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The Company currently conducts its affairs so that securities issued by Aberdeen Japan Investment Trust PLC can be recommended by financial advisers to ordinary retail investors in accordance with the FCA’s rules in relation to non-mainstream investment products and intends to continue to do so for the foreseeable future.
The Company’s securities are excluded from the FCA’s restrictions which apply to non-mainstream investment products because they are securities in an investment trust.
The value of investments and the income from them may go down as well as up and investors may get back less than the amount invested. The tax benefits relating to ISA investments may not be maintained. Please refer to the Key Facts documents contained in the ISA/Share Plan Brochure & Application form for general and specific investment risks attaching to the individual trusts.Read the detailed Risk Warning
Past performance is not a guide to future results.
See latest monthly factsheet below for performance history.
At close 06-Mar-2014Ord
Source: Morningstar, NAV = Net Asset Value, excluding income.
Bow Bells House
One Bread Street
Registered in England as an Investment Company Number 3582911
To achieve long-term capital growth principally through investment in listed Japanese companies which are believed by the Investment Manager to have above average prospects for growth.
In this webcast Kwok Chern Yeh gives an update on a wide range of subjects included the Trust’s performance, the sectoral positioning of the portfolio and an outlook for the Trust.
The Company’s investment mandate was changed on 7 October 2013 following approval by Shareholders. The new investment objective is to achieve long-term capital growth principally through investment in listed Japanese companies which are believed by the Investment Manager to have above average prospects for growth. The new investment policy also provides for the underlying Yen net exposure to be appropriately Sterling hedged at levels to be determined from time to time by the Board in consultation with the Investment Manager.
The Company’s new name is Aberdeen Japan Investment Trust PLC.
Further details are provided in the announcement attached below.Announcement
Japanese equities closed much weaker in January, as exporters were hurt by the strengthening yen. On a positive note, new machinery orders reached a five-year high, pointing to a recovery in investments.
Bank of Japan’s Governor Kuroda said that quantitative easing could go on well beyond two years to meet the 2% inflation target. He also expects the local economy to continue recovering after the sales tax hike in April.
In portfolio activity, we initiated a position in Denso, one of the world’s largest auto parts suppliers. The company, originally a parts manufacturing division of Toyota Motor, has successfully diversified its business; it is now a leading supplier of advanced automotive technology and components for all major auto manufacturers. With its scale and strong balance sheet, Denso is well positioned to tackle the challenges within the industry.
The reporting season started in earnest and our holdings' earnings generally either met or exceeded our expectations. In other portfolio-related news, Canon appointed its first two independent directors, in what was seen as a step forward for corporate governance in Japan. Separately, the group adopted a conservative outlook for the new year, citing concerns over sales growth in emerging markets.
Toyota Motor and Honda Motor projected record sales goals this year, driven by demand from the US and China. However, both maintained a cautious outlook on concerns of slowing demand in emerging markets. Domestic car sales are also expected to fall this year due to a consumption tax hike.
Diaper maker Unicharm announced a 12 billion yen share buyback, equivalent to 1.2% of outstanding shares. Although current valuations are high, the company’s record payout is positive for shareholders.
Japan appears to be on the recovery path, thanks to the policy of the Abe administration. However, looking ahead, the most imminent challenge for the Japanese economy is the consumption tax hike in April, which will place a financial burden on households and may result in a slowdown in consumption spending. While the Bank of Japan’s monetary policy remains accommodative with large scale easing expected to continue for a while, investors have turned their attention and expectations to Abe’s ‘third arrow’, namely structural reforms and growth strategies to revive the Japanese economy.
With the recent correction in the market and a generally encouraging earnings momentum for Japanese companies, helped not only by the weaker yen but also by improving business performance, valuations have eased and Japanese stocks look attractive.
Source: Monthly Factsheet Aberdeen Asset Managers Limited