22nd Jan 2019 12:30
LONDON (Alliance News) - CC Japan Income & Growth Trust PLC on Tuesday raised its dividend following an outperformance over the comparative Topix index in its recently ended financial year.
The fund, which invests in Japanese equities, said its net asset value total return for the year to the end of October rose by 4.1%, beating the Topix index which saw a negative return of 0.4%.
CC Japan emphasised however that it does not track any benchmark.
Net asset value as at October 31 was 148.6 pence per share, up from 146.0p on the same date a year before, while its share price rose to 153.0p from 152.0p.
The share price premium to net asset value was 3.0%, down from a premium of 4.1% the year before.
Shares in CC Japan Income & Growth Trust were down 1.2% at 142.72 pence on Tuesday, putting them at a discount to the October 31 NAV per share.
The trust declared a final dividend of 2.50 pence per share, bringing the total payout to 3.75p, up 8.7% from 3.45p the prior year.
CC Japan said its strong performance was delivered through the success of its individual portfolio holdings, particularly smaller stocks. In particular, refurbished house supplier Katitas, small business services provider Hikari Tsushin and motorcycle helmets developer Shoei Co Ltd made positive contributions.
"The immediate economic prospects for Japan are heavily dependent on the dynamics of the global economy. This has not changed in recent years. The greatest dependence is on the US economy both through its direct trading relationship and also the secondary impact on international trade," said Chair Harry Wells.
"The vicissitudes of economic cycles may come and go, but the improvement of shareholder returns has been very visible during the recent economic expansion in Japan. While there has been a sustained rise in dividends and share buybacks, perhaps the most pertinent change in attitudes in Japan has been a metamorphosis in Japanese corporate culture to focus on the stability of dividends available to shareholder," Wells added.
Related Shares:
CC Japan Income