Now there is some uncertainty in the global macro environment right now with tariffs. And we have to think about the potential direct impact that we can see from tariffs and also possible indirect impact spillover effect to a potentially slower global economy. Changes in competition. Now this is something that can be said for all global markets. Not specific to Japan, but it is a risk. Now looking at Japan specifically, we believe that the long term positive story backed by corporate governance reforms remains completely unchanged. And in fact, it's very encouraging that the shareholder return trend that we've seen with share buyback announcements, seeing record levels through 2023, 2024 is continuing in recent months as well, even through this period of uncertainty, and we've seen it through Covid as well. Now, for JFJ, we believe that the portfolio should be relatively well positioned in a period of uncertainty. Now, the kind of companies that we are investing in have long term structural growth stories. We are investing in companies such as the global leaders in factory automation, global number one players in the semiconductor supply chain, companies with globally competitive intellectual property. Also, a handful of companies that can benefit from rising digitalization in Japan. And also, we are investing in companies with very strong balance sheets, which can weather a storm if necessary.

The portfolio is actively managed. Holdings, sector weights, allocations and leverage, as applicable, are subject to change at the discretion of the investment manager without notice.

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.