LONDON STOCK EXCHANGE ANNOUNCEMENT

CC JAPAN INCOME & GROWTH TRUST PLC

FINAL RESULTS FOR THE YEAR ENDED 31 OCTOBER 2025

 

LEI: 549300FZANMYIORK1K98

Information disclosed in accordance with the DTR 4.1.3 - this announcement contains regulatory information

CC Japan Income & Growth Trust plc ("CCJI" or the "Company") has today announced its annual financial results for the year ended 31 October 2025.

The statements below are extracted from the Company's Annual Report and Accounts for the year ended 31 October 2025 (the "2025 Annual Report"). The 2025 Annual Report, which includes the notice of the Company's forthcoming annual general meeting, will be posted to shareholders at the end of January 2026. Members of the public may obtain copies of the 2025 Annual Report from Frostrow Capital LLP, 25 Southampton Buildings, London WC2A 1AL or it can be downloaded from the Company's website at https://ccjapanincomeandgrowthtrust.com where up to date information on the Company, including daily NAV, share prices and fact sheets, can also be found.

The 2025 Annual Report will be submitted to the Financial Conduct Authority and will shortly be available in full, unedited text for inspection on the National Storage Mechanism ("NSM"): https://data.fca.org.uk/#/nsm/nationalstoragemechanism

 

Strategic Report

Investment Objective

The investment objective of the CC Japan Income & Growth Trust plc (the "Company" or "CCJI") is to provide shareholders with dividend income combined with capital growth, mainly through investment in equities listed or quoted in Japan.

 

Overview

Financial Information

As at 31 October 2025

£324.0m Net assets (2024: £265.8m)

240.5p Net asset value ("NAV") per share1 (2024: 197.3p)

222.0p Share price (2024: 178.8p)

7.7% Share price discount to NAV2 (2024: 9.4%)

1.06% Ongoing charges2 (2024: 1.03%)

19.3% Gearing (net)2 (2024: 19.2%)

Performance summary

	For the year to	For the year to
	31 Oct 2025	31 Oct 2024
	% change	% change
NAV cum-income total return per share1,2,3	25.2%	16.1%
Share price total return1,2,3	27.9%	13.2%
Tokyo Stock Exchange Price Index ("TOPIX") total return	24.1%	13.4%
Revenue return per share	5.92p	5.32p
Dividends per share:
First interim dividend	1.65p	1.60p
Second interim dividend	4.25p	3.85p
Total dividends per share for the year	5.90p	5.45p

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 at the end of this announcement.

3      Total returns are stated in sterling, including dividends reinvested.

 

Highlights

CCJI annual performance summary

Year to October unless otherwise stated	Launch to 20161	2017	2018	2019	2020	2021	2022	2023	2024	2025
Share price (p)	122.40	152.00	153.00	150.00	119.50	154.00	138.75	162.50	178.75	222.00
Share price total return (%)	23.5	27.2	2.8	0.7	(17.3)	32.7	(7.1)	20.9	13.2	27.9
NAV per share (p)	123.90	146.00	148.60	158.90	136.80	165.40	151.09	174.50	197.31	240.52
NAV total return per share (%)	24.9	20.7	4.1	9.9	(11.1)	24.3	(5.9)	18.9	16.1	25.2
TOPIX total return in sterling (%)	32.7	10.1	(0.4)	7.2	0.3	11.9	(9.5)	12.0	13.4	24.1
Revenue return per share (p)	3.60	4.06	4.55	5.26	5.04	4.75	5.14	5.37	5.32	5.92
Dividends per share (p)	3.00	3.45	3.75	4.50	4.60	4.75	4.90	5.30	5.45	5.902

1          Period from the Company's launch on 15 December 2015 to 31 October 2016.

2          Includes second interim dividend of 4.25p for the year ended 31 October 2025.

 

Chairman's Statement

"Since its launch on 15 December 2015 to 31 October 2025, the Company has comfortably outperformed the TOPIX and has been the best performer in its AIC peer group, having returned 189.8% and 216.0% on a share price and Net Asset Value ("NAV") per share total return basis respectively, compared with the TOPIX which returned 149.1%."

15 December 2025 marked the Company's tenth anniversary since launch, and the Board was delighted to be joined on this day by the investment management team, founding Directors, shareholders and advisers to acknowledge this milestone at the market closing bell ceremony at the London Stock Exchange.

This milestone was worthy of celebration. Since its launch on 15 December 2015 to 31 October 2025, the Company has comfortably outperformed the TOPIX and has been the best performer in its AIC peer group, having returned 189.8% and 216.0% on a share price and Net Asset Value ("NAV") per share total return basis respectively, compared with the TOPIX which returned 149.1%.

Furthermore, the Company's dividend has risen every year since inception, and will achieve a tenth consecutive increase upon the payment of the Company's second interim dividend for the year ended 31 October 2025 on 2 March 2026 earning the Company a coveted place on the AIC's 'Next Generation Dividend Heroes' list.

The Company's performance showcases the resilience of the Investment Manager's quality-led, differentiated approach to investing in Japan. Throughout the ten years, the investment process has remained consistent. The Investment Manager focuses on high quality Japanese companies that prioritise growth and shareholder returns, and trade at reasonable valuations. In addition the portfolio companies are benefitting from ongoing corporate governance reforms. This long-term outperformance has largely stemmed from the Investment Manager's disciplined adherence to process and consistent value added through careful stock selection.

We thank shareholders for their continued support, which we witnessed at the Company's Annual General Meeting held in March 2025, where shareholders voted overwhelmingly in favour of the Company's continuation as an investment trust for a further three-year period, with 99.9% of votes cast in favour of the resolution.

The year under review

I am pleased to report that the Company has delivered another year of strong performance in what has been a volatile market environment. The 12 month reporting period included a sharp sell-off following "Liberation Day", and despite the subsequent tariff-related volatility that rattled Japanese markets, performance for the full year was again ahead of the TOPIX, supported by strong stock selection, particularly among financials.

For the twelve months to 31 October 2025, the Company's share price total return was 27.9% and the NAV total return per share was 25.2%. The discount at which the shares trade relative to NAV narrowed during the year, enhancing shareholder returns. The TOPIX, a widely used measure of Japanese equity performance, returned 24.1% in sterling terms and on a total return basis. It is pleasing that against all the challenges, the Company's disciplined investment approach has continued to deliver attractive returns for shareholders.

Discount

The share price discount to NAV ended the year at 7.7% (31 October 2024: 9.4%). The Board did not consider it necessary to undertake share buybacks in the year, but it continues to monitor the discount closely and will act quickly and decisively when it judges intervention to be in shareholders' best interests.

Income and dividends

The Company remains committed to a progressive dividend policy. Net revenue per share for the year was 5.92 pence, compared with 5.32 pence in the prior year. The Board has declared total dividends of 5.90 pence per share, representing an increase of 8.3% over last year.

Having paid an initial first interim dividend of 1.65 pence per share on 1 August 2025, a second interim dividend of 4.25 pence per share will be paid on 2 March 2026 to shareholders on the register as at 30 January 2026, with an ex-dividend date of 29 January 2026.

We believe the Company remains well positioned to sustain its record of dividend growth, supported not only by a portfolio of cash-generative businesses and strong reserves, but also Japan's broader shift towards improved capital efficiency, governance and shareholder returns.

Gearing

Structural gearing, maintained at approximately 20% of shareholders' funds, remains a core component of the Company's investment strategy. While gearing can increase short-term volatility, the Board continues to believe that a consistent, disciplined use of leverage, whilst amplifying short-term market movements, can enhance long-term capital and income returns for shareholders, removing any additional market timing risk.

Investment Manager and company advisers

As a reminder, our Investment Management team has been led by Richard Aston since the Company's inception. Richard has extensive knowledge of the Japanese market built over the last three decades, which has seen him cultivate strong relationships with company managements and establish a respected reputation among Japanese corporates. Richard is supported by portfolio managers/analysts Megumi Takayama and Theo Wyld. Megumi, who joined Chikara Investments LLP ("Chikara") in December 2018, specialises in Japanese small and mid-caps, and brings with her extensive experience in the IPO market. She began her career at Bloomberg in 2006 before moving into Japanese equity sales at SMBC Nikko and later Nomura.

We were pleased to welcome Theo to the Company's investment management team in October 2024, and he is already proving to be a great addition. Before joining Chikara, Theo spent more than five years at Ruffer, where he was latterly the co-manager of the Ruffer Japanese Fund. Prior to this, he spent three years as a research analyst at JM Finn, covering UK and global equities.

Our operational arrangements have also been bolstered this year following a review completed by the Board in 2024. Frostrow Capital LLP ("Frostrow") was appointed with effect from 1 January 2025 as the Company's Alternative Investment Fund Manager ("AIFM"), Administrator and Company Secretary. Frostrow was also appointed to provide investor relations and marketing services to the Company, alongside the team at Chikara. This new relationship will enhance the quality of financial reporting and improve governance standards by adding an additional layer of independent oversight. It will also strengthen our marketing and investor relations efforts, enhancing shareholder communications and generating further demand for the Company's shares.

To this end you will note a higher profile for the Company through various media to include videos, podcasts and in-person meetings, together with ongoing interaction with national and investment industry journalists. We will continue to appraise methods for increasing engagement with shareholders and disseminating information through various communication channels. We were pleased to launch the Company's redesigned website in September. The new site can be found at https://www.ccjapanincomeandgrowthtrust.com

Annual General Meeting ("AGM")

The Company's tenth AGM will be held at the offices of Stephenson Harwood LLP, 1 Finsbury Circus, London EC2M 7SH at 12 noon on Friday, 27 February 2026. The Portfolio Managers will give a presentation to shareholders on the Company's recent performance, notable portfolio changes and their thoughts on the outlook for the Japanese equity market. Shareholders will have an opportunity to meet the Directors, the investment management team and other Company advisers.

We very much look forward to seeing as many shareholders as possible this year. For those investors who are not able to attend the meeting in person, a video recording of the Portfolio Manager's presentation will be uploaded to the website after the meeting. Shareholders can submit questions in advance by writing to the Company Secretary at [email protected]. If shareholders are unable to attend the meeting in person, they are strongly encouraged to vote by proxy and to appoint the "Chair of the Meeting" as their proxy. Details of how to vote, either electronically, by proxy form or through CREST, can be found in the Notes to the Notice of AGM in the 2025 Annual Report.

Outlook

The Company has outperformed the TOPIX over the past 12 months and remains well placed to benefit from several supportive trends: high-quality growth companies using strong balance sheets to allocate capital more efficiently; the resilience of strong domestic businesses less exposed to global trade frictions; and the undervalued corporate governance-driven winners emerging across the market.

Japan's stock market has delivered strong performance over the period since the Company's inception. The Board and Investment Manager believe that the economic and regulatory changes in Japan are likely to benefit good domestic businesses and that Japan will remain a favourable environment for investors. While the yen is unusually weak by any measure, it is worth remembering that foreign investors are still significantly underweight the Japanese market.

On behalf of the Board, I would like to thank shareholders for their continued support.

June Aitken

Chairman

20 January 2026

 

Portfolio Manager's Report

"The Japanese equity market has continued to build on the strong performance of recent years, with accelerating corporate reforms and the transition within the domestic economy from deflation to inflation both contributing significantly to a robust corporate earnings environment."

Performance review

The NAV per share of CC Japan Income & Growth Trust rose by 25.2% in total return sterling terms during the year to 31 October 2025. The Japanese equity market recorded strong returns over the reporting period, with the TOPIX returning 24.1% (in sterling terms and on a total return basis) despite extreme volatility at different stages during the year as sentiment towards equities reflected broader geopolitical discourse and evolving economic concerns.

The healthy annual return continues the strong performance track record of the Company in the 10 years since launch on 15 December 2015, with a capital return of 144.8% complemented by an average 8.0% increase year on year in the distributable dividend. This attractive long-term return profile is consistent with the opportunity outlined at the inception of the Company in December 2015.

The Japanese equity market has continued to build on the strong performance of recent years, with accelerating corporate reforms and the transition within the domestic economy from deflation to inflation both contributing significantly to a robust corporate earnings environment. It is encouraging that these trends have not been derailed by heightened uncertainties over the direction of the global economy or deteriorating international relations. The Corporate Governance Code, introduced by the Japanese Financial Services Agency in 2015, is also approaching its 10th anniversary, and has been a significant factor in the improving corporate outlook and consistency of equity market returns. Upcoming amendments to this Code augur well for the forward-looking investment opportunity.

The top performing holding over the period was Fujikura which is a beneficiary of the capital expenditure required to deliver artificial intelligence. An important distinction is that its financial returns are being realised now and are not based on speculative projections. Fujikura is an industry leading manufacturer of optical fibre and optical connectors which are vital components in the construction of datacentres.

SBI Holdings, Japan's leading online financial services company, and Nintendo, the video game and entertainment company, were also top active contributors. SBI Holdings gained increasing recognition for its successful transition to a financial conglomerate at the forefront of exciting domestic opportunities in banking, venture capital, asset management and cryptocurrency. Nintendo launched its new hardware model, the Switch 2, to strong acclaim and is set to further its reputation and financial success as a global entertainment provider. Despite strong performance Nintendo remains undervalued, having one of the highest ratios of net cash to equity in Japan.

The widespread pressures to improve capital efficiency and corporate governance in Japan have accelerated all aspects of corporate reform with notable examples of consolidation and privatisation. Within the portfolio, Carta Holdings, a listed subsidiary of marketing giant Dentsu, was subject to a tender offer by NTT DoCoMo at a premium to the prevailing share price. This has resulted in the mobile telephone company becoming the largest shareholder and enhancing its collaboration with Dentsu to accelerate the benefits of Carta's digital marketing expertise. Additionally, Technopro announced a management buyout at a significant premium to the share price.

There has been a common theme in the recent quarterly results of the weakest performers in the portfolio over the last twelve months. Shin-Etsu Chemical, Shimano and Hamamatsu Photonics had all established world leading positions in their respective operations but are not immune to industry vagaries. Recent turbulence in trading activity due to inventory consolidation and capital investment delays has resulted in a temporary slowdown in demand which has affected their near-term expectations. The fact that the challenges have emerged in such a short period of time also suggests that the recovery may appear just as quickly when the issues subside. The commitment to capacity investment and shareholder returns at each of these companies confirms our confidence in their longer-term prospects.

Emphasis on the long-term investment potential remains a key characteristic of the strategy and the process behind it. An exuberance over artificial intelligence has been a notable feature over the last few months. While acknowledging the opportunities this advancing technology presents, it is important to maintain a disciplined approach to stock selection and to not compromise on valuation, governance standards or cashflow generation which are the key facets of our approach.

Portfolio positioning

We believe that the Japanese equity market has become increasingly attractive to both domestic and international investors, underpinned by the structural reforms aimed at improving capital efficiency and corporate governance. The Tokyo Stock Exchange's market restructuring and its 2023 initiative urging companies to adopt "management conscious of cost of capital and stock price" have encouraged firms to optimise balance sheets, enhance profitability, and boost valuations through measures such as share buybacks, dividend hikes and unwinding of crossholdings. Complementing this, Japan's Financial Services Agency ("FSA") has reinforced governance standards through revisions to the Stewardship and Corporate Governance Codes, promoting transparency, board independence, and shareholder engagement.

But, very importantly, firms are not merely shrinking to realise inherent value. We see increasing evidence that companies are seeking to create value and expressing a renewed ambition by allocating resources to strategic areas for growth such as digital transformation, advanced technologies, and overseas expansion to strengthen long-term competitiveness. Consequently, our universe of investment candidates continues to broaden and highlighted below are recently established holdings new to the strategy.

Fujikura has established a strong global presence in specialist fields including optical fibre and telecommunication infrastructure. Technological advances have resulted in a dramatic pick-up in demand in recent years which has allowed the company to improve its financial standing and reward shareholders through a significant rise in its annual dividend distribution.

Hoya is a world leader in optical technologies with strong global positions in the fields of technology and healthcare. The company has indicated an improved shareholder return policy going forward with progressive dividend increases and a more tightly defined allocation of the cashflow generated and retained on its balance sheet. We believe the combination of investment for growth with a greater consistency of dividend and share buybacks going forward will offer an attractive total return.

Shimano is a leading global manufacturer of bicycle parts and fishing equipment. It has experienced an unusually long inventory correction in the aftermath of the pandemic which is now coming to an end, particularly in Europe, its main market. The company announced a new mid-term plan with much clearer commitments on cash allocation and initiatives to improve capital efficiency which have offered a considerably more attractive investment proposition.

Noritsu Koki has over the years transitioned from a family run manufacturing company to an independent investment vehicle with primary interests in a small number of niche sectors including audio equipment and peripherals, parts and materials manufacturing, and healthcare and research services. Its operating businesses are cash generative which, combined with a clear shareholder return policy, offer the potential of rising returns.

Conversely, some companies face new challenges and the holdings in Noevir, Tokyo Metro and GMO Internet have been fully exited over the reporting period. Cosmetic manufacturer Noevir is experiencing new competitive pressures from Korean makers and consequently a more challenging outlook for its products. We are concerned that the company management has taken a very conservative stance which could threaten the long-term track record of dividend increases. The first mid-term plan released by Tokyo Metro since its IPO disappointingly fell short of expectations in relation to capital efficiency, cost control and consequently shareholder return. GMO Internet, a network infrastructure provider, performed well during the first half of the year in response to selected business portfolio restructuring, but we believe that the sprawling parent-subsidiary group structure falls short of the governance standards that we encourage.

Financial companies feature prominently in the current portfolio. The leading banks, Sumitomo Mitsui Financial Holdings and Mitsubishi UFJ Holdings, have been beneficiaries of the Bank of Japan's intention to normalise monetary policy which has progressed during the last 12 months but has further to go. Sumitomo Mitsui Trust Holdings, JAFCO, and Japan Securities Finance will benefit from improving prospects for financial returns as interest rates are gradually increased.

Outlook

As the Company reaches its 10th anniversary, it is possible to demonstrate how the combined efforts of the Japanese government, the Tokyo Stock Exchange ("TSE") and the FSA have been the catalyst for a cultural shift in Japanese corporate responsibilities. This has resulted in considerable benefits to investors of this Company through a combination of capital appreciation complemented by a progressive increase in the annual dividend. We believe this track record serves as the foundation of more to come.

In an interview for the Nikkei newspaper, Hiromi Yamaji, the Chief Executive Officer of the Japan Exchange Group and the architect of the market reform initiative, highlighted the substantial progress so far but also suggested that this represented less than a fifth of the ultimate potential. To this end, we believe that the speed of change is accelerating and is evident in data reflecting associated activity such as dividend growth, share buybacks and unwinding of cross-shareholdings.

A revision of the Corporate Governance Code due in 2026 will encourage companies to move beyond basic reform and balance sheet optimisation towards more efficient allocation of resources for strategic expansion. This aligns closely with the perspectives promoted by Japan's new Prime Minister, Sanae Takaichi, and indeed the investment principles of this strategy. Such a strong commitment to sustainable, long-term value creation signals an additional change in corporate behaviour and enhances the investment attraction of Japanese equities.

Richard Aston, Portfolio Manager

Chikara Investments LLP

20 January 2026

 

Top Ten Holdings

Sumitomo Mitsui Financial Group Inc

4.8% of net assets (2024: 7.0%)

 

Sumitomo Mitsui Financial Group was established through the merger of Sumitomo Bank and Sakura Bank in 2001. It is one of Japan's leading financial groups offering services such as commercial banking, leasing, securities, consumer finance and asset management. The company targets continued growth in shareholder value by promoting disciplined investment and alliances, sound financials and progressive shareholder returns.

 

Fujikura Ltd

4.6% of net assets (2024: nil)

 

Fujikura is a leading manufacturer of optical fibre, optical components and other advanced products used across a range of industries. Recent strong global demand for datacentres and AI infrastructure has driven a dramatic turnaround in operational performance. The most recent mid-term plan seeks to capture the opportunity through further growth investment whilst maintaining a disciplined approach to capital allocation. Consequently, the business expansion will be accompanied by favourable trends in dividend distribution and share buybacks.

 

Nintendo Co Ltd

4.6% of net assets (2024: 4.1%)

 

Nintendo is an international console and handheld gaming company with leading positions in both hardware and software production. Initiatives to improve the financial return on the company's extensive intellectual property are being accompanied by efforts to bolster its corporate governance. Management has a clear policy towards dividends and is taking a more proactive stance towards share buybacks.

 

Mitsubishi UFJ Financial Group Inc

4.3% of net assets (2024: 4.9%)

 

Mitsubishi UFJ Financial Group ("MUFJ") was established in 2005 through the merger of Mitsubishi Tokyo Financial Group and UFJ Holdings. It is now one of Japan's leading financial services groups with established operations around the world, most prominently in Asia and North America. This includes a strategic alliance and a 23% stake in Morgan Stanley. MUFJ continues to promote a balanced capital management policy maintaining a strong capital base, appropriate allocations to strategic growth opportunities and enhancing shareholder returns.

 

Hoya Corp

4.2% of net assets (2024: nil)

 

Hoya operates in two main business segments in which it has established world leading positions. The information technology division, which includes hard disk drive substrates, extreme ultraviolet mask blanks and image related products, and the Life Care division which covers healthcare and medical related products such as eyeglasses. The shareholder return policy prioritises capital allocation for future growth through organic expansion and M&A activity but this has been accompanied recently by a clearer focus on balance sheet efficiency and intent to deliver a more consistent and progressive dividend.

 

ITOCHU Corp

4.1% of net assets (2024: 4.4%)

 

Itochu is one of Japan's leading trading companies involved in a broad range of businesses from the provision of upstream raw materials to downstream retail activities. In recent years Itochu has successfully introduced a business investment strategy based on high levels of capital efficiency and appropriate cash allocation including increasing returns to shareholders in the form of dividend and share buybacks.

 

Mitsubishi Corp

4.0% of net assets (2024: 3.2%)

 

Mitsubishi Corp is a diversified conglomerate with broad industrial interests including mineral resources, natural gas, food, automotive and other sectors. Its business performance has been strengthened by strategic rebalancing of its business portfolio and improvements in capital efficiency. Management has raised their distribution targets for shareholders with an emphasis on progressive increases in dividend distribution and flexible consideration of dividends.

 

Tokyo Electron Ltd

3.9% of net assets (2024: 2.0%)

 

Tokyo Electron is a global supplier of semiconductor production equipment, holding leading market shares in a number of key segments in the manufacturing process. It has maintained a proactive shareholder return policy, balancing financial soundness with investment opportunities and the goal of achieving strong performance, both operating and investment, through industry cycles.

 

Shin-Etsu Chemical Co Ltd

3.7% of net assets (2024: 3.7%)

 

Shin-Etsu Chemical is a manufacturer with top global market share in PVC, semiconductor silicon wafers and a number of other semiconductor related and functional materials. The company established a global production base and developed a list of top tier international customers, which has allowed it to generate a strong track record of growth despite underlying volatility in individual markets. The company has, in recent years, given greater attention to shareholder returns within their capital policy, while maintaining emphasis on stability and progression.

 

SoftBank Corp

3.6% of net assets (2024: 4.1%)

 

SoftBank Corp provides telecommunication and associated network services in Japan and is a subsidiary of the SoftBank Group. The company continues to demonstrate strong growth in its business services segment and from its "beyond carrier" strategy which includes e-commerce leader Yahoo Japan, online fashion retailer Zozo, social network Line and electronic payment service PayPay. After a period of significant investment the management expects growth opportunities to accelerate and enhance returns to shareholders commensurately.

 

Holdings in Portfolio

As at 31 October 2025

Company	Main business area	Tokyo Stock Exchange ("TSE") sector	Market value £'000	% of net assets
Sumitomo Mitsui Financial Group Inc	Banks	Banks	15,429	4.8
Fujikura Ltd	Optical technology	Other products	14,911	4.6
Nintendo Co Ltd	Gaming	Other products	14,824	4.6
Mitsubishi UFJ Financial Group Inc	Banks	Banks	14,044	4.3
Hoya Corp	Optical technology	Precision instruments	13,639	4.2
ITOCHU Corp	Trading company	Wholesale	13,243	4.1
Mitsubishi Corp	Trading company	Wholesale	12,837	4.0
Tokyo Electron Ltd	Semiconductor production equipment	Electrical appliances	12,641	3.9
Shin-Etsu Chemical Co Ltd	Silicon wafers & PVC	Chemicals	12,080	3.7
SoftBank Corp	Mobile telecoms & services	Info & communications	11,513	3.6
Tokio Marine Holdings Inc	Insurance	Insurance	11,424	3.5
SBI Holdings Inc	Financial services & investment	Securities & commodities	10,248	3.2
Dexerials Corp	Functional materials	Chemicals	9,253	2.9
Hamamatsu Photonics KK	Optical technology	Electrical appliances	9,235	2.8
Chugai Pharmaceutical Co Ltd	Pharmaceutical	Pharmaceutical	9,023	2.7
JAFCO Group Co ltd	Venture capital	Other financing business	8,793	2.7
Kyocera Corp	Electronic components	Electrical appliances	7,954	2.5
Japan Securities Finance Co Ltd	Specialist financial services	Other financing business	7,773	2.4
Marui Group Co Ltd	Retail	Retail trade	7,595	2.3
Sompo Holdings Inc	Insurance	Insurance	7,561	2.3
Sumitomo Mitsui Trust Group Inc	Banks	Banks	7,104	2.2
Nissan Chemical Corp	Functional materials	Chemicals	6,692	2.1
Nippon Parking Development Co Ltd	Real estate	Real estate	6,648	2.0
Shimano Inc	Bicycle components	Transport equipment	6,006	1.9
Noritsu Koki Co Ltd	Manufacturing	Precision instruments	5,885	1.8
ARE Holdings Inc	Recycling	Precious metals	5,876	1.8
Nippon Gas Co Ltd	Utilities	Retail trade	5,823	1.8
Sinko Industries Ltd	Air conditioning systems	Machinery	5,712	1.8
Daiichi Sankyo	Pharmaceutical	Pharmaceutical	5,525	1.7
ZOZO Inc	Online fashion retail	Retail trade	5,522	1.7
Hitachi Ltd	IT & infrastructure	Electrical appliances	5,256	1.6
Insource Co Ltd	Corporate training	Services	5,049	1.5
PILLAR Corp	Industrial materials	Machinery	4,800	1.5
Kao Corp	Cosmetics & toiletries	Chemicals	4,345	1.3
Denso Corp	Automotive components	Transport equipment	4,166	1.3
WingArc1st Inc	Data solutions	Info & communications	2,487	0.8
Shoei Co Ltd	Motorbike helmets	Other products	1,694	0.5
Total holdings			312,610	96.4
Other net assets			8,680	2.7
Royal London Short-Term Money Market Fund	Cash and cash equivalents	-	2,759	0.9
Net asset value			324,049	100.0

 

 

Top Ten

As at 31 October 2025

Top Ten (Tokyo Stock Exchange ("TSE") sector)

TSE sector	% of net assets
Banks	11.3
Electrical appliances	10.7
Chemicals	10.0
Other products	9.7
Wholesale	8.1
Precision instruments	6.0
Insurance	5.8
Retail trade	5.8
Other financing business	5.1
Pharmaceutical	4.5
Top Ten	77.0
Other sectors1	19.4
Other net assets	3.6
Total	100.0

1          Other Sectors comprise seven sectors, which individually, is less than 4.5% each of the net assets.

Top Ten (main business areas)

Main business area	% of net assets
Optical technology	11.6
Banks	11.3
Trading company	8.1
Insurance	5.8
Functional materials	5.0
Gaming	4.6
Pharmaceutical	4.5
Semiconductor production	3.9
Silicon wafers & PVC	3.7
Mobile telecoms & services	3.6
Top Ten	62.1
Other business areas	34.3
Other net assets	3.6
Total	100.0

 

 

Top Ten Contracts For Difference ("CFDs")

Company	Main business area	TSE sector	Absolute value £'000	Absolute value as a % of net assets	Market value £'000
Sumitomo Mitsui Financial Group Inc	Banks	Banks	3,086	1.0	127
Fujikura Ltd	Optical technology	Other products	2,982	0.9	649
Nintendo Co Ltd	Gaming	Other products	2,965	0.9	149
Mitsubishi UFJ Financial Group Inc	Banks	Banks	2,809	0.9	53
Hoya Corp	Optical technology	Precision instruments	2,728	0.8	360
ITOCHU Corp	Trading company	Wholesale	2,649	0.8	116
Mitsubishi Corp	Trading company	Wholesale	2,567	0.8	92
Tokyo Electron Ltd	Semiconductor production equipment	Electrical appliances	2,528	0.8	357
Shin-Etsu Chemical Co Ltd	Silicon wafers & PVC	Chemicals	2,416	0.7	(189)
SoftBank Corp	Mobile telecoms & services	Info & communications	2,303	0.7	40
Top Ten CFDs			27,033	8.3	1,754
Other CFDs			35,489	11.0	(12)
Total CFDs			62,522	19.3	1,742

 

Investment Policy, Results and Other Information

Investment policy

The Company invests in equities listed or quoted in Japan. The Company may also invest in exchange traded funds in order to gain exposure to such equities. Investment in exchange traded funds shall be limited to not more than 20 per cent. of gross assets at the time of investment. The Company may also invest in listed Japanese real estate investment trusts ("J-REITs").

The Company may enter into long only contracts for difference or equity swaps for gearing and efficient portfolio management purposes.

No single holding (including any derivative instrument) will represent more than 10 per cent. of gross assets at the time of investment and, when fully invested, the portfolio is expected to have between 30 to 40 holdings, although there is no guarantee that this will be the case and it may contain a lesser or greater number of holdings at any time.

The Company has the flexibility to invest up to 10 per cent. of its gross assets at the time of investment in unquoted or untraded companies.

The Company is not constrained by any index benchmark in its asset allocation.

Borrowing policy

The Company may use borrowings for settlement of transactions, to meet on-going expenses and may be geared through borrowings and/or by entering into long only contracts for difference ("CFDs") or equity swaps that have the effect of gearing the Company's portfolio to seek to enhance performance. The aggregate of borrowings and long only CFDs and equity swap exposure will not exceed 25 per cent. of net asset value at the time of drawdown of the relevant borrowings or entering into the relevant transaction, as appropriate, although the Company's normal policy will be to utilise and maintain gearing to a lower limit of 20 per cent. of net asset value at the time of drawdown of the relevant borrowings or entering into the relevant transaction, as appropriate. It is expected that any borrowings entered into will principally be denominated in yen.

Hedging policy

The Company does not currently intend to enter into any arrangements to hedge its underlying currency exposure to investments denominated in yen, although the Investment Manager and the Board may review this from time to time.

Results and dividend

The Company's revenue return after tax for the financial year amounted to £7,980,000 (2024: £7,173,000). In August 2025, the Company paid an interim dividend of 1.65p (2024: 1.60p) per share. On 16 January 2026, the Directors declared a second interim dividend for the year ended 31 October 2025 of 4.25p (2024: 3.85p) per share, which will be paid on 2 March 2026 to shareholders on the register at 30 January 2026. Therefore, the total dividend in respect of the financial year to 31 October 2025 will be 5.90p (2024: 5.45p) per share.

The Company made a capital gain after tax of £57,638,000 (2024: gain of £30,758,000). The total return, including income, after tax for the year was a gain of £65,618,000 (2024: gain of £37,931,000).

 

Risk and Risk Management

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 these 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 principal and emerging risks. These fall into three categories:

·      Strategic and business risk;

·      Financial and operational risk; and

·      Regulatory and compliance risk.

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.

The Committee continues to review the processes in place to mitigate risk; and to ensure that these are appropriate and proportionate in the current market environment. The principal risks, together with a summary of the processes and internal controls used to manage and mitigate risks where possible, are outlined below. There have been no material changes to the principal risks during the year.

Emerging risks

The Committee considers emerging risks which it defines as potential trends, sudden events or changing risks which are characterised by a high degree of uncertainty in terms of occurrence probability and possible effects on the Company. As the impact of emerging risks is understood, they may be entered on the Company's risk matrix and mitigating actions considered as necessary. In assessing the risks and how they can be mitigated, the Board has given particular attention to those risks that might threaten the viability of the Company. The Board considers the current global economic environment to be a factor which exacerbates existing risks, rather than it being a new emerging risk.

Principal Risks	Mitigation	Movement during the year
Poor investment performance
The Company's investment performance depends on the Investment Manager's ability to identify successful investments in accordance with the Company's investment policy. The Company's share price may not always reflect underlying net asset value.	·      The Investment Manager has a well-defined investment strategy and process which is regularly reviewed by the Board. ·      The Board monitors the Company's investment performance against its peer group over a range of periods. ·      Whilst the Company does not have a benchmark, the Board measures performance for reference purposes against the TOPIX and High Yield indices. At each meeting, the Board discusses the Japanese investment environment, and receives reports on the composition of the portfolio, any recent sales and purchases, and expectations of dividend income. ·      The Management Engagement Committee reviews the appointment of the Investment Manager on an annual basis. ·      The Board monitors the share price discount to NAV and has authority to buy back shares.	ó
Market risk
Changes in the investment, economic or political conditions in Japan, and/ or in the countries in which the Company's investee companies operate could substantially and adversely affect the Company's prospects. In addition to changing economic factors such as interest rates, foreign exchange rates and employment, unpredictable factors such as natural disasters and diplomatic events may impact market risk.	·      The Directors acknowledge that market risk is inherent in the investment process. The Company maintains a diversified portfolio of quoted investments. ·      The Board reviews the impact of economic indicators on the portfolio with the Investment Manager at every Board meeting. ·      The Company's investment policy states that no single holding will represent more than 10 per cent. of the Company's Gross Assets at the time of investment and the portfolio is expected to have between 30 to 40 holdings in normal circumstances. ·      The portfolio is comprised of listed, liquid, realisable securities. ·      In addition to receiving regular market updates from the Investment Manager and reports at Board meetings, the Board convenes more often during periods of extreme volatility. ·      The Company's policy is not to hedge against any foreign currency movements. Income received from investee companies is translated into sterling on receipt.	ó
Geopolitical risk
War and conflict can impact investor confidence and threaten global economic growth. Geopolitical instability in the region may increase volatility, reduce economic growth, and affect the prospects of the companies in the portfolio.	·      The Board discusses the impact of geopolitics on the portfolio with the Investment Manager at every Board meeting. ·      The Company has built up a revenue reserve and the Board regularly reviews the net income available for distribution using the Investment Manager's sensitivity analysis of revenue estimates. ·      The Company also has a Special Reserve available for distribution in the event of unforeseen revenue shortfall. ·      The Manager's emphasis on companies which can pay sustainable dividends has helped alleviate the impact. ·      The board recognises that the potential for mitigation is likely to be limited other than through diversification.	ó
Key person risk
Loss of investment manager or key personnel. The departure of any key individuals from the Investment Manager without adequate succession planning could have a material impact on the Company's business.	·      The Board ensures that adequate resources are in place to manage the Company. ·      Richard Aston attends all Board meetings, and the Board also meets regularly with other members of the Chikara team, including portfolio managers/analysts Megumi Takayama and Theo Wyld. ·      The Investment Manager's key individuals are significantly invested in the Company ensuring interests with the Company's shareholders are aligned.	ó
Excess leverage
The Company uses borrowings to seek to enhance investment returns. While this has the potential to enhance investment returns in rising markets, in falling markets the impact could be detrimental to performance.	·      An ability to gear is a unique advantage of closed-end companies and structural gearing is a clearly stipulated component of the Company's investment policy. This is highlighted in shareholder communications. ·      Gearing is monitored and strict restrictions on borrowings are imposed: gearing continues to operate within a limit of 25% of NAV at the time of investment. ·      The gearing is achieved using derivatives in the form of Contracts for Difference ("CFDs"). Further information on financial instruments and risk can be found in Note 2(c) to the Financial Statements and in Note 16 to the Financial Statements.	ó
Cyber risk
Cyber crime or fraud could impact any of the Company's service providers, the Investment Manager, the Depositary or the Administrator. Business interruption could mean service providers are unable to meet their contractual obligations or that information is late, misleading or inaccurate, or data privacy is breached.	·      All key service providers produce annual internal control reports for review by the Audit and Risk Committee. These reviews include consideration of their business continuity plans and the associated cyber security risks. ·      Penetration testing is carried out by the Investment Manager. ·      The Board reviews the cyber security policies of all service providers.	ñ
Service provider operational risk
Poor performance of appointed services providers including Company Secretary, Depositary, Custodian, Administrator and/or Registrar can result in operational disruption, business interruption or reputational damage.	·      The performance of appointed professional service providers is closely monitored by the Board to ensure they meet contractual obligations. ·      The Company Secretary provided a summary of internal controls reports from all service providers. ·      During the year under review and after assessing competitive alternatives, the Board appointed Frostrow Capital LLP to provide Administration and Company Secretarial services. The new appointment is aimed at enhancing the accuracy and quality of financial reporting. Frostrow Capital LLP has also been appointed as the Company's AIFM in accordance with the Alternative Investment Fund Managers Directive ("AIFMD").	ò
ESG and climate change
Potential reputational damage from non-compliance with regulations or incorrect disclosures. Climate change leads to additional costs and risks for portfolio companies.	·      The Company's ESG Policy, which is updated annually, is published on the Company's website and the AIC website. ·      The Investment Manager's approach is to include ESG factors for consideration in the investment process, such as climate change, where they are relevant and have a material impact on stock performance. ·      Chikara Investments LLP (the Investment Manager) is a signatory to the UN Principles of Responsible Investment ("PRI") and reports annually according to the PRI reporting framework. ·      The Investment Manager also complies with the obligations of both the UK Stewardship Code and the Japan Stewardship Code.	ó

 

Statement of Directors' Responsibilities

The Directors are responsible for preparing the Annual Report and Accounts in accordance with applicable laws and regulations.

Company law requires the Directors to prepare financial statements for each financial year. Under that law, the Directors have elected to prepare the financial statements in accordance with United Kingdom Generally Accepted Accounting Practice, including FRS 102, which is the Financial Reporting Standard applicable to the UK and Republic of Ireland and applicable law. Under company law, the Directors must not approve the financial statements unless they are satisfied that they give a true and fair view of the state of the Company's affairs as at the end of the year and of the net return for the year. In preparing these financial statements, the Directors are required to:

·          select suitable accounting policies and then apply them consistently;

·          make judgements and estimates, which are reasonable and prudent;

·          state whether applicable accounting standards have been followed, subject to any material departures disclosed and explained in the financial statements;

·          prepare the financial statements on a going concern basis unless it is inappropriate to presume that the Company will continue in business; and

·          prepare a directors' report, a strategic report and directors' remuneration report which comply with the requirements of the Companies Act 2006.

The Directors are responsible for keeping adequate accounting records that are sufficient to show and explain the Company's transactions and which disclose with reasonable accuracy at any time the financial position of the Company and enable them to ensure that the financial statements comply with the Companies Act 2006. They are also responsible for safeguarding the assets of the Company and hence for taking reasonable steps for the prevention and detection of fraud and other irregularities.

The Directors are also responsible for preparing a Strategic Report, Directors' Report, Directors' Remuneration Report and Corporate Governance Statement that comply with applicable laws and regulations.

The Company Reports and Accounts are published on its website at www.ccjapanincomeandgrowthtrust.com which is maintained by Frostrow. The work carried out by the auditor does not involve consideration of the maintenance and integrity of this website and, accordingly, the auditor accepts no responsibility for any changes that have occurred to the financial statements since being initially presented on the website. Legislation in the United Kingdom governing the preparation and dissemination of financial statements may differ from legislation in other jurisdictions.

Directors' confirmation statement

The Directors each confirm to the best of their knowledge that:

(a)     the financial statements, prepared in accordance with United Kingdom Generally Accepted Accounting Practice, including FRS 102, give a true and fair view of the assets, liabilities, financial position and profit of the Company; and

(b)     this Annual Report and Accounts includes a fair review of the development and performance of the business and position of the Company, together with a description of the principal risks and uncertainties that it faces.

Having taken advice from the Audit and Risk Committee, the Directors consider that the Annual Report and Accounts taken as a whole is fair, balanced and understandable and provides the information necessary for shareholders to assess the Company's performance, business model and strategy.

For and on behalf of the Board

June Aitken

Chairman

20 January 2026

 

Financial Statements

Income Statement

For the year ended 31 October 2025

		Year ended 31 October 2025			Year ended 31 October 2024
		Revenue	Capital	Total	Revenue	Capital	Total
	Note	£'000	£'000	£'000	£'000	£'000	£'000
Gains on investments	3	-	60,189	60,189	-	34,432	34,432
Currency losses		-	(500)	(500)	-	(1,841)	(1,841)
Income	4	10,496	-	10,496	9,357	-	9,357
Investment management fee	5	(423)	(1,691)	(2,114)	(400)	(1,599)	(1,999)
Other expenses	6	(908)	-	(908)	(759)	-	(759)
Return on ordinary activities before finance costs and taxation		9,165	57,998	67,163	8,198	30,992	39,190
Finance costs	7	(153)	(360)	(513)	(97)	(234)	(331)
Return on ordinary activities before taxation		9,012	57,638	66,650	8,101	30,758	38,859
Taxation	8	(1,032)	-	(1,032)	(928)	-	(928)
Return on ordinary activities after taxation		7,980	57,638	65,618	7,173	30,758	37,931
Return per share	13	5.92p	42.78p	48.70p	5.32p	22.83p	28.15p

The total column of the Income Statement is the profit and loss account of the Company. All revenue and capital items in the above statement were derived 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 year is also the total comprehensive income for the year.

The notes below form part of these financial statements.

Statement of Financial Position

As at 31 October 2025

		31 October	31 October
		2025	2024
	Note	£'000	£'000
Fixed assets
Investments at fair value through profit or loss	3	315,369	258,478
Current assets
Cash and cash equivalents		4,359	4,006
Cash collateral in respect of Contracts for Difference ("CFDs")		659	413
Amounts due in respect of CFDs		2,860	8,027
Other debtors	10	4,190	4,062
		12,068	16,508
Creditors: amounts falling due within one year
Cash collateral in respect of CFDs		(1,917)	(8,837)
Amounts payable in respect of CFDs		(1,119)	(17)
Other creditors	11	(352)	(291)
		(3,388)	(9,145)
Net current assets		8,680	7,363
Total assets less current liabilities		324,049	265,841
Net assets		324,049	265,841
Capital and reserves
Share capital	12	1,348	1,348
Share premium		98,067	98,067
Special reserve		64,671	64,671
Capital reserve
- Revaluation gains on equity investments held at year end	3	75,495	35,561
- Other capital reserves		76,023	58,319
Revenue reserve		8,445	7,875
Total shareholders' funds		324,049	265,841
NAV per share - shares (pence)	14	240.52p	197.31p

Approved by the Board of Directors and authorised for issue on 20 January 2026 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 below form part of these financial statements.

 

Statement of Changes in Equity

For the year ended 31 October 2025

		Share	Share	Special	Capital	Revenue
		capital	premium	reserve	reserve	reserve	Total
	Note	£'000	£'000	£'000	£'000	£'000	£'000
Balance at 1 November 2024		1,348	98,067	64,671	93,880	7,875	265,841
Return on ordinary activities after taxation		-	-	-	57,638	7,980	65,618
Dividends paid	9	-	-	-	-	(7,410)	(7,410)
Balance at 31 October 2025		1,348	98,067	64,671	151,518	8,445	324,049

For the year ended 31 October 2024

		Share	Share	Special	Capital	Revenue
		capital	premium	reserve	reserve	reserve	Total
	Note	£'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		-	-	-	30,758	7,173	37,931
Dividends paid	9	-	-	-	-	(7,208)	(7,208)
Balance at 31 October 2024		1,348	98,067	64,671	93,880	7,875	265,841

The Company's distributable reserves consist of the Special reserve, Revenue reserve and Capital reserve attributable to realised profits.

The notes below form part of these financial statements.

 

Statement of Cash Flows

For the year ended 31 October 2025

	Year ended	Year ended
	31 October	31 October
	2025	2024
	£'000	£'000
Operating activities cash flows
Return on ordinary activities before finance costs and taxation1	67,163	39,190
Adjustment for:
Gains on equity investments	(49,541)	(26,332)
Realised gains on CFDs	(16,943)	(122)
Movement in CFD balances	(897)	(11)
Increase in other debtors	(367)	(73)
Increase/(decrease) in other creditors	49	(52)
Tax withheld on overseas income	(1,032)	(928)
Net cash flow from operating activities	(1,568)	11,672
Investing activities cash flows
Purchases of equity investments	(116,996)	(63,521)
Proceeds from sales of equity investments	109,885	62,923
Realised gains on CFDs	16,943	122
Net cash flow used in investing activities	9,832	(476)
Financing activities cash flows
Equity dividends paid	(7,410)	(7,208)
Finance costs paid	(501)	(322)
Net cash flow used in financing activities	(7,911)	(7,530)
Increase in cash and cash equivalents	353	3,666
Cash and cash equivalents at the beginning of the year	4,006	340
Cash and cash equivalents at the end of the year	4,359	4,006

1          Inflow from dividends was £9,076,000 (2024: £8,314,000).

The notes below form part of these financial statements.

Notes to the Accounts

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 on 15 December 2015. On the same day, trading of the shares commenced on the London Stock Exchange.

The principal activity of the Company is that of an investment trust within the meaning of section 1158 of the Corporation Tax Act of 2010.

With effect from 1 January 2025, the Company's registered office changed from 6th Floor, 125 London Wall, London, EC2Y 5AS to 25 Southampton Buildings, London, WC2A 1AL, following the appointment of Frostrow Capital LLP as AIFM, Administrator and Company Secretary.

2. Accounting Policies

The principal accounting policies followed by the Company are set out below:

(a) Basis of accounting

The financial statements have been prepared in accordance with FRS 102 ("the Financial Reporting Standard applicable in the UK and Republic of Ireland") issued by the Financial Reporting Council, 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 and the Companies Act 2006. The financial statements have been prepared on a historical cost basis except for the modification to a fair value basis for certain financial instruments as specified in the accounting policies below.

They have also been prepared on the assumption that approval as an investment trust will continue to be granted. As required by its Articles of Association, a vote for the Company's continuation will be put forward at the AGM in 2028, having last been passed at the AGM on 3 March 2025.

Going concern

The financial statements have been prepared on a going concern basis. In forming this opinion, the Directors have considered any potential impact of wars in Ukraine and the Middle East; and the increase in geopolitical tension between the US and China, on the going concern and viability of the Company. In making their assessment, the Directors have reviewed income and expense projections and the liquidity of the investment portfolio, and considered the mitigation measures which key service providers, including the Investment Manager, continue to have in place to maintain operational resilience.

The Company's net assets as at 31 October 2025 were £324.0 million (2024: £265.8 million). As at 31 October 2025, the Company held approximately £315,369 million in quoted investments (2024: £258.5 million) and had cash of £4.4 million (2024: £4.0 million). The total expenses (excluding finance costs and taxation) for the year ended 31 October 2025 were £3.0 million (2024: £2.8 million), which represented approximately 1.06% (2024: 1.03%) of average net assets during the year. At the date of approval of this report, based on the aggregate net assets of investments and cash held, the Company has substantial operating expenses cover.

The Company's ability to continue as a going concern for the period assessed by the Directors has been considered over the period to 31 January 2027, which is at least 12 months from the date the financial statements were authorised for issue.

The financial statements have been presented in sterling, which is also the functional currency as this is the currency of the primary economic environment in which the Company operates. The Board, having regard to the currency of the Company's share capital and the predominant currency in which it pays distributions, expenses and its shareholders operate, has determined that sterling is the functional currency.

In preparing these financial statements the Directors have considered the impact of ESG and climate change risk as an emerging risk and have concluded that while climate change impacts operating conditions of portfolio companies and increases obligations, it does not have a material impact on the value of the Company's investments. In line with FRS 102, investments are valued at fair value, which for the Company are quoted bid prices for investments in active markets at 31 October 2025 and therefore reflect market participants' view of climate change risk.

(b) Investments

As the Company's business is investing in financial assets with a view to profiting from their total return in the form of increases in fair value, financial assets are held at fair value through profit or loss in accordance with FRS 102 Section 11: 'Basic Financial Instruments', and Section 12: 'Other Financial Instruments Issues'. The Company manages and evaluates the performance of these investments on a fair value basis in accordance with its investment strategy, and information about the investments is provided on this basis to the Board of Directors.

Upon initial recognition, investments are classified by the Company as "at fair value through profit or loss". They are recognised on the date they are traded and are measured initially at fair value, which is taken to be their transaction price, excluding expenses incidental to purchases which are expensed to capital on acquisition. Subsequently investments are revalued at fair value, which is the bid market price for listed investments over the time until they are sold. Any unrealised gains/losses are included in the fair value of the investments.

Changes in the fair value of investments held at fair value through profit or loss and gains or losses on disposal are included in the capital column of the Income Statement within "gains on investments".

Money market funds are classified as listed investments and are measured at fair value through profit and loss.

(c) Derivatives

Derivatives comprise Contracts for Difference ("CFDs"), which are measured at fair value and valued by reference to the underlying market value of the corresponding security, the valuation of which is detailed in Note 2b. CFDs are held for investment purposes. Where the fair value is positive the CFD is presented as a current asset, and where the fair value is negative the CFD is presented as a current liability. Gains or losses on these derivative transactions are recognised in the Income Statement.

They are recognised in either the capital or revenue column of the Income Statement depending on their nature. To the extent that any gains or losses are of a mixed revenue and capital nature, they are apportioned between revenue and capital accordingly. The CFD balance is made up of transactions in relation to the underlying equity held by the Company, with the risks embedded in the CFDs disclosed in Note 16.

(d) Foreign currency

Transactions denominated in foreign currencies including dividends are translated into sterling at exchange rates as at the date of the transaction. Assets and liabilities denominated in foreign currencies at the year end are reported at the rates of exchange prevailing at the year end. Foreign exchange movements on investments and derivatives are included in the Income Statement within gains on investments. Any other gain or loss is included as an exchange gain or loss to capital or revenue in the Income Statement as appropriate.

(e) Income

Investment income has been accounted for on an ex-dividend basis or when the Company's right to the income is established. Special dividends are credited to capital or revenue in the Income Statement, according to the circumstances surrounding the payment of the dividend. Overseas dividends are included gross of withholding tax recoverable.

Interest receivable on deposits is accounted for on an accrual basis.

(f) Dividends payable

Interim dividends are recognised when the Company pays the dividend. Final dividends are recognised in the period in which they are approved by the shareholders. This year, as was also the case last year, a second interim dividend is being paid in substitution for a final dividend.

(g) Expenses

All expenses are accounted for on an accruals basis and are charged as follows:

·          the investment management fee is charged 20% to revenue and 80% to capital;

·          CFD finance costs are charged 20% to revenue and 80% to capital;

·          investment transactions costs are allocated to capital; and

·          other expenses are charged wholly to revenue.

(h) Taxation

The tax expense represents the sum of the tax currently payable and deferred tax. The tax currently payable is based on the taxable profit for the year. Taxable profit differs from net profit as reported in the Income Statement because it excludes items of income or expenses that are taxable or deductible in other years and it further excludes items that are never taxable or deductible. The Company's liability for current tax is calculated using tax rates that were applicable at the financial reporting date.

Where expenses are allocated between capital and revenue any tax relief in respect of the expenses is allocated between capital and revenue returns on the marginal basis using the Company's effective rate of corporation taxation for the relevant accounting period.

Deferred taxation is recognised in respect of all timing differences that have originated but not reversed at the financial reporting date, where transactions or events that result in an obligation to pay more tax in the future or right to pay less tax in the future have occurred at the financial reporting date. This is subject to deferred tax assets only being recognised if it is considered more likely than not that there will be suitable profits from which the future reversal of the timing differences can be deducted. Deferred tax assets and liabilities are measured at the rates applicable to the legal jurisdictions in which they arise.

(i) Other receivables and other payables

Other receivables and other payables do not carry any interest and are short term in nature and are accordingly stated at their nominal value.

(j) Segmental reporting

The Directors are of the opinion that the Company is engaged in a single segment of business, that of an investment trust, as disclosed in Note 1.

(k) Accounting estimates, judgements and assumptions

The preparation of financial statements requires the Directors to make estimates and assumptions that affect the reported amounts of assets and liabilities at the date of the financial statements. Although these estimates are based on management's best knowledge of current facts, circumstances and, to some extent, future events and actions, the Company's actual results may ultimately differ from those estimates, possibly significantly.

There have not been any instances requiring any significant estimates or judgements in the year.

(l) Cash and cash equivalents

Cash comprises cash and demand deposits. Cash equivalents, including bank overdrafts and short-term, highly liquid investments that are readily convertible to known amounts of cash, are subject to insignificant risks of changes in value, and are held for the purpose of meeting short-term cash commitments rather than for investment or other purposes.

(m) Cash collaterals

Cash collaterals are held in segregated accounts on behalf of brokers against the CFDs. Cash collaterals are accounted for and shown on the Statement of Financial Position either as a receivable or payable, depending on whether cash is due from or due to the broker.

(n) Reserves

Capital reserves

Profits/(losses) from selling investments and changes in fair value arising upon the revaluation of investments that remain in the portfolio are shown in the capital column of the Income Statement and allocated to the capital reserve. Capital reserves attributable to realised profits are distributable.

Special distributable reserve

As stated in the Company's prospectus dated 13 November 2015, in order to increase the distributable reserves available to facilitate the flexibility and source of future dividends, the Company resolved that, conditional upon First Admission to listing on the London Stock Exchange and the approval of the Court, the net amount standing to the credit of the share premium account of the Company immediately following completion of the First Issue be cancelled and transferred to a special distributable reserve. This reserve is distributable.

Revenue reserves

The revenue reserve reflects all income and expenditure recognised in the revenue column of the Income Statement and is distributable by way of dividends.

Share premium

The Company's share premium is the excess of the issue price of the share over its nominal value on shares issued subsequent to the First Issue. The share premium is not available for distribution.

3. Investments

(a) Summary of valuation

	As at	As at
	31 October 2025	31 October 2024
	£'000	£'000
Investments listed on a recognised overseas investment exchange	315,369	258,478
	315,369	258,478

(b) Movements

During the year ended 31 October 2025

	2025	2024
	£'000	£'000
Book cost at the beginning of the year	222,917	207,351
Revaluation gains on equity investments held at beginning of the year	35,561	24,636
Valuation at beginning of the year	258,478	231,987
Purchases at cost	116,996	63,321
Sales:
- proceeds	(109,646)	(63,162)
- gains on investment holdings sold during the year	9,607	15,407
Movements in revaluation gains on investments held at year end	39,934	10,925
Valuation at end of the year	315,369	258,478
Book cost at end of the year	239,874	222,917
Revaluation gains on equity investments held at year end	75,495	35,561
Valuation at end of the year	315,369	258,478

Transaction costs on investment purchases for the year ended 31 October 2025 amounted to £47,800 (2024: £26,500) and on investment sales for the year amounted to £46,200 (2024: £27,200).

The Company received £109,646,000 (2024: £63,162,000) from investments sold during the year. The book cost of these investments when they were purchased was £100,039,000 (2024: £47,755,000). These investments have been revalued over time and until they were sold any unrealised gains/losses were included in the fair value of the investments.

(c) Gains/(Losses) on investments

	Year ended	Year ended
	31 October 2025	31 October 2024
	£'000	£'000
Gains on equity investment holdings sold during the year	9,607	15,407
Movements in revaluation gains on investment held at year end	39,934	10,925
Other capital (losses)/gains	(26)	3
Total gains on equity investments held at fair value	49,515	26,335
Realised gains on CFD assets and liabilities	16,943	122
Movement in unrealised (losses)/gains on CFD assets and liabilities	(6,269)	7,975
Total gains on investments held at fair value	60,189	34,432

4. Income

	Year ended	Year ended
	31 October 2025	31 October 2024
	£'000	£'000
Income from investments:
Overseas dividends	10,327	9,278
Money market fund dividends	148	-
Deposit interest	21	79
Total	10,496	9,357

Overseas dividend income is translated into sterling on receipt.

5. Investment Management Fee

	Year ended	Year ended
	31 October 2025	31 October 2024
	£'000	£'000
Fee:
20% charged to revenue	423	400
80% charged to capital	1,691	1,599
Total	2,114	1,999

The Company's Investment Manager during the financial year was Chikara Investments LLP. The Investment Manager is entitled to receive a management fee payable monthly in arrears which, until 31 October 2024, was payable at the rate of one-twelfth of 0.75% of net assets per calendar month. With effect from 1 November 2024, the Company's management fee is calculated on a tiered basis of 0.75% per annum on the first £300 million of net assets and 0.60% on net assets in excess of £300 million. There is no performance fee payable to the Investment Manager.

6. Other Expenses

	Year ended	Year ended
	31 October 2025	31 October 2024
	£'000	£'000
Administration and secretarial services1	322	171
Other expenses	400	402
Auditor's remuneration - statutory audit services	43	41
Directors' fees	143	145
Other expenses - Revenue	908	759

1          Frostrow Capital LLP was appointed on 1 January 2025 as Alternative Investment Fund Manager ("AIFM"), Administrator and Company Secretary, as well as to serve as the Company's investor relations and marketing adviser.

7. Finance Costs

	Year ended	Year ended
	31 October 2025	31 October 2024
	£'000	£'000
Interest paid - 100% charged to revenue	63	39
CFD finance cost and structuring fee - 20% charged to revenue	89	57
Structuring fees - 20% charged to revenue	1	1
	153	97
CFD finance cost and structuring fee - 80% charged to capital	356	230
Structuring fees - 80% charged to capital	4	4
	360	234
Total finance costs	513	331

8. Taxation

	Year ended 31 October 2025			Year ended 31 October 2024
	Revenue	Capital	Total	Revenue	Capital	Total
	£'000	£'000	£'000	£'000	£'000	£'000
(a) Analysis of tax charge in the year:
Overseas withholding tax	1,032	-	1,032	928	-	928
Total tax charge for the year (see Note 8 (b))	1,032	-	1,032	928	-	928

(b) Factors affecting the tax charge for the year:

The effective UK corporation tax rate for the year is 25.0% (2024: 25.0%). The tax charge for the Company differs from the charge resulting from applying the standard rate of UK corporation tax for an investment trust company.

The differences are explained below:

	Year ended 31 October 2025			Year ended 31 October 2024
	Revenue	Capital	Total	Revenue	Capital	Total
	£'000	£'000	£'000	£'000	£'000	£'000
Total return before taxation	9,012	57,638	66,650	8,101	30,758	38,859
Effective UK corporation tax at 25.00% (2024: 25.00%)	2,253	14,410	16,663	2,025	7,690	9,715
Effects of:
Overseas withholding tax suffered	1,032	-	1,032	928	-	928
Non-taxable overseas dividends	(2,619)	-	(2,619)	(2,320)	-	(2,320)
Capital gains not subject to tax	-	(14,922)	(14,922)	-	(8,148)	(8,148)
Finance costs not tax deductible	38	90	128	24	59	83
Movement in unutilised management expenses	328	422	750	271	399	670
Total tax charge for the year	1,032	-	1,032	928	-	928

The Company has an unrecognised deferred tax asset of £2,335,000 (2024: £1,543,000) based on the long-term prospective corporation tax rate of 25% (2024: 25%). No asset has been recognised in the accounts because, given the composition of the Company's portfolio, it is unlikely that this asset will be utilised in the foreseeable future. The Company has not provided for deferred tax on any tax losses.

9. Dividend

(i) Dividends paid during the financial year

	Year ended	Year ended
	31 October 2025	31 October 2024
	£'000	£'000
Second Interim - year ended 31 October 2024 3.85p (2023: 3.75p)	5,187	5,052
Interim dividend - year ended 31 October 2025 1.65p (2024: 1.60p)	2,223	2,156
Total	7,410	7,208

(ii) The dividend relating to the year ended 31 October 2025, which is the basis on which the requirements of Section 1159 of the Corporation Tax Act 2010 are considered, is detailed below:

	Year ended 31 October 2025		Year ended 31 October 2024
	Pence per		Pence per
	Share	£'000	Share	£'000
Interim dividend	1.65p	2,223	1.60p	2,156
Second interim dividend1	4.25p	5,726	3.85p	5,187
	5.90p	7,949	5.45p	7,343

1          Not included as a liability in the year ended 31 October 2025 accounts.

The Directors have declared a second interim dividend for the financial year ended 31 October 2025 of 4.25p per share. The dividend will be paid on 2 March 2026 to shareholders on the register at the close of business on 30 January 2026.

10. Other Debtors

	As at	As at
	31 October 2025	31 October 2024
	£'000	£'000
Accrued income	3,955	3,588
Sales for settlement	-	239
VAT receivable	156	193
Prepayments	79	42
Total	4,190	4,062

11. Other Creditors

	As at	As at
	31 October 2025	31 October 2024
	£'000	£'000
Amounts falling due within one year:
Accrued finance costs	36	24
Accrued expenses	316	267
Total	352	291

12. Share Capital

Share capital represents the nominal value of shares that have been issued. The share premium includes any premiums received on issue of share capital. Any transaction costs associated with the issuing of shares are deducted from share premium.

	As at 31 October 2025		As at 31 October 2024
	No. of shares	£'000	No. of shares	£'000
Allotted, issued & fully paid:
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

Since the year end, the Company has not issued any shares and there were 134,730,610 shares in issue as at 20 January 2026.

13. Return per Share

Total return per share is based on the return on ordinary activities, including income, a profit for the year after taxation of £65,618,000 (2024: profit of £37,931,000) and the weighted average number of shares in issue for the year to 31 October 2025 of 134,730,610 (2024: 134,730,610).

The returns per share were as follows:

	As at 31 October 2025			As at 31 October 2024
	Revenue	Capital	Total	Revenue	Capital	Total
Return per share	5.92p	42.78p	48.70p	5.32p	22.83p	28.15p

14. Net Asset Value per Share

Total shareholders' funds and the net asset value ("NAV") per share attributable to shareholders at the year end calculated in accordance with the Articles of Association were as follows:

NAV per Share

	As at	As at
	31 October 2025	31 October 2024
Net Asset Value (£'000)	324,049	265,841
Shares in issue	134,730,610	134,730,610
NAV per share	240.52p	197.31p

15. Related Party Transactions

Investment Manager Fees

The Company provides additional information concerning its relationship with the Investment Manager and its former AIFM, Chikara Investments LLP. The fees for the period are disclosed in Note 5 and amounts outstanding at the year ended 31 October 2025 were £199,000 (2024: £171,000).

Research purchasing agreement

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 2025 to 31 December 2025, as agreed between the Investment Manager and the Company, was US $31,000 (31 December 2024: US $31,000). The research charge for the year 1 January 2026 to 31 December 2026, as budgeted by the Investment Manager, is US $31,000.

Directors' fees and shareholdings

The Directors' fees and shareholdings are disclosed in the Directors' Remuneration Implementation Report in the 2025 Annual Report.

16. Financial Instruments and Capital Disclosures

Risk Management Policies and Procedures

As an investment trust the Company invests in equities and equity related derivatives for the long term so as to secure its investment objective stated on the inside front cover. In pursuing its investment objective, the Company is exposed to a variety of risks that could result in either a reduction in the Company's net assets or a reduction of the profits available for dividends.

These risks include market risk (comprising currency risk, interest rate risk, and other price risk), liquidity risk, and credit risk, and the Directors' approach to the management of them is set out follows.

The objectives, policies and processes for managing the risks, and the methods used to measure the risks, are set out below.

(a) Market risk

Economic conditions

Changes in economic conditions in Japan (for example, interest rates and rates of inflation, industry conditions, competition, political events and other factors) and in the countries in which the Company's investee companies operate could substantially and adversely affect the Company's prospects. The Company is subject to concentration risk as it only invests in Japanese companies but has diversified investments across the different sectors in the Japanese market.

Sectoral diversification

The Company has no limits on the amount it may invest in any sector. This may lead to the Company having significant concentrated exposure to portfolio companies in certain business sectors from time to time.

Concentration of investments in any one sector may result in greater volatility in the value of the Company's investments and consequently its NAV and may materially and adversely affect the performance of the Company and returns to shareholders.

Unquoted companies

The Company may invest in unquoted companies from time to time. Such investments, by their nature, involve a higher degree of valuation and performance uncertainties and liquidity risks than investments in listed and quoted securities and they may be more difficult to realise. However, the Company does not currently hold and has never held any unquoted securities.

Management of market risk

The Company is invested in a diversified portfolio of investments. The Company's investment policy states that no single holding (including any derivative instrument) will represent more than 10% of the Company's gross assets at the time of investment and, when fully invested, the portfolio is expected to have between 30 to 40 holdings although there is no guarantee that this will be the case and it may contain a lesser or greater number of holdings at any time. A maximum of 10% of the Company's gross assets at the time of investment may be invested in unquoted or untraded companies at time of investment.

The Investment Manager's approach will in most cases achieve diversification across a number of sectors as shown in the Holdings in Portfolio above.

(b) Currency risk

The majority of the Company's assets will be denominated in a currency other than sterling (predominantly in yen) and changes in the exchange rate between sterling and yen may lead to a depreciation of the value of the Company's assets as expressed in sterling and may reduce the returns to the Company from its investments and, therefore, negatively impact the level of dividends paid to shareholders.

Management of currency risk

The Investment Manager monitors the currency risk of the Company's portfolio on a regular basis. Foreign currency exposure is regularly reported to the Board by the Investment Manager. The Company does not currently intend to enter into any arrangements to hedge its underlying currency exposure to investment denominated in yen, although the Investment Manager and the Board will keep this approach under regular review.

Foreign currency exposures

An analysis of the Company's assets priced in yen is as follows:

	As at	As at
	31 October 2025	31 October 2024
	£'000	£'000
Equity Investments: yen	315,369	258,478
Receivables (due from brokers, dividends, and other income receivable)	3,955	3,827
CFD: yen (absolute exposure)	1,742	8,010
Cash and cash equivalent: yen	2,710	(4,849)
Total	323,776	265,466

Foreign currency sensitivity

If the Japanese yen had appreciated or depreciated by 10% as at 31 October 2025 (2024: 10%) then the value of the portfolio as at that date would have increased or decreased as shown below.

	Increase in	Decrease in	Increase in	Decrease in
	Fair Value	Fair Value	Fair Value	Fair Value
	As at 31 October	As at 31 October	As at 31 October	As at 31 October
	2025	2025	2024	2024
	£'000	£'000	£'000	£'000
Impact on capital return - increase/(decrease)	32,378	(32,378)	26,547	(26,547)
Return after taxation - increase/(decrease)	32,378	(32,378)	26,547	(26,547)

(c) Leverage risk

Derivative instruments

The Company may utilise long only CFDs or equity swaps for gearing and efficient portfolio management purposes. Leverage may be generated through the use of CFDs or equity swaps. Such financial instruments inherently contain much greater leverage than a non-margined purchase of the underlying security or instrument. This is due to the fact that, generally, only a very small portion (and in some cases none) of the value of the underlying security or instrument is required to be paid in order to make such leveraged investments. As a result of any leverage employed by the Company, small changes in the value of the underlying assets may cause a relatively large change in the Net Asset Value of the Company. Many such financial instruments are subject to variation or other interim margin requirements, which may force premature liquidation of investment positions.

Borrowing risks

The Company may use borrowings to seek to enhance investment returns. While the use of borrowings can enhance the total return on the shares where the return on the Company's underlying assets is rising and exceeds the cost of borrowing, it will have the opposite effect where the return on the Company's underlying assets is rising at a lower rate than the cost of borrowing or falling, further reducing the total return on the shares. As a result, the use of borrowings by the Company may increase the volatility of the Net Asset Value per share. The Company had no borrowings at the year end.

Any reduction in the value of the Company's investments may lead to a correspondingly greater percentage reduction in its Net Asset Value (which is likely to adversely affect the price of a share). Any reduction in the number of shares in issue (for example, as a result of buy backs) will, in the absence of a corresponding reduction in borrowings, result in an increase in the Company's level of gearing.

To the extent that a fall in the value of the Company's investments causes gearing to rise to a level that is not consistent with the Company's gearing policy or borrowing limits, the Company may have to sell investments in order to reduce borrowings, which may give rise to a significant loss of value compared with the book value of the investments, as well as a reduction in income from investments.

Management of leverage risk

The aggregate of borrowings and long only CFDs and equity swap exposure will not exceed 25% of Net Asset Value at the time of drawdown of the relevant borrowings or entering into the relevant transaction, as appropriate, although the Company's normal policy will be to utilise and maintain gearing to a lower limit of 20% of Net Asset Value at the time of drawdown of the relevant borrowings or entering into the relevant transaction, as appropriate. It is expected that any borrowings entered into will principally be denominated in yen.

The Company's level of gearing as at 31 October 2025 is disclosed in the Alternative Performance Measures section below.

(d) Interest rate risk

The Company is exposed to interest rate risk specifically through its cash holdings and on positions within the CFD portfolio. Interest rate movements may affect the level of income receivable from any cash at bank and on deposits. The effect of interest rate changes on the earnings of the companies held within the portfolio may have a significant impact on the valuation of the Company's investments. Movements in interest rates will also have an impact on the valuation of the CFD derivative contracts. Interest receivable on cash balances or paid on overdrafts is at fixed rate.

Management of interest rate risk

The possible effects on Fair Value and cash flows that could arise as a result of changes in interest rates are taken into account when making investment decisions. Derivative contracts are not used to hedge against the exposure to interest rate risk.

Interest income earned on deposits and paid on overdraft by the Company is primarily derived from fixed interest rates, and as such does not have a material exposure to interest rate risk.

The bank overdraft is an integral part of cash management and the Company has a legal right of offset and has the intention to settle this at net.

Interest rate exposure

The exposure at 31 October 2025 of financial assets and liabilities to interest rate risk is shown by reference to floating interest rates - when the interest rate is due to be reset. Due to the current low interest rate environment in Japan, no sensitivity analysis is shown as the total impact will not be material.

	As at	As at
	31 October 2025	31 October 2024
	due within one year	due within one year
	£'000	£'000
Exposure to floating interest rates: CFD derivative contract - (absolute exposure)	62,522	51,153
Collateral paid in respect of CFDs	659	413

(e) Credit risk

Credit risk is the possibility of a loss to the Company due to the failure of the counterparty to a transaction discharging its obligations under that transaction.

Cash and other assets held by the Depositary

The cash and other assets held by the Depositary or its sub-custodians are subject to counterparty credit risk as the Company's access to its cash could be delayed should the counterparties become insolvent or bankrupt.

Derivative instruments

The Company's holdings in CFD contracts present counterparty credit risks, with the risk of the counterparty (Morgan Stanley & Co International plc) defaulting.

Management of credit risk

Cash and other assets held by the Depositary

Cash and other assets that are required to be held in custody will be held by the Depositary or its sub-custodians. Cash and other assets may not be treated as segregated assets and will therefore not be segregated from any custodian's own assets in the event of the insolvency of a custodian. Cash held with any custodian will not be treated as client money subject to the rules of the Financial Conduct Authority ("FCA") and may be used by a custodian in the course of its own business. The Company will therefore be subject to the creditworthiness of its custodians. In the event of the insolvency of a custodian, the Company will rank as a general creditor in relation thereto and may not be able to recover such cash in full, or at all. The Company has appointed Northern Trust Investor Services Limited as its Depositary. The credit rating of Northern Trust was reviewed at time of appointment and will be reviewed on a regular basis by the Investment Manager and/or the Board. The Fitch's credit rating of Northern Trust is AA-.

Derivative instruments

Where the Company utilises CFDs or equity swaps, it is likely to take a credit risk with regard to the parties with whom it trades and may also bear the risk of settlement default. These risks may differ materially from those entailed in exchange-traded transactions that generally are backed by clearing organisation guarantees, daily marking-to-market and settlement, and segregation and minimum capital requirements applicable to intermediaries. Transactions entered into directly between counterparties generally do not benefit from such protections and expose the parties to the risk of counterparty default. CFD contracts generally require variation margins, and the counterparty credit risk is monitored by the Investment Manager.

The Investment Manager monitors the Company's exposure to its counterparties on a regular basis and the position is reviewed by the Directors at Board meetings. Investment transactions are carried out with a number of brokers, whose credit-standing is reviewed periodically by the Investment Manager, and limits are set on the amount that may be due from any one broker.

In summary, the exposure to credit risk as at 31 October 2025 was as follows:

	As at	As at
	31 October 2025	31 October 2024
	3 months or less	3 months or less
	£'000	£'000
Cash at bank	4,359	4,006
Amounts due in respect of CFDs	2,860	8,027
Collateral paid in respect of CFDs	659	413
Debtors	3,955	4,062
Total	11,833	16,503

None of the above assets or liabilities was impaired or past due but not impaired.

(f) Other price risk

Other price risk is the risk that the fair value or future cash flows of a financial instrument will fluctuate because of changes in market prices (other than those arising from interest rate risk or currency risk), whether those changes are caused by factors specific to the individual financial instrument or its issuer, or factors affecting similar financial instruments traded in the market.

The Company is exposed to market price risk arising from its equity investments and its exposure to the positions within the CFD portfolio. The movements in the prices of these investments result in movements in the performance of the Company.

The Company's exposure to other changes in market prices at 31 October 2025 of its equity investments was £315,369,000 (2024: £258,478,000). In addition, the Company's gross market exposure to these price changes through its CFD portfolio was £62,522,000 through long positions (2024: £51,153,000).

The Company uses CFDs as part of its investment policy. These instruments can be highly volatile and potentially expose investors to a higher risk of loss. The low initial margin deposits normally required to establish a position in such instruments permit a high degree of leverage. As a result, a relatively small movement in the price of a contract may result in a profit or loss which is high in proportion to the value of the net exposures in the underlying CFD positions. In addition, daily limits on price fluctuations and speculative position limits on exchanges may prevent prompt liquidation of positions resulting in potentially greater losses.

The Company limits the gross market exposure, and therefore the leverage, of this strategy to approximately 200% of the Company's net assets. The CFDs utilised have a linear performance to referenced stocks quoted on exchanges and therefore have the same volatility profile to the underlying stocks.

Market exposure to derivative contracts is disclosed below.

The Company's exposure to CFDs is the aggregate of Long CFD Positions. The gross and net market exposure is the same as the Company does not hold Short CFD Positions.

Exposures are monitored daily by the Investment Manager. The Company's Board also reviews exposures regularly. The gross underlying notional exposures within the CFD portfolio as at 31 October 2025 were:

	As at 31 October 2025		As at 31 October 2024
		% of net		% of net
	£'000	assets	£'000	assets
CFDs - (absolute exposure)	62,522	19.29%	51,153	19.24%
CFDs - (net exposure)	62,522	19.29%	51,153	19.24%

The Board of Directors manages the market price risks inherent in the investment portfolio by ensuring full and timely access to relevant information from the Investment Manager. The Board meets regularly and at each meeting reviews investment performance. The Board monitors the Investment Manager's compliance with the Company's objective.

Concentration of exposure to other price risk

A sector breakdown of the portfolio can be found above.

Other price risk sensitivity

The following table illustrates the sensitivity of the profit after taxation for the period to an increase or decrease of 10% in the fair values of the Company's equities and CFDs. This level of change is considered to be reasonably possible based on observation of current market conditions. The sensitivity analysis is based on the notional exposure of the Company's equities investments and long CFDs.

	As at 31 October 2025		As at 31 October 2024
	Increase in	Decrease in	Increase in	Decrease in
	Fair Value	Fair Value	Fair Value	Fair Value
	£'000	£'000	£'000	£'000
Impact on capital return - increase/(decrease)	37,615	(37,615)	30,162	(30,162)
Return after taxation - increase/(decrease)	37,615	(37,615)	30,162	(30,162)

(g) Liquidity risk

The securities of small-to-medium-sized (by market capitalisation) companies may have a more limited secondary market than the securities of larger companies. Accordingly, it may be more difficult to effect sales of such securities at an advantageous time or without a substantial drop in price than it would be for securities of a company with a large market capitalisation and broad trading market. In addition, securities of small-to-medium-sized companies may have greater price volatility as they can be more vulnerable to adverse market factors such as unfavourable economic reports.

Management of liquidity risk

The Company's Investment Manager monitors the liquidity of the Company's portfolio on a regular basis.

Liquidity risk exposure

The undiscounted gross cash outflows of the financial liabilities as at 31 October 2025, based on the earliest date on which payment can be required, were as follows:

	As at	As at
	31 October 2025	31 October 2024
	less than 3 months	less than 3 months
	£'000	£'000
Amounts payable in respect of CFDs	3,036	8,854
Other payables	352	291
Total	3,388	9,145

The Company is exposed to liquidity risks from the leverage employed through exposure to long only CFD positions. However, timely sale of trading positions can be impaired by many factors including decreased trading volume and increased price volatility. As a result, the Company could experience difficulties in disposing of assets to satisfy liquidity demands. Liquidity risk is minimised by holding sufficient liquid investments which can be readily realised to meet liquidity demands. The Company's liquidity risk is managed on a daily basis by the Investment Manager in accordance with established policies and procedures in place.

(h) Fair value measurements of financial assets and financial liabilities

The financial assets and liabilities are either carried in the Statement of Financial Position at their Fair Value, or the Statement of Financial Position 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) below.

The table below sets out Fair Value measurements using Fair Value Hierarchy.

	Level 1	Level 2	Level 3	Total
31 October 2025	£'000	£'000	£'000	£'000
Assets:
Equity investments	312,610	2,759	-	315,369
CFDs - Unrealised Fair Value gains	-	2,860	-	2,860
Liabilities:
CFDs - Unrealised Fair Value losses	-	(1,119)	-	(1,119)
Total	312,610	4,500	-	317,110
	Level 1	Level 2	Level 3	Total
31 October 2024	£'000	£'000	£'000	£'000
Assets:
Equity investments	255,765	2,713	-	258,478
CFDs - Unrealised Fair Value gains	-	8,027	-	8,027
Liabilities:
CFDs - Unrealised Fair Value losses	-	(17)	-	(17)
Total	255,765	10,723	-	266,488

There were no transfers between levels during the year (2024: nil).

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 were no Level 3 investments as at 31 October 2025 (2024: nil).

(i) Capital management policies and procedures

The Company's capital management objectives are:

·          to ensure that the Company will be able to continue as a going concern; and

·          to provide dividend income combined with capital growth, mainly through investment in equities listed or quoted in Japan and by utilising the leverage effect of CFD.

The key performance indicators are contained in the strategic report in the 2025 Annual Report.

The Company is subject to several externally imposed capital requirements:

·          As a public company, the Company has to have a minimum share capital of £50,000.

·          In order to be able to pay dividends out of profits available for distribution by way of dividends, the Company has to be able to meet one of the two capital restriction tests imposed on investment companies by company law.

The Company's capital at 31 October 2025 comprises called up share capital and reserves totalling £324,049,000 (2024: £265,841,000).

The Board regularly monitors, and has complied with, the externally imposed capital requirements.

17. Distributable Reserves

The Company's distributable reserves consist of the Special reserve, Revenue reserve and Capital reserve attributable to realised profits. As at 31 October 2025, the total distributable Capital reserve was £76,023,000 (2024: £58,319,000), and the total undistributable Capital reserve was £75,495,000 (2024: £35,561,000).

Special reserve: As stated in the Company's prospectus dated 13 November 2015, in order to increase the distributable reserves available to facilitate the flexibility and source of future dividends, the Company resolved that, conditional upon First Admission to listing on the London Stock Exchange and the approval of the Court, the net amount standing to the credit of the share premium account of the Company immediately following completion of the First Issue be cancelled and transferred to a special distributable reserve. Following approval by the Court, the cancellation became effective on 23 March 2016 and an amount of £64,671,250 was transferred to the above Special reserve at that time.

The Special reserve is distributable.

As at 31 October 2025, the Company had total distributable reserves of £149,139,000 (2024: £130,865,000).

18. Post Balance Sheet Events

There were no post balance sheet events other than those already disclosed in this report.

Other information

Glossary and Alternative Performance Measures

Administrator	The Company's administrator, the current such administrator effective 1 January 2025 being Frostrow Capital LLP, and prior to that 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 an 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.
Absolute exposure	The absolute difference between the Company's long positions and short positions.
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.
Custodian	An entity that is appointed to hold and 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.
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 share.

 

As at 31 October 2025
NAV per share (pence)	a	240.5
Share price (pence)	b	222.0
Discount	(b÷a)-1	7.7%
As at 31 October 2024
NAV per share (pence)	a	197.3
Share price (pence)	b	178.8
Discount	(b÷a)-1	9.4%

 

 

Ex-dividend date	The date from which a shareholder is 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 31 October 2025		£'000
CFD notional market value1	a	62,522
Non-base cash borrowings2	b	-
NAV	c	324,049
Gearing (net)	((a+b)/c)	19.3%
As at 31 October 2024		£'000
CFD notional market value1	a	51,153
Non-base cash borrowings2	b	-
NAV	c	265,841
Gearing (net)	((a+b)/c)	19.2%

1          CFD positions in underlying asset value.

2          Non-base cash borrowings represents borrowings in yen.

 

Gross assets (APM)	The Company's total assets including any leverage amount.
Index	A basket of stocks which is considered to replicate a particular stock market or sector.
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.
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%.

 

 

		Gross	Commitment
As at 31 October 2025		£'000	£'000
Security market value	a	315,369	315,369
CFD notional market value	b	62,522	62,522
Cash and cash equivalents1	c	5,226	3,100
NAV	d	324,049	324,049
Leverage	(a+b+c)/d	118%	118%
		Gross	Commitment
As at 31 October 2024		£'000	£'000
Security market value	a	258,478	258,478
CFD notional market value	b	51,153	51,153
Cash and cash equivalents1	c	4,616	4,186
NAV	d	265,841	265,841
Leverage	(a+b+c)/d	118%	118%

1          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 or NAV per share	Net assets divided by the number of shares in issue (excluding any shares held in Treasury).
Net exposure	The difference between the Company's long positions and short positions.
Ongoing charges (APM)	A measure, expressed as a percentage of the regular, recurring annual costs of running an investment company.

 

Year end 31 October 2025
Average NAV	a	284,089,803
Annualised expenses	b	3,013,000
Ongoing charges	(b÷a)	1.06%
Year end 31 October 2024
Average NAV	a	266,974,122
Annualised expenses	b	2,758,000
Ongoing charges	(b÷a)	1.03%

 

Portfolio	A composition of different investment holdings 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 by a company of its 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 takes into account both income and capital returns.

 

 

Year end 31 October 2025		Share price	NAV
Opening at 1 November 2024 (in pence)	a	178.8	197.3
Closing at 31 October 2025 (in pence)	b	222.0	240.5
Price movement (b÷a)-1	c	24.2%	21.9%
Dividend reinvestment1	d	3.7%	3.3%
Total return	(c+d)	27.9%	25.2%
Year end 31 October 2024		Share price	NAV
Opening at 1 November 2023 (in pence)	a	162.5	174.5
Closing at 31 October 2024 (in pence)	b	178.8	197.3
Price movement (b÷a)-1	c	10.0%	13.1%
Dividend reinvestment1	d	3.2%	3.0%
Total return	(c+d)	13.2%	16.1%

1          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 statistical measure of how much and how quickly an asset's price changes over time.

 

Company Security Information and Identification Codes

WEBSITE	www.ccjapanincomeandgrowthtrust.com
ISIN	GB00BYSRMH16
SEDOL	BYSRMH1
BLOOMBERG TICKER	CCJI LN
LEGAL ENTITY IDENTIFIER (LEI)	549 300 FZANMYIORK 1K98
GLOBAL INTERMEDIARY IDENTIFICATION NUMBER (GIIN)	6 HEK HT-99999-SL-826
REGISTRATION NUMBER	Registered in England no. 9845783

 

Status of Results Announcement

The figures and financial information for 2025 are extracted from the Annual Report and financial statements for the year ended 31 October 2025 and do not constitute the statutory accounts for the year. The Annual Report and financial statements for the year ended 31 October 2025 include the Report of the Independent Auditor which is unqualified and does not contain a statement under either section 498(2) or section 498(3) of the Companies Act 2006. The Annual Report and financial statements have not yet been delivered to the Registrar of Companies.

The figures and financial information for 2024 are extracted from the published Annual Report and financial statements for the year ended 31 October 2024 and do not constitute the statutory accounts for that year. The Annual Report and financial statements for the year ended 31 October 2024 have been delivered to the Registrar of Companies and included the Report of the Independent Auditor which was unqualified and did not contain a statement under either section 498(2) or section 498(3) of the Companies Act 2006.

21 January 2026

Frostrow Capital LLP
Company Secretary

- ENDS -

Neither the contents of the Company's website nor the contents of any website accessible from hyperlinks on the Company's website (or any other website) is incorporated into, or forms part of, this announcement.

For further information please contact:

AIFM, Administrator and Company Secretary
Frostrow Capital LLP
Email: [email protected]
Tel: 0203 709 2481