11th Feb 2022 12:35
(Alliance News) - CC Japan Income & Growth Trust PLC on Friday said assets grew in its recent financial year on a strong recovery from the pandemic in Japan, but it warned that Omicron and political tensions could derail this.
The trust invests for dividend income and capital growth from equities listed or quoted in Japan. It reported net asset value per share amounted to 165.4 pence as at October 31, up 21% compared to 136.8p on the same date a year before.
Net assets as at October 31 totalled GBP222.9 million, up 21% from GBP184.4 million the year before, while its share price increased 29% during the course of the financial year to 154.0p from 119.5p.
The stock was down 1.4% on the day at 159.80p on Friday morning in London.
The investor's NAV ex-income total return per share swung to positive 25% in the year that ended October 31, from negative 11% the year before. CC Japan's share price total return swung to positive 33% from negative 17%.
The investor attributed the performance to a "strong" recovery from Covid-19, as Japan and the rest of the world started to emerge from the "onslaught" of the pandemic.
It declared a second interim dividend of 3.35p per ordinary share. This represented a 4.7% increase from 3.20p the year prior.
CC Japan's total dividends amounted to 4.75p in the year, up 3.3% from 4.60p.
The investment trust noted recent challenges through the arrival of the Omicron variant.
"While Omicron may be less virulent than the previous outbreaks, it is still having a profound economic effect as risk-averse governments continue to impose lockdown restrictions in many countries," Chair Harry Wells said.
The company continued to warn of potential future negative impacts of Covid-19 and rising political tensions, particularly in the Ukraine, that could derail further recovery in Japan and the global economy.
Nonetheless, it said its portfolio appears "well-positioned" to capture the benefits of a reopening of the Japanese economy.
By Abby Amoakuh; [email protected]
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