CC Japan Income Growth Trust PLC Fund Data

The NAV per share of CC Japan Income & Growth Trust rose by +2.81% in June, whilst the share price rose +4.41% and the Topix TR Index rose +0.53%, (all returns on a total return, sterling adjusted basis). This rounded off a strong first half of performance for the strategy, delivering a +27.40% rise in the NAV and a +28.52% rise in the share price vs the +16.29% rise for the benchmark. The majority of this alpha came in Q2 as our tech-related names came to the fore. However, it has not all been thanks to the 'AI trade' - the likes of the megabanks and Tokio Marine have been meaningful contributors. Our largest positive performance driver by some margin was Tokyo Electron, which more than doubled over 2026. Other high-value-add tech supply chain names such as Dexerials, Anritsu and Pillar Corp have each represented 200-300bps of performance for the strategy. We have been taking profits quite consistently in these names (and others) year-to-date, conscious of expanding valuations even as earnings expectations continue to rise. It has been, and will likely continue to be, important to remain agile in this environment. Pockets of the market are catching strong updrafts before attention (and capital flows) turns to another. One example is our holding in Fujikura, a world-leading optical fibre company, which has performed strongly over the last three years. As valuations became more challenging, we took profits and rotated into Kioxia, Japan's NAND memory player, which at the time was trading at 4x forward P/E. We are focused on remaining disciplined in the sorts of companies we own to gain exposure to this theme; these are ones providing critical parts/services and being paid now rather than relying on monetisation of AI further down the line. We have maintained a c.30% position in Financials, which has performed well, alongside other more out of favour industries such as Health Care, which has not. These provide ballast to the portfolio, and we would expect to move inverse to the names above. We are concentrating our hunt for new ideas in the 'forgotten' sectors where we are uncovering a number of exciting opportunities. Since COVID, the market has been driven by 'value', especially 'deep value', which has experienced a considerable re-rating. This has been, in part, thanks to corporate governance reform which, until now, has been focused on bringing change at the bottom end; the lowest hanging fruit. With just 3% of the market trading below 0.5x book today, the next stage of reform is focused on the 'better' companies who could be doing even more with their capital. Our typical investees are much more likely to be in this second wave. The combination of inflation shining a light on pricing power and a new focus for corporate governance reform gives us every confidence in our strategy - to buy financially sound, growth business, making meaningful returns to shareholders.

The NAV per share of CC Japan Income & Growth Trust rose by +2.81% in June, whilst the share price rose +4.41% and the Topix TR Index rose +0.53%, (all returns on a total return, sterling adjusted basis). This rounded off a strong first half of performance for the strategy, delivering a +27.40% rise in the NAV and a +28.52% rise in the share price vs the +16.29% rise for the benchmark. The majority of this alpha came in Q2 as our tech-related names came to the fore. However, it has not all been thanks to the 'AI trade' - the likes of the megabanks and Tokio Marine have been meaningful contributors. Our largest positive performance driver by some margin was Tokyo Electron, which more than doubled over 2026. Other high-value-add tech supply chain names such as Dexerials, Anritsu and Pillar Corp have each represented 200-300bps of performance for the strategy. We have been taking profits quite consistently in these names (and others) year-to-date, conscious of expanding valuations even as earnings expectations continue to rise. It has been, and will likely continue to be, important to remain agile in this environment. Pockets of the market are catching strong updrafts before attention (and capital flows) turns to another. One example is our holding in Fujikura, a world-leading optical fibre company, which has performed strongly over the last three years. As valuations became more challenging, we took profits and rotated into Kioxia, Japan's NAND memory player, which at the time was trading at 4x forward P/E. We are focused on remaining disciplined in the sorts of companies we own to gain exposure to this theme; these are ones providing critical parts/services and being paid now rather than relying on monetisation of AI further down the line. We have maintained a c.30% position in Financials, which has performed well, alongside other more out of favour industries such as Health Care, which has not. These provide ballast to the portfolio, and we would expect to move inverse to the names above. We are concentrating our hunt for new ideas in the 'forgotten' sectors where we are uncovering a number of exciting opportunities. Since COVID, the market has been driven by 'value', especially 'deep value', which has experienced a considerable re-rating. This has been, in part, thanks to corporate governance reform which, until now, has been focused on bringing change at the bottom end; the lowest hanging fruit. With just 3% of the market trading below 0.5x book today, the next stage of reform is focused on the 'better' companies who could be doing even more with their capital. Our typical investees are much more likely to be in this second wave. The combination of inflation shining a light on pricing power and a new focus for corporate governance reform gives us every confidence in our strategy - to buy financially sound, growth business, making meaningful returns to shareholders.