**Summary of JPMorgan Japanese Investment Trust PLCs Annual Financial Report (Year Ended 30 September 2025)**
**Performance Highlights**
**Total Return Net Asset Value (NAV)** +25.0%, significantly outperforming the benchmarks +16.9%.
**Three-Year Annualised NAV Total Return** +18.8% vs. benchmarks +13.9%.
**Ten-Year Annualised NAV Total Return** +11.4% vs. benchmarks +9.5%.
**Five-Year Performance** Lags benchmark due to sensitivity to global interest rate increases in 2021-2022.
**Strategic Initiatives**
**Combination with JPMorgan Small Cap Growth & Income Trust (JSGI):** Completed in October 2024, strengthening market presence and liquidity. Net assets increased to £1.2 billion with a more competitive fee structure.
**Portfolio Management Team** Strengthened with the addition of Xuming Tao as co-manager, alongside Nicholas and Miyako.
**Investment Strategy**
**Focus on Corporate Reforms** Emphasis on companies embracing reforms, leading to improved shareholder returns.
**Exposure to New Growth Areas** Increased investment in defense and other emerging sectors.
**Gearing Strategy** Utilized to amplify returns, ranging from 6.1% to 16.6% during the year, with an average of 13.1%. As of 30 September 2025, gearing was 13.5%, reflecting confidence in the Japanese market.
**Discount Management and Share Buybacks**
**Buyback Policy** Actively managed to maintain a competitive discount to NAV, with 5,538,996 shares bought back during the year at an average discount of 11.3%.
**Treasury Shares** Held 23,634,985 shares in Treasury as of 30 September 2025, representing 12.8% of total shares in issue.
**Revenues and Dividends**
**Dividend Increase** Proposed final dividend of 8.70p per share for 2025, up from 6.75p in 2024, reflecting strong income growth from portfolio companies.
**Dividend Policy** Aims to pay out the majority of available revenue, subject to shareholder approval.
**Board Succession and Governance**
**Board Changes** Takashi Maruyama appointed as Non-Executive Director, replacing George Olcott. Sally Duckworth to succeed Stephen Cohen as Chair in January 2027.
**ESG Integration** Financially material ESG factors are integrated into the investment process, with ongoing engagement with investee companies.
**Outlook**
**Corporate Reforms** Expected to continue driving shareholder returns and attracting international investment.
**Market Opportunities** Structural trends like de-globalization, supply-chain reshoring, defense modernization, and digitization present growth opportunities.
**Risks** Include global trade barriers, geopolitical tensions, and inflation management by the Bank of Japan.
**Financial Summary**
**Net Assets** £1.22 billion as of 30 September 2025.
**Net Return After Taxation** £241.4 million, with a total return per ordinary share of 148.90p.
**Net Asset Value per Ordinary Share** 757.9p.
**Conclusion**
JPMorgan Japanese Investment Trust PLC delivered strong performance in 2025, outperforming its benchmark through strategic investments in corporate reform beneficiaries and emerging growth sectors. The trust continues to enhance shareholder value through active discount management, dividend growth, and robust governance practices, positioning itself well for continued long-term growth in the evolving Japanese market.