(Alliance News) - Schroder Japan Growth Fund PLC on Friday upped its final dividend but reported a disappointing year where it was outperformed by its benchmark and its net assets fell.
As of July 31, the investment company's net assets were 6.3% lower year-on-year, at GBP273.8 million, compared to GBP292.3 million. Per share, NAV slumped to 219.04 pence from 233.80p, Schroder said.
Shares in the company were untraded in London early on Friday, last quoted 189.00p apiece.
Schroder's NAV total return was negative 4.6% for the year to the end of July, lagging behind the benchmark's, the Tokyo Stock Exchange First Section Index, return of positive 1.0%.
The company will pay a final dividend of 4.70p per share, it said, up 18% from the 4.00p paid a year ago.
The Japan-focused investor said: "The main drivers of stock market performance over the 12 months have been macroeconomic and geopolitical issues as trade friction escalated and central banks maintained a very low interest rate environment for longer than initially expected. These factors tended to overshadow the slow but steady improvement in domestic economic conditions in Japan."
Schroder added that its newer investments include Ibiden Co Ltd, a ceramics company which works with technology firm Intel Corp for semiconductor packaging and Asahi Breweries, part of Asahi Group Holding Ltd, which earlier this year tabled a bid for pub operator Fuller, Smith, & Turner PLC.
Looking ahead, the company said an increase in consumption tax will affect Japan's short-term economy but insisted the country "remains an attractive proposition for investors".
By Eric Cunha; ericcunha@alliancenews.com
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Schroder Japan (SJG)
Fuller Smith & Turner (FSTA)