24th Jan 2020 09:15
(Alliance News) - CC Japan Income & Growth Trust PLC on Friday raised its annual dividend as it outperformed its comparative Topix index on a positive portfolio return.
The fund, which invests in Japanese equities, said it net asset value total return for the year to the end of October was 9.9%, beating the Topix index in sterling terms, which returned 7.2%.
CC Japan emphasised however that it does not track any benchmark.
The trust's net asset value as at October 31 was 158.9 pence per share, up 6.7% from 148.9p the same date the year before. CC Japan's share price at the end of October 31 was 150.0p, reflecting a discount to net asset value of 5.6%.
Shares in CC Japan Income & Growth were down 1.0% at 155.90 pence on Friday in London.
CC Japan said its portfolio produced a positive return over the year, driven mainly by real estate investment trusts, which benefited from lower interest rates, and strong fundamentals in the Japanese real estate market.
However, financial holdings faltered as the operating environment for the sector remained challenging on low interest rates and flat yield curves.
CC Japan declared a final dividend of 3.10 pence, bringing the total payout to 4.50p, up 20% to 3.75p the prior year.
"The recent slowing of economic growth has not tempered the enthusiasm for change. It is particularly encouraging that corporate managers are demonstrating a commitment to the stability of dividends over time despite earnings volatility and also demonstrating a more flexible approach to share buybacks in order to achieve greater capital efficiencies. The increase in share buybacks over the last twelve months, is a notable feature of recent market dynamics and a commendable response to any weakness in share prices," said Chair Harry Wells.
"These improvements will feature prominently amongst Prime Minister Abe's legacy achievements. The framework created through the introduction of the codes of behaviour, market index creation and law revisions will ensure that the improvements will be maintained well beyond his tenure," Wells added.
By Dayo Laniyan; [email protected]
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