, on a par with peers. From
here, attempts to further narrow the performance gap on return on equity and
shareholder remunerations, should lead to a meaningful share price
revaluation.
We also initiated a position in network / system integrator, Internet
Initiative Japan ("IIJ"), as a new market oversight idea. We expect IIJ's
growth to accelerate as more businesses upgrade and expand their enterprise
networks to meet the increasingly complex demands of the modern digital
organisation. We also anticipate a recovery in profit growth in the near term,
as the temporary impact of higher software licensing costs, specifically from
key partner VMware, fades.
Fanuc, one of the largest manufacturers of factory automation equipment and
industrial robots, was added to the portfolio as a best in class stock. It
holds a leading market position in the US industrial robotics market and we
expect rising manufacturing capital expenditure to drive strong earnings
growth. The recent share price weakness, driven by concerns over potential
U.S. tariffs, provided an opportunity to build a position. These tariffs are
unlikely to have a meaningful impact on Fanuc's competitiveness, as nearly all
major robotics manufacturers are non-U.S. companies. Furthermore, with fixed
costs peaking, Fanuc should see meaningful profitability improvements
alongside higher revenue growth.
In terms of exits, we sold out of several positions including SMC, AGC and
Bridgestone, mainly due to weaker-than-expected earnings progress. We also
sold out of positions in Mimasu Semiconductor and NEC Networks & System
Integrations, both of which are being fully acquired by their respective
parent companies, reflecting Japan's ongoing corporate governance
improvements. Both acquisitions were made at all-time high prices.
Outlook
The Japanese equity market has delivered impressive growth over the last
eighteen months, with the Nikkei 225 finally exceeding its late 1980s
bubble-era high. We believe this marks the beginning of a new era for Japanese
equities, underpinned by structural improvements that have the capacity to
drive sustained earnings growth and rising valuations for many years.
At the heart of this positive investment thesis are Japan's increasingly
widespread corporate governance reforms, which are enhancing profitability and
capital efficiency across large swathes of the Japanese stock market. The
ongoing efforts of investors, including activist shareholders, alongside TSE
initiatives, are further encouraging corporate management teams to focus on
the crucial discipline of effective capital allocation. This corporate
governance movement is nothing short of a revolution, which is transforming
the Japanese equity landscape, making it increasingly attractive to global
investors.
From a macroeconomic perspective, Japan's transition from deflation to
inflation is having a lasting impact on corporate earnings, particularly by
strengthening pricing power. Wage growth has remained steady, and early
indications from the Shunto spring wage negotiations suggest that 2025 could
bring another positive uplift in pay. We believe this should support real
income growth and, in turn, drive a long-awaited recovery in consumption.
Following the historic year of 2024, in which the Nikkei 225 surpassed its
previous all-time high for the first time in 34 years, the Japanese equity
market experienced a weak start to 2025, largely due to various macroeconomic
concerns, including trade policy uncertainties under the Trump administration.
At the time of writing, the tariffs proposed by the US administration have
effectively reset the narrative for global equity markets, shifting the
outlook toward one characterised by slower economic growth, higher inflation,
and increased uncertainty surrounding U.S. economic policies - arguably one of
the most unfavourable combinations for global equity markets, including Japan.
Despite this, the underlying fundamentals of the Japanese equity market remain
strong. Governance reforms continue to gain momentum, and we expect improved
shareholder returns to further enhance Japan's appeal. While the broad market
opportunity is compelling, this environment should particularly favour active,
high-conviction investors who can identify the strongest beneficiaries of
Japan's evolving corporate landscape. As a result, we are excited about the
opportunity that lies ahead for the Company's shareholders.
MASAKI TAKETSUME
Portfolio Manager
11 April 2025
Investment Portfolio
as at 31 January 2025
Stocks in bold are the 20 largest investments, which by portfolio exposure
account for 51.5% (31 July 2024: 52.5% and 31 January 2024: 52.1%) of total
investments.
The Portfolio Exposure indicate the impact on market price movements resulting
from the ownership of shares and derivative instruments. The Fair Value
represents the true value of the portfolio, which is reflected on the Balance
Sheet. In the case of holding a Contract for Difference (CFD), the Fair Value
reflects the profit or loss generated by the contract since its inception,
based on the movement of the underlying share price. However, when the Company
solely holds shares, both the Fair Value and the Portfolio Exposure align.
Fair Portfolio Exposure
Value
£'000
£'000 %(1)
Electrical Appliances
Hitachi (shares and long CFD) 11,170 20,704 5.2
Ricoh 7,546 7,546 1.9
TDK 5,949 5,949 1.5
Fanuc 5,031 5,031 1.3
Nihon Kohden 4,730 4,730 1.2
Rohm 4,084 4,084 1.0
Kohoku Kogyo 3,747 3,747 1.0
Ibiden 3,460 3,460 0.9
Megachips 2,820 2,820 0.7
--------------- --------------- ---------------
Total Electrical Appliances 48,537 58,071 14.7
========= ========= =========
Machinery
Miura 7,965 7,965 2.0
Disco 5,953 5,953 1.5
Hosokawa Micron 5,361 5,361 1.4
Teikoku Piston Rings 4,072 4,072 1.0
Amada 3,759 3,759 1.0
Fukushima Galilei 3,650 3,650 0.9
Rheon Automatic Machinery 3,435 3,435 0.9
Tazmo 2,934 2,934 0.7
--------------- --------------- ---------------
Total Machinery 37,129 37,129 9.4
========= ========= =========
Information and Communication
Nippon Telegraph and Telephone (shares and long CFD) 3,556 8,232 2.1
LY 7,163 7,163 1.8
WingArc1st 5,637 5,637 1.4
Nomura Research Institute 5,402 5,402 1.4
Otsuka 4,113 4,113 1.0
Internet Initiative Japan 3,243 3,243 0.8
--------------- --------------- ---------------
Total Information and Communication 29,114 33,790 8.5
========= ========= =========
Banks
Sumitomo Mitsui Financial (shares and long CFD) 8,130 16,326 4.1
Mizuho Financial (Shares and long CFD) 5,663 10,319 2.7
Concordia Financial 6,879 6,879 1.7
--------------- --------------- ---------------
Total Banks 20,672 33,524 8.5
========= ========= =========
Fair Portfolio Exposure
Value
£'000
£'000 %(1)
Transportation Equipment
Toyota Motor (shares and long CFD) 3,090 18,865 4.8
Toyota Industries 5,000 5,000 1.2
Yamaha Motor 4,527 4,527 1.1
Suzuki Motor 4,258 4,258 1.1
--------------- --------------- ---------------
Total Transportation Equipment 16,875 32,650 8.2
========= ========= =========
Services
Recruit Holdings (shares and long CFD) 4,260 12,651 3.2
Japan Post 7,505 7,505 1.9
Kyoritsu Maintenance 4,581 4,581 1.2
Daiei Kankyo 4,467 4,467 1.1
--------------- --------------- ---------------
Total Services 20,813 29,204 7.4
========= ========= =========
Chemicals
FP Corporation 6,093 6,093 1.6
Mistui Chemicals 6,026 6,026 1.5
Aica Kogyo 5,272 5,272 1.3
Kuraray 4,478 4,478 1.1
Nippon Soda 4,438 4,438 1.1
Zacros 2,550 2,550 0.7
--------------- --------------- ---------------
Total Chemicals 28,857 28,857 7.3
========= ========= =========
Insurance
Tokio Marine (shares and long CFD) 5,965 11,253 2.8
T&D Holdings 8,281 8,281 2.1
--------------- --------------- ---------------
Total Insurance 14,246 19,534 4.9
========= ========= =========
Construction
Sanki Engineering 7,106 7,106 1.8
Infroneer 5,976 5,976 1.5
Nippon Densetsu Kogyo 3,929 3,929 1.0
--------------- --------------- ---------------
Total Construction 17,011 17,011 4.3
========= ========= =========
Glass & Ceramics Products
Niterra 8,687 8,687 2.2
Nichias 5,831 5,831 1.5
--------------- --------------- ---------------
Total Glass & Ceramics Products 14,518 14,518 3.7
========= ========= =========
Foods
Asahi Breweries 8,737 8,737 2.2
Nichirei 5,613 5,613 1.4
--------------- --------------- ---------------
Total Foods 14,350 14,350 3.6
========= ========= =========
Fair Portfolio Exposure
Value
£'000
£'000 %(1)
Wholesale trade
Mitsui & Co. (shares and long CFD) 2,843 7,860 2.0
Doshisha 3,477 3,477 0.9
Trusco Nakayama 2,715 2,715 0.7
--------------- --------------- ---------------
Total Wholesale trade 9,035 14,052 3.6
========= ========= =========
Retail Trade
Yaoko 4,478 4,478 1.1
Isetan 4,359 4,359 1.1
Nippon Gas 3,320 3,320 0.9
--------------- --------------- ---------------
Total Retail Trade 12,157 12,157 3.1
========= ========= =========
Real Estate
Mitsui Fudosan 7,120 7,120 1.8
Park24 2,961 2,961 0.7
--------------- --------------- ---------------
Total Real Estate 10,081 10,081 2.5
========= ========= =========
Other Financing Business
Orix 9,524 9,524 2.4
--------------- --------------- ---------------
Total Other Financing Business 9,524 9,524 2.4
========= ========= =========
Nonferrous Metal
Fujikura 8,970 8,970 2.3
--------------- --------------- ---------------
Total Nonferrous Metal 8,970 8,970 2.3
========= ========= =========
Pharmaceutical
Takeda Pharmaceutical (Shares and long CFD) 4,405 8,202 2.1
--------------- --------------- ---------------
Total Pharmaceutical 4,405 8,202 2.1
========= ========= =========
Iron & Steel
Nippon Steel 7,650 7,650 1.9
--------------- --------------- ---------------
Total Iron & Steel 7,650 7,650 1.9
========= ========= =========
Securities
Integral 3,071 3,071 0.8
--------------- --------------- ---------------
Total Securities 3,071 3,071 0.8
========= ========= =========
Precision Instruments
Rigaku 2,451 2,451 0.6
--------------- --------------- ---------------
Total Precision Instruments 2,451 2,451 0.6
========= ========= =========
Rubber Products
Yokohama Rubber 1,081 1,081 0.2
--------------- --------------- ---------------
Total Rubber Products 1,081 1,081 0.2
========= ========= =========
Total investments and financial derivative instruments - portfolio exposure 395,877 100.0
========= =========
Total investments and financial derivative instruments - fair value 330,547
=========
1 Portfolio exposure is expressed as a percentage of total investments and
financial derivative instruments.
2 The portfolio of investments is categorized using the Tokyo Stock
Exchange (TSE) sectors, which are part of the TOPIX Sector Indices.
Interim Management Statement
Principal risks and uncertainties
The principal risks and uncertainties with the Company's business fall into
the following risk categories: strategic; investment management; financial and
currency; custody; gearing and leverage; accounting, legal and regulatory;
service provider; and cyber. A detailed explanation of the risks and
uncertainties in each of these categories can be found on pages 22 and 24 of
the Company's published annual report and financial statements for the year
ended 31 July 2024.
These risks and uncertainties have not materially changed during the six
months ended 31 January 2025. However, the Board undertook a review of
principal and emerging risks for the Company while reviewing this report. The
Directors noted a wider set of technology risks, plus added the impact of
climate change factors into investment performance and these risks will be
reported on in the next annual report as appropriate.
Going concern
Having assessed the principal risks and uncertainties, and the other matters
discussed in connection with the viability statement as set out on page 24 of
the published annual report and financial statements for the year ended 31
July 2024, the Directors consider it appropriate to adopt the going concern
basis in preparing the financial statements.
Related party transactions
There have been no transactions with related parties that have materially
affected the financial position or the performance of the Company during the
six months ended 31 January 2025.
Directors' responsibility statement
In respect of the half year report for the six months ended 31 January 2025,
we confirm that, to the best of our knowledge:
- the condensed set of Financial Statements contained within have
been prepared in accordance with IAS 34 Interim Financial Reporting and give a
true and fair view of the assets, liabilities, financial position and profit
and loss of the Company as at 31 January 2025, as required by the Disclosure
Guidance and Transparency Rule 4.2.4R;
- the half year report includes a fair review as required by the
Disclosure Guidance and Transparency Rule 4.2.7R, of important events that
have occurred during the six months to 31 January 2025, and their impact on
the condensed set of Financial Statements, and a description of the principal
and emerging risks for the remaining six months of the financial year; and
- the half year report includes a fair review of the information
concerning related party transactions as required by the Disclosure Guidance
and Transparency Rule 4.2.8R.
The half year report has not been reviewed or audited by the Company's
auditors.
The half year report for the six months ended 31 January 2025 was approved by
the Board and the above Responsibilities Statement has been signed on its
behalf.
Financial
Statement of Comprehensive Income for the six months ended 31 January 2025
(unaudited)
(Unaudited) (Unaudited) (Audited)
For the six months For the six months For the year
ended 31 January 2025 ended 31 January 2024 ended 31 July 2024
Note Revenue Capital Total Revenue Capital Total Revenue Capital Total
£'000 £'000 £'000 £'000 £'000 £'000 £'000 £'000 £'000
Gains on investments held at fair value through profit or loss - 6,878 6,878 - 27,118 27,118 - 52,343 52,343
Net gains on derivative contracts - 2,404 2,404 - - - 929 929
Net foreign currency gains - 127 127 - 684 684 - 3,055 3,055
Income from investments 4,961 - 4,961 4,209 - 4,209 8,917 - 8,917
Other interest receivable and similar income 42 - 42 39 - 39 54 - 54
--------------- --------------- --------------- --------------- --------------- --------------- --------------- --------------- ---------------
Gross return 5,003 9,409 14,412 4,248 27,802 32,050 8,971 56,327 65,298
========= ========= ========= ========= ========= ========= ========= ========= =========
Investment management fee (341) (795) (1,136) (329) (768) (1,097) (705) (1,644) (2,349)
Administrative expenses (394) - (394) (354) - (354) (715) - (715)
--------------- --------------- --------------- --------------- --------------- --------------- --------------- --------------- ---------------
Net return before finance costs and taxation 4,268 8,614 12,882 3,565 27,034 30,599 7,551 54,683 62,234
========= ========= ========= ========= ========= ========= ========= ========= =========
Finance costs (47) (111) (158) (41) (96) (137) (94) (221) (315)
--------------- --------------- --------------- --------------- --------------- --------------- --------------- --------------- ---------------
Net return before taxation 4,221 8,503 12,724 3,524 26,938 30,462 7,457 54,462 61,919
Taxation 3 (438) - (438) (421) - (421) (892) - (892)
--------------- --------------- --------------- --------------- --------------- --------------- --------------- --------------- ---------------
Net return after taxation 3,783 8,503 12,286 3,103 26,938 30,041 6,565 54,462 61,027
========= ========= ========= ========= ========= ========= ========= ========= =========
Return per share (pence) 4 3.25 7.30 10.55 2.60 22.56 25.16 5.53 45.85 51.38
========= ========= ========= ========= ========= ========= ========= ========= =========
The "Total" column of this statement is the profit and loss account of the
Company. The "Revenue" and "Capital" columns represent supplementary
information prepared under guidance issued by The Association of Investment
Companies. The Company has no other items of other comprehensive income and
therefore the net return after taxation is also the total comprehensive income
for the period.
All revenue and capital items in the above statement derive from continuing
operations. No operations were acquired or discontinued in the period.
Statement of Changes in Equity for the six months ended 31 January 2025
(unaudited)
Note Called-up Share Capital Warrant Share Capital Revenue Total
share premium redemption exercise purchase reserves reserves £'000
capital £'000 reserve reserve reserve £'000 £'000
£'000 £'000 £'000 £'000
At 31 July 2024 11,845 7 656 3 80,718 249,597 8,062 350,888
Repurchase of the Company's own shares into treasury - - - - (4,094) - - (4,094)
Net return after taxation - - - - - 8,503 3,783 12,286
Dividend paid in the period 5 - - - - - (4,499) (11,329) (15,828)
--------------- --------------- --------------- --------------- --------------- --------------- --------------- ---------------
At 31 January 2025 11,845 7 656 3 76,624 253,601 516 343,252
========= ========= ========= ========= ========= ========= ========= =========
for the six months ended 31 January 2024 (unaudited)
Note Called-up Share Capital Warrant Share Capital Revenue Total
share premium redemption exercise purchase reserves reserves £'000
capital £'000 reserve reserve reserve £'000 £'000
£'000 £'000 £'000 £'000
At 31 July 2023 11,990 7 511 3 86,878 195,135 7,936 302,460
Repurchase of the Company's own shares for cancellation (138) - 138 - (3,250) - - (3,250)
Net return after taxation - - - - - 26,938 3,103 30,041
Dividend paid in the period 5 - - - - - - (6,439) (6,439)
--------------- --------------- --------------- --------------- --------------- --------------- --------------- ---------------
At 31 January 2024 11,852 7 649 3 83,628 222,073 4,600 322,812
========= ========= ========= ========= ========= ========= ========= =========
for the year ended 31 July 2024 (audited)
Note Called-up Share Capital Warrant Share Capital Revenue Total
share premium redemption exercise purchase reserves reserves £'000
capital £'000 reserve reserve reserve £'000 £'000
£'000 £'000 £'000 £'000
At 31 July 2023 11,990 7 511 3 86,878 195,135 7,936 302,460
Repurchase of the Company's own shares for cancellation (145) - 145 - (3,426) - - (3,426)
Repurchase of the Company's own shares into treasury - - - - (2,734) - - (2,734)
Net return after taxation - - - - 54,462 6,565 61,027
Dividend paid in the period 5 - - - - - - (6,439) (6,439)
--------------- --------------- --------------- --------------- --------------- --------------- --------------- ---------------
At 31 July 2024 11,845 7 656 3 80,718 249,597 8,062 350,888
========= ========= ========= ========= ========= ========= ========= =========
Statement of Financial Position as at 31 January 2025 (unaudited)
Note (Unaudited) (Unaudited) (Audited)
At 31 January At 31 January At 31 July
2025 2024 2024
£'000 £'000 £'000
Fixed assets
Investments held at fair value through profit or loss 328,885 365,629 353,898
Current assets
Debtors 2,041 1,968 2,382
Cash and cash equivalents 14,201 1,037 7,396
Derivative financial instruments held at fair value through profit or loss 1,819 - 1,343
--------------- --------------- ---------------
18,061 3,005 11,121
========= ========= =========
Current liabilities
Creditors: amounts falling due within one year 6 (2,798) (45,822) (13,179)
Amounts held at derivative clearing houses and brokers (739) - (538)
Derivative financial instruments held at fair value through profit or loss (157) - (414)
--------------- --------------- ---------------
(3,694) (45,822) (14,131)
========= ========= =========
Net current assets 14,367 (42,817) (3,010)
Total assets less current liabilities 343,252 322,812 350,888
--------------- --------------- ---------------
Net assets 343,252 322,812 350,888
========= ========= =========
Capital and reserves
Called-up share capital 7 11,845 11,852 11,845
Share premium 7 7 7
Capital redemption reserve 656 649 656
Warrant exercise reserve 3 3 3
Share purchase reserve 76,624 83,628 80,718
Capital reserve 253,601 222,073 249,597
Revenue reserve 516 4,600 8,062
--------------- --------------- ---------------
Total equity shareholders' funds 343,252 322,812 350,888
========= ========= =========
Net asset value per share (pence) 8 296.46 272.36 298.88
========= ========= =========
Registered in England and Wales as a public company limited by shares.
Company Registration Number: 02930057
Notes to the Financial Statements
1. Financial Statements
The information contained within the financial statements in this half year
report has not been audited or reviewed by the Company's independent auditor.
The figures and financial information for the year ended 31 July 2024 are
extracted from the latest published financial statements of the Company and do
not constitute statutory financial statements for that year. Those financial
statements have been delivered to the Registrar of Companies and included the
report of the auditors which was unqualified and did not contain a statement
under either section 498(2) or 498(3) of the Companies Act 2006.
2. Accounting policies
Basis of accounting
The financial statements have been prepared in accordance with United Kingdom
Generally Accepted Accounting Practice, in particular with Financial Reporting
Standard 104 "Interim Financial Reporting" and with the Statement of
Recommended Practice "Financial Statements of Investment Trust Companies and
Venture Capital Trusts" issued by the Association of Investment Companies in
July 2022.
All of the Company's operations are of a continuing nature.
The accounting policies applied to these financial statements are consistent
with those applied in the financial statements for the year ended 31 July
2024.
3. Taxation on ordinary activities
The Company's effective corporation tax rate is nil, as deductible expenses
exceed taxable income. The tax charge comprises irrecoverable overseas
withholding tax.
4. Return per share
(Unaudited) For the (Unaudited) For the (Audited)
six months ended six months ended Year ended
31 January 2025 31 January 2024 31 July 2024
£'000 £'000 £'000
Revenue return 3,783 3,103 6,565
Capital return 8,503 26,938 54,462
--------------- --------------- ---------------
Total return 12,286 30,041 61,027
========= ========= =========
Weighted average number of shares in issue during the period 116,412,443 119,383,962 118,779,949
Revenue return per share (pence) 3.25 2.60 5.53
Capital return per share (pence) 7.30 22.56 45.85
--------------- --------------- ---------------
Total return per share (pence) 10.55 25.16 51.38
========= ========= =========
5. Dividends paid
(Unaudited) (Unaudited) (Audited)
Six months ended Six months ended Year ended
31 January 2025 31 January 2024 31 July 2024
£'000 £'000 £'000
2024 final dividend paid of 10.81p (2023: 5.4p) 12,561 6,439 12,691
First interim dividend of 2.82p (2024: nil) 3,267 - -
--------------- --------------- ---------------
Total dividends paid in the period 15,828 6,439 12,691
========= ========= =========
The 2024 final dividend amounted to £12,691,000. However the amount actually
paid was £12,561,000 as shares were repurchased and held in treasury, after
the accounting date, but prior to the dividend Record Date.
A second interim dividend of 2.89p (2024: nil) per share, amounting to
£3,350,000 (2024: nil) has been declared in respect for the year ending 31
July 2025.
6. Creditors: amounts falling due within one year
(Unaudited) (Unaudited) (Audited)
31 January 2025 31 January 2024 31 July 2024
£'000 £'000 £'000
Securities purchased awaiting settlement 1,865 1,486 1,943
Repurchase of ordinary shares into treasury awaiting settlement 160 - 109
Other creditors and accruals 773 1,359 778
Bank loan - 42,977 10,349
--------------- --------------- ---------------
2,798 45,822 13,179
========= ========= =========
The company has a yen 1.0 billion credit facility available from Sumitomo
Mitsui Banking Corporation, London Branch, which was undrawn at the period end
(2024: yen 2.0 billion).
7. Called-up share capital
(Unaudited) (Unaudited) (Audited)
Six months ended Six months ended Year ended
31 January 2025
31 January 2024
31 July 2024
£'000 £'000 £'000
Opening balance of ordinary shares of 10p each, excluding shares held in 11,740 11,990 11,990
treasury
Repurchase and cancellation of shares - (138) (145)
Repurchase of shares held in treasury (162) - (105)
Subtotal of shares in issue, excluding shares held in treasury 11,578 11,852 11,740
Shares held in treasury 267 - 105
--------------- --------------- ---------------
Closing balance of shares in issue of 10p each 11,845 11,852 11,845
========= ========= =========
Changes in the number of shares in issue during the period were as follows:
(Unaudited) (Unaudited) (Audited)
Six months ended Six months ended Year ended
31 January 2025
31 January 2024
31 July 2024
£'000 £'000 £'000
Ordinary shares of 10p each, allotted, called-up and fully paid:
Opening balance of shares in issue, excluding shares held in treasury 117,400,528 119,903,965 119,903,965
Repurchase and cancellation of shares - (1,381,226) (1,450,679)
Repurchase of shares held in treasury (1,617,260) - (1,052,758)
Closing balance of shares in issue, excluding shares held in treasury 115,783,268 118,522,739 117,400,528
Shares held in treasury 2,670,018 - 1,052,758
--------------- --------------- ---------------
Closing balance of shares in issue 118,453,286 118,522,739 118,453,286
========= ========= =========
8. Net asset value per share
Net asset value per share is calculated by dividing shareholders' funds by the
number of shares in issue (excluding shares held in treasury) of 115,783,268
(31 January 2024: 118,522,739 and 31 July 2024: 117,400,528).
9. FINANCIAL INSTRUMENTS MEASURED AT FAIR VALUE
The Company's financial instruments within the scope of FRS 102 that are held
at fair value comprise its investment portfolio and derivative financial
instruments.
FRS 102 requires financial instruments to be categorised into a hierarchy
consisting of the three levels below.
Level 1 - valued using unadjusted quoted prices in active markets for
identical assets.
Level 2 - valued using observable inputs other than quoted prices included
within Level 1.
Level 3 - valued using inputs that are unobservable.
The following table sets out the fair value measurements using the FRS 102
hierarchy above:
31 January 2025 (Unaudited) Level 1 Level 2 Level 3 Total
£'000 £'000 £'000 £'000
Financial instruments held at fair value through profit or loss
Equity investments 328,885 - - 328,885
Derivative financial instruments - contracts for difference - CFD assets - 1,819 - 1,819
Derivative financial instruments - contracts for difference - CFD liabilities - (157) - (157)
--------------- --------------- --------------- ---------------
Total 328,885 1,662 - 330,547
========= ========= ========= =========
31 January 2024 (Unaudited) Level 1 Level 2 Level 3 Total
£'000 £'000 £'000 £'000
Financial instruments held at fair value through profit or loss
Equity investments 365,629 - - 365,629
--------------- --------------- --------------- ---------------
Total 365,629 - - 365,629
========= ========= ========= =========
31 July 2024 (Audited) Level 1 Level 2 Level 3 Total
£'000 £'000 £'000 £'000
Financial instruments held at fair value through profit or loss
Equity investments 353,898 - - 353,898
Derivative financial instruments - contracts for difference - CFD assets - 1,343 - 1,343
Derivative financial instruments - contracts for difference - CFD liabilities - (414) - (414)
--------------- --------------- --------------- ---------------
Total 353,898 929 - 354,827
========= ========= ========= =========
10. EVENTS AFTER THE INTERIM PERIOD THAT HAVE NOT BEEN REFLECTED IN THE
FINANCIAL STATEMENTS FOR THE INTERIM PERIOD
The Directors have evaluated the period since the interim date and have not
noted any significant events which have not been reflected in the financial
statements.
OTHER INFORMATION
ALTERNATIVE PERFORMANCE MEASURES ("APMS") AND DEFINITIONS OF FINANCIAL TERMS
The terms and performance measures below are those commonly used by investment
companies to assess values, investment performance and operating costs.
Numerical calculations are given where relevant. Some of the financial
measures below are classified as APMs as defined by the European Securities
and Markets Authority. Under this definition, APMs include a financial measure
of historical financial performance or financial position, other than a
financial measure defined or specified in the applicable financial reporting
framework. APMs have been marked with an asterisk (*).
NET ASSET VALUE ("NAV") PER SHARE
The NAV per share of 296.46p (31 July 2024: 298.88p) represents the net assets
attributable to equity shareholders of £343,252,000 (31 July 2024:
£350,888,000) divided by the number of shares in issue of 115,783,268 (31
July 2024: 117,400,528).
The change in the NAV amounted to -0.8% (year ended 31 July 2024: +18.5%) over
the period. However, this performance measure excludes the positive impact of
dividends paid out by the Company during the period. When these dividends are
factored into the calculation, the resulting performance measure is termed the
"total return". Total return calculations and definitions are given below.
TOTAL RETURN*
The combined effect of any dividends paid, together with the rise or fall in
the share price or NAV per share. Total return statistics enable the investor
to make performance comparisons between investment companies with different
dividend policies. Any dividends received by a shareholder are assumed to have
been reinvested in either the assets of the Company at its NAV per share at
the time the shares were quoted ex-dividend (to calculate the NAV per share
total return) or in additional shares of the Company (to calculate the share
price total return).
The NAV total return for the period ended 31 January 2025 is calculated as
follows:
Opening NAV at 31/7/24 298.88p
Closing NAV at 31/1/25 296.46p
---------------
Dividend received NAV on Cumulative
XD date
XD date
Factor
Factor
10.81p 7/11/24 282.32p 1.038 1.038
2.82p 2/1/25 296.50p 1.010 1.048
NAV Total return, being the closing NAV, multiplied by the cumulative factor, 4.0%
expressed as a percentage change in the opening NAV:
========= ========= ========= =========
The NAV total return for the year ended 31 July 2024 is calculated as follows:
Opening NAV at 31/7/23 252.25p
Closing NAV at 31/7/24 298.88p
---------------
Dividend received NAV on Cumulative
XD date
XD date
Factor
Factor
5.40p 2/11/23 250.95p 1.022 1.022
NAV Total return, being the closing NAV, multiplied by the cumulative factor, 21.0%
expressed as a percentage change in the opening NAV:
========= ========= ========= =========
The share price total return for the period ended 31 January 2025 is
calculated as follows:
Opening Share price at 31/7/24 266.00p
Closing Share price at 31/1/25 260.00p
---------------
Dividend received Share
Price on
Cumulative
XD date
XD date
Factor
Factor
10.81p 7/11/24 244.00p 1.044 1.044
2.82p 2/1/25 261.00p 1.011 1.056
Share price total return, being the closing share price, multiplied by the 3.2%
cumulative factor, expressed as a percentage change in the opening share
price:
========= ========= ========= =========
The share price total return for the year ended 31 July 2024 is calculated as
follows:
Opening NAV at 31/7/23 252.25p
Closing NAV at 31/7/24 298.88p
Dividend received Share
Price on
Cumulative
XD date
XD date
Factor
Factor
5.40p 2/11/23 250.95p 1.022 1.022
Share price total return, being the closing share price, multiplied by the 16.1%
factor, expressed as a percentage change in the opening share price:
========= ========= ========= =========
BENCHMARK
The measure against which the Company compares its performance. The Benchmark
is now named Tokyo Stock Price Index Total Return since April 4, 2022,
previously known as TSE First Section Total Return Index.
DISCOUNT/PREMIUM*
The amount by which the share price of an investment trust is lower (discount)
or higher (premium) than the NAV per share. If shares are trading at a
discount, investors would be paying less than the value attributable to the
shares by reference to the underlying assets. A premium or discount is
generally the consequence of supply and demand for the shares on the stock
market. The discount or premium is expressed as a percentage of the NAV per
share. The discount at the period end amounted to 12.3% (31 July 2024: 11.0%),
as the closing share price at 260.00p (31 July 2024: 266.00p) was 12.3% (31
July 2024: 11.0%) lower than the closing NAV of 296.46p (31 July 2024:
298.88p).
GEARING*
Gearing is the total portfolio exposure which is defined as the amount by
which portfolio exposure exceeds the net asset values expressed as percentages
of net asset value. The total portfolio exposure will not exceed 125% of the
net asset value.
If assets rise in value, gearing magnifies the return to ordinary
shareholders. Correspondingly, if assets fall in value, gearing magnifies that
fall. Contracts for Difference are used as a way of gaining exposure to the
price movements of shares without buying the underlying
shares directly.
31 January 2025 31 July 2024
Portfolio exposure
Portfolio exposure
£'000 % £'000 %
Investments at fair value 328,885 95.8 353,898 100.9
CFD notional market value(1) 66,992 19.5 48,694 13.9
Total portfolio exposure 395,877 115.3 402,592 114.8
Net assets 343,252 350,888
--------------- --------------- --------------- ---------------
Total portfolio exposure 15.3 14.8
========= ========= ========= =========
1 The notional market value of a CFD represents the total value of the
underlying asset of the CFD contract.
LEVERAGE*
For the purpose of the Alternative Investment Fund Managers (AIFM) Directive,
leverage is any method which increases the Company's exposure, including the
borrowing of cash and the use of derivatives. It is expressed as the ratio of
the Company's exposure to its net asset value and is required to be calculated
both on a "Gross" and a "Commitment" method. Under the Gross method, exposure
represents the sum of the absolute values of all positions, so as to give an
indication of overall exposure. Under the Commitment method, exposure is
calculated in a similar way, but after netting off hedges which satisfy
certain strict criteria.
The Company's leverage policy and details of its leverage ratio calculation
and exposure limits as required by the AIFM Directive are published on the
Company's webpages and within this report. The Company is also required to
publish periodically its actual leverage exposures. As at 31 January 2025
these were:
Leverage exposure Maximum Actual
ratio
ratio
Gross method 200.00% 137.8
Commitment method 200.00% 130.4
========= =========
ONGOING CHARGES*
Ongoing Charges is calculated in accordance with the AIC's recommended
methodology and represents the management fee and all other operating expenses
excluding finance costs and transaction costs, amounting to £3,038,000 (31
July 2024: £3,064,000), expressed as a percentage of the average daily "net
asset values" during the year of £333.7 million (31 July 2024: £320.9
million).
SHAREHOLDER INFORMATION
WARNING TO SHAREHOLDERS
Companies are aware that their shareholders have received unsolicited
telephone calls or correspondence concerning investment matters. These are
typically from overseas-based 'brokers' who target UK shareholders, offering
to sell them what often turn out to be worthless or high risk shares or
investments.
These operations are commonly known as 'boiler rooms'. These 'brokers' can be
very persistent and extremely persuasive.
Shareholders are advised to be wary of any unsolicited advice, offers to buy
shares at a discount or offers of free company reports. If you receive any
unsolicited investment advice:
● Make sure you get the correct name of the person and organisation
● Check that they are properly authorised by the FCA before getting
involved by visiting https://register.fca.org.uk/s/
(https://register.fca.org.uk/s/)
● Report the matter to the FCA by calling 0800 111 6768 or visiting
https://www.fca.org.uk/consumers/report-scam
(https://www.fca.org.uk/consumers/report-scam)
● Do not deal with any firm that you are unsure about
If you deal with an unauthorised firm, you will not be eligible to receive
payment under the Financial Services Compensation Scheme.
The FCA provides a list of unauthorised firms of which it is aware, which can
be accessed at
https://www.fca.org.uk/consumers/unauthorised-firmsindividuals#list
(https://www.fca.org.uk/consumers/unauthorised-firmsindividuals#list) .
More detailed information on this or similar activity can be found on the FCA
website at https://www.fca.org.uk/consumers/protectyourself-scams
(https://www.fca.org.uk/consumers/protectyourself-scams) .
DIVIDENDS
Paying dividends into a bank or building society account helps reduce the risk
of fraud and will provide you with quicker access to your funds than payment
by cheque.
Applications for an electronic mandate can be made by contacting the
Registrar, Equiniti.
This is the most secure and efficient method of payment and ensures that you
receive any dividends promptly.
If you do not have a UK bank or building society account, please contact
Equiniti for details of their overseas payment service.
Further information can be found at www.shareview.co.uk
(http://www.shareview.co.uk) , including how to register with Shareview
Portfolio and manage your shareholding online.
This information is provided by RNS, the news service of the London Stock Exchange. RNS is approved by the Financial Conduct Authority to act as a Primary Information Provider in the United Kingdom. Terms and conditions relating to the use and distribution of this information may apply. For further information, please contact
rns@lseg.com (mailto:rns@lseg.com)
or visit
www.rns.com (http://www.rns.com/)
.
RNS may use your IP address to confirm compliance with the terms and conditions, to analyse how you engage with the information contained in this communication, and to share such analysis on an anonymised basis with others as part of our commercial services. For further information about how RNS and the London Stock Exchange use the personal data you provide us, please see our
Privacy Policy (https://www.lseg.com/privacy-and-cookie-policy)
. END IR BLGDSRBBDGUBRecent news on Schroder Japan Trust
See all newsREG - Schroder Japan Trust - Net Asset Value(s)
AnnouncementREG - Schroder Japan Trust - Net Asset Value(s)
AnnouncementREG - Schroder Japan Trust - Net Asset Value(s)
AnnouncementREG - Schroder Japan Trust - Net Asset Value(s)
AnnouncementREG - Schroder Japan Trust - Net Asset Value(s)
Announcement