CC Japan Income & Growth (CCJI)

CC Japan Income & Growth (CCJI) has delivered a particularly strong year, outperforming the TOPIX despite periods of sharp volatility. Over the 12 months to 21/05/2026, CCJI generated NAV and share price total returns of 41.4% and 43.1%, respectively, ahead of 28.0% for the index. Performance was driven primarily by stock selection, with holdings such as Fujikura benefitting from continued demand linked to AI-related infrastructure and power investment, whilst Tokio Marine announced improving capital returns buoyed by Berkshire Hathaway’s strategic stake, which reinforced investor confidence in the business. Despite this backdrop, CCJI currently trades on a 9.4% Discount, wider than its five-year average of 7.8%.

Historically, periods of stronger sentiment towards Japan and lower risk aversion have seen the discount narrow materially, at times moving closer to par, highlighting the potential for a re-rating should sentiment improve. This wide discount is also particularly notable given the trust’s longer-term performance and dividend record. CCJI has delivered sector-leading returns since inception, with annualised NAV and share price returns of 13.5% and 12.3%, respectively, ahead of 10.7% for the TOPIX. At the same time, CCJI’s has increased its Dividend every year since launch, with distributions growing at an annualised rate of 7.8%, supported by earnings growth and robust distributable reserves.

Both records have been underpinned by the consistency of the investment approach and the managers’ early recognition of the opportunity created by corporate governance reform in Japan. Managed by Richard Aston since launch in December 2015, CCJI was designed to capture this evolving backdrop through a bottom-up process focussed on identifying high-quality companies with sustainable cash flows, improving capital discipline and stronger shareholder alignment, whilst maintaining a clear valuation focus. The Portfolio remains well aligned with this backdrop, combining exposure to structural themes such as automation and digitalisation alongside companies benefitting from improving shareholder returns and greater balance sheet discipline.