CC
JAPAN INCOME & GROWTH TRUST PLC
LEI:
549300FZANMYIORK1K98
HALF-YEARLY FINANCIAL REPORT ANNOUNCEMENT
FOR
THE SIX MONTHS ENDED 30 APRIL 2024
INVESTMENT OBJECTIVE, FINANCIAL INFORMATION AND PERFORMANCE
SUMMARY
INVESTMENT
OBJECTIVE
The investment objective of CC Japan Income
& Growth Trust Plc (the "Company") is to provide Shareholders
with dividend income combined with capital growth, mainly through
investment in equities listed or quoted in Japan.
FINANCIAL
INFORMATION
|
|
At
|
At
|
|
|
30 April
|
31 October
|
|
|
2024
|
2023
|
|
Net assets (millions)
|
£275.7m
|
£235.1m
|
|
Net asset value ("NAV") per Ordinary
Share ("Share")1
|
204.6p
|
174.5p
|
|
Share price
|
190.5p
|
162.5p
|
|
Share price discount to
NAV2
|
6.9%
|
6.9%
|
|
Annualised Ongoing
charges2
|
1.05%
|
1.06%
|
|
Gearing (net)2
|
20.5%
|
21.2%
|
|
1 Measured on a cum income
basis.
|
|
|
|
2 This is an Alternative
Performance Measure ("APM"). Definitions of APMs used in this
report, together with how these measures have been calculated are
disclosed in this report.
|
PERFORMANCE
SUMMARY
|
|
For the six months
to
|
For the six months
to
|
|
|
30 April
2024
|
30 April
2023
|
|
|
%
change1
|
%
change1
|
|
NAV ex-income total return per
Share2
|
+20.6%
|
+12.3%
|
|
NAV cum-income total return per
Share2
|
+19.5%
|
+11.3%
|
|
Share price total
return2
|
+19.7%
|
+13.1%
|
|
Tokyo Stock Exchange Price Index
("Topix") total return
|
+14.9%
|
+9.5%
|
|
Revenue return per Share
|
2.66p
|
2.66p
|
|
First interim dividend per
Share
|
1.60p
|
1.55p
|
|
|
|
|
|
1 Total returns are stated in
GBP sterling, including dividend reinvested.
|
|
2 These are
APMs.
|
|
|
|
Source: Chikara Investments LLP - The Company's Factsheet
April 2024.
|
CHAIR'S STATEMENT
Performance
This is my first statement as Chair of your
Company and I am pleased to present the interim results for the
half year ended 30 April 2024. The Japanese equity market has shown
notable strength with the Nikkei 225 reaching a 33-year high and
the TOPIX Index continuing its robust performance from last year.
This has been driven by solid corporate earnings, positive market
sentiment resulting from steady improvement in corporate
governance, and domestic economic reforms including the ending of
the negative interest policy and yield curve control.
During this period, net assets rose by 19.5% on
a total return basis while the share price total return to Ordinary
shareholders gained 19.7%, including the second interim dividend of
3.75p per Ordinary share. The latter represents a 7.1% increase on
the previous year. This performance comfortably surpassed the
benchmark, the TOPIX total return index which rose 14.9% in
sterling terms. Since inception in December 2015, net asset value
("NAV") has risen by 159.8% with the Ordinary Share price,
including dividends distributed, rising by 133.2%. Dividends have
represented over 34.3% of the share price total return, reflecting
eight years of consistent growth.
Discount
The Company's shares continued to trade at a
discount, closing unchanged at 6.9%, compared to the end of the
financial year ended 31 October 2023. The Board monitors the share
price rating and the discount level and has flexibility to buy back
shares as authorised by Shareholder Resolution renewed at the
Annual General Meeting ("AGM").
Income and
Interim Dividend
Net revenue in the first half of the year
remained at 2.66p compared with the same period last year. The
Board has declared a first interim dividend of 1.60p per Ordinary
Share, an increase of 3.23% over last year, payable on 2 August
2024 to Shareholders on the register as at 5 July 2024, with an
ex-dividend date of 4 July 2024.
Board of
Directors
Harry Wells retired at the end of the Company's
AGM in March 2024, having served as Chair of the Board since 2015.
I would like to take this opportunity to thank Harry for his
invaluable contributions and excellent leadership of the Company.
Craig Cleland has stepped into the role of Senior Independent
Director. John Charlton-Jones joined the Board at the end of the
last financial year and brings extensive knowledge of Japan. The
Board remains committed to succession planning to ensure a diverse
mix of skills and perspectives.
Outlook
The Japanese market remains attractive,
supported by domestic policies and improving economic conditions.
Japan's corporate governance reforms are driving capital efficiency
and shareholder returns with increasing momentum behind larger
dividend payouts and share buybacks. Rising wages and higher
capital expenditure are also expected to bolster economic
resilience and equity market performance.
However, challenges include a weak yen, a
potential global economic slowdown, and continued geopolitical
uncertainties with conflicts in the Ukraine and the Middle East
contributing to global instability and negatively influencing
energy prices and economic outlook. Additional uncertainty arises
from the upcoming US Presidential elections and the policies that
the new administration may adopt towards China, trade agreements,
and international alliances.
The yen continued its significant decline
falling a further 4.0% against the dollar and 6.9% against the
pound during the reporting period. The Bank of Japan's potential
shift from its long-standing ultra-loose monetary policy, including
possible interest rate hikes, could support yen appreciation. The
Federal Reserve is expected to pause or lower rates, narrowing the
interest rate differential between the US and Japan, in the near
future. This might further bolster the yen, however any yen
strength could also pose challenges for Japanese exporters,
potentially impacting corporate earnings.
Despite these risks, the ongoing structural
reforms and domestic policies, and the end of deflation offer a
compelling case for long term investment into Japanese equities.
The country continues to leverage its technological expertise,
particularly in robotics, artificial intelligence (AI), and
semiconductor manufacturing. Japan is benefitting from the global
trend of "friendshoring" with companies diversifying supply chains
to reduce reliance on China. A significant example is TSMC's
investment in a new semiconductor plant in Japan.
Governance reforms continue to deliver positive
outcomes, showing total shareholder payout ratios (dividends and
buybacks) exceeding 50% and dividends forecast to increase by
nearly 10% in fiscal 2024*. The Company is well positioned to
benefit from these changes as the Investment Manager actively
engages with portfolio companies, making corporate governance a
focus in every management meeting.
The Company's long-term performance track
record demonstrates Richard Aston and his team's expertise in
identifying high potential stocks across all sectors, targeting
both large and mid-sized companies.
On behalf of the Board, I would like to thank
you for your continuing support.
June
Aitken
Chair
21 June 2024
* According to Nomura.
INVESTMENT MANAGER'S REPORT
Performance
Review
The Net Asset Value ("NAV") of the CC Japan
Income & Growth Trust Plc rose by 19.5% on a total return basis
during the period between 31 October 2023 and 30 April 2024.
This return includes a second interim dividend of 3.75p, a 7.1%
increase year-on-year, fully covered by the income generated from
the underlying holdings in the portfolio.
The Japanese equity market experienced its
strongest gains since 2013, when the aggressive monetary and fiscal
easing policies of former Prime Minister Shinzu Abe first raised
optimism for a turnaround in the sluggish domestic corporate and
economic performance of the previous two decades. The fact
that the market has rallied so strongly, as the Bank of Japan has
begun to reverse some of the abnormal monetary policies introduced
at the time, is very meaningful and a recognition of the long-term
objectives of Abenomics policies being realised.
Bank of Japan Governor Kazuo Ueda announced a
major revision to the country's easy monetary policies in the March
2024 Board meeting, ending both the negative interest rate policy
(NIRP) and Yield Curve Control (YCC). This represents the
first increase in domestic interest rates since 2007 and it is
consequently unsurprising that interest rate sensitive sectors
featured prominently in the list of positive contributors to
performance in the period. Holdings in the banking (Sumitomo
Mitsui Financial Group, Mitsubishi UFJ Holdings) and insurance
(Sompo Holdings, Tokio Marine Holdings) sectors were notable given
that the improvement in operating environment has resulted in an
immediate enhancement to shareholder returns as the companies seek
to balance growth objectives and capital
efficiency.
Global supply chains are being restructured in
response to ongoing geopolitical turmoil and Japan is well
positioned to address the strategic vulnerability in areas of
technology where it has retained distinct competitive
advantages. Semiconductor related companies such as
Socionext, Nippon Pillar Packaging, Tokyo Ohka Kogyo and Shin-Etsu
Chemical were strong performers in recognition of their industry
leading positions and as potential beneficiaries of global
realignment.
The domestic economy has remained sluggish due
to a number of factors, not least the impact of a weaker yen and
the conservative nature of Japanese consumers. Companies such
as Nippon Parking Development and Dip (recruitment), whose business
results are largely determined by their performance in the domestic
market have experienced share price weakness. Our
disappointment in this near-term return is tempered by each
company's focus on long-term growth opportunities and consistent
returns to shareholders.
Portfolio
Positioning
The Company is positioned to capture the
exciting opportunities that have emerged across the Japanese equity
market to invest in companies that have embraced the goals of
improving capital efficiency, corporate governance and returns to
shareholders. The attractiveness in terms of depth and
breadth of these opportunities has increased over time as
initiatives such as the Tokyo Stock Exchange Action on Cost of
Capital Conscious Management have built on the original goals of
Abenomics.
This potential is now being enhanced by much
clearer strategies for growth as the Japanese economy shifts from a
deflationary era to one where persistent inflation affects consumer
and corporate behaviour as well as the exciting renaissance of many
Japanese companies in the global arena. It is however not
universal and the importance of identifying these opportunities on
a company-by-company basis with thorough analysis and research is
paramount.
Adjustments to the portfolio have been limited
over the period with the main activity focused on opportunities
presented by short-term share price volatility. The holdings
in Socionext and Tokyo Ohka Kogyo were reduced for example after
sustained share price strength with the proceeds reinvested in
existing holdings such as SBI Holdings (financial services),
TechnoPro (labour outsourcing), Macnica (semiconductor
distribution), Murata Manufacturing (semiconductor components) and
Softbank Corp (mobile telecommunication and related
services).
Outlook
The Company was established in the early phase
of the corporate governance transformation in Japan to focus
specifically on the benefits this was expected to bring in terms of
an enhancement to capital efficiency and returns to
shareholders. The Stewardship Code and Corporate Governance
Codes have been the foundation for the improvements to date and
investors in Japan have been significant beneficiaries of the focus
and discipline these have brought. Further initiatives such
as those from Tokyo Stock Exchange, firstly reconstructing the main
indices and more recently demanding greater attention to capital
cost, have accelerated developments in this respect. We are
confident that the momentum behind this progression will
continue.
The recent depreciation of the yen has created
a number of considerations for officials, corporate managers and
investors alike. However, we highlight the fact that the
single currency based returns of the Japanese equity market have
been strong over the last 10 years despite a wide variance in
cross-rates against other major currencies. Our views are
expressed in the underlying analysis of the individual positions
established in the portfolio rather than overriding top-down
view. We believe that long term investment case in Japanese
equities is based on the exciting structural reforms identifiable
in the corporate environment combined with the emerging
opportunities for renewed growth rather than shorter term factors
over which companies have no direct
influence.
Richard
Aston
Chikara
Investments LLP
21 June 2024
TOP TEN SECTORS AND
HOLDINGS
AS
AT 30 APRIL 2024
|
TOP 10
SECTORS
|
% of net
|
|
Sector
|
assets
|
|
Chemicals
|
13.8
|
|
Electrical Appliances
|
13.4
|
|
Banks
|
12.0
|
|
Information & Communications
|
11.2
|
|
Wholesale
|
7.9
|
|
Insurance
|
7.8
|
|
Other Financing Business
|
5.7
|
|
Services
|
5.2
|
|
Retail Trade
|
4.4
|
|
Securities & Commodities
|
3.7
|
|
Top
Ten
|
85.1
|
|
Other Sectors*
|
13.7
|
|
Other net assets
|
1.2
|
|
Total
|
100.0
|
*Other Sectors comprise of 7 sectors, which
individually, is less than 2.6% each of the net
assets.
TOP 10 EQUITY
HOLDINGS
|
|
|
% of net
|
|
Company
|
Sector
|
assets
|
|
Sumitomo Mitsui Financial Group
|
Banks
|
6.2
|
|
Mitsubishi Financial UFJ Financial
Group
|
Banks
|
5.8
|
|
Itochu
|
Wholesale
|
4.3
|
|
Hitachi
|
Electrical Appliances
|
4.2
|
|
Shin-Etsu Chemical
|
Chemicals
|
4.2
|
|
Sompo Holdings
|
Insurance
|
4.0
|
|
Tokio Marine
|
Insurance
|
3.8
|
|
SBI Holdings
|
Securities & Commodities
|
3.7
|
|
Softbank
|
Information & Communications
|
3.7
|
|
Mitsubishi
|
Wholesale
|
3.6
|
|
Top
Ten
|
|
43.5
|
|
Other equity holdings
|
|
55.3
|
|
Total
holdings
|
|
98.8
|
|
Other net assets
|
|
1.2
|
|
Total
|
|
100.0
|
TOP TEN
CONTRACTS FOR DIFFERENCE (CFDs)
|
|
|
|
Absolute
|
|
|
|
|
Absolute
|
value
|
Market
|
|
|
|
value
|
as a % of
|
Value
|
|
Company
|
Sector
|
£'000
|
net assets
|
£'000
|
|
|
|
|
|
|
|
Sumitomo Mitsui Financial Group
|
Banks
|
3,417
|
1.2
|
629
|
|
Mitsubishi Financial UFJ Financial
Group
|
Banks
|
3,203
|
1.2
|
652
|
|
Itochu
|
Wholesale
|
2,388
|
0.9
|
654
|
|
Hitachi
|
Electrical Appliances
|
2,298
|
0.8
|
899
|
|
Shin-Etsu Chemical
|
Chemicals
|
2,291
|
0.8
|
701
|
|
Sompo Holdings
|
Insurance
|
2,186
|
0.8
|
722
|
|
Tokio Marine
|
Insurance
|
2,074
|
0.8
|
647
|
|
SBI Holdings
|
Securities & Commodities
|
2,049
|
0.7
|
323
|
|
Softbank
|
Information & Communications
|
2,018
|
0.7
|
209
|
|
Mitsubishi
|
Wholesale
|
1,984
|
0.7
|
744
|
|
Top Ten
CFDs
|
|
23,908
|
8.6
|
6,180
|
|
Other CFDs
|
|
30,544
|
11.2
|
3,624
|
|
Total
CFDs
|
|
54,452
|
19.8
|
9,804
|
INTERIM MANAGEMENT REPORT
The Directors are required to provide an
Interim Management Report in accordance with the Financial Conduct
Authority ("FCA") Disclosure Guidance and Transparency Rules. The
Chair's Statement and the Investment Manager's Report in this
Half-yearly Report provide details of the important events which
have occurred during the period and their impact on the financial
statements. The following statements on principal and emerging
risks and uncertainties, related party transactions, going concern
and the Directors' Responsibility Statement, together, constitute
the Interim Management Report for the Company for the six months
ended 30 April 2024. The outlook for the Company for the remaining
six months of the year ending 31 October 2024 is discussed in the
Chair's Statement and the Investment Manager's Report.
PRINCIPAL AND
EMERGING RISKS AND UNCERTAINTIES
The Board is responsible for the management of
risks faced by the Company and delegates this role to the Audit and
Risk Committee (the "Committee"). The Committee carries out, at
least annually, a robust assessment of principal and emerging risks
and uncertainties and monitors the risks on an ongoing
basis.
The Committee has a dynamic risk management
register in place to help identify key risks in the business and
oversee the effectiveness of internal controls and processes. The
risk management register and associated risk heat map provide a
visual reflection of the Company's identified risks, including
principal and emerging risks.
The Company's risks fall into three
categories:
•
Strategic and Business risks, including investment performance,
market, geopolitical and leverage risk;
•
Operational and Financial risks, including cyber and business
interruption; and
•
Regulatory and Compliance risks, including climate
change.
The Committee considers both the impact and the
probability of each risk occurring and ensures appropriate controls
are in place to reduce risk to an acceptable level. A detailed
explanation of the principal and emerging risks and uncertainties
to the Company are detailed in the Company's most recent Annual
Report for the year ended 31 October 2023, which can be found on
the Company's website at www.ccjapanincomeandgrowthtrust.com.
The risks as outlined in the 2023 Annual Report
and Accounts released on the 24 January 2024 remain largely
unchanged. The continued weakness of the yen has put some pressure
on dividend receipts. The Company continues to grow revenue
reserves and retains a Special Reserve of £64.7m available for
distribution in circumstances where there is an unforeseen revenue
shortfall.
The Board closely monitors and assesses these
continued uncertainties as to how they could impact and affect the
Company's trading position apropos our investment objectives,
portfolio and thus our Shareholders, and where appropriate
endeavour to mitigate the risk.
RELATED PARTY
TRANSACTIONS
The Company's Investment Manager is Chikara
Investments LLP. Chikara Investments LLP is considered a related
party under the Listing Rules. The Investment Manager is entitled
to receive a management fee payable monthly in arrears at the rate
of one-twelfth of 0.75% of Net Asset Value per calendar month.
Investment management fees during the six-month period to 30 April
2024 were £980,000. There is
no performance fee payable to the Investment Manager. There have
been no changes to the related party transactions that could have a
material effect on the financial position or performance of the
Company since the year ended 31 October 2023. Further information
can be found in note 12 to the financial statements.
GOING
CONCERN
The Board has a reasonable expectation that the
Company has adequate resources to continue in operational existence
for at least twelve months from the publication of this Half-yearly
Report. In reaching this conclusion, the Directors have considered
the liquidity of the Company's portfolio of investments as well as
its cash position, income, and expense flows.
The Company's net assets as at 30 April 2024
were £275.7 million (30 April
2023: £222.0 million). As at 30 April 2024, the Company held
£272.3 million (30 April 2023:
£217.6 million) in quoted investments. In addition, as at 30 April
2024, the Company had gross exposure to Contracts for Difference of
£54.5 million (30 April 2023:
£43.5 million). The total expenses (excluding finance costs and
taxation) for the six months ended 30 April 2024 were
£1.4 million (30 April 2023:
£1.2 million). The Company has a £12.0 million (or its equivalent
in Japanese yen) bank overdraft facility with Northern Trust
Company and as at 30 April 2024, £2.0 million (30 April 2023: £0.9 million) had
been utilised on the Japanese yen bank account.
As part of their assessment, the Board has
performed stress testing and liquidity analysis on the Company's
portfolio of investments, giving careful consideration to the
consequences for the Company of continuing uncertainties in the
global economy and increased geopolitical tension worldwide. A
prolonged and deep global or Japanese stock market decline would
lead to a fall in investment values. However, the Company currently
has sufficient liquidity available to meet any future
obligations.
In accordance with the Company's Articles of
Association, Shareholders have the right to vote on the
continuation of the Company as an investment trust every three
years and a resolution to that effect was last approved at the AGM
in March 2022.
DIRECTORS'
RESPONSIBILITY STATEMENT
The Disclosure Guidance and Transparency Rules
(DTR) of the UK Listing Authority require the Directors to confirm
their responsibilities in relation to the preparation and
publication of the Interim Management Report and Financial
Statements.
The Directors confirm to the best of their
knowledge that:
·
This set of unaudited condensed financial statements
contained within the Half-yearly Report has been prepared in
accordance with FRS 104 Interim Financial Reporting and the
Statement of Recommended Practice "Financial Statements of
Investment Companies and Venture Capital Trusts" issued by the
Association of Investment Companies issued in July 2022 (''AIC
SORP'').
·
This Interim Management Report, together with the Chair's
Statement and Investment Manager's Report, includes a fair review
of the information required by 4.2.7R and 4.2.8R of the Financial
Conduct Authority's Disclosure Guidance and Transparency
Rules.
June
Aitken
Chair
For and on
behalf of the Board of Directors
21 June 2024
|
UNAUDITED CONDENSED STATEMENT OF COMPREHENSIVE
INCOME
|
|
|
|
|
SIX
MONTHS TO 30 APRIL 2024
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Six months to 30 April
2024
|
Six months to 30 April
2023
|
Year ended 31 October
2023*
|
|
|
|
Revenue
|
Capital
|
Total
|
Revenue
|
Capital
|
Total
|
Revenue
|
Capital
|
Total
|
|
|
Note
|
£'000
|
£'000
|
£'000
|
£'000
|
£'000
|
£'000
|
£'000
|
£'000
|
£'000
|
|
Gains on investment
|
|
-
|
42,179
|
42,179
|
-
|
20,330
|
20,330
|
-
|
32,435
|
32,435
|
|
Currency gains/ (losses)
|
|
-
|
744
|
744
|
-
|
(2)
|
(2)
|
-
|
209
|
209
|
|
Income
|
4
|
4,659
|
-
|
4,659
|
4,581
|
-
|
4,581
|
9,283
|
-
|
9,283
|
|
Investment management fee
|
|
(196)
|
(784)
|
(980)
|
(163)
|
(652)
|
(815)
|
(343)
|
(1,372)
|
(1,715)
|
|
Other expenses
|
|
(389)
|
-
|
(389)
|
(343)
|
-
|
(343)
|
(715)
|
-
|
(715)
|
|
Return on ordinary activities before finance costs and
taxation
|
|
4,074
|
42,139
|
46,213
|
4,075
|
19,676
|
23,751
|
8,225
|
31,272
|
39,497
|
|
Finance costs
|
5
|
(33)
|
(104)
|
(137)
|
(35)
|
(87)
|
(122)
|
(63)
|
(173)
|
(236)
|
|
Return on ordinary activities before
taxation
|
|
4,041
|
42,035
|
46,076
|
4,040
|
19,589
|
23,629
|
8,612
|
31,099
|
39,261
|
|
Taxation
|
6
|
(460)
|
-
|
(460)
|
(455)
|
-
|
(455)
|
(921)
|
-
|
(921)
|
|
Return on ordinary activities after taxation
|
|
3,581
|
42,035
|
45,616
|
3,585
|
19,589
|
23,174
|
7,241
|
31,099
|
38,340
|
|
Return per Ordinary Share
|
10
|
2.66p
|
31.20p
|
33.86p
|
2.66p
|
14.54p
|
17.20p
|
5.37p
|
23.08p
|
28.45p
|
|
*Audited
|
|
The total column of the above
statement is the profit and loss account of the Company. All
revenue and capital items in the above statement derive from
continuing operations.
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Both the supplementary revenue and
capital columns are prepared under guidance from the Association of
Investment Companies. There is no other comprehensive income and
therefore the return for the period is also the total comprehensive
income for the period.
The notes form part of these interim
financial statements.
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
UNAUDITED CONDENSED STATEMENT OF FINANCIAL
POSITION
|
|
|
|
AS
AT 30 APRIL 2024
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
30 April
2024
|
30 April
2023
|
31 October 2023*
|
|
|
|
|
Note
|
£'000
|
£'000
|
£'000
|
|
|
|
Fixed assets
|
|
|
|
|
|
|
|
Investments at fair value through
profit or loss
|
3
|
272,259
|
217,592
|
231,987
|
|
|
|
|
|
|
|
|
|
|
|
Current assets
|
|
|
|
|
|
|
|
Cash and cash equivalents
|
|
-
|
-
|
340
|
|
|
|
Cash collateral in respect of
Contracts for Difference ("CFDs")
|
|
-
|
486
|
806
|
|
|
|
Amounts due in respect of
CFDs
|
3
|
10,699
|
5,063
|
773
|
|
|
|
Other debtors
|
|
3,907
|
4,168
|
3,750
|
|
|
|
|
|
14,606
|
9,717
|
5,669
|
|
|
|
Creditors: amounts falling due within one
year
|
|
|
|
|
|
|
|
Cash and cash equivalents - Bank
overdraft
|
|
(288)
|
(2,240)
|
-
|
|
|
|
Cash collateral in respect of CFDs
|
|
(9,700)
|
-
|
(1,266)
|
|
|
|
Amounts payable in respect of CFDs
|
3
|
(894)
|
(2,280)
|
(738)
|
|
|
|
Other creditors
|
|
(301)
|
(749)
|
(534)
|
|
|
|
|
|
(11,183)
|
(5,269)
|
(2,538)
|
|
|
|
Net
current assets
|
|
3,423
|
4,448
|
3,131
|
|
|
|
Total assets less current liabilities
|
|
275,682
|
222,040
|
235,118
|
|
|
|
Net
assets
|
|
275,682
|
222,040
|
235,118
|
|
|
|
Capital and reserves
|
|
|
|
|
|
|
|
Share capital
|
8
|
1,348
|
1,348
|
1,348
|
|
|
|
Share premium
|
|
98,067
|
98,067
|
98,067
|
|
|
|
Special reserve
|
|
64,671
|
64,671
|
64,671
|
|
|
|
Capital reserve
|
|
|
|
|
|
|
|
-
Revaluation gains on equity investment held at period
end
|
|
55,866
|
21,671
|
24,636
|
|
|
|
-
Other capital reserve
|
|
49,291
|
29,941
|
38,486
|
|
|
|
Revenue reserve
|
|
6,439
|
6,342
|
7,910
|
|
|
|
Total Shareholders' funds
|
|
275,682
|
222,040
|
235,118
|
|
|
|
NAV
per share - Ordinary Shares (pence)
|
11
|
204.62p
|
164.80p
|
174.51p
|
|
|
|
*Audited
|
|
|
|
|
|
|
|
Approved by the Board of Directors
and authorised for issue on 21 June 2024 and signed on their behalf
by:
|
|
|
|
|
|
|
|
June Aitken
|
|
|
|
|
|
|
|
Director
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
CC Japan Income & Growth Trust
plc is incorporated in England and Wales with registration number
9845783.
|
|
|
|
|
|
|
|
|
|
|
|
The notes form part of these interim
financial statements.
|
|
|
|
UNAUDITED CONDENSED STATEMENT OF CHANGES IN
EQUITY
|
|
|
|
|
|
SIX
MONTHS TO 30 APRIL 2024
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Share capital
|
Share premium
|
Special reserve
|
Capital reserve
|
Revenue reserve
|
Total
|
|
|
|
|
|
£'000
|
£'000
|
£'000
|
£'000
|
£'000
|
£'000
|
|
|
|
Balance at 1 November 2023
|
|
1,348
|
98,067
|
64,671
|
63,122
|
7,910
|
235,118
|
|
|
|
Return on ordinary activities after
taxation
|
|
-
|
-
|
-
|
42,035
|
3,581
|
45,616
|
|
|
|
Dividends paid
|
|
-
|
-
|
-
|
-
|
(5,052)
|
(5,052)
|
|
|
|
Balance at 30 April 2024
|
|
1,348
|
98,067
|
64,671
|
105,157
|
6,439
|
275,682
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Six
months to 30 April 2023
|
|
|
|
|
|
|
|
|
|
|
|
|
Share capital
|
Share premium
|
Special reserve
|
Capital reserve
|
Revenue reserve
|
Total
|
|
|
|
|
|
£'000
|
£'000
|
£'000
|
£'000
|
£'000
|
£'000
|
|
|
|
Balance at 1 November 2022
|
|
1,348
|
98,067
|
64,671
|
32,023
|
7,473
|
203,582
|
|
|
|
Return on ordinary activities after
taxation
|
|
-
|
-
|
-
|
19,589
|
3,585
|
23,174
|
|
|
|
Dividends paid
|
|
-
|
-
|
-
|
|
(4,716)
|
(4,716)
|
|
|
|
Balance at 30 April 2023
|
|
1,348
|
98,067
|
64,671
|
51,612
|
6,342
|
222,040
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Year ended 31 October 2023 (Audited)
|
|
|
|
|
|
|
|
|
|
|
|
|
Share capital
|
Share premium
|
Special reserve
|
Capital reserve
|
Revenue reserve
|
Total
|
|
|
|
|
|
£'000
|
£'000
|
£'000
|
£'000
|
£'000
|
£'000
|
|
|
|
Balance at 1 November 2022
|
|
1,348
|
98,067
|
64,671
|
32,023
|
7,473
|
203,582
|
|
|
|
Return on ordinary activities after
taxation
|
|
-
|
-
|
-
|
31,099
|
7,241
|
38,340
|
|
|
|
Dividends paid
|
|
-
|
-
|
-
|
-
|
(6,804)
|
(6,804)
|
|
|
|
Balance at 31 October 2023
|
|
1,348
|
98,067
|
64,671
|
63,122
|
7,910
|
235,118
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
The Company's distributable reserves
consist of the Special reserve, Revenue reserve and Capital reserve
attributable to realised profits.
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
The notes form part of these interim
financial statements.
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
| |
|
UNAUDITED CONDENSED STATEMENT OF CASH FLOWS
|
|
|
|
|
SIX
MONTHS TO 30 APRIL 2024
|
|
|
|
|
|
|
|
|
|
|
Six months to 30 April
2024
|
Six months to 30 April
2023
|
Year ended 31 October
2023*
|
|
|
£'000
|
£'000
|
£'000
|
|
Operating activities cash flows
|
|
|
|
|
Return on ordinary activities before
finance costs and taxation**
|
46,213
|
23,751
|
39,497
|
|
Adjustment for:
|
|
|
|
|
Gains on equity investments
|
(32,469)
|
(17,383)
|
(24,684)
|
|
Realised losses/(gains) on CFDs
|
46
|
-
|
(7,656)
|
|
Movement in CFD transactions
|
(530)
|
(2,936)
|
758
|
|
Increase in other debtors
|
(157)
|
(546)
|
(500)
|
|
(Decrease)/Increase in other
creditors
|
(36)
|
144
|
19
|
|
Tax withheld on overseas
income
|
(460)
|
(455)
|
(921)
|
|
Net
cash flow from operating activities
|
12,607
|
2,575
|
6,513
|
|
Investing activities cash flows
|
|
|
|
|
Purchases of equity
investments
|
(17,561)
|
(27,622)
|
(57,623)
|
|
Proceeds from sales of equity
investments
|
9,558
|
26,232
|
49,413
|
|
Realised (losses)/gains on CFDs
|
(46)
|
-
|
7,656
|
|
Net
cash flow used in investing activities
|
(8,049)
|
(1,390)
|
(554)
|
|
Financing activities cash flows
|
|
|
|
|
Equity dividends paid
|
(5,052)
|
(4,716)
|
(6,804)
|
|
Finance costs paid
|
(134)
|
(122)
|
(228)
|
|
Net
cash used in financing activities
|
(5,186)
|
(4,838)
|
(7,032)
|
|
Decrease in cash and cash equivalents
|
(628)
|
(3,653)
|
(1,073)
|
|
Cash and cash equivalents at the
beginning of the period
|
340
|
1,413
|
1,413
|
|
Cash and cash equivalents at the end of the
period
|
(288)
|
(2,240)
|
340
|
|
*Audited
|
|
|
|
|
** Inflow from cash dividends
received were £3,996,000
(30 April 2023:
£3,612,000 and 31 October 2023: £7,888,000).
|
The notes form part of these interim financial
statements.
NOTES TO THE INTERIM FINANCIAL STATEMENTS
1. GENERAL
INFORMATION
CC Japan Income & Growth Trust plc (the
"Company") was incorporated in England and Wales on 28 October 2015
with registered number 9845783, as a closed-ended investment
company. The Company commenced its operations on 15 December 2015.
The Company carries on business as an investment trust within
the meaning of Chapter 4 of Part 24 of the Corporation Tax Act
2010.
The Company's investment objective is to
provide Shareholders with dividend income combined with capital
growth, mainly through investment in equities listed or quoted in
Japan.
The Company's shares were admitted to the
Official List of the Financial Conduct Authority with a premium
listing on 15 December 2015. On the same day, trading of the
Ordinary Shares commenced on the London Stock Exchange.
The principal activity of the Company is that
of an investment trust company within the meaning of section 1158
of the Corporation Tax Act 2010.
The Company's registered office is
6th Floor, 125 London Wall, London, EC2Y 5AS.
2. ACCOUNTING
POLICIES
The interim financial statements have been
prepared in accordance with FRS 104 Interim Financial Reporting and
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.
This Half-yearly Report is unaudited and does
not include all the information required for full annual financial
statements. The Half-yearly Report should be read in conjunction
with the Annual Report and Accounts of the Company for the year
ended 31 October 2023. The Annual Report and Accounts for the year
ended 31 October 2023 were prepared in accordance with FRS 102 The
Financial Reporting Standard applicable in the UK and Republic of
Ireland ("FRS 102") and received an unqualified audit report. The
financial information for the year ended 31 October 2023 in this
Half-yearly Report has been extracted from the audited Annual
Report and Accounts for that year end. The accounting policies in
this Half-yearly Report are consistent with those applied in the
Annual Report and Accounts for the year ended 31 October
2023.
The interim financial statements have been
presented in GBP sterling (£).
|
3.
INVESTMENTS
|
|
|
|
|
|
|
|
|
|
|
|
|
|
As at 30 April 2024
|
As at 30 April 2023
|
As at 31 October 2023
|
|
|
|
(Unaudited)
|
(Unaudited)
|
(Audited)
|
|
|
|
£'000
|
£'000
|
£'000
|
|
Investments listed on a recognised
overseas investment exchange
|
|
272,259
|
217,592
|
231,987
|
|
|
|
272,259
|
217,592
|
231,987
|
|
|
|
|
|
|
|
Fair Value Measurements of Financial Assets and Financial
Liabilities
|
|
The financial assets and liabilities
are either carried in the balance sheet at their fair value, or the
balance sheet amount is a reasonable approximation of fair value
(due from brokers, dividends receivable, accrued income, due to
brokers, accruals and cash and cash equivalents).
|
|
|
|
The valuation techniques for
investments and derivatives used by the Company are explained in
the accounting policies notes 2 (b and c) in the Annual report for
the year ended 31 October 2023.
|
|
|
|
The table below sets out fair value
measurements using fair value hierarchy.
|
|
|
|
|
Level 1
|
Level 2
|
Level 3
|
Total
|
|
30 April 2024
(Unaudited)
|
£'000
|
£'000
|
£'000
|
£'000
|
|
Assets:
|
|
|
|
|
|
Equity investments
|
272,259
|
-
|
-
|
272,259
|
|
CFDs - Unrealised fair value
gains
|
-
|
10,699
|
-
|
10,699
|
|
Liabilities:
|
|
|
|
|
|
CFDs - Unrealised fair value
losses
|
-
|
(894)
|
-
|
(894)
|
|
Total
|
272,259
|
9,805
|
-
|
282,064
|
|
|
|
|
|
|
|
|
Level 1
|
Level 2
|
Level 3
|
Total
|
|
30 April 2023
(Unaudited)
|
£'000
|
£'000
|
£'000
|
£'000
|
|
Assets:
|
|
|
|
|
|
Equity investments
|
217,592
|
-
|
-
|
217,592
|
|
CFDs - Unrealised fair value
gains
|
-
|
5,063
|
-
|
5,063
|
|
Liabilities:
|
|
|
|
|
|
CFDs - Unrealised fair value
losses
|
-
|
(2,280)
|
-
|
(2,280)
|
|
Total
|
217,592
|
2,783
|
-
|
220,375
|
|
|
|
|
|
|
|
|
Level 1
|
Level 2
|
Level 3
|
Total
|
|
31 October
2023 (Audited)
|
£'000
|
£'000
|
£'000
|
£'000
|
|
Assets:
|
|
|
|
|
|
Equity investments
|
231,987
|
-
|
-
|
231,987
|
|
CFDs- Unrealised fair value
gains
|
-
|
773
|
-
|
773
|
|
Liabilities:
|
|
|
|
|
|
CFDs - Unrealised fair value
losses
|
-
|
(738)
|
-
|
(738)
|
|
Total
|
231,987
|
35
|
-
|
232,022
|
|
|
|
There were no transfers between
levels during the period (2023: none).
|
|
Categorisation within the hierarchy
has been determined on the basis of the lowest level input that is
significant to the Fair Value measurement of the relevant asset as
follows:
|
|
Level 1 - valued using quoted prices
in active markets for identical assets.
|
|
Level 2 - valued by reference to
valuation techniques using observable inputs including quoted
prices.
|
|
Level 3 - valued by reference to
valuation techniques using inputs that are not based on observable
market data.
There are no Level 3 investments as
at 30 April 2024 (2023: nil).
|
|
4.
INCOME
|
|
|
|
|
|
|
|
|
|
|
Six months to 30 April
2024
|
Six months to 30 April
2023
|
Year ended 31 October
2023
|
|
|
|
(Unaudited)
|
(Unaudited)
|
(Audited)
|
|
|
£'000
|
£'000
|
£'000
|
|
Income from investments:
|
|
|
|
|
Overseas dividends
|
4,595
|
4,552
|
9,215
|
|
Deposit interest
|
64
|
29
|
68
|
|
Total
|
4,659
|
4,581
|
9,283
|
|
Overseas dividend income is
translated into sterling on receipt.
|
|
|
|
|
| |
|
5.
FINANCE COSTS
|
|
|
|
|
|
|
|
|
|
|
Six months to 30 April
2024
|
Six months to 30 April
2023
|
Year ended 31 October
2023
|
|
|
|
(Unaudited)
|
(Unaudited)
|
(Audited)
|
|
|
£'000
|
£'000
|
£'000
|
|
Interest paid - 100% charged to
revenue
|
8
|
13
|
20
|
|
CFD finance cost and structuring fee
- 20% charged to revenue
|
25
|
22
|
42
|
|
Structuring fees - 20% charged to
revenue
|
-
|
-
|
1
|
|
|
33
|
35
|
63
|
|
CFD finance cost and structuring fee
- 80% charged to capital
|
102
|
87
|
169
|
|
Structuring fees - 80% charged to
capital
|
2
|
-
|
4
|
|
|
104
|
87
|
173
|
|
Total finance costs
|
137
|
122
|
236
|
|
|
|
|
| |
|
6.
TAXATION
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Six months to 30 April
2024
(Unaudited)
|
Six months to 30 April 2023
(Unaudited)
|
|
|
Revenue
|
Capital
|
Total
|
Revenue
|
Capital
|
Total
|
|
|
£'000
|
£'000
|
£'000
|
£'000
|
£'000
|
£'000
|
|
Analysis of tax charge in the period:
|
|
|
|
|
|
|
|
Overseas withholding tax
|
460
|
-
|
460
|
455
|
-
|
455
|
|
Total tax charge for the period
|
460
|
-
|
460
|
455
|
-
|
455
|
|
|
|
|
|
|
|
|
|
|
Year ended 31 October
2023
(Audited)
|
|
|
|
|
|
Revenue
|
Capital
|
Total
|
|
|
|
|
|
£'000
|
£'000
|
£'000
|
|
|
|
|
Analysis of tax charge in the year:
|
|
|
|
|
|
|
|
Overseas withholding tax
|
921
|
-
|
921
|
|
|
|
|
Total tax charge for the year
|
921
|
-
|
921
|
|
|
|
|
7.
INTERIM DIVIDEND
|
|
During the six months ended 30 April
2024, the Company paid a dividend of 3.75p per Ordinary Share in respect of
the year ended 31 October 2023.
|
|
|
|
|
|
|
|
These interim financial statements
have been prepared in accordance with the requirements of section
838 of the Companies Act 2006 and constitute the Company's interim
accounts for the purpose of justifying the payment of an interim
dividend for the year ending 31 October 2024.
|
|
|
|
|
|
|
|
The Directors have declared an
interim dividend for the six months ended 30 April 2024 of 1.60p
(2023: 1.55p) per Ordinary Share. The dividend will be paid
on 2 August 2024,
to Ordinary Shareholders who appear on the register as at the close
of business on 5 July 2024. The Ordinary Shares will go ex-dividend on
4 July 2024 and the
dividend will be funded from the Company's Revenue reserve. This
dividend has not been accrued in the financial statements for the
six months to 30 April 2024.
|
|
8.
SHARE CAPITAL
|
|
|
|
|
|
Share capital represents the nominal
value of shares that have been issued. The share premium includes
any premium received on issue of share capital. Any transaction
costs associated with the issuing of shares are deducted from share
premium.
|
|
|
|
|
|
|
|
|
As at 30 April 2024
(Unaudited)
|
As at 30 April 2023
(Unaudited)
|
|
|
No. of shares
|
£'000
|
No. of shares
|
£'000
|
|
Allotted, issued & fully paid:
|
|
|
|
|
|
Ordinary Shares of 1p
|
|
|
|
|
|
Opening balance
|
134,730,610
|
1,348
|
134,730,610
|
1,348
|
|
Closing balance
|
134,730,610
|
1,348
|
134,730,610
|
1,348
|
|
|
|
|
|
|
|
|
As at 31 October 2023
(Audited)
|
|
|
|
No. of shares
|
£'000
|
|
|
|
Allotted, issued & fully paid:
|
|
|
|
|
|
Ordinary Shares of 1p
|
|
|
|
|
|
Opening balance
|
134,730,610
|
1,348
|
|
|
|
Closing balance
|
134,730,610
|
1,348
|
|
|
|
|
|
|
|
|
|
Since the period end, the Company
has issued no Ordinary Shares, with 134,730,610
Ordinary Shares in issue as at date of publication
of this report.
|
|
9.
FINANCIAL COMMITMENTS
|
|
As at 30 April 2024 there were no
commitments in respect of unpaid calls and underwritings (30 April
2023: nil and 31 October 2023: nil).
|
10. RETURN PER
ORDINARY SHARE
Total return per Ordinary Share is based on the
return on ordinary activities, including income, for the period
after taxation of £45,616,000 (30 April 2023: £23,174,000 and 31
October 2023: £38,340,000) and the weighted average number of
Ordinary Shares in issue for the period to 30 April 2024 of
134,730,610 (30 April 2023: 134,730,610 and 31 October 2023:
134,730,610).
The returns per Ordinary Share were as
follows:
|
|
As at 30 April 2024
(Unaudited)
|
As at 30 April
2023
(Unaudited)
|
As at 31 October
2023
(Audited)
|
|
|
|
Revenue
|
Capital
|
Total
|
Revenue
|
Capital
|
Total
|
Revenue
|
Capital
|
Total
|
|
|
Return per Ordinary Share
|
2.66p
|
31.20p
|
33.86p
|
2.66p
|
14.54p
|
17.20p
|
5.37p
|
23.08p
|
28.45p
|
|
|
|
|
|
11.
NET ASSET VALUE PER SHARE
|
|
|
|
|
Total shareholders' funds and the
NAV per share attributable to the Ordinary Shareholders at the
period end calculated in accordance with the Articles of
Association were as follows:
|
|
NAV per Ordinary Share
|
|
|
|
|
|
As at
30 April 2024
|
As at
30 April 2023
|
As at 31 October 2023
|
|
|
|
(Unaudited)
|
(Unaudited)
|
(Audited)
|
|
Net Asset Value (£'000)
|
275,682
|
222,040
|
235,118
|
|
Ordinary Shares in issue
|
134,730,610
|
134,730,610
|
134,730,610
|
|
NAV
per Ordinary Share
|
204.62p
|
164.80p
|
174.51p
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
| |
12. RELATED
PARTY TRANSACTIONS
Transactions
with the Investment Manager and the Alternative Investment Fund
Investment Manager ("AIFM")
The Company provides additional information
concerning its relationship with the Investment Manager and AIFM,
Chikara Investments LLP. Investment Management fees for the
six-month period ended 30 April 2024 were £980,000 (30 April 2023:
£815,000 and 31 October 2023: £1,715,000). The Investment
Management fees outstanding at the period ended 30 April 2024 were
£172,000 (30 April 2023: £136,000 and 31 October 2023:
£151,000).
Research
purchasing agreement
The Markets in Financial Instruments Directive
II ("MiFID II") treats investment research provided by brokers and
independent research providers as a form of "inducement" to
investment managers and requires research to be paid separately
from execution costs. In the past, the costs of broker research
were primarily borne by the Company as part of execution costs
through dealing commissions paid to brokers. With effect from 3
January 2018, this practice has changed, as brokers subject to
MiFID II are now required to price, and charge for, research
separately from execution costs. Equally, the rules require the
Investment Manager, as an investment Manager, to ensure that the
research costs borne by the Company are paid for through a
designated Research Payment Account ("RPA") funded by direct
research charges to the Investment Manager's clients, including the
Company.
The research charge for the year 1 January 2024
to 31 December 2024, as agreed between the Investment Manager and
the Company, is US $31,000 (31 December 2023: US
$34,000).
Directors'
fees and shareholdings
Directors' fees are payable at the rate of
£28,500 per annum for each Director other than the Chair, who is
entitled to receive £42,750. The Chair of the Audit and Risk
Committee is entitled to an additional fee of £6,000 per annum and
the Senior Independent Director ("SID") is entitled to an
additional fee of £1,000 per annum.
The Directors had the following ordinary
shareholdings in the Company, all of which were beneficially
owned.
|
|
Ordinary Shares as at 30 April
2024
|
Ordinary Shares as at 30 April
2023
|
Ordinary
Shares as at 31 October
2023
|
|
|
(Unaudited)
|
(Unaudited)
|
(Audited)
|
|
June Aitken
|
42,409
|
41,251
|
41,631
|
|
Kate Cornish-Bowden
|
50,000
|
50,000
|
50,000
|
|
Craig Cleland
|
40,000
|
40,000
|
40,000
|
|
John Charlton-Jones1
|
22,403
|
-
|
12,185
|
|
Harry Wells2
|
-
|
40,000
|
40,000
|
|
Peter Wolton3
|
-
|
67,250
|
-
|
1John Charlton-Jones was
appointed on 1 October 2023.
2 Harry Wells resigned on 5
March 2024.
3 Peter Wolton resigned on 10
October 2023.
13.
POST BALANCE SHEET EVENTS
There are no post balance sheet
events other than as disclosed in this Half-yearly
Report.
14.
STATUS OF THIS REPORT
These interim financial statements
are not the Company's statutory accounts for the purposes of
section 434 of the Companies Act 2006. They are unaudited. The
Half-yearly Report will be made available to the public at the
registered office of the Company.
The report will also be available on
the Company's website www.ccjapanincomeandgrowthtrust.com
The information for the year ended
31 October 2023 has been extracted from the last published audited
financial statements, unless otherwise stated. The audited
financial statements have been delivered to the Registrar of
Companies. The Auditors reported on those accounts and their report
was unqualified, did not draw attention to any matters by way of
emphasis and did not contain a statement under sections 498(2) or
498(3) of the Companies Act 2006.
GLOSSARY AND ALTERNATIVE PERFORMANCE MEASURES
('APM')
Absolute
exposure
The absolute difference between the Company's
long positions and short positions.
Administrator
The Company's administrator, the current such
administrator being Apex Listed Companies Services (UK)
Limited.
AIC
Association of Investment Companies.
Alternative
Investment Fund or "AIF"
An investment vehicle under AIFMD. Under AIFMD
(see below) the Company is classified as an AIF.
Alternative
Investment Fund Managers' Directive or "AIFMD"
The UK version of a European Union Directive
which came into force on 22 July 2013 and which is part of UK law
by virtue of the European Union (Withdrawal) Act 2018, as amended
by The Alternative Investment Fund Managers (Amendment etc.) (EU
Exit) Regulations 2019.
Alternative
Performance Measure or "APM"
A financial measure of historical or future
financial performance, financial position, or cash flows, other
than a financial measure defined or specified in the applicable
financial reporting framework.
Annual General
Meeting or "AGM"
A meeting held once a year, which Shareholders
are entitled to attend, and where they can vote on resolutions to
be put forward at the meeting and ask Directors questions about the
Company.
CFD or
Contract for Difference
A financial instrument, which provides exposure
to an underlying equity with the provider financing the cost to the
buyer with the buyer receiving the difference of any gain or paying
for any loss.
Cum
Dividend
A dividend that has been declared but not yet
paid out.
Custodian
An entity that is appointed to safeguard a
company's assets.
Depositary
Certain AIFs must appoint depositaries under
the requirements of AIFMD. A depositary's duties include, inter
alia, safekeeping of the Company's assets and cash monitoring.
Under AIFMD the depositary is appointed under a strict liability
regime. The Company's Depositary is Northern Trust Investor
Services Limited (with effect from 27 November 2021).
Dividend
Income receivable from an investment in
shares.
|
Discount (APM)
|
|
|
|
|
|
The amount, expressed as a
percentage, by which the share price is less than the NAV per
Ordinary Share.
|
|
As
at 30 April 2024
|
|
|
|
|
|
NAV per Ordinary Share
|
|
a
|
|
204.62
|
|
Share price
|
|
b
|
|
190.50
|
|
Discount
|
|
(b÷a)-1
|
|
6.9%
|
|
|
|
|
|
|
Ex-dividend
date
The date from which you are not entitled to
receive a dividend which has been declared and is due to be paid to
Shareholders.
Financial
Conduct Authority or "FCA"
The independent body that regulates the
financial services industry in the UK.
|
Gearing (APM)
|
|
|
|
|
|
A way to magnify income and capital
returns, but which can also magnify losses. The Company may be
geared through the CFDs and if utilised, the overdraft facility,
with The Northern Trust Company.
|
|
As
at 30 April 2024
|
|
|
|
£'000
|
|
CFD Notional Market
Value*
|
|
a
|
|
54,452
|
|
Non-base cash
borrowings**
|
|
b
|
|
2,004
|
|
NAV
|
|
c
|
|
275,682
|
|
Gearing (net)
|
|
((a+b)/c)
|
|
20.5%
|
|
|
|
|
|
* CFD positions in underlying asset
value.
** Non-base cash borrowings
represent borrowings in Yen
|
|
|
|
|
|
|
|
|
|
| |
Gross assets
(APM)
The Company's total assets including any
leverage amount.
Gross market
exposure
The Company's total exposure investment value
in the financial market prices.
Gross
underlying notional exposure
The company's total exposure value on the
underlying asset of its derivatives.
Index
A basket of stocks which is considered to
replicate a particular stock market or sector.
Investment
company
A company formed to invest in a diversified
portfolio of assets.
Investment
trust
A closed end investment company which is based
in the United Kingdom ("UK") and which meets certain tax conditions
which enables it to be exempt from UK corporation tax on its
capital gains. This Company is an investment trust.
|
Leverage (APM)
|
|
|
|
|
|
Under the Alternative Investment
Fund Managers Directive ("AIFMD"), leverage is any method by which
the exposure of an Alternative Investment Fund ("AIF") is increased
through borrowing of cash or securities or leverage embedded in
derivative positions.
|
|
Under AIFMD, leverage is broadly
similar to gearing, but is expressed as a ratio between the assets
(excluding borrowings) and the net assets (after taking account of
borrowing). Under the gross method, exposure represents the sum of
the Company's positions after deduction of cash balances, without
taking account of any hedging or netting arrangements. Under the
commitment method, exposure is calculated without the deduction of
cash balances and after certain hedging and netting positions are
offset against each other.
Under both methods the AIFM has set
current maximum limits of leverage for the Company of
200%.
|
|
As
at 30 April 2024
|
|
|
Gross
£'000
|
Commitment
£'000
|
|
Security Market value
|
|
a
|
272,259
|
272,259
|
|
CFD Notional market value
|
|
b
|
54,452
|
54,452
|
|
Cash and cash
equivalents*
|
|
c
|
11,703
|
9,988
|
|
NAV
|
|
d
|
275,682
|
275,682
|
|
Leverage
|
|
(a+b+c)/d
|
123%
|
122%
|
* Cash and cash equivalents represent
gross overdraft and net overdraft with Northern Trust.
Market
liquidity
The extent to which investments can be bought
or sold at short notice.
Net
assets
An investment company's assets less its
liabilities.
Net Asset
Value (NAV) per Ordinary Share
Net assets divided by the number of Ordinary
Shares in issue (excluding any shares held in treasury).
Net
exposure
The difference between the Company's long
positions and short positions
Ordinary
Shares
Ordinary shares of £0.01 each in the capital of
the Company.
|
Ongoing charges (APM)
|
|
|
|
|
|
|
A measure, expressed as a percentage
of average NAV, of the regular, recurring annualised costs of
running an investment company.
|
|
|
|
|
|
|
|
|
|
|
Period ended 30 April 2024
|
|
|
|
|
|
|
Average NAV
|
|
a
|
|
262,345,758
|
|
|
Annualised expenses
|
|
b
|
|
2,753,044
|
|
|
Ongoing charges
|
|
(b÷a)
|
|
1.05%
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
| |
Portfolio
A collection of different investments
constructed and held in order to deliver returns to Shareholders
and to spread risk.
Share Premium
to Net Asset Value (APM)
The amount, expressed as a percentage, by which
the share price is more than the Net Asset Value per
share.
Share
buyback
A purchase of a company's own shares. Shares
can either be bought back for cancellation or held in
treasury.
Share
Price
The price of a share as determined by buyers
and sellers on the relevant stock exchange.
Treasury
shares
A company's own shares held in Treasury account
by the Company, but which are available to be resold in the
market.
|
Total return (APM)
|
|
|
|
|
|
|
A measure of performance that
includes both income and capital returns. This takes into account
capital gains and reinvestment of dividends paid out by the Company
into its Ordinary Shares on the ex-dividend date.
|
|
|
|
|
|
|
|
|
|
|
Period ended 30 April 2024
|
|
|
Share price
|
NAV
|
|
|
Opening at 1 November 2023 (in
pence)
|
a
|
|
162.50
|
174.51
|
|
|
Closing at 30 April 2024 (in
pence)
|
b
|
|
190.50
|
204.62
|
|
|
Price movement (b÷a)-1
|
c
|
|
17.2%
|
17.3%
|
|
|
Dividend reinvestment*
|
d
|
|
2.5%
|
2.2%
|
|
|
Total return
|
(c+d)
|
|
19.7%
|
19.5%
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
| |
* The dividend reinvestment is
calculated on the assumption that dividends paid out by the Company
are reinvested into the shares of the Company at NAV at the
ex-dividend date.
Volatility
A measure of how much a share moves up and down
in price over a period of time.
COMPANY INFORMATION
DIRECTORS,
INVESTMENT MANAGER AND ADVISERS
|
DIRECTORS
June Aitken (Chair)
Kate Cornish-Bowden (Audit & Risk Committee
Chair)
Craig Cleland (Senior Independent
Director)
John Charlton-Jones
BROKER
Peel Hunt LLP
100 Liverpool Street
London
EC2M 2AT
DEPOSITARY AND
CUSTODIAN
Northern Trust Investor Services
Limited
50 Bank Street
London
E14 5NT
REGISTRAR
Link Group
10th Floor Central Square
29 Wellington Street
Leeds
LS1 4DL
LEGAL
ADVISER
Stephenson Harwood LLP
1 Finsbury Circus,
London
EC2M 7SH
|
INVESTMENT
MANAGER
Chikara Investments LLP (formerly Coupland
Cardiff Asset Management LLP)
31-32 St James's Street
London
SW1A 1HD
Website - www.chikarainvestments.com
REGISTERED
OFFICE*
6th Floor
125 London Wall
London
EC2Y 5AS
COMPANY
SECRETARY AND ADMINISTRATOR
Apex Listed Companies Services (UK)
Limited
6th Floor, 125 London
Wall
London
EC2Y 5AS
Website - www.apexgroup.com
AUDITOR
Johnston Carmichael LLP
7-11 Melville Street
Edinburgh
EH3 7PE
|
|
|
|
|
COMPANY
SECURITY INFORMATION AND IDENTIFICATION CODES
|
WEBSITE
|
www.ccjapanincomeandgrowthtrust.com
|
|
ISIN
|
GB00BYSRMH16
|
|
SEDOL
|
BYSRMH1
|
|
BLOOMBERG TICKER
|
CCJI LDN
|
|
LEGAL ENTITY IDENTIFIER (LEI)
|
549 300 FZANMYIORK 1K98
|
|
GLOBAL INTERMEDIARY IDENTIFICATION NUMBER
(GIIN)
|
6 HEK HT - 99 999 -SL - 826
|
* Registered in England no. 9845783