LONDON STOCK EXCHANGE ANNOUNCEMENT

JPMORGAN JAPANESE INVESTMENT TRUST PLC

FINAL RESULTS FOR THE YEAR ENDED 30TH SEPTEMBER 2024

Legal Entity Identifier: 549300JZW3TSSO464R15

Information disclosed in accordance with the DTR 4.1.3

HIGHLIGHTS

Net Asset Value (NAV) Growth: The total return on net asset value with debt at fair value increased by +24.2% comfortably outperforming the benchmark* return of +10.3%.  Share price total return was +22.4%.

The Company has outperformed over five and ten years to 30th September 2024, with an annualised five-year NAV with debt at fair value total return of +5.5% compared with +5.1% for the benchmark* and an annualised ten year NAV with debt at fair value total return of +10.5% compared with +8.4% for the benchmark.

Discount management and share repurchases: The company repurchased a total of 7,680,000 shares (5.4% of shares in issue) during the financial year (2023: 3,870,000 shares).

Dividend Growth: The board proposes to pay a final dividend of 6.75p per share (2023: 6.50p). This increase in dividend follows last year's +4.8% increase.

*The Company's benchmark is the TOPIX index expressed in sterling terms.

Key Developments (following the year-end)

Combination with JPMorgan Japan Small Cap Growth & Income plc (JSGI)): Successfully completed the combination with JPMorgan Small Cap on 25th October 2024, resulting in a post combination Company with approximately £1 billion of net assets, giving it a leadership position within the Japanese investment trust sector.

Reduction in ongoing cost ratio: Following the combination, the Company will benefit from a new, highly competitive fee arrangement and the Ongoing Cost Ratio is expected to be significantly lower, estimated to be around 0.62% for the period to 30th September 2025, as compared with 0.73% for the period to 30th September 2024.

Stephen Cohen, Chairman, commented:

"It is an exciting time for investors in Japanese equities. The corporate reforms and other structural

changes such as the spread of digitalisation currently unfolding in Japan are all positive for the

economy and for equity markets. It is also encouraging that these developments still have much

further to run. At the same time, reflecting a possible end to deflationary pressures, the Bank of Japan

has just begun to raise interest rates, wages seem to be increasing and there has been some pickup

in reported inflation. All this, plus reasonable market valuations, suggest that the Japanese market's

recent strong run could well continue"

"We believe the Company is in capable hands and well positioned  to capture the opportunities offered by the

Japanese market. We look forward to another year of progress."

Nicholas Weindling and Miyako Urabe, Portfolio Managers, commented:

"The transformation underway in Japan has, in our view, only just begun. The Japanese market has had a very strong run over the past 18 months, and this combination of corporate governance reforms, structural transformation and appealing valuations should help sustain and encourage investors' appetite for Japan stocks. It will also generate many exciting investment opportunities, regardless of the economic backdrop."

"We believe that our experienced team, based on the ground in Tokyo, means we are ideally placed to

identify these opportunities and capitalise on them. There are many good reasons for our optimism regarding the Japanese market, and hence the long-term prospects of the portfolio's holdings. We are therefore confident of the Company's ability to continue delivering capital growth, and outperformance, to shareholders over the long term."

CHAIRMAN'S STATEMENT

I am pleased to present the Annual Report of our Company for the year ended 30th September 2024 and to note our significant outperformance. The Company delivered a +24.2% total return on net asset value (in sterling terms), with debt calculated at fair value, meaningfully outpacing the benchmark index (TOPIX), which recorded a +10.3% return (also in sterling terms). The Investment Manager's Report sets out the reasons for this outperformance, part of which reflects their success in capturing the benefits of some of the recent corporate reforms.

Japanese equity markets rose strongly during the financial year and both the Nikkei 225 and the TOPIX, our Company's benchmark, finally both hit all-time highs in July, almost 35 years after their previous peaks.

The most positive influence on Japanese equities over the past year has been the authorities' ongoing efforts to promote corporate reform, which has enhanced shareholder returns thanks to higher dividends, share buybacks and better capital allocation. Not surprisingly this captured the attention of foreign investors, who reduced their underweighting in Japanese stocks.

As the Report also notes, while three year returns still lag the benchmark, I am delighted that the long-term returns, over ten years, now show an annualised outperformance of 2.1%.

Since the end of the financial year, as of 9th December 2024, the Company's net asset value has increased by 5.5%, while its share price has risen by 3.1%. In comparison, the TOPIX index has returned +2.6% over the same period.

The returns from the strong domestic market performance and our outperformance were unfortunately reduced in sterling terms by the weakness in the yen which declined by 5.1% vs sterling over the financial year. The policy of the Company remains not to hedge the currency exposure.

The Investment Managers' Report below also discusses the investment rationale behind recent portfolio activity and the outlook in more detail.

Combination with JPMorgan Japan Small Cap Growth & Income plc

Following the year-end, on 25th October 2024, the Company successfully completed the combination with JPMorgan Japan Small Cap Growth & Income plc ('JSGI'). The transaction was well received by shareholders and the wider market, as both groups seemed to recognise the logic of creating a larger, more liquid investment trust, managed by the same team in Tokyo. This combination creates an investment trust with greater market presence and greater liquidity.

Your Company post combination has net assets of approximately £1 billion, giving it a leadership position within Japanese investment trusts, a testament to the Company's ability to attract and retain substantial investor interest in a competitive market. Post combination the Company will also benefit from a new, highly competitive fee arrangement and the Ongoing Cost Ratio is expected to be significantly lower, estimated to be around 0.62% for the period to 30th September 2025, as compared with 0.73% for the period to 30th September 2024.

In line with best practice, the Board proposed and the shareholders approved an amendment to the articles of association of the Company for a continuation vote to be held every five years, starting with the annual general meeting in 2029.

The Company continues to offer the same unconstrained all-cap Japanese equity strategy and to benefit from the expertise of its Tokyo-based portfolio managers, Nicholas Weindling and Miyako Urabe.

The portfolio transition went smoothly and the portfolio continued to outperform the benchmark during the transition period. I would like to extend my sincere gratitude to JP Morgan Asset Management ('JPMAM'), especially our investment management team, and all our advisors for their dedication and hard work in bringing this combination to a successful and smooth outcome.

I am delighted to welcome our new shareholders from JSGI and to express deep appreciation to our continuing shareholders for their unwavering support throughout this transaction. The Prospectus for the transaction was sent to you in September 2024 with a detailed explanation of the combination. You can also access a copy on the Company's website at https://am.jpmorgan.com/content/dam/jpm-am-aem/emea/gb/en/regulatory/investor-disclosuredocument/jfj-circular-and-prospectus-240919.pdf

Gearing

The Board believes that gearing can benefit performance. The Board sets the overall strategic gearing policy and guidelines and reviews them at each Board meeting. The Portfolio Managers then manage gearing within the agreed limits of 5% net cash to 20% geared in normal market conditions. As at 30th September 2024, gearing was equivalent to 10.5% (2023: 13.7%) of net assets. At the time of writing this report, the gearing had increased to 14.0%.

As mentioned in the 2024 Half Year Report, it was decided not to renew the loan with Mizuho Bank Ltd, and this was repaid by the Company. Along with the short-term revolving facility of JPY 10 billion with Industrial and Commercial Bank of China Limited, London Branch, the Company also has long-term fixed rate debt in place. Further details are provided in the full 2024 Annual Report (available on the Company's website). The Company has, post year-end, started using Contracts for Difference (CFDs) as an alternative means of implementing gearing.

Revenues and Dividends

Income received during the year ended 30th September 2024 fell this year, with earnings per share for the full year of 7.37p (2023: 7.46p). This small decrease is a result of lower income received from portfolio companies and from stock lending.

The Board's dividend policy is to pay out the majority of revenue available each year. The Board therefore proposes, subject to shareholders' approval at the Annual General Meeting to be held on 22nd January 2025, to pay a final dividend of 6.75p per share (2023: 6.50p) on 12th February 2025 to shareholders on the register at the close of business on 27th December 2024 (ex-dividend date 24th December 2024). This increase in dividend follows last year's 4.8% increase.

As part of the combination with JSGI, we undertook to review JFJ's dividend policy, including speaking with our major shareholders (many of whom were also shareholders in JSGI). The Company's investment objective is to seek capital growth from a portfolio of investment in Japanese companies. It invests primarily in growth companies which often have relatively low dividend yields, not least because they are likely to reinvest excess cash in their businesses and/or buy back their shares rather than increase dividends. At present, the Company pays out the majority of revenue available each year as a final dividend. Having now completed its review of the Company's dividend policy, the Board has concluded that the Company's dividend policy should remain unchanged. The Board hopes to increase the dividend year on year, as has been possible since 2020.

Discount Management and Share Repurchases

The Board monitors the discount to NAV at which the Company's shares trade. It believes that for the Company's shares to trade close to NAV over the long term, the focus must remain on consistent, strong investment performance over the key one, three, five and ten-year timeframes, combined with effective marketing and promotion of the Company.

The Board recognises that a widening of, and volatility in, the Company's discount is seen by some investors as a disadvantage of investments trusts. The Board has restated its commitment to seek a stable discount or premium over the long run, commensurate with investors' appetite for Japanese equities and the Company's various attractions, not least the quality of the investment team, the robust and disciplined investment process the team employs, and the resultant strong long-term performance. Since 2020, this commitment has been manifested in increased expenditure on marketing and a series of targeted buybacks.

To this end, during the past financial year, a total of 7,680,000 shares (5.4% of shares in issue) were repurchased (2023: 3,870,000 shares).

As at 30th September 2024, the discount was 10.2%, compared to the level of 8.8% at which it closed the previous year. Over the past financial year, the discount ranged from 14.0% to a premium of 1.5% and the average discount was 9.0%. This compares with the previous financial year, when the discount ranged from 1.2% to 11.3% and the average discount was 7.4%.

Since the end of the current review period, the Board has repurchased a further 1,700,000 shares, and the discount stood at 13.4% as at 12th December 2024.

Shares are only repurchased at a discount to the prevailing net asset value, which increases the Company's net asset value per share on remaining shares. Shares may either be cancelled or held in Treasury for possible re-issue at a premium to net asset value.

Stewardship

As detailed in the Investment Manager's ESG Report in the full 2024 Annual Report, financially material ESG considerations are integrated into their investment process. The Board shares the Investment Manager's view of the importance of considering financially material ESG factors when making investments for the long term, and the necessity of continued engagement with investee companies over the duration of the investment.

Further information on JPMAM's ESG process and engagement activities is set out in the ESG Report in the JPMAM 2023 Investment Stewardship Report, which can be accessed at https://am.jpmorgan.com/content/dam/jpm-am-aem/global/en/sustainable-investing/investmentstewardship-report.pdf

Change of Registrar

Following a competitive tender process, the Company transferred the management of its share register from Equiniti Financial Services Limited to Computershare Investor Services PLC ('Computershare'), with effect from 3rd June 2024.

A notification letter from Computershare was sent to all registered shareholders advising of this change. The letter included an invitation to shareholders to create an online account which will provide access to the details of their shareholdings and an opportunity to participate in the Company's Dividend Reinvestment Plan (DRIP). Please visit www.investorcentre.co.uk. for further information.

Board Composition and Appointment

The Board continues to manage its succession planning. As mentioned previously, at the end of the Company's Annual General Meeting ('AGM') held in January 2024, Christopher Samuel retired as Chairman, after serving the Company for nine years, and I assumed the role of Chairman.

Sally Duckworth took over as Chair of the Audit & Risk Committee, my previous role, from the conclusion of the 2024 AGM. As previously reported in the Company's 2023 Annual Report, George Olcott, who is based in Japan, will be retiring from the Board following the Annual General Meeting in January 2026 and I will be stepping down from the Board the following year in 2027. The Board has started the recruitment process to seek to appoint a new Non-Executive Director based in Japan. Further updates will be provided in due course.

As previously announced, following the combination with JSGI, Thomas Walker, previously a non-executive director of JSGI since 2019, was appointed as a non-executive Director of the Company with effect from 25th October 2024. More information on the Directors can be found in the full 2024 Annual Report.

The Board supports the annual re-election for all Directors, as recommended by the AIC Code of Corporate Governance. In compliance with this, all Directors will stand for appointment or re-appointment at the forthcoming AGM.

Board Diversity

The Board has long recognised the value and importance of diversity in the boardroom. The recommendations of the FTSE Women Leaders Review, which form part of the UK Listing Rules, set targets for FTSE 350 companies to have 40% female representation, up from 33%. The recommendations also stipulate that a woman occupies the role of either Chair or Senior Independent Director. I am pleased to report that the Company has complied with these guidelines for some years now - and that the Board currently has over 40% female representation.

More information showing the gender and ethnic composition of the Board is shown in a table in the full 2024 Annual Report.

Annual General Meeting and Shareholder Contact

The Company's Annual General Meeting (AGM) will be held on Wednesday, 22nd January 2025 at 12.30 p.m. at 60 Victoria Embankment, London EC4Y 0JP.

We invite shareholders to join us in person for the Company's AGM, to hear from the Portfolio Managers. Their presentation will be followed by a question-and-answer session. Shareholders wishing to follow the AGM proceedings but choosing not to attend in person, will be able to view proceedings live and ask questions (but not vote) through conferencing software. Details on how to register, together with access details, will be available shortly on the Company's website at www.jpmjapanese.co.uk, or by contacting the Company Secretary at invtrusts.cosec@jpmorgan.com.

My fellow Board members, representatives of JPMAM and I look forward to the opportunity to meet and speak with shareholders after the formalities of the meeting have been concluded.

Shareholders who are unable to attend the AGM are strongly encouraged to submit their proxy votes in advance of the meeting, so they are registered and recorded at the AGM. Proxy votes can be lodged in advance of the AGM either by post or electronically. Detailed instructions are included in the Notes to the Notice of Annual General Meeting in the full 2024 Annual Report.

If there are any changes to these arrangements for the AGM, the Company will update shareholders via the Company's website, and, if appropriate, through an announcement on the London Stock Exchange.

Stay Informed

The Company delivers email updates with regular news and views, as well as the latest performance. If you have not already signed up to receive these communications and you wish to do so, you can opt in via https://web.gim.jpmorgan.com/emea_investment_trust_subscription/welcome?targetFund=JFJ or by scanning the QR code available in the full 2024 Annual Report.

Outlook

It is an exciting time for investors in Japanese equities. The corporate reforms and other structural changes such as the spread of digitalisation currently unfolding in Japan are all positive for the economy and for equity markets. It is also encouraging that these developments still have much further to run. At the same time, reflecting a possible end to deflationary pressures, the Bank of Japan has just begun to raise interest rates, wages seem to be increasing and there has been some pickup in reported inflation. All this, plus reasonable market valuations, suggest that the Japanese market's recent strong run could well continue, and the Investment Manager's Report below covers this Outlook in more detail.

UK shareholders may have further cause for optimism in that the yen has now fallen a long way and could well stabilise around these levels. It is however also my duty to remind shareholders that, while we are optimistic about the outlook for Japan and have a high level of confidence in both the Portfolio Managers, there will likely be periods of underperformance.

All of us on the Board would like to extend our gratitude to our investment management team for their dedication and expertise, which have been instrumental in achieving this year's results. We believe the Company is in capable hands and well positioned to capture the opportunities offered by the Japanese market. We look forward to another year of progress.

Finally, on behalf of the Board, I would again like to thank you, our shareholders, as ever, for your continued strong support.

Stephen Cohen

Chairman                                                                                                                              

INVESTMENT MANAGER'S REPORT

Performance

We are very pleased to report that the strong absolute and relative performance we saw in the first half of the financial year continued into the second half. For the year ended 30th September 2024, the Company's total return NAV with debt at fair value was +24.2% in sterling terms, outpacing the benchmark return of +10.3% by +13.9%, in sterling terms.

We focus on quality and growth stocks, yet the strong returns realised over the past year were achieved during a period when Japanese value stocks in general - unlike their US counterparts - outperformed the growth and quality names we prefer for most of the period. We attribute this achievement to three factors. Firstly, we increased our focus on companies embracing governance change and improving the efficiency of their balance sheets. Secondly, the last two months of the financial year did finally see a change in the style environment away from value names, in favour of more growth-oriented stocks, when the yen began to appreciate. Thirdly, ASICS, the specialist running shoe manufacturer, made a significant contribution to returns over the period.

The robust returns registered over the past year have boosted the Company's performance over the long term. The annualised NAV total return with debt at fair value over the three year period was -4.4%, versus the benchmark return of +2.9%. However, the long-term absolute and relative performance has strengthened. In the ten years to end September 2024, the Company made an annualised NAV total return of +10.5%, ahead of the benchmark return of +8.4%.

Performance attribution

Year ended 30th September 2024

Source: JPMAM and Morningstar. All figures are on a total return basis.

Performance attribution analyses how the Company achieved its recorded performance relative to its benchmark.

^A     Alternative Performance Measure ('APM').

A glossary of terms and APMs is provided in the full 2024 Annual Report.

Economic and market background

The Japanese market has returned to the limelight over the past 18 months, after a long period of being unloved and under-owned by international investors. The Company's benchmark, the TOPIX, delivered a total return of 12.8% during calendar year 2023, and has continued to rise this year, reaching a record high in July 2024. Japan's bellwether Nikkei 225 also hit a fresh all-time high in the same month. Much of the inflows have apparently come from global equity portfolio managers increasing their allocation to Japan. They buy a relatively small number of the larger cap stocks so the market rally has been quite focused in this area.

The main reason for these gains is global investors' positive reaction to corporate governance reforms and shareholder friendly policies currently underway in Japan. The authorities are encouraging businesses to improve the transparency and independence of their boards, and to raise shareholder returns by returning their large cash reserves to shareholders, in the form of higher dividend payments and share buybacks. At the same time, shareholder activism is increasing, and Japanese pension funds have been publicising their voting positions on corporate actions - actions which enhance market information for all participants.

Investors have also welcomed signs of improvement in Japan's domestic economy, after years of stagnation and deflation. Most significantly, the spring wage negotiations, known as the shunto, agreed a 5.3% wage increase, the highest in 33 years and substantially ahead of the rate of inflation, which is currently running at 3.0% pa. This rise in real wages may boost consumer sentiment and support domestic demand.

On the monetary policy front, the Bank of Japan (BoJ) has begun to raise interest rates for the first time in 17 years. This is partly an effort to stabilise the yen, as its depreciation is driving up the cost of essential imports like energy and food, which, in turn, is eroding consumer confidence. The BoJ has lifted rates twice since March 2024 and the key policy rate now stands at 0.25%. However, monetary settings are still relatively loose, as the central bank remains committed to bolstering liquidity and stimulating growth, and this should be positive for the market in the near term.

The divergence between interest rates in Japan and the US and other major economies remains significant even after the BoJ's recent hikes and the US Federal Reserve's rate cuts, and this gap has seen the yen weaken dramatically over the past two years. Although the yen strengthened somewhat since the BoJ's second rate hike in late July this year, which was followed weeks later by a larger than expected rate cut by the Fed, it remains near multi-year lows versus the USD. Japanese exporters such as automakers and industrials have benefited accordingly, although the yen's partial recovery in September saw market leadership switch away from exporters, towards other areas of the market, including domestic sectors such as retail and services.

We believe that private equity investors are increasingly active in Japanese businesses. One important development that may be encouraging this trend has been the establishment last year of Japan's takeover code, which is intended to spur industry consolidation and boost competitiveness. The code also ensures the market is now informed of all such bids, which helps draw attention to undervalued companies and could foster competition for assets amongst competing bidders.

Two of the Company's portfolio holdings have been impacted by these developments. One holding, Benefit One, a provider of staffing and employment services and benefits, was subject to a hostile takeover by a very traditional life insurance Japanese company, a highly unusual occurrence in Japan. Of even greater significance, another holding, Seven & I Holdings, the world's largest operator of convenience stores, is currently the subject of a bid from its global rival, Canada's Alimentation Couche-Tard, which operates Circle K convenience stores. We believe this transaction will have long-lasting consequences. We have never seen inbound M&A on this scale. The bid means that we can now start to consider other possible Japanese candidates for M&A activity by overseas investors, particularly in cases where the potential target is trading at a discount to its global peers, as is the case with many Japanese companies.

Japanese equity markets experienced a bout of volatility in August, sparked by the BoJ's policy action and associated hawkish commentary on the potential for further hikes, combined with a run of weaker than expected US economic data. The fall was exacerbated by a partial unwind of the yen carry trade, in which investors borrow cheap yen to buy overseas assets. The market has since regained most of those losses.

On the political front, in September Shigeru Ishiba became Prime Minister following the resignation of Mr Kishida, whose popularity had fallen precipitously. Kishida's demise was partly the result of a scandal in the ruling Liberal Democratic Party ('LDP'), as well as growing dissatisfaction within the electorate about deteriorating living standards, as yen weakness has raised the price of key imports such as food and energy. However, this change of leadership is unlikely to have a significant impact on policy direction. Although the LDP suffered significant losses in the October election, we still expect Mr. Ishiba to maintain all the key policies of his predecessor.

Elsewhere in the region, the Chinese authorities, in response to economic weakness and deflation, announced a major stimulus package in September, which sparked a significant rally in the Chinese market. We hold some companies that should benefit from an uptick in Chinese consumption, including ASICS, Fast Retailing, owner of the Uniqlo clothing brand and Shimano, a supplier of bicycle parts, amongst others. However, generally we remain cautious about companies that compete against local Chinese businesses.

Portfolio Themes

The portfolio is constructed entirely on a stock-by-stock basis as we seek out the best, most attractive companies, regardless of the economic cycle. Nonetheless, many portfolio holdings offer exposure to key structural themes that should drive growth over the medium term. These companies are also well-placed to take advantage of recent developments in the corporate governance landscape. While they are outstanding businesses poised to compound earnings growth for many years, they often have sub-optimal capital allocation policies which have, historically, encouraged high cash balances and cross shareholdings. Unwinding these creates scope for significant improvements in shareholder returns.

Another theme is digitisation and the adoption of technological innovation. Japan remains well behind most other advanced economies in areas such as online shopping, digital services and cloud computing, and this leaves plenty of scope for such trends to continue developing over coming years. For example, the penetration of e-commerce within the Japanese retail market is just over 10% which remains much lower than in China, the UK, South Korea or the US. In addition, many companies across the economy still use inefficient internally developed software systems which will need to change as the developers of these bespoke systems retire. OBIC, a leading provider of IT services for small and mid-sized companies, is one business benefiting from the standardisation of business software. It has operating margins over 60%. It also has a significant and growing net cash position, as well as a portfolio of shareholdings which are depressing its return on equity. We are engaging with the company to encourage it to improve its capital allocation.

De-globalisation is another trend gathering momentum. The pandemic, and subsequent events such as widespread supply chain shortages, the conflict in Ukraine and simmering Sino/US geo-political tensions, have increased companies' desire to move production nearer to end customers, including to Japan. For example, TSMC, the Taiwanese semiconductor producer, is building plants in Japan. Our portfolio holding in Japan Material, which installs and services infrastructure for semiconductor factories, is benefitting. With wage inflation now an issue in the US and other markets, businesses establishing new production plants and warehouses have a stronger incentive to incorporate factory automation into these facilities wherever feasible. Japan is fortunate to be home to some of the world's leading automation specialists, several of which are held in our portfolio, including Keyence. This long-held Premium rated company not only has a dominant market share and high profitability, but also significant potential for improved shareholder returns.

Japan is home to many global leading consumer brands such as Fast Retailing and computer games companies such as Sony and Nintendo. As in other sectors, we can find companies that combine long-term structural growth with significant potential from improved governance. Nintendo, which owns some of the sector's most valuable intellectual property, with characters such as Super Mario and Pokemon, has roughly a quarter of its market cap in net cash and could do much more in terms of shareholder returns. Meanwhile, Shimano, which commands more than 75% of the market in bike parts, will benefit from the surge in popularity of cycling as an alternative to driving. The company also holds close to a quarter of its market cap in net cash.

Japan also hosts many world-leading hardware technology companies, some of which are dominant in their niche markets. One such example is Quality-rated chip tester Advantest. Chip testing used to be a fragmented market with many competitors, but it has become a duopoly over time, with Advantest winning considerable market share. One of its key customers is Nvidia, the US producer of the most advanced chips. Similarly, Premium-rated and long held HOYA is the leading global manufacturer of glass substrate for hard disk drives.

While exposure to key structural themes underpins the investment case for many portfolio holdings, other portfolio companies have very specific drivers. Secom is Japan's number one security company. Following a change in management last year, we saw the company undertake its first share buyback for over 20 years, accompanied by a price hike. Elsewhere, there are substantial opportunities in small stocks which generally have low levels of sell-side (investment bank analyst) coverage. One such example within the medical technology field is Osaka Soda, which is the leading global supplier of a key ingredient in anti-obesity drugs, yet it is has a low level of analyst coverage. We expect Osaka Soda's profits to grow rapidly due to the huge popularity of these drugs. This company is also making improvements to its balance sheet structure, to improve capital efficiency. It has a strong net cash position, so it is likely to deliver the same improvements in shareholder returns we are seeing across the market.

Significant contributors and detractors to performance

The most significant contributors to returns over the financial year ended 30th September 2024 included several stocks we rate as Quality and one Premium rated name. The Quality-rated names included ASICS, a leading brand of running shoes. This business experienced a difficult period between 2016 and 2020, when it attempted to compete with Nike and Adidas in the market for casual trainers. However, more recently it has delivered strong results following its decision to focus on its core, specialist, running shoe product. Another key contributor, Hitachi, is a Quality rated conglomerate that is a major supplier of cabling for power grids, as well as other businesses. The company has dramatically changed its business portfolio over the last few years and several of its businesses are global market leaders in their respective fields. Its results remain strong. The shares of Tokio Marine, a Quality-rated non-life insurer, benefited after management announced a plan to speed up the sale of its shareholdings in other companies and distribute the proceeds to shareholders. Performance was also enhanced by gains in Recruit, a provider of human resources technology and other business solutions. This Premium-rated business continued to do well, thanks in large part to its ownership of the world's largest job search website. The company also announced a Y600 billion (US$4 billion) buyback programme, which will boost shareholder returns. Itochu is a Standard rated import/export conglomerate trading in a variety of goods. Like other significant contributors to performance, its share price has been supported over the past year by continued strong results and improving shareholder returns.

The main detractors from performance over the period included Nakanishi, Japan's leading dental equipment producer. This Quality-rated business recently acquired DCI, a maker of dental chairs, but DCI's performance since acquisition has been weaker than expected. Japan Material is both an installer of infrastructure for semiconductor factories, and a provider of after sales servicing. This makes the company a convenient, 'one-stop shop' for its clientele. The company is Quality-rated but earnings growth has slowed as the business invests for the future. OBIC, a Premium-rated IT services business, saw its shares de-rate over the year, unjustifiably in our view, as we see no deterioration in the investment case and management continues to execute well. Daikin, which produces air conditioners, is Quality-rated. However, demand has been weaker than expected in China and the United States. Additionally, the European take-up of heat pumps has been slower than forecast. This recent disappointing performance prompted us to close this position. Our decision not to own Standard-rated Mitsubishi Heavy Industries also detracted from returns. The shares performed well following the Japanese government's announcement of plans to increase defence spending, one of the company's key exposures.

Portfolio activity

Corporate governance reforms, including business re-organisation, are increasing the number of companies we may, in future, deem to be Premium- or Quality-rated, and this has created many more opportunities for us to invest in the kind of businesses we favour. Over the past year we added several new stocks to the portfolio. The most significant acquisitions included:

-   Advantest - This Quality-rated business is the global leader in semiconductor chip testing. Demand from its key customer, Nvidia, and other major clients, is driving earnings growth.

-   Softbank Group - The group listed its Quality-rated subsidiary ARM, a chipmaker, in the US last year. This has greatly improved visibility regarding the value of the whole group, which in our assessment is trading at a wide, and appealing, discount to NAV.

-   Kao - During the past year, this leading, Quality-rated maker of consumer goods announced a plan to improve profitability, including focusing on a smaller number of brands. We believe this plan is likely to be effective in lifting performance.

-   Suzuki Motor - This Standard-rated business trades at a big discount to the value of its stake in Maruti Suzuki, India's leading car manufacturer. Furthermore, Suzuki has a very strong balance sheet, and we believe there is potential to substantially improve capital allocation.

-   Denso - Denso is one of the world's top auto component makers, focused on hybrid and electric vehicles, as well as advanced driving systems. The company is significantly reducing its cross-shareholdings and improving its capital allocation. We upgraded the strategic classification to Quality and bought the shares at an attractive valuation.

In the last six months we also established new positions in Kinden, an electrical engineering company, Lifedrink, which bottles soft drinks to be sold as own-label products, Toei Animation, a creator of anime content, Nichias, a supplier of thermal insulation, whose new president is focused on profitability, and Yamato Kogyo, a steelmaker. All these acquisitions were motivated by the prospect of improving shareholder returns, attractive valuations and appealing growth characteristics.

These purchases were funded by the sale of several holdings including Daikin, mentioned above, and Nippon Telegraph and Telephone. We sold this Standard-rated stock due to worsening competitive dynamics in the telecom industry. In the last six months we also exited Zozo, an internet retailer, Ibiden, which makes electronic and ceramic parts, and several other names due to deterioration in their investment cases, better opportunities elsewhere, or high valuations. We also trimmed a position in Sony, a Quality-rated gaming and consumer electronics company, to fund the purchase of Advantest. We took some profits on ASICS and Recruit after their strong share price rises.

It is worth noting that, as highlighted in the Chairman's Statement, since the financial year end, we introduced CFDs into the portfolio. This move aims to enhance our gearing strategy by making it more efficient and cost-effective.

Portfolio Characteristics

¹     Term is defined in the Glossary of Terms and Alternative Performance Measures in the full 2024 Annual Report. The figures above are calculated on the Company's portfolio of investments.

On 24th October 2024, the Company's combination with JSGI was concluded, together with an agreed transfer of assets. This process went very smoothly. There were 25 stocks which were common to both companies and we continue to hold these within JFJ adding an additional 7 stocks from JSGI.

Outlook

The transformation underway in Japan has, in our view, only just begun. The gains to be realised from corporate governance reforms and other structural changes will be much more significant than those we have seen to date. The most important positive influence on the outlook for Japanese equities remains the ongoing reform of the corporate sector. With the encouragement of the government, regulators and shareholders, Japanese companies are adopting ever higher standards of independence and transparency and implementing best practices in their capital allocation decisions. Shareholder returns are increasing due to the resultant share buybacks and higher dividends, and we expect dividend payout ratios to continue to rise. These developments have the potential to lift the whole market, including the Company's holdings, to a higher valuation.

But there are several other reasons to be positive about the outlook for Japanese equities. For one, Japan is at a very early stage in the digitisation process compared to the rest of the world, and this, combined with the trend towards industrial automation, has the potential to help drive significant growth and/or productivity gains over the medium term. Deglobalisation, the transition to renewable energy and developments in medical technology are also contributing to rapid structural change - an ideal environment for the dynamic, quality businesses we want to own.

Japan's labour market is also changing. Increasing wages is one indicator of the extremely tight conditions in this market, and the supply of labour is set to contract further as the country's aging workforce retires. However, this situation has one major potential upside. Traditionally, Japan's labour market has been characterised by a rigid mentality. But there are now signs that the high demand for labour is making workers bolder in their employment choices, with many more inclined to change jobs in pursuit of higher income. If this trend gains further traction, the resulting improvement in labour market flexibility should have a favourable effect on overall productivity and the long-term future of Japan's corporate sector.

Increased demand from foreign investors also looks set to provide further support for the market. Many global investors are underweight Japanese equities. However, they are beginning to recognise the opportunities on offer in this market, especially since valuations, while not cheap, are still relatively attractive. At the end of September 2024, the market was priced at 14x earnings on a forward price to earnings basis and at 1.5x book value (in trailing price to book terms). With inflation now positive, and an enhanced Nippon Investment Savings Account (NISA) providing a greater incentive to invest, there are also signs that domestic retail investors are taking more interest in their home market.

Now that the BoJ has begun to raise rates, the yen has risen slightly from its mid-year lows of around 160 yen to the US dollar, and 200 yen to the pound. While the yen is still undoubtedly weak on an historical basis, and therefore potentially attractive, the recent victory by Donald Trump in the US election may yet cause the US dollar to strengthen further, as tariffs on imports may mean US inflation is higher and interest rates remain relatively elevated.

So, even though the Japanese market has had a very strong run over the past 18 months, this combination of corporate governance reforms, structural transformation and appealing valuations should help sustain and encourage investors' appetite for Japan stocks. It will also generate many exciting investment opportunities, regardless of the economic backdrop.

We believe that our experienced team, based on the ground in Tokyo, means we are ideally placed to identify these opportunities, and capitalise on them. Japan is one of the world's three largest equity markets. It is very deep, broad and liquid. Yet, large areas of the market have relatively low levels of sell-side analyst coverage. This leaves the way open for locally based investors such as us to identify potential winners that most other investors simply miss. Furthermore, in addition to our extensive Tokyo-based team, we also benefit from our global team of investment professionals, who help us identify new trends and opportunities, as well as confirm investment themes and competitive positioning.

In summary, there are many good reasons for our optimism regarding the Japanese market, and hence the long-term prospects of the portfolio's holdings. We are therefore confident of the Company's ability to continue delivering capital growth, and outperformance, to shareholders over the long term.

Thank you for your ongoing support.

Nicholas Weindling

Miyako Urabe

Investment Managers                                                                                                            

PRINCIPAL AND EMERGING RISKS

The Directors confirm that they have carried out a robust assessment of the principal and emerging risks facing the Company, including those that would threaten its business model, future performance, solvency or liquidity. With the assistance of the Manager, the Audit & Risk Committee has drawn up a risk matrix, which identifies the key risks to the Company. These are reviewed and noted by the Board. The risks identified and the broad categories in which they fall, and the ways in which they are managed or mitigated are summarised below. The AIC Code of Corporate Governance requires the Board, via the Audit & Risk Committee, to put in place procedures to identify and manage emerging risks. Emerging risks, which are not deemed to represent an immediate threat, are considered by Audit & Risk Committee as they come into view and are incorporated into the existing review of the Company's risk register.

The key principal risks identified are summarised below. The Board does not believe that there are any new emerging risks facing the Company at present.

TRANSACTIONS WITH THE MANAGER AND RELATED PARTIES.

Details of the Investment Management Agreement are set out in the Directors' Report in the full 2024 Annual Report. The management fee payable to the Manager for the year was £4,726,000 (2023: £4,498,000) of which £nil (2023: £nil) was outstanding at the year end.

Included in administration expenses in note 6 in the full 2024 Annual Report are safe custody fees amounting to £87,000 (2023: £104,000) payable to JPMorgan Chase Bank, N.A., of which £23,000 (2023: £36,000) was outstanding at the year end.

The Manager may carry out some of its dealing transactions through group subsidiaries. These transactions are carried out at arm's length. The commission payable to JPMorgan Securities for the year was £nil (2023: £2,000) of which £nil (2023: £nil) was outstanding at the year end.

Handling charges on dealing transactions amounting to £9,000 (2023: £2,000) were payable to JPMorgan Chase Bank N.A. during the year of which £1,000 (2023: £1,000) was outstanding at the year end.

At the year end, total cash of £23,497,000 (2023: £2,141,000) was held with JPMorgan Chase Bank N.A. A net amount of interest of £2,000 (2023: £2,000) was receivable by the Company during the year from JPMorgan Chase Bank N.A of which £nil (2023: £nil) was outstanding at the year end.

Stock lending income amounting to £363,000 (2023: £524,000) was receivable by the Company during the year. Commissions payable to the lending agent, JPMorgan Chase Bank, N.A., in respect of such transactions amounted to £40,000 (2023: £58,000).

Full details of Directors' remuneration and shareholdings can be found in the full 2024 Annual Report and in note 6  in the full 2024 Annual Report.

STATEMENT OF DIRECTORS' RESPONSIBILITIES

The Directors are responsible for preparing the Annual Report & Financial Statements in accordance with applicable law and regulations.

Company law requires the Directors to prepare financial statements for each financial year. Under that law, the Directors have elected to prepare the Annual Report & Financial Statements in accordance with United Kingdom generally accepted accounting practice (United Kingdom Accounting Standards) including FRS 102 'The Financial Reporting Standards applicable in the UK and Republic of Ireland' and applicable laws. Under company law, the Directors must not approve the Annual Report & Financial Statements unless they are satisfied that, taken as a whole, Annual Report & Financial Statements are fair, balanced and understandable, provide the information necessary for shareholders to assess the Company's position and performance, business model and strategy and that they give a true and fair view of the state of affairs of the Company and of the total return or loss of the Company for that period. In order to provide these confirmations, and in preparing these Annual Report & Financial Statements, the Directors are required to:

•   select suitable accounting policies and then apply them consistently;

•   make judgements and accounting estimates that are reasonable and prudent;

•   state whether applicable UK Accounting Standards have been followed, subject to any material departures disclosed and explained in the financial statements; and

•   prepare the financial statements on a going concern basis unless it is inappropriate to presume that the Company will continue in business;

and the Directors confirm that they have done so.

The Directors are responsible for keeping proper accounting records that are sufficient to show and explain the Company's transactions and disclose with reasonable accuracy at any time the financial position of the Company and to enable them to ensure that the financial statements comply with the Companies Act 2006. They are also responsible for safeguarding the assets of the Company and hence for taking reasonable steps for the prevention and detection of fraud and other irregularities.

The accounts are published on the www.jpmjapanese.co.uk website, which is maintained by the Company's Manager. The maintenance and integrity of the website maintained by the Manager is, so far as it relates to the Company, the responsibility of the Manager. The work carried out by the Auditors does not involve consideration of the maintenance and integrity of this website and, accordingly, the Auditors accept no responsibility for any changes that have occurred to the accounts since they were initially presented on the website. The accounts are prepared in accordance with UK legislation, which may differ from legislation in other jurisdictions.

Under applicable law and regulations the Directors are also responsible for preparing a Directors' Report, Strategic Report, Statement of Corporate Governance and Directors' Remuneration Report that comply with that law and those regulations.

Each of the Directors, whose names and functions are listed in the 2024 Annual Report confirms that, to the best of their knowledge:

•   the financial statements, which have been prepared in accordance with United Kingdom Accounting Standards, and applicable law), (United Kingdom Generally Accepted Accounting Practice) give a true and fair view of the assets, liabilities, financial position and net return or loss of the Company; and

•   the Strategic Report includes a fair review of the development and performance of the business and the position of the Company, together with a description of the principal risks and uncertainties that the Company faces.

The Board confirms that it is satisfied that the annual report and financial statements taken as a whole are fair, balanced and understandable and provide the information necessary for shareholders to assess the Company's position and performance, business model and strategy.

For and on behalf of the Board

Stephen Cohen

Chairman

STATEMENT OF COMPREHENSIVE INCOME

For the year ended 30th September 2024

¹     Includes foreign currency gains or losses on investments.

²     Foreign currency gains are due to Yen denominated loan notes and bank loans.

All revenue and capital items in the above statement derive from continuing operations. No operations were acquired or discontinued in the year.

The 'Total' column of this statement is the profit and loss account of the Company and the 'Revenue' and 'Capital' columns

represent supplementary information prepared under guidance issued by the Association of Investment Companies.

Net return after taxation represents the profit or loss for the year and also total comprehensive income/(expense).

STATEMENT OF CHANGES IN EQUITY

¹     See footnote to note 16 in the full 2024 Annual Report.

STATEMENT OF FINANCIAL POSITION

At 30th September 2024

¹     Prior year comparatives have been restated as explained further in note 1(a).

STATEMENT OF CASH FLOWS

For the year ended 30th September 2024

NOTES TO THE FINANCIAL STATEMENTS

For the year ended 30th September 2024

1.  Accounting policies

(a)     Basis of preparation

The financial statements are prepared under the historical cost convention, modified to include fixed asset investments at fair value, in accordance with the Companies Act 2006, United Kingdom Generally Accepted Accounting Practice ('UK GAAP'), including FRS 102 'The Financial Reporting Standard applicable in the UK and Republic of Ireland' and with the Statement of Recommended Practice 'Financial Statements of Investment Trust Companies and Venture Capital Trusts' (the 'SORP') issued by the Association of Investment Companies in July 2022. All of the Company's operations are of a continuing nature.

The policies applied in these financial statements are consistent with those applied in the preceding year.

The investment disclosures in the Statement of Financial Position previously included the value of Investments on loan within the value of Investments held at fair value through profit or loss are £89,022,000 (2023: £77,851,000). In the current year, the value of Investments on loan has been disclosed separately and the prior year comparatives restated on the same basis. These changes in presentation have no impact on the Company's net assets or Statement of Comprehensive Income or the Cash Flows.

Going Concern

The financial statements have been prepared on a going concern basis. The Directors have a reasonable expectation that the Company has adequate resources to continue in operational existence up to 31st December 2025 which is at least 12 months from the date of approval of these Financial Statements. In forming this opinion, the Directors have considered direct and indirect impact of the ongoing conflict between Ukraine and Russia and the Middle East on the going concern and viability of the Company. In making their assessment, the Directors have reviewed income and expense projections and the liquidity of the investment portfolio, and considered the mitigation measures which key service providers, including the Manager, have in place to maintain operational resilience in light of disruption. The disclosures on long term viability and going concern in the full 2024 Annual Report.

In preparing these financial statements the Directors have considered the impact of climate change risk as a principal risk as set out in the 2024 Annual Report and have concluded that there was no further impact of climate change to be taken into account as the investments are valued based on market pricing, which incorporates market participants view of climate risk.

2.  Dividends

(a) Dividends paid and proposed

All dividends paid and proposed in the year have been funded from the revenue reserve.

The final dividend proposed in respect of the year ended 30th September 2023 amounted to £9,804,000. However, the amount paid amounted to £9,657,000 due to ordinary shares repurchased after the balance sheet date but prior to the record date.

The dividend proposed in respect of the year ended 30th September 2024 is subject to shareholder approval at the forthcoming Annual General Meeting. In accordance with the accounting policy of the Company, this dividend will be reflected in the financial statements for the year ending 30th September 2025. The amount payable reflects the enlarged ordinary shares in issue following the Combination with JSGI, post year end, and may change if ordinary shares are repurchased or issued up until the dividend's record date.

(b)    Dividend for the purposes of Section 1158 of the Corporation Tax Act 2010 ('Section 1158')

The requirements of Section 1158 are considered on the basis of dividends declared in respect of the financial year, shown below.

The revenue available for distribution by way of dividend for the year is £10,804,000 (2023: £11,428,000). The revenue reserve after payment of the final dividend will amount to £10,436,000 (2023: £10,610,000).

3.  Return per share

The Revenue, Capital and Total return shown below, is the Net return after taxation in the Statement of Comprehensive Income in the full 2024 Annual Report.

The total return per share represents both basic and diluted return per share as the Company has no dilutive shares.

4.       Net asset value per share

The net asset value per Ordinary share and the net asset value attributable to the Ordinary shares at the year-end are shown below. These were calculated using 143,152,089 (2023: 150,832,089) Ordinary shares in issue at the year-end (excluding Treasury shares).

Status of results announcement

2024 Financial Information

The figures and financial information for 2024 are extracted from the Annual Report and Financial Statements for the year ended 30th September 2024 and do not constitute the statutory accounts for that year. The Annual Report and Financial Statements include the Report of the Independent Auditors which is unqualified and does not contain a statement under either section 498(2) or section 498(3) of the Companies Act 2006. The 2024 Annual Report will be delivered to the Register of Companies in due course.

2023 Financial Information

The figures and financial information for 2023 are extracted from the published Annual Report and Financial Statements for the year ended 30th September 2023 and do not constitute the statutory accounts for the year. The Annual Report and Financial Statements have been delivered to the Registrar of Companies and included the Report of the Independent Auditors which was unqualified and did not contain a statement under either section 498(2) or section 498(3) of the Companies Act 2006.

Neither the contents of the Company's website nor the contents of any website accessible from hyperlinks on the Company's website (or any other website) is incorporated into, or forms part of, this announcement.

JPMORGAN FUNDS LIMITED

13th December 2024

For further information, please contact:

Priyanka Vijay Anand

For and on behalf of

JPMorgan Funds Limited

Telephone: 0800 20 40 20 or or +44 1268 44 44 70

E-mail: invtrusts.cosec@jpmorgan.com

ENDS

A copy of the 2024 Annual Report will shortly be submitted to the FCA's National Storage Mechanism and will be available for inspection at https://data.fca.org.uk/#/nsm/nationalstoragemechanism

The 2024Annual Report will shortly be available on the Company's website at www.jpmjapanese.co.uk where up-to-date information on the Company, including daily NAV and share prices, factsheets and portfolio in formation can also be found.