Schroder Japan Trust reports positive half-year results
Why we think this is neutral
This RNS announcement provides a general update on Schroder Japan Trust's performance, including positive NAV and share price returns that surpassed the benchmark index. While the results are positive, the announcement does not contain any specific news that would warrant a stronger sentiment score. The manager's effective stock selection and the impact of gearing contributed to the outperformance, but there are no major transformational events or profit upgrades that would justify a 'VERY_GOOD' rating.
Key Points
- Positive NAV and share price returns, outperforming the benchmark index
- Tailwinds from Japan's corporate governance reforms, rising wages and increased business investment
- Manager's effective stock selection and use of gearing contributed to outperformance
Summary
Schroder Japan Trust (SJG) has released its half-year results for the six months to January 2025, reporting NAV total returns of 4.0% and a share price total return of 3.2%, surpassing the TOPIX's 1.4% return. Ongoing tailwinds from Japan's corporate governance reforms, rising wages and increased business investment supported strong earnings from SJG's underlying holdings. Combined with a favourable market towards value-oriented sectors, where SJG is well represented, manager Masaki Taketsume's effective stock selection and the impact from gearing contributed to outperformance over the period.