**Summary of AVI Japan Opportunity Trust PLC Annual Financial Report (2025)**
**Overview**
AVI Japan Opportunity Trust PLC (AJOT) released its Annual Financial Report for the year ended 31 December 2025, highlighting its focus on investing in undervalued small and mid-cap Japanese companies with significant cash or realisable assets. The report details financial performance, portfolio changes, and strategic initiatives, including the transformative combination with Fidelity Japan Trust PLC (FJV).
**Financial Performance**
**Net Asset Value (NAV)** Increased to £425.3 million in 2025 from £211.98 million in 2024.
**NAV per Share (Total Return)** +14.7% in 2025 vs. +20.9% in 2024.
**Share Price Total Return** +15.3% in 2025 vs. +19.9% in 2024.
**Profit Before Tax** £41.9 million in 2025 vs. £38.6 million in 2024.
**Dividend** Proposed final dividend of 0.60p per share, bringing total dividends for 2025 to 2.80p per share.
**Portfolio Highlights**
**Top Holdings** Mitsubishi Logistics (7.5% of NAV), Kurabo Industries (7.3%), Eiken Chemical (6.0%), Raito Kogyo (5.9%), and Sharingtechnology (5.9%).
**Engagement Successes** Notable achievements include the sale of real estate assets by TSI Holdings, restructuring at Kurabo Industries, and a tender offer for Tecnos Japan.
**New Positions** Added Mitsubishi Logistics, Synchro Food, Sanyo Shokai, and Maruzen Showa Unyu, among others.
**Strategic Initiatives**
**Combination with FJV** Completed in Q4 2025, resulting in a larger, more liquid fund with enhanced engagement capabilities. 68% of FJV shareholders joined AJOT.
**Management Fee Reduction** Tiered structure for assets <mark style="background-color:yellow">above</mark> £300 million, with 25% of fees reinvested into AJOT shares.
**Shareholder Engagement** Active engagement with portfolio companies, including public campaigns for Wacom and Rohto Pharmaceutical, and board representation at Synchro Food.
**Corporate Governance**
**Annual General Meeting (AGM)** Scheduled for 5 May 2026, with shareholders able to submit questions in advance.
**Exit Opportunity** Annual redemption option introduced, with 11.05% of shareholders exiting in 2025.
**Outlook**
**Market Environment** Increasing pressure for corporate reform in Japan, driven by regulatory changes and shareholder activism, presents opportunities for AJOT’s strategy.
**Portfolio Positioning** Focus on high-quality, undervalued companies with multiple re-rating levers, supported by a concentrated yet diverse portfolio.
**Future Growth** AJOT aims to build on its track record, leveraging its enlarged scale and engagement capabilities to deliver attractive returns.
**Conclusion**
AJOT’s 2025 performance reflects its successful strategy of active engagement and value investing in Japanese small and mid-cap companies. The combination with FJV has strengthened its position, and the trust remains well-placed to capitalize on the evolving corporate governance landscape in Japan.