We believe that the outlook of the Japan equity market continues to be very attractive. Now, corporate governance reforms have been going on for a number of years and have been accelerating over the past two years. But we believe that there's still much more that can be done, and that we are still in a fairly early stage. Now, for example, if you look at Japanese corporates balance sheets, approximately 50% of non-financial companies have net cash positions at significantly higher than other major regions. And we believe there's much more that can be done. And despite the positive developments that we've been seeing in Japan, the valuations of the Japan equity market still look undemanding, both compared to its own history and also versus other major markets. And we also believe that the Japan equity market is still under invested and under owned. Now, foreign investors have turned net buyers of Japan from 2023, but the aggregate level of buying is still far below the levels that we saw in previous peaks around the Abenomics era.

Summary Risk Indicator

The risk indicator assumes you keep the product for 5 year(s). The risk of the product may be significantly higher if held for less than the recommended holding period.

Investment Objective

Aims to produce capital growth from investment in Japanese companies. The Company has the ability to use gearing to increase potential returns to shareholders. The gearing policy is to operate within the range of 5% net cash to 20% geared, in normal market conditions.

Risk profile

• Exchange rate movements between the pricing currency of the underlying overseas investments held by the Company and sterling (the base currency of the Company) can cause the Company’s NAV (in sterling terms) to go up as well as down. For example, if sterling appreciates relative to Japanese yen, the value of the NAV in sterling terms will be negatively impacted; if sterling depreciates, the value of the NAV in sterling terms will be positively impacted.
• External factors may cause an entire asset class to decline in value. Prices and values of all shares or all bonds and income could decline at the same time, or fluctuate in response to the performance of individual companies and general market conditions.
• This Company may utilise gearing (borrowing) which will exaggerate market movements both up and down.
• This Company may also invest in smaller companies which may increase its risk profile.
• The share price may trade at a discount to the Net Asset Value of the Company.
• The single market in which the Company primarily invests, in this case Japan, may be subject to particular political and economic risks and, as a result, the Company may be more volatile than more broadly diversified companies.