(Alliance News) - Aberdeen Japan Investment Trust PLC on Wednesday reported a rise in net asset value during its recent financial year.
At March 31, Aberdeen Japan's NAV per share stood at 617.09 pence, up 1.5% from the 607.89p recorded at the same point the year before.
Aberdeen Japan proposed a 9.0p final dividend, taking its total dividend to 15.0p, almost triple the 5.4p distributed in total the year before.
The raised payout comprises an 8.0p revenue return, 3.0p from revenue reserves and 4.0p from capital reserves.
The trust's NAV total return was 3.3%, outperforming its benchmark, the Topix Index, which added 2.5%.
"Your company's outperformance, in spite of the challenging environment, can be attributed to your manager's stock selection, particularly in Basic Materials, Health Care and Telecommunications," the trust said.
Chair Karen Brade added: "These results reflect the company's exposure to Japanese stocks with good management teams and strong business franchises. Many of them are characterised by sustainable cashflows, strong balance sheets and good access to liquidity. Since the change to a Japan-only mandate in 2013, the company's results have exceeded the index. The board believes that the company will remain resilient during the global Covid-19 pandemic and, over time, deliver excess returns."
The manager - Aberdeen Standard Investments - commented: "Japan equities declined in the year under review. In the first three quarters of the financial year, the market was beset by many uncertainties, from the stop-start of trade negotiations between the US and its trading partners, to a global slowdown from lower trade volumes, and concerns of an economic downturn from a domestic consumption tax hike, then optimism about improved economic conditions from initial trade agreements. These events were overtaken in the final quarter by the outbreak of Covid-19 and its escalation to what became a global pandemic, leading to heightened risk aversion in global markets, and exacerbating a sharp decline in oil prices."
Looking ahead, Chair Brade said she thinks the trust is on an "upward trajectory".
"Many Japanese companies, including those in your company's portfolio, have strong balance sheets and cash positions and experienced management teams equipped to survive. They are very well placed to maximise opportunities in the future," Brade added.
Shares in Aberdeen Japan Investment Trust were 1.4% higher in London on Wednesday at 616.00 pence each.
By Paul McGowan; paulmcgowan@alliancenews.com
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