On the economic outlook for Japan over the next year. In the short term, there is some global uncertainty around tariffs and the impact that that can have on the global economy. It's still quite difficult to assess both the direct impact of tariffs and also the potential spillover effect to broader global demand. That said, we believe that the positive outlook for Japan over the mid long term, backed by corporate governance reforms, remains completely unchanged. This has been going on for a number of years now, but it's surely accelerating over the past two years. Now year after year, we are seeing companies announce record levels of share buybacks. We are seeing changes in terms of getting rid of cross shareholdings, getting rid of parent child listings, an increase in management buyout announcements, takeover bids, private equity coming in. These are trends that we really haven't seen before. It's all new and exciting, and we continue to believe that this is really the key reason to be looking at Japan over the long term.

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.