(Alliance News) - Aberdeen Japan Investment Trust PLC on Thursday said it it outperformed its benchmark in the first half of its current financial year and the outlook for Japanese equities remains robust.
NAV total return for the six months to the end of September was 13.1%, while the company's benchmark, the Topix index in sterling terms rose by 9.3%.
The trust noted that Japanese equities rose in the six months period, despite the market being subject to the volatility of the ongoing trade war between the US and China.
Aberdeen Japan's NAV per share rose 12% over the period to 681.36 pence on September 30, from 607.89p as at March 31.
The trust declared an interim dividend of 6.0p.
During the six month period, 210,000 shares were bought back into treasury for GBP1.2 million and since the period end a further 140,800 shares have been repurchased, the trust added.
Chair Karen Brade said: "The Japanese stock market will continue to face the same litany of risks that it has done over the past half year. At the forefront is the protracted trade negotiations between the world's two largest economies and the unpredictability of the messages on these and other issues emerging from the US President. Also affecting share prices are the geopolitical uncertainties that compel investors to flood into the yen as a safe haven each time volatility spikes.
"The fundamentals of the underlying stocks within your company's portfolio remain robust. Many of these are market leaders in their own fields and will continue to do well regardless of the external pressures they may face. Even though stock prices have risen, valuations remain attractive, given the prospects for these companies. The board has confidence that your manager will continue to be a good steward of the company's assets and the optimistic stance adopted should stand the company in good stead as we seek further solid growth."
The stock closed down 0.4% at 615.00p in London on Thursday.
By Arvind Bhunjun; arvindbhunjun@alliancenews.com
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