CC Japan Income & Growth Trust PLC on Tuesday touted optimism in its outlook as it reported that its net asset value climbed in the six months to April 30, with NAV total return outperforming its comparator index.
The investor for dividend income and capital growth from equities listed or quoted in Japan said its NAV at April 30 grew 9.1% to 164.8 pence per share from 151.1p at October 31.
The company declared an interim dividend of 1.55p per share, up 11% from 1.40p a year ago.
NAV ex-income total return was 12%, swung from negative 2.1% a year prior. NAV-cum income swung to 11% from negative 0.7%. The total returns compare to a 9.5% return of the Tokyo Stock Exchange Price index. The index had a negative total return of 7.8% a year ago.
Chair Harry Wells said: ‘While inflation is not so rampant in Japan compared to many other countries, it continues to broaden and climb with core inflation running at over 3.4%. This should encourage domestic flows back to the stock market which offers higher yields compared to the zero return on bank deposits.’
Looking ahead, Chair Wells said: ‘Foreign investors are returning, attracted by economic trends, policy developments, attractive stock valuations and not least extensive media and press coverage hailing that the long bear market in Japan is finally over. Certainly, Warren Buffet has recently highlighted the growing attractions of Japan and has increased the stakes in the five trading companies that Berkshire Hathaway first acquired in 2020.’
CC Japan shares were 0.1% lower at 168.40 pence each in London on Tuesday afternoon.
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