TIDMCCJI
RNS Number : 2199D
CC Japan Income & Growth Trust PLC
20 June 2023
CC JAPAN INCOME & GROWTH TRUST PLC
LEI: 549300FZANMYIORK1K98
HALF-YEARLY FINANCIAL REPORT ANNOUNCEMENT
FOR THE SIX MONTHSED 30 APRIL 2023
INVESTMENT OBJECTIVE, FINANCIAL INFORMATION AND PERFORMANCE
SUMMARY
INVESTMENT OBJECTIVE
The investment objective of the Company is to provide
shareholders with dividend income combined with capital growth,
mainly through investment in equities listed or quoted in
Japan.
FINANCIAL INFORMATION
At At
30 April 31 October
2023 2022
--------------------------------------------------- ----------- ------------
Net assets GBP222.0m GBP203.6m
--------------------------------------------------- ----------- ------------
Net asset value ("NAV") per Ordinary Share
("Share") (1) 164.8p 151.1p
--------------------------------------------------- ----------- ------------
Share price 153.5p 138.8p
--------------------------------------------------- ----------- ------------
Share price discount to NAV(2) 6.9% 8.1%
--------------------------------------------------- ----------- ------------
Transferable Subscription Share price(3) n/a 0.53p
--------------------------------------------------- ----------- ------------
Annualised Ongoing charges(2) 1.05% 1.06%
--------------------------------------------------- ----------- ------------
Gearing (net)(2) 20.0% 20.9%
--------------------------------------------------- ----------- ------------
(1) Measured on a cum income basis.
(2) This is an Alternative Performance Measure ("APM"). Definitions
of APMs used in this report, together with how these measures have been
calculated are disclosed in this report.
(3) The life of the Company's Transferable Subscription Shares expired
on 28 February 2023 and the listing was cancelled on 15 March 2023.
PERFORMANCE SUMMARY
For the six For the six months
months to to
30 April 30 April
2023 2022
NAV ex-income total return per Share(1,2) +12.3% -2.1%
---------------------------------------------- ------------- -------------------
NAV cum-income total return per Share(1,2) +11.3% -0.7%
---------------------------------------------- ------------- -------------------
Share price total return(1,2) +13.1% -3.7%
---------------------------------------------- ------------- -------------------
Tokyo Stock Exchange Price Index ("Topix")
total return(1) +9.5% -7.8%
---------------------------------------------- ------------- -------------------
Revenue return per Share(1) 2.66p 2.37p
---------------------------------------------- ------------- -------------------
First interim dividend per Share(1) 1.55p 1.40p
---------------------------------------------- ------------- -------------------
(1) Total returns are stated in GBP sterling, including dividend reinvested.
(2) These are APMs.
Source: Coupland Cardiff Asset Management LLP - The Company's Factsheet
April 2023.
CHAIRMAN'S STATEMENT
Performance
Against a backdrop of turbulent world markets during the first
half of the financial year to 30 April 2023 your Company has
recorded positive total returns . For the six months under review,
the Net Asset Value ("NAV") cum income increased by 11.3% while the
share price, again measured by total return rose by 13.1%,
handsomely beating the TOPIX Total Return Index which rose 9.5%. A
second interim dividend of 3.50p per Ordinary Share was paid in
March 2023.
Since inception in December 2015, the cum income NAV has risen
by 103.5% while the Ordinary Share price, including dividends
distributed, has risen by 87.3%. Indeed, income distributions have
represented over 30.0% of our total return over this time. Again,
these results have comfortably outperformed the TOPIX Total Return
Index, which we use for reference, and which has risen by 73.1%
since our launch. Dividends paid to Shareholders over this period
amount to 28.95p per Ordinary Share, representing seven years of
successive dividend growth totalling 63.3%.
Although global stock markets made a steady recovery from
October 2022 lows, the failure of three regional banks in the USA
caused a sharp selloff in March 2023 on concerns of contagion. In
Japan, the banking system is robust, and in your Investment
Manager's view, the risk of deposit flight is negligible. The newly
appointed Governor of the Bank of Japan ("BOJ"), Ueda-San was a
surprise choice to replace the retiring Kuroda-San. Monetary policy
remains accommodating even if the new Governor is laying the
groundwork towards some normalisation of policy. Conversely,
tightening monetary policies throughout the rest of the developed
world led by the Federal Reserve in the USA have consequences for
not only credit but the potential level of global stock markets and
asset prices. Japan is an outlier and liquidity levels remain
supportive of asset and stock prices.
Growing the Company
It is disappointing to report that the Transferable Subscription
Shares ("TSS") issued as a 1 for 5 free bonus to Ordinary
Shareholders in February 2021 expired worthless on the last
business day of February 2023. The issue was designed as an
opportunity for Shareholders to participate in any post Covid-19
normalisation of the Japanese economy. Unfortunately, subsequent
world events and markets conspired against the scheme which could
have raised up to GBP40 million for the Company. While the Ordinary
Share price traded above the Subscription Price level on several
occasions, the level was never sustained to facilitate their
exercise. Your Board is still intent on growing the Company. The
Ordinary Shares closed the period on a discount of 6.9% to NAV. The
Board and Managers are hopeful that with the lapse of the TSS
rights, sustained investment performance and dividend growth will
provide the potential to regain our premium share price. This would
allow resumption of tap issuance. Your Investment Managers and
brokers, Peel Hunt, run a co-ordinated marketing programme to raise
awareness and profile of the Company. It is gratifying to see that
the results of their efforts and the use of media distribution have
resulted in the broadening of our Shareholder base with more retail
Shareholders coming onto our register through the platforms. The
website has been revamped and it is easy to follow us at
www.ccjapanincomeandgrowthtrust.com . The excellent monthly
newsletter is a good way of monitoring progress.
Income & Interim Dividend
Net revenue increased by nearly 12.4% in the first half of the
year, compared with the same period last year. The Board has
declared a first interim dividend of 1.55p per Ordinary Share, an
increase of 10.7% over last year, payable on 4 August 2023 to those
Shareholders recorded on the register as at 7 July 2023 with an
ex-dividend date of 6 July 2023.
Outlook
While inflation is not so rampant in Japan compared to many
other countries, it continues to broaden and climb with core
inflation running at over 3.4%. This should encourage domestic
flows back to the stock market which offers higher yields compared
to the zero return on bank deposits. Surprisingly, local investors
are still selling into strength with the TOPIX hitting a 33 year
high up 10.1% in sterling terms in the calendar year to the end of
April 2023. However, foreign investors are returning, attracted by
economic trends, policy developments, attractive stock valuations
and not least extensive media and press coverage hailing that the
long bear market in Japan is finally over. Certainly, Warren Buffet
has recently highlighted the growing attractions of Japan and has
increased the stakes in the five trading companies that Berkshire
Hathaway first acquired in 2020. The trend of returning cash to
shareholders through share buy backs and dividends has been further
stimulated by recent announcements by the Tokyo Stock Exchange
("TSE") and Japan's Financial Services Agency ("FSA"). Their
measures are designed to accelerate the restructuring of the many
companies that trade below book value, while encouraging greater
balance sheet efficiencies and radical overhaul of capital
allocation. This is all evidence of a continuing and refreshing
commitment to corporate governance reform.
The economy is increasingly gaining traction post the pandemic
and with China's reopening in January 2023. We are seeing increased
confidence in corporate earnings and consistent improvement in the
level of dividend distributions across our holdings in the
portfolio. Against this, the growing disparity of interest rates
between sterling and the yen continues to put pressure on the
currency cross rate, reducing Japanese income on translation to
sterling if the yen continues to weaken.
Continued geopolitical tension especially between China and the
USA in addition to the unpredictability of the North Korean regime,
also remains a risk. Providing that these tensions do not worsen,
the outlook for Japan is increasingly rosy, particularly for
investors who recognise that income is a critical component of
total return, which encapsulates our mandate.
Your Board has every confidence in Richard Aston and his team to
continue to produce good results by holding and identifying
attractive companies across a broad spectrum. There is no shortage
of investment opportunity in Japan.
Harry Wells
Chairman
19 June 2023
INVESTMENT MANAGER'S REPORT
The Company's NAV cum-income rose by 11.3.% on a total return
basis for the six months ended 30 April 2023. This return includes
a second interim dividend of 3.50p, a 4.5% increase over the second
interim dividend of the previous year. This extends the track
record of consecutive annual dividend increases that the Company
has established since inception in December 2015 and is firm
evidence of the underlying improvement in corporate governance in
Japan.
This strong performance has come at a time of significant
geopolitical, economic and operational uncertainties and the
current reporting period has been no exception. However, there are
signs that current developments in international relations and
global monetary policy, as well as the ongoing improvements in
corporate governance, are beginning to define a new era for Japan.
Certainly, the retirement of Bank of Japan ("BOJ") Governor,
Haruhiko Kuroda after a ten-year tenure as the head of the Central
Bank, and at a time when deflationary forces he set out to overcome
are easing, creates a very different backdrop for his successor,
Kazuo Ueda.
The outgoing Governor retained his capacity to surprise right to
the end with the unexpected announcement following the BOJ December
Policy Meeting that the board had decided to expand the range in
which long term policy rates (10 year Japanese Government Bond
yields) will be allowed to fluctuate. This was the first reversal
of the easy monetary policies established in the Joint Statement by
the Government of Shinzo Abe and the BOJ in 2013.
While this shift is modest in comparison to the increase of
interest rates around the world, it does indicate that even in
Japan, the process of normalisation of monetary policy has begun.
This proved a significant boost to the bank holdings in the
portfolio, Sumitomo Mitsui Financial Group and Mitsubishi UFJ
Financial Group, which made notable positive contributions to
performance despite a sell-off in March 2023 following the
turbulence of regional bank failures in the US.
The largest positive contribution to return was Socionext, a new
holding established at its Initial Public Offering ("IPO") in
October 2022. This company designs and develops System on Chip
("SoC") solutions for a range of industries with particular
emphasis on opportunities in mobile communications, next generation
automobiles and applications in artificial intelligence. This was
the first IPO we had chosen to participate in for a number of years
due to concerns about the appropriateness, strategy and valuation
of many new listings. Socionext satisfied our requirements for
financial strength, management quality and attention to shareholder
return which gave us the confidence to invest. We believe that the
new issue market is an important source of potential investment
opportunities but will continue to exercise prudence.
There was notable weakness in the shares of many domestically
focussed companies despite the steady removal of Covid-19
restrictions and the reopening of international borders to inbound
visitors. In response to rising inflation it appears that many
companies have initially sought to control their costs by reducing
demand for online advertising (Carta Holdings), market research
(Intage) and even recruitment (Dip, TechnoPro). We do not believe
that the short-term reversal of well-established trends will affect
the expectations for these companies as the Japanese economy
responds to the challenges ahead.
Portfolio Positioning
The global outlook remains uncertain with economic trends across
the major regions as well as international relations very
unpredictable. These uncertainties increase the importance of
identifying investment opportunities based on their individual
characteristics, both in an operational context, and from a
valuation perspective. We own a portfolio of companies across a
broad range of industries, which we believe individually each have
the same underlying attributes of business growth opportunities
combined with financial strength, management quality and a
commitment to shareholder return. This mitigates some of the risks
for a patient investor.
Portfolio activity seeks to benefit from the volatility that the
uncertainties create, and this has seen new positions established
in Socionext (Semiconductor design), Nissan Chemical (performance
materials and agrochemicals), Jaccs (consumer financial services)
and EnJapan (online recruiting services). The Company has also
added to positions in Nippon Parking Development, Mitsubishi UFJ
Financial Group, Noevir and Technopro into recent share price
weakness. The holding in Toyota Motor has been reduced
significantly while TRE Holdings, SB Technology and Industrial
Infrastructure REIT have been eliminated entirely as in each case
concerns have emerged on the ability of the company to deliver
rising shareholder returns over the medium-term.
Outlook
We believe that Japanese equities currently offer investors a
compelling combination of ongoing considerations that warrant
attention from even the most diehard detractors, not least the
domestic individual investor. The favourable current economic
momentum, stable political environment, supportive policy
initiatives, corporate governance reforms and valuation appeal have
created a potent force which builds on the steady market
foundations established in the years that preceded the Covid-19
pandemic.
Fiscal Year 2022 to the end of March 2023 saw aggregate
dividends and share buybacks authorised by listed companies both
hit record highs. Despite this very positive outcome resulting from
developments highlighted to date, the opportunity for further
growth is very clear given the high level of dividend cover and
overall financial health of Japanese companies. Raising awareness
of capital efficiency is a key component of the recent initiatives
announced by the Tokyo Stock Exchange and Japan's Financial
Services Agency and these can be expected to underpin the
additional improvements that investors seek and ultimately enhance
the exciting investment potential of the much-maligned Japanese
equity market.
Richard Aston
Coupland Cardiff Asset Management LLP
19 June 2023
TOP TEN SECTORS AND HOLDINGS
AS AT 30 APRIL 2023
TOP 10 SECTORS % of net
Sector assets
------------------------------ ----------
Information & Communications 13.1
Electrical Appliances 13.1
Chemicals 12.3
Banks 10.9
Services 8.4
Wholesale 6.3
Insurance 6.3
Transport Equipment 5.6
Securities & Commodities 4.9
Other Financing Business 4.4
------------------------------ ----------
Top Ten 85.3
------------------------------ ----------
Other Sectors* 12.7
------------------------------ ----------
Other net assets 2.0
------------------------------ ----------
Total 100.0
------------------------------ ----------
* Other Sectors comprise of 4 sectors, which individually, is
less than 4.2% each of the net assets.
TOP 10 EQUITY HOLDINGS
% of net
Company Sector assets
------------------------------ ------------------------------ ---------
Sumitomo Mitsui Financial
Group Banks 5.9
Mitsubishi UFJ Financial
Group Banks 5.0
Nippon Telegraph & Telephone Information & Communications 4.7
Socionext Electrical Appliances 4.6
Itochu Wholesale 3.9
Shin-Etsu Chemical Chemicals 3.6
Softbank Information & Communications 3.5
Sompo Holdings Insurance 3.5
SBI Holdings Securities & Commodities 3.4
Noevir Holdings Chemicals 3.2
------------------------------ ------------------------------ ---------
Top Ten 41.3
-------------------------------------------------------------- ---------
Other equity holdings n/a 56.7
------------------------------ ------------------------------ ---------
Total holdings 98.0
-------------------------------------------------------------- ---------
Other net assets 2.0
-------------------------------------------------------------- ---------
Total 100.0
-------------------------------------------------------------- ---------
TOP TEN CONTRACTS FOR DIFFERENCE (CFDs)
Absolute
Absolute value Market
as a %
value of Value
Company Sector GBP'000 net assets GBP'000
------------------------------ ------------------------------ --------- ----------- --------
Sumitomo Mitsui Financial
Group Banks 2,616 1.2 757
Mitsubishi UFJ Financial
Group Banks 2,212 1.0 441
Nippon Telegraph & Telephone Information & Communications 2,079 0.9 504
Socionext Electrical Appliances 2,057 0.9 1,145
Itochu Wholesale 1,749 0.8 452
Shin-Etsu Chemical Chemicals 1,596 0.7 25
Softbank Information & Communications 1,546 0.7 33
Sompo Holdings Insurance 1,535 0.7 185
SBI Holdings Securities & Commodities 1,528 0.7 (191)
Noevir Holdings Chemicals 1,405 0.6 (2)
------------------------------ ------------------------------ --------- ----------- --------
Top Ten CFDs 18,323 8.2 3,349
-------------------------------------------------------------- --------- ----------- --------
Other CFDs n/a 25,197 11.4 (567)
------------------------------ ------------------------------ --------- ----------- --------
Total CFDs 43,520 19.6 2,782
-------------------------------------------------------------- --------- ----------- --------
INTERIM MANAGEMENT REPORT
The Directors are required to provide an Interim Management
Report in accordance with the Financial Conduct Authority ("FCA")
Disclosure Guidance and Transparency Rules. The Chairman's
Statement and the Investment Manager's Report in this half-yearly
financial report provide details of the important events which have
occurred during the period and their impact on the financial
statements. The following statements on principal and emerging
risks and uncertainties, related party transactions, going concern
and the Directors' Responsibility Statement, together, constitute
the Interim Management Report for the Company for the six months
ended 30 April 2023. The outlook for the Company for the remaining
six months of the year ending 31 October 2023 is discussed in the
Chairman's Statement and the Investment Manager's Report.
PRINCIPAL AND EMERGING RISKS AND UNCERTAINTIES
The Board is responsible for the management of risks faced by
the Company and delegates this role to the Audit and Risk Committee
(the "Committee"). The Committee carries out, at least annually, a
robust assessment of principal and emerging risks and uncertainties
and monitors the risks on an ongoing basis.
The Committee has a dynamic risk management register in place to
help identify key risks in the business and oversee the
effectiveness of internal controls and processes. The risk
management register and associated risk heat map provide a visual
reflection of the Company's identified risks, including principal
and emerging risks. The Company's risks fall into three
categories:
-- Strategic and Business risks, including investment
performance, market, geopolitical and leverage risk;
-- Operational and Financial risks, including cyber and business interruption; and
-- Regulatory and Compliance risks, including climate change.
The Committee considers both the impact and the probability of
each risk occurring and ensures appropriate controls are in place
to reduce risk to an acceptable level. A detailed explanation of
the principal and emerging risks and uncertainties to the Company
are detailed in the Company's most recent Annual Report for the
year ended 31 October 2022, which can be found on the Company's
website at www.ccjapanincomeandgrowthtrust.com .
Since the publication of the 2022 Annual Report and Accounts on
24 January 2023, there continues to be increased risk levels within
the global economy. The ongoing conflict in Ukraine, the subsequent
impact on global economies, deteriorating international relations
and increasing levels of inflation worldwide have undoubtedly
raised investment risk. Rising interest rates and mismatches in
asset liability pricing have led to the failure of three US banks
and created fears of global contagion. The Board closely monitors
and assesses these continued uncertainties as to how they could
impact and effect the Company's trading position apropos our
investment objectives, portfolio and thus our Shareholders and
where appropriate endeavour to mitigate the risk.
RELATED PARTY TRANSACTIONS
The Company's Investment Manager is Coupland Cardiff Asset
Management LLP. Coupland Cardiff Asset Management LLP is considered
a related party under the Listing Rules. The Investment Manager is
entitled to receive a management fee payable monthly in arrears at
the rate of one-twelfth of 0.75% of Net Asset Value per calendar
month. Investment management fees paid during the six-month period
to 30 April 2023 were GBP824,000. There is no performance fee
payable to the Investment Manager. There have been no changes to
the related party transactions that could have a material effect on
the financial position or performance of the Company since the year
ended 31 October 2022. Further information can be found in note 12
to the financial statements.
GOING CONCERN
The Board has a reasonable expectation that the Company has
adequate resources to continue in operational existence for at
least twelve months from 19 June 2023. In reaching this conclusion,
the Directors have considered the liquidity of the Company's
portfolio of investments as well as its cash position, income, and
expense flows. The Company's net assets as at 30 April 2023 were
GBP222 million (30 April 2022: GBP217.0 million). As at 30 April
2023, the Company held GBP217.6 million (30 April 2022: GBP213.9
million) in quoted investments. In addition, as at 30 April 2023,
the Company had gross exposure to Contracts for Difference of
GBP43.5 million (30 April 2022: GBP42.8 million). The total
expenses (excluding finance costs and taxation) for the six months
ended 30 April 2023 were GBP1.2 million (30 April 2022: GBP1.2
million). The Company has a GBP12 million (or its equivalent in
Japanese yen) bank overdraft facility with Northern Trust Company
and as at 30 April 2023, GBP0.9 million (30 April 2022: GBP1.9
million) had been utilised on the Japanese yen bank account.
As part of their assessment, the Board has performed stress
testing and liquidity analysis on the Company's portfolio of
investments, giving careful consideration to the consequences for
the Company of continuing uncertainties in the global economy and
increased geo political tension worldwide A prolonged and deep
global or Japanese stock market decline would lead to a fall in
investment values.
The Company currently has sufficient liquidity available to meet
any future obligations.
DIRECTORS' RESPONSIBILITY STATEMENT
The Disclosure Guidance and Transparency Rules (DTR) of the UK
Listing Authority require the Directors to confirm their
responsibilities in relation to the preparation and publication of
the Interim Management Report and Financial Statements.
The Directors confirm to the best of their knowledge that:
-- This set of unaudited condensed financial statements
contained within the half-yearly financial report has been prepared
in accordance with FRS 104 Interim Financial Reporting and the
Statement of Recommended Practice "Financial Statements of
Investment Companies and Venture Capital Trusts" issued by the
Association of Investment Companies issued in July 2022 ("AIC
SORP").
-- This Interim Management Report, together with the Chairman's
Statement and Investment Manager's Report, includes a fair review
of the information required by 4.2.7R and 4.2.8R of the Financial
Conduct Authority's Disclosure Guidance and Transparency Rules.
Harry Wells
Chairman
For and on behalf of the Board of Directors
19 June 2023
UNAUDITED CONDENSED STATEMENT OF COMPREHENSIVE INCOME
SIX MONTHS TO 30 APRIL 2023
Six months to 30 Six months to 30 Year ended 31 October
April 2023 April 2022 2022*
Revenue Capital Total Revenue Capital Total Revenue Capital Total
Note GBP'000 GBP'000 GBP'000 GBP'000 GBP'000 GBP'000 GBP'000 GBP'000 GBP'000
---------------- ----- ---------------------- -------------------- ---------------------- ----------------- ------------- ------------- ---------------------- ---------------------- ---------------------
Gains/(losses)
on investment - 20,330 20,330 - (3,791) (3,791) - (18,118) (18,118)
Currency
(losses)/gains - (2) (2) - 55 55 - (209) (209)
Income 4 4,581 - 4,581 4,141 - 4,141 8,878 - 8,878
Investment
management
fee (163) (652) (815) (167) (669) (836) (327) (1,306) (1,633)
Other expenses (343) - (343) (327) - (327) (664) - (664)
Return on
ordinary
activities
before
finance costs
and taxation 4,075 19,676 23,751 3,647 (4,405) (758) 7,887 (19,633) (11,746)
Finance costs 5 (35) (87) (122) (43) (98) (141) (69) (185) (254)
Return on
ordinary
activities
before
taxation 4,040 19,589 23,629 3,604 (4,503) (899) 7,818 (19,818) (12,000)
Taxation 6 (455) - (455) (414) - (414) (888) - (888)
Return on
ordinary
activities
after
taxation 3,585 19,589 23,174 3,190 (4,503) (1,313) 6,930 (19,818) (12,888)
---------------- ----- ---------------------- -------------------- ----------------- ------------- ---------------------- ---------------------- ---------------------
Return per
Ordinary
Share -
undiluted 10 2.66p 14.54p 17.20p 2.37p (3.34)p (0.97)p 5.14p (14.71)p (9.57)p
---------------- ----- ---------------------- -------------------- ---------------------- ----------------- ------------- ------------- ---------------------- ---------------------- ---------------------
Return per
Ordinary
Share -
diluted 10 n/a** n/a** n/a** 1.97p (2.79)p (0.82)p 4.29p (12.26)p (7.97)p
---------------- ----- ---------------------- -------------------- ---------------------- ----------------- ------------- ------------- ---------------------- ---------------------- ---------------------
*Audited
** The life of the Company's Transferable Subscription Shares expired on
28 February 2023.
The total column of the above statement is the profit and loss account of
the Company. All revenue and capital items in the above statement derive
from continuing operations.
Both the supplementary revenue and capital columns are both prepared under
guidance from the Association of Investment Companies. There is no other
comprehensive income and therefore the return for the period is also the
total comprehensive income for the period.
The notes form part of these interim financial statements.
UNAUDITED CONDENSED STATEMENT OF FINANCIAL POSITION
AS AT 30 APRIL 2023
30 April 30 April 31 October
2023 2022 2022*
Note GBP'000 GBP'000 GBP'000
--------------------------------------------------------------------------------------------- ---------- -------------------- -------------------------- --------------------------------------------------
Fixed assets
Investments at fair value through
profit or loss 3 217,592 213,896 199,642
--------------------------------------------------------------------------------------------- ---------- -------------------- -------------------------- --------------------------------------------------
Current assets
Cash and cash equivalents - - 1,413
Cash collateral in respect of Contracts
for Difference ("CFDs") 486 43 433
Amounts due in respect of CFDs 5,063 2,311 2,680
Other debtors 4,168 3,260 4,434
9,717 5,614 8,960
--------------------------------------------------------------------------------------------- ---------- -------------------- -------------------------- --------------------------------------------------
Creditors: amounts falling due within
one year
Cash and cash equivalents - Bank overdraft (2,240) (226) -
Amounts payable in respect of CFDs (2,280) (1,659) (2,780)
Other creditors (749) (581) (2,240)
(5,269) (2,466) (5,020)
--------------------------------------------------------------------------------------------- ---------- -------------------- -------------------------- --------------------------------------------------
Net current assets 4,448 3,148 3,940
--------------------------------------------------------------------------------------------- ---------- -------------------- -------------------------- --------------------------------------------------
Total assets less current liabilities 222,040 217,044 203,582
--------------------------------------------------------------------------------------------- ---------- -------------------- -------------------------- --------------------------------------------------
Net assets 222,040 217,044 203,582
--------------------------------------------------------------------------------------------- ---------- -------------------- -------------------------- --------------------------------------------------
Capital and reserves
Share capital 8 1,348 1,348 1,348
Share premium 98,067 98,067 98,067
Special reserve 64,671 64,671 64,671
Capital reserve
* Revaluation gains on investment held at period end 21,671 19,673 5,841
* Other capital reserve 29,941 27,665 26,182
Revenue reserve 6,342 5,620 7,473
Total Shareholders' funds 222,040 217,044 203,582
--------------------------------------------------------------------------------------------- ---------- -------------------- -------------------------- --------------------------------------------------
NAV per share - Ordinary Shares -
undiluted (pence) 11 164.80p 161.09p 151.10p
--------------------------------------------------------------------------------------------- ---------- -------------------- -------------------------- --------------------------------------------------
NAV per share - Ordinary Shares -
diluted (pence) 11 n/a** 161.08p 152.75p
--------------------------------------------------------------------------------------------- ---------- -------------------- -------------------------- --------------------------------------------------
*Audited
** The life of the Company's Transferable Subscription Shares expired
on 28 February 2023.
Approved by the Board of Directors and authorised for issue on 19 June
2023 and signed on their behalf by:
Harry Wells
Director
CC Japan Income & Growth Trust plc is incorporated in England and Wales
with registration number 9845783.
The notes form part of these interim financial statements.
UNAUDITED CONDENSED STATEMENT OF CHANGES IN EQUITY
SIX MONTHS TO 30 APRIL 2023
Share Share Special Capital Revenue
capital premium reserve reserve reserve Total
GBP'000 GBP'000 GBP'000 GBP'000 GBP'000 GBP'000
----------------------------------- ---------- -------------------------- ---------------- ----------------- ---------------------------- -------------------------------- ---------------------
Balance at 1 November
2022 1,348 98,067 64,671 32,023 7,473 203,582
Return on ordinary
activities after taxation - - - 19,589 3,585 23,174
Dividends paid - - - (4,716) (4,716)
Balance at 30 April
2023 1,348 98,067 64,671 51,612 6,342 222,040
----------------------------------- ---------- -------------------------- ---------------- ----------------- ---------------------------- -------------------------------- ---------------------
SIX MONTHS TO 30
APRIL 2022
Share Share Special Capital Revenue
capital premium reserve reserve reserve Total
GBP'000 GBP'000 GBP'000 GBP'000 GBP'000 GBP'000
----------------------------------- ---------- -------------------------- ---------------- ----------------- ---------------------------- -------------------------------- ---------------------
Balance at 1 November
2021 1,348 98,067 64,671 51,841 6,943 222,870
Return on ordinary
activities after taxation - - - (4,503) 3,190 (1,313)
Dividends paid - - - - (4,513) (4,513)
Balance at 30 April
2022 1,348 98,067 64,671 47,338 5,620 217,044
----------------------------------- ---------- -------------------------- ---------------- ----------------- ---------------------------- -------------------------------- ---------------------
Year ended 31 October
2022 (Audited)
Share Share Special Capital Revenue
capital premium reserve reserve reserve Total
GBP'000 GBP'000 GBP'000 GBP'000 GBP'000 GBP'000
----------------------------------- ---------- -------------------------- ---------------- ----------------- ---------------------------- -------------------------------- ---------------------
Balance at 1 November
2021 1,348 98,067 64,671 51,841 6,943 222,870
Return on ordinary
activities after taxation - - - (19,818) 6,930 (12,888)
Dividends paid - - - - (6,400) (6,400)
Balance at 31 October
2022 1,348 98,067 64,671 32,023 7,473 203,582
----------------------------------- ---------- -------------------------- ---------------- ----------------- ---------------------------- -------------------------------- ---------------------
The Company's distributable reserves consist of the Special reserve,
Revenue reserve and Capital reserve attributable to realised profits.
The notes form part of these interim financial statements.
UNAUDITED CONDENSED STATEMENT OF CASH
FLOWS
SIX MONTHS TO 30 APRIL 2023
Six months Six months Year ended
to 30 April to 30 April 31 October
2023 2022 2022*
GBP'000 GBP'000 GBP'000
---------------------------------------------- ------------- ------------- ------------
Operating activities cash flows
Return on ordinary activities before finance
costs and taxation** 23,751 (758) (11,746)
Adjustment for:
(Gains)/losses on investments (17,383) 4,631 18,106
Movement in CFD transactions (2,936) (1,008) (646)
Increase/(decrease) in other debtors (546) 31 (6)
Increase in other creditors 144 132 3
Tax withheld on overseas income (455) (414) (888)
------------- ------------- ------------
Net cash flow from operating activities 2,575 2,614 4,823
---------------------------------------------- ------------- ------------- ------------
Investing activities cash flows
Purchases of investments (27,622) (18,053) (43,572)
Proceeds from sales of investments 26,232 19,912 46,864
Net cash flow (used in)/from investing
activities (1,390) 1,859 3,292
---------------------------------------------- ------------- ------------- ------------
Financing activities cash flows
Equity dividends paid (4,716) (4,513) (6,400)
Finance costs paid (122) (138) (254)
Net cash used in financing activities (4,838) (4,651) (6,654)
(Decrease)/Increase in cash and cash
equivalents (3,653) (178) 1,461
------------- ------------- ------------
Cash and cash equivalents at the beginning
of the period 1,413 (48) (48)
Cash and cash equivalents at the end
of the period (2,240) (226) 1,413
---------------------------------------------- ------------- ------------- ------------
*Audited
** Inflow from cash dividends received were GBP3,612,000 (30 April 2022:
GBP3,758,000 and 31 October 2022: GBP8,038,000).
The notes form part of these interim financial statements.
NOTES TO THE INTERIM FINANCIAL STATEMENTS
1. GENERAL INFORMATION
CC Japan Income & Growth Trust plc (the "Company") was
incorporated in England and Wales on 28 October 2015 with
registered number 9845783, as a closed-ended investment company.
The Company commenced its operations on 15 December 2015 and, on
the same day, trading of the Ordinary Shares commenced on the
London Stock Exchange, with t he Company's shares admitted to the
Official List of the UK Listing Authority with a premium listing.
The Company carries on business as an investment trust within the
meaning of Chapter 4 of Part 24 of the Corporation Tax Act
2010.
The Company's investment objective is to provide Shareholders
with dividend income combined with capital growth, mainly through
investment in equities listed or quoted in Japan.
The principal activity of the Company is that of an investment
trust company within the meaning of section 1158 of the Corporation
Tax Act 2010.
The Company's registered office is 6(th) Floor, 125 London Wall,
London, EC2Y 5AS.
2. ACCOUNTING POLICIES
The interim financial statements have been prepared in
accordance with FRS 104 Interim Financial Reporting and the
Statement of Recommended Practice "Financial Statements of
Investment Trust Companies and Venture Capital Trusts" issued by
the Association of Investment Companies in July 2022.
This half-yearly Financial Report is unaudited and does not
include all the information required for full annual financial
statements. The half-yearly Financial Report should be read in
conjunction with the Annual Report and Accounts of the Company for
the year ended 31 October 2022. The Annual Report and Accounts for
the year ended 31 October 2022 were prepared in accordance with FRS
102 The Financial Reporting Standard applicable in the UK and
Republic of Ireland ("FRS 102") and received an unqualified audit
report. The financial information for the year ended 31 October
2022 in this half-yearly Financial Report has been extracted from
the audited Annual Report and Accounts for that year end. The
accounting policies in this Half-yearly Financial Report are
consistent with those applied in the Annual Report and Accounts for
the year ended 31 October 2022.
The interim financial statements have been presented in GBP
sterling (GBP).
3. INVESTMENTS
As at 31
As at 30 As at 30 October
April 2023 April 2022 2022
(Unaudited) (Unaudited) (Audited)
----------------------------------- --------- ---------------------- ---------------------- ----------------------
GBP'000 GBP'000 GBP'000
----------------------------------- --------- ---------------------- ---------------------- ----------------------
Investments listed on a recognised
overseas investment exchange 217,592 213,896 199,642
----------------------------------- ---------------------- ----------------------
217,592 213,896 199,642
----------------------------------- --------- ---------------------- ---------------------- ----------------------
Fair Value Measurements of Financial Assets and Financial Liabilities
The financial assets and liabilities are either carried in the balance
sheet at their fair value, or the balance sheet amount is a reasonable
approximation of fair value (due from brokers, dividends receivable,
accrued income, due to brokers, accruals and cash and cash equivalents).
The valuation techniques for investments and derivatives used by the
Company are explained in the accounting policies notes 2 (b and c) in
the Annual report for the year ended 31 October 2022.
The table below sets out fair value measurements using fair value hierarchy.
Level 1 Level 2 Level 3 Total
30 April 2023 (Unaudited) GBP'000 GBP'000 GBP'000 GBP'000
----------------------------------- --------- ---------------------- ---------------------- ----------------------
Assets:
Equity investments 217,592 - - 217,592
CFDs - Unrealised fair value
gains - 5,063 - 5,063
Liabilities:
CFDs - Unrealised fair value
losses - (2,280) - (2,280)
----------------------------------- --------- ---------------------- ----------------------
Total 217,592 2,783 - 220,375
----------------------------------- --------- ---------------------- ---------------------- ----------------------
Level 1 Level 2 Level 3 Total
30 April 2022 (Unaudited) GBP'000 GBP'000 GBP'000 GBP'000
----------------------------------- --------- ---------------------- ---------------------- ----------------------
Assets:
Equity investments 213,896 - - 213,896
CFDs - Unrealised fair value
gains - 2,311 - 2,311
Liabilities:
CFDs - Unrealised fair value
losses - (1,659) - (1,659)
----------------------------------- --------- ---------------------- ----------------------
Total 213,896 652 - 214,548
----------------------------------- --------- ---------------------- ---------------------- ----------------------
Level 1 Level 2 Level 3 Total
31 October 2022 (Audited) GBP'000 GBP'000 GBP'000 GBP'000
----------------------------------- --------- ---------------------- ---------------------- ----------------------
Assets:
Equity investments 199,642 - - 199,642
CFDs- Unrealised fair value
gains - 2,680 - 2,680
Liabilities:
CFDs - Unrealised fair value
losses - (2,780) - (2,780)
----------------------------------- --------- ---------------------- ---------------------- ----------------------
Total 199,642 (100) - 199,542
----------------------------------- --------- ---------------------- ---------------------- ----------------------
There were no transfers between levels during the period (2022: same).
Categorisation within the hierarchy has been determined on the basis
of the lowest level input that is significant to the Fair Value measurement
of the relevant asset as follows:
Level 1 - valued using quoted prices in active markets for identical
assets.
Level 2 - valued by reference to valuation techniques using observable
inputs including quoted prices.
Level 3 - valued by reference to valuation techniques using inputs that
are not based on observable market data. There are no Level 3 investments
as at 30 April 2023 (2022: nil).
4. INCOME
Six months Six months Year ended
to 30 April to 30 April 31 October
2023 2022 2022
(Unaudited) (Unaudited) (Audited)
----------------------------------- --------- ---------------------- ---------------------- ----------------------
GBP'000 GBP'000 GBP'000
---------------------------------------------- ---------------------- ---------------------- ----------------------
Income from investments:
Overseas dividends 4,552 4,141 8,878
Deposit interest 29 - -
Total 4,581 4,141 8,878
---------------------------------------------- ---------------------- ---------------------- ----------------------
Overseas dividend income is translated into sterling on receipt.
5. FINANCE COSTS
Six months Six months Year ended
to 30 April to 30 April 31 October
2023 2022 2022
(Unaudited) (Unaudited) (Audited)
--------------------------------- ----------- ------------- ------------- ------------
GBP'000 GBP'000 GBP'000
---------------------------------------------- ------------- ------------- ------------
Interest paid - 100% charged to revenue 13 19 23
CFD finance cost and structuring fee -
20% charged to revenue 22 24 45
Structuring fees - 20% charged to revenue - - 1
------------- ------------- ------------
35 43 69
---------------------------------------------- ------------- ------------- ------------
CFD finance cost and structuring fee -
80% charged to capital 87 96 181
Structuring fees - 80% charged to capital - 2 4
------------- ------------- ------------
87 98 185
---------------------------------------------- ------------- ------------- ------------
Total finance costs 122 141 254
---------------------------------------------- ------------- ------------- ------------
6. TAXATION
Six months to 30 Six months to 30
April 2023 April 2022
(Unaudited) (Unaudited)
Revenue Capital Total Revenue Capital Total
GBP'000 GBP'000 GBP'000 GBP'000 GBP'000 GBP'000
------------------------------------------ --------- ---------- --------- ---------- -------- ----------
Analysis of tax charge in the
period:
Overseas withholding tax 455 - 455 414 - 414
--------- ---------- --------- ---------- --------
Total tax charge for the period 455 - 455 414 - 414
------------------------------------------ --------- ---------- --------- ---------- -------- ----------
Year ended 31 October
2022
(Audited)
Revenue Capital Total
GBP'000 GBP'000 GBP'000
------------------------------------------ --------- ---------- ---------
Analysis of tax charge in the
year:
Overseas withholding tax 888 - 888
--------- ----------
Total tax charge for the year 888 - 888
------------------------------------------ --------- ---------- ---------
7. INTERIM DIVID
During the six months ended 30 April 2023, the Company paid a dividend
of 3.50p per Ordinary Share in respect of the year ended 31 October
2022.
These interim financial statements have been prepared in accordance
with the requirements of section 838 of the Companies Act 2006 and constitute
the Company's interim accounts for the purpose of justifying the payment
of an interim dividend for the year ending 31 October 2023.
The Directors have declared an interim dividend for the six months ended
30 April 2023 of 1.55p (2022: 1.40p) per Ordinary Share. The dividend
will be paid on 4 August 2023, to Ordinary Shareholders who appear on
the register as at the close of business on 7 July 2023. The Ordinary
Shares will go ex-dividend on 6 July 2023 and the dividend will be funded
from the Company's Revenue reserve.
8. SHARE CAPITAL
Share capital represents the nominal value of shares that have been
issued. The share premium includes any premium received on issue of
share capital. Any transaction costs associated with the issuing of
shares are deducted from share premium.
As at 30 April 2023 As at 30 April 2022
(Unaudited) (Unaudited)
No. of shares GBP'000 No. of shares GBP'000
-------------------------------- -------------- -------- -------------- --------
Allotted, issued & fully paid:
Ordinary Shares of 1p
Opening balance 134,730,610 1,348 134,730,610 1,348
-------------- -------- -------------- --------
Closing balance 134,730,610 1,348 134,730,610 1,348
-------------------------------- -------------- -------- -------------- --------
As at 31 October
2022 (Audited)
No. of shares GBP'000
-------------------------------- -------------- --------
Allotted, issued & fully paid:
Ordinary Shares of 1p
Opening balance 134,730,610 1,348
-------------- --------
Closing balance 134,730,610 1,348
-------------------------------- -------------- --------
Since the period end, the Company has issued no further Ordinary Shares,
with 134,730,610 Ordinary Shares in issue as at 19 June 2023.
9. FINANCIAL COMMITMENTS
As at 30 April 2023 there were no commitments in respect of unpaid calls
and underwritings (30 April 2022: nil and 31 October 2022: nil).
10. RETURN PER ORDINARY SHARE
Total return per Ordinary Share is based on the return on
ordinary activities, including income, for the period after
taxation of GBP23,174,000 (30 April 2022: GBP1,313,000 and 31
October 2022: GBP12,888,000) and the weighted average number of
Ordinary Shares in issue for the period to 30 April 2023 of
134,730,610 (30 April 2022: 134,730,610 and 31 October 2022:
134,730,610); Ordinary Shares-diluted in issue for the period/year
to 30 April 2022/31 October 2022 respectively of 161,676,732.
The returns per Ordinary Share were as follows:
As at 30 April 2023 As at 30 April 2022 As at 31 October
2022
(Unaudited) (Unaudited) (Audited)
----------------- -------------------------------- ---------------------------------- -----------------------------------
Revenue Capital Total Revenue Capital Total Revenue Capital Total
----------------- -------- ---------- ---------- -------- ---------- ------------ ---------- --------- ------------
Return per
Ordinary
Share-undiluted 2.66p 14.54p 17.20p 2.37p (3.34)p (0.97)p 5.14p (14.71)p (9.57)p
----------------- -------- ---------- ---------- -------- ---------- ------------ ---------- --------- ------------
Return per
Ordinary
Share-diluted* n/a n/a n/a 1.97p (2.79)p (0.82)p 4.29p (12.26)p (7.97)p
----------------- -------- ---------- ---------- -------- ---------- ------------ ---------- --------- ------------
* This table shows the effect of dilution on returns had the Transferable
Subscription Shares ("TSS") been exercised in full. However, the TSS expired
on the last business day of February 2023 and none were exercised so there
was no dilution of Ordinary Shares.
11. NET ASSET VALUE PER SHARE
Total shareholders' funds and the NAV per share attributable to the Ordinary
Shareholders at the period end calculated in accordance with the Articles
of Association were as follows:
NAV per Ordinary Share - undiluted
As at As at As at 31 October
30 April 2023 30 April 2022 2022
(Unaudited) (Unaudited) (Audited)
Net Asset Value (GBP'000) 222,040 217,044 203,582
Ordinary Shares in issue 134,730,610 134,730,610 134,730,610
----------------------------------------------- ------------------ -------------------------- ------------------------
NAV per Ordinary Share - undiluted 164.80p 161.09p 151.10p
----------------------------------------------- ------------------ -------------------------- ------------------------
NAV per Ordinary Share - diluted
As at As at As at 31 October
30 April 2023 30 April 2022 2022
(Unaudited) (Unaudited) (Audited)
Subscription shares issue - 26,946,122 26,946,122
Proceeds from exercise of TSS
(GBP'000) - 43,383 43,383
Adjusted NAV for exercise of
TSS (GBP'000) 222,040 260,427 246,965
Ordinary Shares - post exercise
of TSS 134,730,610 161,676,732 161,676,732
----------------------------------------------- ------------------ -------------------------- ------------------------
NAV per Ordinary Share - diluted 164.80p 161.08p 152.75p
----------------------------------------------- ------------------ -------------------------- ------------------------
12. RELATED PARTY TRANSACTIONS
Transactions with the Investment Manager and the Alternative
Investment Fund Investment Manager ("AIFM")
The Company provides additional information concerning its
relationship with the Investment Manager and AIFM, Coupland Cardiff
Asset Management LLP. Investment Management fees for the six-month
period ended 30 April 2023 were GBP824,000 (30 April 2022:
GBP836,000 and 31 October 2022: GBP1,633,000). The Investment
Management fees outstanding at the period ended 30 April 2023 were
GBP136,000 (30 April 2022: GBP133,000 and 31 October 2022:
GBP134,000).
Research purchasing agreement
The Markets in Financial Instruments Directive II ("MiFID II")
treats investment research provided by brokers and independent
research providers as a form of "inducement" to investment managers
and requires research to be paid separately from execution costs.
In the past, the costs of broker research were primarily borne by
the Company as part of execution costs through dealing commissions
paid to brokers. With effect from 3 January 2018, this practice has
changed, as brokers subject to MiFID II are now required to price,
and charge for, research separately from execution costs. Equally,
the rules require the Investment Manager, as an investment Manager,
to ensure that the research costs borne by the Company are paid for
through a designated Research Payment Account ("RPA") funded by
direct research charges to the Investment Manager's clients,
including the Company.
The research charge for the year 1 January 2023 to 31 December
2023, as agreed between the Investment Manager and the Company, was
$34,000 (31 December 2022: $34,000).
Directors' fees and shareholdings
Directors' fees are payable at the rate of GBP27,000 per annum
for each Director other than the Chairman, who is entitled to
receive GBP40,500. The Chairman of the Audit and Risk Committee is
also entitled to an additional fee of GBP5,500 per annum and the
Senior Independent Director ("SID") is entitled to an additional
fee of GBP1,000 per annum.
The Directors had the following ordinary shareholdings in the
Company, all of which were beneficially owned.
Ordinary
Ordinary Ordinary Shares
Shares as Shares as as at 31
at 30 April at 30 April October
2023 2022 2022
(Unaudited) (Unaudited) (Audited)
--------------------- ------------- ------------- ----------
Harry Wells 40,000 40,000 40,000
Peter Wolton 67,250 67,250 67,250
Kate Cornish-Bowden 50,000 40,000 40,000
June Aitken 41,251 40,000 40,372
Craig Cleland 40,000 40,000 40,000
--------------------- ------------- ------------- ----------
13. POST BALANCE SHEET EVENTS
There are no post balance sheet events other than as disclosed
in this half-yearly financial report.
14. STATUS OF THIS REPORT
These interim financial statements are not the Company's
statutory accounts for the purposes of section 434 of the Companies
Act 2006. They are unaudited. The half-yearly financial report will
be made available to the public at the registered office of the
Company.
The report will also be available on the Company's website
www.ccjapanincomeandgrowthtrust.com
The information for the year ended 31 October 2022 has been
extracted from the last published audited financial statements,
unless otherwise stated. The audited financial statements have been
delivered to the Registrar of Companies. The Auditors reported on
those accounts and their report was unqualified, did not draw
attention to any matters by way of emphasis and did not contain a
statement under sections 498(2) or 498(3) of the Companies Act
2006.
GLOSSARY AND ALTERNATIVE PERFORMANCE MEASURES ('APM')-
Administrator
The Company's administrator, the current such administrator
being Apex Listed Companies Services (UK) Limited. Apex Group
acquired Sanne Group in August 2022 and subsequently the name of
the Company's Administrator and Company Secretary changed from
Sanne Fund Services (UK) Limited to Apex Listed Companies Services
(UK) Limited.
AIC
Association of Investment Companies.
Alternative Investment Fund or "AIF"
An investment vehicle under AIFMD. Under AIFMD (see below) the
Company is classified as an AIF.
Alternative Investment Fund Managers' Directive or "AIFMD"
The UK version of a European Union Directive which came into
force on 22 July 2013 and which is part of UK law by virtue of the
European Union (Withdrawal) Act 2018, as amended by The Alternative
Investment Fund Managers (Amendment etc.) (EU Exit) Regulations
2019.
Alternative Performance Measure or "APM"
A financial measure of historical or future financial
performance, financial position, or cash flows, other than a
financial measure defined or specified in the applicable financial
reporting framework.
Annual General Meeting or "AGM"
A meeting held once a year, which Shareholders are entitled to
attend, and where they can vote on resolutions to be put forward at
the meeting and ask Directors questions about the Company.
CFD or Contract for Difference
A financial instrument, which provides exposure to an underlying
equity with the provider financing the cost to the buyer with the
buyer receiving the difference of any gain or paying for any
loss.
Cum Dividend
A dividend that has been declared but not yet paid out.
Custodian
An entity that is appointed to safeguard a company's assets.
Depositary
Certain AIFs must appoint depositaries under the requirements of
AIFMD. A depositary's duties include, inter alia, safekeeping of
the Company's assets and cash monitoring. Under AIFMD the
depositary is appointed under a strict liability regime. The
Company's Depositary is Northern Trust Investor Services Limited
(with effect from 27 November 2021).
Dividend
Income receivable from an investment in shares.
Discount (APM)
The amount, expressed as a percentage, by which the share price is less
than the NAV per Ordinary Share.
As at 30 April 2023
----------------------------------------- ----------------------- ----------
NAV per Ordinary Share a 164.8
Share price b 153.5
Discount (b÷a)-1 6.9%
------------------------------------------ ------------------------ ----------
Ex-dividend date
The date from which you are not entitled to receive a dividend
which has been declared and is due to be paid to Shareholders.
Financial Conduct Authority or "FCA"
The independent body that regulates the financial services
industry in the UK.
Gearing (APM)
A way to magnify income and capital returns, but which can also magnify
losses. The Company may be geared through the CFDs and if utilised, the
overdraft facility, with The Northern Trust Company.
As at 30 April 2023 GBP'000
---------------------------------- ----------------- ----------- --------- -----------
CFD Notional Market Value* a 43,520
Non-base cash borrowings** b 861
NAV c 222,040
Gearing (net) ((a+b)/c) 20.0%
-------------------------------------------- ---------------------- ------ -----------
* CFD positions in underlying asset
value.
** Non-base cash borrowings represents
borrowings in Yen
Gross assets (APM)
The Company's total assets including any leverage amount.
Index
A basket of stocks which is considered to replicate a particular
stock market or sector.
Investment trust
A closed end investment company which is based in the United
Kingdom ("UK") and which meets certain tax conditions which enables
it to be exempt from UK corporation tax on its capital gains. This
Company is an investment trust.
Leverage (APM)
Under the Alternative Investment Fund Managers Directive ("AIFMD"),
leverage is any method by which the exposure of an Alternative Investment
Fund ("AIF") is increased through borrowing of cash or securities or
leverage embedded in derivative positions.
Under AIFMD, leverage is broadly similar to gearing, but is expressed
as a ratio between the assets (excluding borrowings) and the net assets
(after taking account of borrowing). Under the gross method, exposure
represents the sum of the Company's positions after deduction of cash
balances, without taking account of any hedging or netting arrangements.
Under the commitment method, exposure is calculated without the deduction
of cash balances and after certain hedging and netting positions are
offset against each other.
Under both methods the AIFM has set current maximum limits of leverage
for the Company of 200%.
Gross Commitment
As at 30 April 2023 GBP'000 GBP'000
------------------------------------ --------------- ------------ --------------
Security Market value a 217,592 217,592
CFD Notional market value b 43,520 43,520
Cash and cash equivalents c 3,732 1,719
NAV d 222,040 222,040
Leverage (a+b+c)/d 119% 118%
------------------------------------- -------------- ------------ --------------
Market liquidity
The extent to which investments can be bought or sold at short
notice.
Net assets
An investment company's assets less its liabilities.
Net Asset Value (NAV) per Ordinary Share
Net assets divided by the number of Ordinary Shares in issue
(excluding any shares held in treasury).
Net exposure
The difference between the Company's long positions and short
positions
Ordinary Shares
Ordinary shares of GBP0.01 each in the capital of the
Company.
Ongoing charges (APM)
A measure, expressed as a percentage of average NAV, of the regular,
recurring annualised costs of running an investment company.
Period ended 30 April 2023
--------------------------------------- ---------------- ----------------
Average NAV a 221,537,147
Annualised expenses b 2,316,000
Ongoing charges (b÷a) 1.05%
---------------------------------------- ----------------- ----------------
Portfolio
A collection of different investments constructed and held in
order to deliver returns to Shareholders and to spread risk.
Share Premium to Net Asset Value (APM)
The amount, expressed as a percentage, by which the share price
is more than the Net Asset Value per share.
Share buyback
A purchase of a company's own shares. Shares can either be
bought back for cancellation or held in treasury.
Share Price
The price of a share as determined by buyers and sellers on the
relevant stock exchange.
Treasury shares
A company's own shares held in Treasury account by the Company,
but which are available to be resold in the market.
Total return (APM)
A measure of performance that includes both income and capital returns.
This takes into account capital gains and reinvestment of dividends paid
out by the Company into its Ordinary Shares on the ex-dividend date.
Period ended 30 April 2023 Share price NAV
------------------------------------------- --------- ---------------- --------
Opening at 1 November 2022 (in
pence) a 138.8 151.1
Closing at 30 April 2023 (in
pence) b 153.5 164.8
Price movement (b÷a)-1 c 10.6% 9.1%
Dividend reinvestment* d 2.5% 2.2%
Total return (c+d) 13.1% 11.3%
------------------------------------------- ---------- ---------------- --------
* The dividend reinvestment is calculated on the assumption that
dividends paid out by the Company are reinvested into the shares of
the Company at NAV at the ex-dividend date.
Volatility
A measure of how much a share moves up and down in price over a
period of time.
COMPANY INFORMATION
DIRECTORS, INVESTMENT MANAGER AND ADVISERS
DIRECTORS INVESTMENT MANAGER
Harry Wells (Chairman) Coupland Cardiff Asset Management
Kate Cornish-Bowden (Audit & Risk LLP
Committee Chair) 31-32 St James's Street
Peter Wolton (Senior Independent Director) London
June Aitken SW1A 1HD
Craig Cleland Website - www.couplandcardiff.com
BROKER REGISTERED OFFICE*
Peel Hunt LLP 6(th) Floor
100 Liverpool Street 125 London Wall
London London
EC2M 2AT EC2Y 5AS
DEPOSITARY AND CUSTODIAN COMPANY SECRETARY AND ADMINISTRATOR
Northern Trust Investor Services Limited Apex Listed Companies Services
50 Bank Street (UK) Limited
London 6(th) Floor, 125 London Wall
E14 5NT London
EC2Y 5AS
Website - www.apexgroup.com
REGISTRAR AUDITOR
Link Group Johnston Carmichael LLP
10th Floor Central Square 7-11 Melville Street
29 Wellington Street Edinburgh
Leeds EH3 7PE
LS1 4DL
LEGAL ADVISER
Stephenson Harwood LLP
1 Finsbury Circus,
London
EC2M 7SH
COMPANY SECURITY INFORMATION AND IDENTIFICATION CODES
WEBSITE www.ccjapanincomeandgrowthtrust.com
ISIN GB00BYSRMH16
SEDOL BYSRMH1
BLOOMBERG TICKER CCJI LDN
LEGAL ENTITY IDENTIFIER (LEI) 549 300 FZANMYIORK 1K98
GLOBAL INTERMEDIARY IDENTIFICATION 6 HEK HT - 99 999 -SL - 826
NUMBER (GIIN)
* Registered in England no. 9845783
For further information contact:
Apex Listed Companies Services (UK) Limited
Tel: 020 3327 9270
END
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