JPMorgan Japanese Investment Trust PLC released its annual financial report for the year ended September 30, 2024, highlighting strong performance and growth. The companys net asset value (NAV) growth with debt at fair value increased by 24.2%, outperforming the benchmark return of 10.3%. The share price total return was 22.4%. Over five and ten years, the company has outperformed, with an annualized five-year NAV total return of 5.5% and an annualized ten-year NAV total return of 10.5%. The company repurchased 7,680,000 shares during the financial year, representing 5.4% of the shares issued. The board also proposed a final dividend of 6.75p per share, reflecting a 4.8% increase from the previous year.
Key developments following the year-end include the successful combination with JPMorgan Japan Small Cap Growth & Income plc, resulting in a post-combination company with approximately £1 billion in net assets. This positions the company as a leader within the Japanese investment trust sector. The ongoing cost ratio is expected to decrease significantly to around 0.62% for the period ending September 30, 2025.
The chairman, Stephen Cohen, expressed excitement about the prospects for investors in Japanese equities, citing ongoing corporate reforms, structural changes, and positive economic indicators. The portfolio managers, Nicholas Weindling and Miyako Urabe, emphasized the transformation underway in Japan and their optimism about the long-term prospects of the portfolios holdings.
The companys net asset value increased by 5.5% as of December 9, 2024, while its share price rose by 3.1%. The TOPIX index, the companys benchmark, returned 2.6% over the same period.
The report also covers topics such as gearing, revenues and dividends, discount management, and share repurchases. The board maintains its commitment to seeking a stable discount or premium over the long run. The companys investment objective remains focused on seeking capital growth from investments in Japanese companies, primarily in growth companies with low dividend yields.
The chairman concluded by thanking the shareholders for their continued strong support and expressing confidence in the companys ability to capture the opportunities offered by the Japanese market.