CC Japan Income & Growth Trust Celebrates 10-Year Milestone with Strong Returns and Dividend Growth

CC Japan Income & Growth Trust: 2025 results, 10-year track record and what it means for investors

CC Japan Income & Growth Trust (CCJI) has marked its 10th anniversary with another strong year. For the twelve months to 31 October 2025, the NAV total return was 25.2% and the share price total return was 27.9%, both ahead of the TOPIX at 24.1% (all in sterling, total return). Since launch in December 2015 to 31 October 2025, CCJI has delivered 216.0% on a NAV total return basis and 189.8% on a share price total return basis, beating the TOPIX at 149.1%.

The dividend has risen every year since inception, with a tenth consecutive increase confirmed. In plain English: the strategy is doing what it says on the tin – Japanese equity income, with growth.

Key numbers investors should know

Metric	2025	2024
Net assets	£324.0 million	£265.8 million
NAV per share	240.5p	197.3p
Share price	222.0p	178.8p
Discount to NAV	7.7%	9.4%
NAV total return	25.2%	16.1%
Share price total return	27.9%	13.2%
TOPIX total return (sterling)	24.1%	13.4%
Revenue return per share	5.92p	5.32p
Total dividend per share	5.90p	5.45p
Gearing (net)	19.3%	19.2%
Ongoing charges	1.06%	1.03%

Jargon buster: NAV is net asset value per share. The discount is how far the share price sits below NAV. Gearing is borrowed or derivative-based exposure that can amplify gains and losses.

Performance: beating the market and compounding income

CCJI outpaced the TOPIX again this year despite a volatile backdrop, including tariff-related swings in sentiment. The discount narrowed to 7.7%, adding a little extra juice to the share price return. Over ten years, consistent stock selection – and a disciplined process focused on quality, cash flow and governance – has done the heavy lifting.

On income, revenue per share rose to 5.92p and the total dividend increased 8.3% to 5.90p. A second interim dividend of 4.25p will be paid on 2 March 2026 to shareholders on the register at 30 January 2026 (ex-dividend 29 January 2026). Importantly, the trust has strong distributable reserves (£149.1 million) and a revenue reserve (£8.445 million), giving flexibility to sustain the progressive policy.

Portfolio drivers: winners, laggards and what changed

Top contributors and themes

• Fujikura (4.6% of net assets) led the way, benefiting from real-world demand for optical fibre and connectors used in data centres and AI infrastructure.
• SBI Holdings and Nintendo also contributed strongly. Nintendo’s new Switch 2 landed well, and the company still sits on one of Japan’s most cash-rich balance sheets.
• Financials were a tailwind as the Bank of Japan edged towards policy normalisation. Key positions include Sumitomo Mitsui Financial Group (4.8%) and Mitsubishi UFJ Financial Group (4.3%).

Underperformers to watch

Shin-Etsu Chemical, Shimano and Hamamatsu Photonics faced short-term headwinds from inventory digestion and delayed capex. Management teams across these names remain committed to capacity investment and shareholder returns, which supports the longer-term case.

Refreshes and exits

• New positions included Hoya (optical technologies) and Shimano (bicycle components), both with clearer cash allocation policies and commitments to improved capital efficiency.
• Exits: Noevir (competitive pressure in cosmetics), Tokyo Metro (disappointing mid-term plan on capital efficiency and returns), and GMO Internet (group structure below preferred governance standards).

Structure, costs and the discount

Gearing remains a core part of the strategy at roughly 20%, primarily via long-only contracts for difference (CFDs). There were no borrowings at year end; CFD absolute exposure was 19.3% of NAV. This approach avoids market-timing decisions on leverage, but it does magnify volatility – a feature, not a bug, if you believe in the long-term process.

The ongoing charge rose modestly to 1.06%. The management fee moved to a tiered structure from 1 November 2024 – 0.75% on the first £300 million of net assets and 0.60% above that – which should help as the trust grows. The board did not buy back shares in the year, but the discount improved from 9.4% to 7.7% and remains firmly in single digits.

Macro backdrop: governance tailwinds and the yen wildcard

Japan’s corporate reform story continues to gather momentum. The Tokyo Stock Exchange’s push for “management conscious of cost of capital and stock price” is showing up in dividend growth, buybacks and the unwinding of crossholdings. A further revision to the Corporate Governance Code in 2026 should push companies towards more efficient capital allocation for growth, not just balance sheet clean-up.

On the flip side, the yen remains weak and CCJI does not hedge currency exposure. That can cut both ways for sterling investors. Market volatility from geopolitics and trade frictions is another reality to accept with a Japan-focused portfolio.

My take: quality process, visible income, sensible risk-taking

Positives:

• Clear, repeatable process has delivered outperformance over one, three and ten years.
• Dividend growth looks well-supported by cash generative holdings and sizeable reserves.
• Structural tailwinds from governance reform and improving capital efficiency across Japan Inc.
• Gearing used consistently and transparently, with net exposure at 19.3%.

Watch-fors:

• Persistent discount at 7.7% – improved, but still there; the board may need to stay nimble.
• CFD-based gearing adds volatility during drawdowns.
• Currency risk – the unhedged yen exposure will influence sterling returns.
• Sector tilts – meaningful exposure to banks and technology-linked names requires ongoing conviction.

Overall, this is a well-executed, quality-biased Japan strategy that pays you while you wait. If you want exposure to Japan’s reform and income story, CCJI remains a credible, active route.

Dates and housekeeping

• Second interim dividend: 4.25p per share, paid 2 March 2026 (record date 30 January 2026; ex-dividend 29 January 2026).
• AGM: 12 noon, Friday, 27 February 2026 at Stephenson Harwood LLP, 1 Finsbury Circus, London EC2M 7SH.
• Company website for reports, daily NAV and updates: ccjapanincomeandgrowthtrust.com

Bottom line

Ten years in, CCJI has outperformed the market and grown its dividend every single year. The combination of reform-driven value realisation in Japan and a disciplined, income-aware stock-picking strategy has been a winning mix. The risks are clear – yen, gearing, and market volatility – but so is the opportunity. For investors comfortable with Japan and seeking rising income plus capital growth, this remains a compelling candidate for further research.