TIDMAJIT

RNS Number : 0905B

Aberdeen Japan Investment Trust PLC

08 June 2021

ABERDEEN JAPAN INVESTMENT TRUST PLC

ANNUAL FINANCIAL REPORT ANNOUNCEMENT FOR THE YEARED 31 MARCH 2021

FINANCIAL HIGHLIGHTS

 
 Net asset value 
  total return{A}                   Index total return                 Share price total 
                                                                       return{A} 
 Figures to 31 March               Figures to 31 March                Figures to 31 
  2021                              2021                               March 2021 
 +33.5%                            +24.8%                             +35.2% 
 Return since 8                    Return since 8 October             Return since 8 
  October 2013 (change              2013 (change of                    October 2013 (change 
  of mandate)            +133.0%    mandate)                +105.2%    of mandate)            +131.5% 
 
 Ongoing charges                   Discount to net                    Dividend per share 
  ratio{A}                          asset value{A} 
 Year to 31 March                  As at 31 March 2021                Year to 31 March 
  2021                                                                 2021 
 1.04%                             9.9%                               15.00p 
 Year to 31 March                                                     Year to 31 March 
  2020                     1.04%   As at 31 March 2020        10.9%    2020                    15.00p 
 
 {A} Alternative Performance Measure 
 

STRATEGIC REPORT

CHAIRMAN'S STATEMENT

Overview

The past year, dominated as it has been by the Covid-19 virus, has felt like a long one. Perhaps surprisingly, given the dramatic losses just over a year ago when the virus first emerged, it has been a very positive year for global stock markets as a combination of strong Central Bank support and successful vaccine programs have supported financial markets and ongoing economic activity. Japan has been no exception. Indeed, Japan's indices have risen nearly 25% over the past twelve months and have broken out of the ranges which have shackled them for years. The domestic market has benefited from a strong response to the virus itself, well-known Japanese technological innovation, which has been a key aspect of business transition this past year, and a stable political backdrop. Moreover, as recovery has increasingly started to take hold, Japan's leveraged position to global trade has been a strong factor in attracting foreign fund flows.

Investment managers have faced the challenging task of working out which companies would firstly survive, and then thrive, as events have unfolded. In the first half of the year, when it was the shares of companies with resilient business models and strong balance sheets which performed best, your Company's investment policy of focusing on exactly these sorts of businesses led to very strong out-performance versus the benchmark and our competitors. In the second half of the year, we have seen more speculative investment behaviour, with some very high valuations being ascribed to less proven companies and only time will tell if these valuations prove to be justified. However, throughout the year, our Manager's local presence and in-house research capability has provided a clear edge in determining the likely winners from this crisis, notably those with leading e-commerce or digital solution capabilities, and led to a portfolio performance throughout the year with which we are very pleased.

Performance

I am pleased to report that the Company's share price and net asset value have both outperformed the benchmark by a significant margin, reaffirming the Manager's strategy of selecting well-run businesses with proven management. The Company's net asset value total return in sterling terms ("NAV") for the year to 31 March 2021 was 33.5%, a strong gain compared with the Topix benchmark's total return of 24.8%. The Ordinary Share price total return was 35.2% as the discount to NAV narrowed to 9.9% at 31 March 2021 (2020 - 10.9%). At 4 June 2021, the latest date prior to the approval of this Report, the discount was 11.6%.

Since the change of mandate to a Japan-only equities strategy in October 2013, the Company has delivered a NAV total return of 133.0%, compared to a benchmark total return of 105.2%, again in sterling terms. Further details of the portfolio's performance and changes to the underlying holdings are set out in the Investment Manager's Review.

Environmental, Social & Corporate Governance ("ESG")

Over the past year, the portfolio's holdings have continued to register ESG improvements, including greater transparency in terms of disclosure, with companies more willing to engage with investors and the composition of boards growing more inclusive and diverse. Overall, these developments indicate a change in attitude and foster progress. Management teams are increasingly aiming to enhance shareholder value in their day-to-day decisions and at more strategic policy-making levels. Your Manager has been working with several companies to encourage them to track key metrics, such as carbon emissions and carbon intensity, and to disclose this information regularly with other important information on supply chain management and health and safety. Meticulously tracking and then publishing this information will help companies to improve ESG standards and ensure accountability in pursuing the targets that they have set. Japanese companies have an added advantage in that they possess the technology and leading-edge materials to attain these ESG related goals.

The portfolio's ESG standards, as measured by MSCI ratings, are higher than the benchmark, with a carbon footprint (measured using Trucost analytics) less than the broader market. Further information on the Manager's approach to ESG is included below.

Dividend

The Company's revenue return per share for the financial year was 6.57p (2020 - 8.08p). An interim dividend of 6.0p has already been declared and paid. The Board proposes a final dividend of 9.0p, making a total dividend of 15.0p (2020 - 15.0p) for the year ended 31 March 2021, in line with the Company's enhanced dividend policy which was introduced for the year ended 31 March 2020. The dividend comprises 6.5p revenue return and currently 3.0p from revenue reserves and 5.5p from capital reserves.

The Board believes that a total dividend of 15.0p for the year balances a prudent retention of capital for future investment, with a recognition of the importance of income to our shareholders, particularly in this low interest environment. Good performance, combined with a regular, sustainable semi-annual dividend, should allow the Company to broaden the shareholder base and help to maintain the share price discount to NAV at reasonable levels. The Board is keen to take advantage of the investment trust structure to allow the Company to support the enhanced dividend policy.

Gearing

The Company continued to make use of its ability to gear during the financial year. The Company renewed its loan facility with ING Bank in January 2021 which comprised two parts: a Yen 1.3 billion one year fixed term loan, which was fully drawn down; and a Yen 1.0 billion one year floating rate loan facility, of which Yen 400 million was drawn down at the year end.

The Board continues to monitor the level of gearing and considers a gearing level of around 10% to be appropriate although, with market fluctuations, this may range between 5% and 15%. Net gearing at 31 March 2021 was 10.0% (2020 - 13.6%).

Discounts and Share Buybacks

Over the year, discount volatility continued to feature within the investment trust sector, including the Company's peer group. The Board monitors the discount level and has in place a mechanism to buy back shares at certain levels. During the financial year 505,321 shares were bought back into treasury at a cost of GBP3.4 million.

Overall, the discount averaged 8.6% over the last 90 days of the Company's financial year and there is therefore no requirement under the articles for the Company to put forward a continuation vote to shareholders.

Since the end of the financial year, a further 137,232 shares have been bought back into treasury at a cost of GBP991,000.

The Board

It was with great sadness and regret that I reported that Kevin Pakenham passed away on 19 July 2020. Kevin had served as a Director of the Company since 2007. During this time, the Board and the shareholders benefited hugely from Kevin's significant knowledge and experience and his special wit and humour. He is greatly missed.

Following a search involving an external recruitment agency, Sam Dean was appointed as an independent non-executive Director with effect from 1 December 2020. Sam has a long career in investment banking, working in Equity Capital Markets and corporate finance on behalf of corporate and government clients globally .

The Board members have diverse backgrounds, skills and experience. The Board's policy on tenure is that the length of service of a Director is secondary to the contribution that he or she makes. Tenure will be determined on a case-by-case basis, consistent with the AIC Code of Corporate Governance. The Board has a succession plan and evaluates each Director's performance annually to ensure up-to-date skills and capacity.

Annual General Meeting ("AGM")

At the date of this report, Government guidelines on future gatherings and social distancing measures are still under review and there remains a great degree of uncertainty. The Board has therefore decided to seek to limit attendance at the AGM to the minimum quorum requirements and requests that shareholders exercise their votes in advance. Any questions which shareholders may have should be submitted to the company secretary at aberdeen.japan@aberdeenstandard.com. A presentation from the Manager will be uploaded to the Company's website on the day of the AGM.

One of the resolutions being proposed at this AGM is an amendment to the Company's articles of association to allow for virtual shareholder meetings to be held and conducted in a manner that allows those attending to speak and vote by electronic means. While the Board does not currently intend to hold meetings in this way, the resolution would allow this option when in the best interests of shareholder safety. The amendments do not prevent the Company from holding physical meetings and the Board's intention is always to hold a physical AGM when safe and practical to do so.

Outlook

Your Manager continues to engage with Japanese companies for a more prosperous future: persuading a major carmaker to increase transparency and improve how it is perceived by the market; encouraging a mid-sized property firm to scale back its less profitable operations in order to allow its core business to thrive; and pressing an equipment maker to create a better framework to enhance returns. These efforts are aimed at unlocking value as management teams become more open.

The environment remains uncertain. At the time of writing there are concerns about the new wave of the pandemic in Japan, the low levels of vaccination, and the falling popularity of the Government linked specifically to the Olympics and Paralympics (to which the Government has renewed their commitment). While Japan continues to struggle with deflation, there are also worries about the impact on the global economy if US policy leads to inflationary pressures which affect Japanese importers and investors, at a time when the Bank of Japan appears to be moving away from aggressive monetary stimulus. However, Japan should remain stable politically and economically. I am confident that the quality of the Company's underlying holdings, which have proven more than capable of withstanding the severe tests of the past year, will continue to create value for shareholders.

Karen Brade

Chairman

7 June 2021

INVESTMENT MANAGER'S REVIEW

Overview

In what was a challenging year for investors, Japanese equities recorded a double-digit gain in the year under review, but there were two distinct halves. In the first six months, with a lack of clarity over the Covid-19, the market was more risk averse and favoured quality stocks, at a time of uncertainty in the face of a global pandemic. This benefited your Company's portfolio, which outpaced the benchmark by a substantial margin. The latter half saw optimism that the development and rollout of vaccines would accelerate an end to social and work restrictions and facilitate global economic recovery. This lifted more cyclical parts of the market, with an accompanying increase in risk appetite that favoured the lower quality names that we tend to avoid.

The Japanese market reflected global trends: digitally-enabled companies initially gained the upper hand over analogue and valuations of the former group became increasingly extended, while those of the latter languished. As the year progressed, however, it became evident that the early prognosis of the pandemic's impact was harsher than the actual effects. With the approval and rollout of Covid-19 vaccines in the latter half, albeit slowly in Japan compared with other developed countries, the bifurcation across markets started to reverse. We have been taking stock of the new trends, assessing their effect on the portfolio's underlying holdings and evaluating opportunities.

Portfolio review

Against this backdrop, we are pleased to report that the Company's NAV rose by a solid 33.5% while the share price advanced by 35.2%, both in sterling total return terms.

The ongoing pandemic has had far-reaching effects on all businesses. In this environment, the Company's focus on well-run companies, which adapted quickly to changes in the market and which continue to find ways to create value, contributed to the outperformance. Importantly, we have observed positive trends in ESG initiatives across the Company's holdings. These reflect long-term contacts and dialogue initiated by your Manager, who is committed to maintaining this approach. The discussions we have had with portfolio companies include proposals to raise disclosure standards on their initiatives, to create frameworks for a better assessment of risk and to improve returns, and to promote more significant restructuring.

In terms of stock performance, shares of Sanken Electric rose following the successful listing of its US subsidiary Allegro Microsystems. This is another positive step towards unlocking the company's value, a subject which we had discussed with the company in the past as it moves from a restructuring phase to the pursuit of growth. Separately, the company also received a tender offer from an activist hedge fund, highlighting the value that remains inherent in the company. Speciality chemicals company Shin-Etsu Chemical saw its shares climb on expectations of brighter prospects for both its silicon wafer and polyvinyl-chloride manufacturing businesses. The former is the primary raw material required to make semiconductors used in most electronic devices, for which we expect the demand-supply balance to tighten over the medium term.

Meanwhile, fintech firm WealthNavi responded positively as investors continued to buy into the growth potential of its robo-advisory business, which targets the expanding segment of tech-savvy young consumers looking to invest their savings in an ultra-low interest rate environment. We initiated a holding in the company through its initial public offering in December.

Elsewhere, factory automation solutions provider Nabtesco advanced on hopes for increased capital expenditure as economic conditions improved. Most recently, the company sold its stake in affiliate Harmonic Drive Systems and dissolved the business partnership between the two companies. The proceeds are to be used for share buybacks, debt repayment and growth investments. Capital allocation is a topic that we often discuss with the company, and we had questioned the lack of synergy from this partnership. Nabtesco is a global leader in producing reduction gears for use in mid-to larger-sized industrial robots, while Harmonic Drive focuses on smaller robots - and Nabtesco has the technology to expand its business into Harmonic Drive's domain independently.

The gains from these companies more than offset those that fared less well. These included Tokio Marine, whose shares were weighed down by concerns over its exposure to policies related to business interruption insurance, but which we believe is manageable as the company has astutely diversified its business risks over the years; mobile network operator KDDI, which came under government pressure to cut tariffs, but which has expanded outside its core business and remains committed to earnings growth and shareholder returns; and drugstore operator Welcia Holdings, which performed well in the initial months of the pandemic and has seen a subsequent decline in growth rate, but which retains the dominant market position and is seen as a consolidator in a fragmented industry. We remain confident in the longer-term prospects for these businesses, which remain buffered by resilient balance sheets.

In other activity, we exited several holdings. Among these were retail conglomerate Seven & i Holdings, clinical-testing device maker Sysmex, IT-services providers SCSK and Fujisoft, control equipment provider Azbil, industrial refrigerator manufacturer Daiwa Industries, and pharmaceutical firm Shionogi & Co.

We exited Seven & i due to slow progress on restructuring of non-performing businesses in spite of our continued engagement. We initially invested in the company with the view that its core-convenience store business would drive sustained growth, offsetting weakness from non-core businesses such as department stores. However, even the core business has faced increasing competition from drugstores and other retailers. We were also disappointed by the management's decision to conduct large-scale overseas M&A, instead of tackling issues at home in spite of our engagement efforts. We exited Sysmex after the stock re-rated sharply in 2020, partly due to the company's newly developed antigen-based Covid-19 testing kit. We assessed that the company's antigen-based tests could face challenges given their inferior accuracy rates and longer preparation time required compared to some of its competing products. While we were still confident on the company's ability to build upon its dominant positioning in haematology testing, we could no longer justify the share's high valuations.

Our assessment on Azbil was similar to that of Sysmex as we felt that investors were overly optimistic on the company's prospects to develop and market a specialised air ventilation system to prevent the spread of COVID inside buildings. We believed that the technology would be too expensive for landlords to install, especially as the office space market was softening as more companies were adopting work-from-home technologies. While we remained optimistic on the company's ability to grow sales of ventilation control systems, we could no longer justify the stock's high valuation after the stock nearly doubled in 2020.

We also exited SCSK in light of better opportunities elsewhere. While we remained optimistic on the company's ability to benefit from rising demand for IT services, we believed that it was fully priced in by the market. At the same time, we identified other more attractive IT solution businesses with the client base and track record to capture structural growth opportunities such as digital government and local 5G.

These exits allowed us to establish positions in more attractive opportunities across several businesses, including leading IT solutions provider NEC Corp., which we believe is well-positioned to benefit from the build-out of Japan's 5G network and the government's digitalisation efforts. The company is also poised to expand its business abroad through a partnership with Samsung Electronics on 5G mobile network systems, as well as providing a lower-cost solution for telecommunications providers in the implementation of the new global wireless standard. Similarly, Murata Manufacturing was another new introduction. Murata is one of the few electronic component manufacturers in Japan to reinvest efficiently in its business and grow its margins, which has translated into the company's leading edge research and manufacturing capability. We also established a holding in Jeol, a world-leading maker of multi-beam semiconductor mask-writers, which are crucial in the production of high-end semiconductors. In addition to the lucrative mask-writers business, management is keen to boost profitability by expanding its sales of scientific instruments to the semiconductor and medical sectors.

We also participated in the initial public offers of both Coconala and Appier due to their relatively attractive valuations when compared with their longer-term growth outlooks. Coconala provides an online-based matching platform for knowledge, skills and services. The company is entering a virtuous cycle, whereby more transactions lead to more reviews, leading to clearer visualisation of sellers' skills and buyers' needs. Appier is an artificial intelligence-based marketing support tool provider, enabling its clients to improve data-driven decision making in digital marketing. Its proprietary algorithms help identify valuable customers, enabling more targeted ads and coupons to enhance customer conversion rates.

Outlook

Looking ahead, favourable fundamentals and a recovery in global trade should provide some tailwinds for Japanese equities, while improving governance should drive greater shareholder value. Some trends during the pandemic are likely to remain; for example, the move to increased working from home, and the increasing shift of retail to online models. This is clear when we look across the Asia Pacific region where economies have reopened and social and business activities have resumed, although some habits formed during shutdowns persist.

Businesses that have delayed expansion plans seem to be making up for lost time, resulting in a broad based pick-up in corporate capital expenditure; there is pent-up demand not only from last year's business disruption, but also from the geopolitical uncertainty witnessed in the year before due to US/Chinese trade tensions. There are, however, risks in this scenario: valuation disparities have widened amid rising imported cost inflation; geopolitical tensions remain a challenge; and the anticipated global recovery is likely to be uneven, given the sharp disparities between countries in Covid-19 vaccination rates and the consequent ability to control the social and economic impact of high levels of virus transmission.

The Japanese Prime Minister Yoshihide Suga has maintained his predecessor Shinzo Abe's economic policies, but has seen his own popularity wane over the past six months. His low-key public persona, lost by-elections, slow and over-bureaucratic vaccination processes as further waves have gathered momentum, and the unpopularity of plans to go ahead with the Olympics (due to start on 23 July) have all been factors. Despite this, the continuity of economic management and stability of government remains.

From an investment perspective, we have kept our focus on and commitment to improving your Company's portfolio through these turbulent times. This includes our continued focus on well run businesses that are leaders in their segments, and that are linked to longer-term structural changes in society. Our diligence in carrying out proprietary research and our continued discussions around improving governance and good ESG credentials has, to date, yielded success; the results of many of the underlying companies held in the Company reaffirm our investment choices, which should position your company well for a global economy which may well be on the cusp of recovery.

Aberdeen Standard Investments (Japan) Limited,

Investment Manager

7 June 2021

OVERVIEW OF STRATEGY

Business Model

This report provides shareholders with details of the Company's business model and strategy as well as the principal risks and challenges it faces.

The Company is an investment trust which seeks to deliver a competitive return to its shareholders through the investment of its funds in accordance with the investment policy as approved by shareholders.

The Board appoints and oversees an investment manager, decides the appropriate financial policies to manage the assets and liabilities of the Company, ensures compliance with legal and regulatory requirements and reports objectively to shareholders on performance.

The Directors do not envisage any change in this model in the foreseeable future.

Investment Objective and Purpose

To achieve long-term capital growth principally through investment in listed Japanese companies which are believed by the Investment Manager to have above average prospects for growth.

The Board's strategy is represented by its investment policy, financial policies, and risk management policies.

Investment Policy

The Company primarily invests in the shares of companies which are listed in Japan. The portfolio is constructed through the identification of individual companies of any market capitalisation and in any business sector, which offer long-term growth potential.

The portfolio is selected from the 3,500 listed stocks in Japan and is actively managed to contain between 30 and 70 stocks which, in the Manager's opinion, represent the best basis for producing higher returns than those of the market as a whole in the long term. There will therefore inevitably be periods in which the Company's portfolio either outperforms or underperforms the market as represented by the Company's benchmark.

The Board does not impose any restrictions on these shorter term performance variations from the benchmark, nor any limits on the concentration of stock or sector weightings within the portfolio, except that no individual shareholding shall exceed 10% of the Company's portfolio at the time of purchase, although market movements may subsequently increase this percentage.

The full text of the Company's investment policy is provided on page 80 of the published 2021 Annual Report,

Benchmark Index

Topix (in Sterling terms)

Investment Approach

The Investment Manager's investment philosophy is that markets are not always efficient. The Investment Manager's approach is therefore that superior investment returns are attainable by investing in companies with good fundamentals and above average growth prospects that in the Investment Manager's opinion drive share prices over the long-term. The Investment Manager follows a bottom-up investment process based on a disciplined evaluation of companies through active engagement, at least twice a year, with management on performance including environmental, social and governance issues by its fund managers who are based in Japan and supported by the Manager's Asian investment team in Singapore. The Manager estimates a company's worth in two stages; quality, defined by reference to management, business focus, the balance sheet and corporate governance; and then price, calculated by reference to key financial ratios, the market, the peer group and business prospects. The selection of the portfolio of shares is the major source of the performance of the portfolio, and no stock is bought without the fund managers having first met management.

Stock selection is key in constructing a diversified portfolio of companies with macroeconomic, political factors and benchmark weightings being secondary.

Given the long-term fundamental investment philosophy, the Manager expects to hold most companies in which the Company invests for extended periods of time and this accounts for the relatively low level of activity within the portfolio.

Financial Policies

The Board's main financial policies cover the management of shareholder capital, risk management of the Company's assets and liabilities, including currency risk, the use of gearing and the reporting to shareholders of the Company's performance and financial position.

Management of Shareholder Capital

The Board's policy for the management of shareholder capital is primarily to ensure its long term growth. This growth will reflect both the Manager's investment performance and from time to time the issue of shares, when sufficient demand exists to do this, without diluting the value of existing shareholder capital.

The Board's dividend policy is to make distributions on a semi-annual basis and currently consists of the Company's earnings for the year, 3.0p released from the revenue reserves and an amount from the distributable capital reserves.

The Board will authorise the buyback of shares in order to avoid excessive variability in the discount and if, despite this, the average discount exceeds 10% during the 90 day period preceding its financial year end, the Board will offer shareholders the opportunity to vote on the continuation of the Company at a general meeting.

Risk Management

The policy for risk management is primarily focused on the investment risk in the portfolio using the Manager's risk management systems and risk parameters, overseen by the Board.

Derivatives

The Company may use derivatives from time to time for the purpose of mitigating risk in its investments. The performance of the Company is subject to fluctuations in the Yen/GBP exchange rate. The Company's exposure to Yen fluctuations is partially offset by the natural hedge provided by any borrowing in Yen as well as by investments in Japanese companies which have significant sources of income from exports of goods or from non-Japanese operations.

The wider corporate risks, including those arising from the increasingly regulated and competitive marketplace, are managed directly by the Board. The principal risks are more fully described under the paragraph 'Principal Risks and Uncertainties'.

Use of Gearing

Gearing is the amount of borrowing used to increase the Company's portfolio of investments in order to enhance returns when and to the extent it is considered appropriate to do so or to finance share buybacks when necessary. The level of borrowing under the Company's investment policy is subject to a maximum of 25% of net assets but will normally be set at a stable and lower level than the maximum. The Board has currently established a gearing level of around 10% of net assets although, with stock market fluctuations, this may range between 5% and 15%.

Principal Risks and Uncertainties

There are a number of risks which, if realised, could have a material adverse effect on the Company and its business model, financial position, performance and prospects.

The Board has in place a robust process to identify, assess and monitor the principal risks and uncertainties facing the Company and to identify and evaluate newly emerging risks. The Company's risks are regularly assessed by the Audit Committee and managed by the Board through the adoption of a risk matrix which identifies the key risks for the Company, including emerging risks, and covers strategy, investment management, operations, shareholders, regulatory and financial obligations and third party service providers. The principal risks and uncertainties facing the Company, which have been identified by the Board, are described in the table below, together with the mitigating actions.

 
Description                                      Mitigating Action 
Market, Economic and Political Risk              An explanation of these risks 
 The Company's assets consist mainly              and the management of them is 
 of listed securities and the principal           included in Note 16 to the Financial 
 risks are therefore market-related.              Statements. The Board considers 
 This includes concerns about stockmarket         the composition and diversification 
 volatility caused by geopolitical                of the portfolio by industry, 
 instability, political change, economic          size and growth rates, as well 
 growth, interest rates, currency,                as purchases and sales, at each 
 and other price risks, as well as                meeting, and in monthly papers. 
 national or global crises that are               Individual holdings are discussed 
 harder to predict and may cause                  with the Manager, as well as views 
 major market shocks.                             by sector and industry. 
Investment Strategy Risk                         The Board regularly reviews and 
 The Company and its investment objective         monitors: the Company's investment 
 may become unattractive to investors,            objective, policy and strategy; 
 leading to reduced returns for shareholders,     the portfolio and its performance; 
 decreased demand for the Company's               longer term trends in investor 
 shares and possible widening of                  demand; and the performance of 
 the share price discount to NAV.                 the Manager in operating the investment 
                                                  policy against the long-term objectives 
                                                  of the Company. If appropriate, 
                                                  the Board can propose changes 
                                                  in the investment objective to 
                                                  shareholders. 
Investment Management Risk                       The Board relies on the Investment 
 Investment risk arises from the                  Manager's skills and judgment 
 Company's exposure to variations                 to make investment decisions based 
 of share prices within its portfolio             on research and analysis of stocks 
 in response to individual company                and sectors. The Board regularly 
 and to wider Japanese or international           monitors the investment performance 
 factors. Investment in a focussed                of the portfolio and reviews holdings, 
 portfolio of shares can lead to                  purchases and sales on a monthly 
 greater short-term changes in the                basis, as well as with the Manager 
 portfolio's value than in a larger               at Board meetings. The Board regularly 
 portfolio of stocks and these variations         reviews performance data and attribution 
 will be amplified by the use of                  analysis and other relevant factors 
 gearing. Inappropriate investment                and, were any underperformance 
 decisions may result in the Company's            seen as likely to be sustained, 
 underperformance against the benchmark           would be able to take remedial 
 index and Peer Group and a widening              measures. 
 of the Company's discount. 
ESG Risks                                        The Board supports the Manager's 
 Excluding from the Company's portfolio           active engagement and analysis 
 those companies which the Manager                of ESG and risks associated with 
 does not feel meet rigorous ESG                  climate change. The Board reviews 
 criteria, in accordance with the                 ESG engagement by the Manager 
 Manager's policy, could impact the               on a quarterly basis, and company 
 relative performance of the Company              research notes in the board papers 
 in the short-term. However, the                  address and rate ESG risks for 
 Board is confident that, in the                  all new investments. 
 long-term, companies with strong 
 ESG profiles will add value for 
 shareholders. Furthermore, the Board 
 believes that the Manager's own 
 ESG credentials will have a beneficial 
 impact on the attractiveness of 
 the Company as investors seek to 
 invest only in companies or funds 
 which safeguard strong ESG principles. 
Covid-19 Pandemic                                The Manager's robust and disciplined 
 The Board is cognisant of the risks              investment process is focused 
 arising from the outbreak and spread             on long term company fundamentals 
 of the Coronavirus around the world,             including balance sheet strength 
 including stockmarket instability                and deliverability of sustainable 
 and longer term economic effects,                earnings growth. As part of that 
 and the impact on the operations                 process, the Manager continues 
 of the third-party suppliers, including          to assess and review the investment 
 the Manager.                                     risks arising from Covid-19 on 
                                                  companies in the portfolio, including 
                                                  but not limited to: employee absence, 
                                                  reduced demand, supply chain breakdown, 
                                                  balance sheet strength, ability 
                                                  to pay dividends, and takes the 
                                                  necessary investment decisions. 
 
                                                  The Manager has business continuity 
                                                  procedures and contingency arrangements 
                                                  to ensure they are able to service 
                                                  their clients, including investment 
                                                  trusts. The services from third 
                                                  parties, including the Manager, 
                                                  have continued to be supplied 
                                                  effectively and the Board will 
                                                  continue to monitor arrangements 
                                                  through regular updates from the 
                                                  Manager. 
Operational Risk                                 The Manager has extensive business 
 The Company relies on a number of                continuity procedures and contingency 
 third-party service providers, principally       arrangements to ensure that they 
 the Manager, Registrar, Custodian                are able to continue to service 
 and Depositary.                                  their clients. Third parties are 
                                                  subject to risk-based reviews 
                                                  by the Manager. The Board reviews 
                                                  reports on the operation and efficacy 
                                                  of the risk management and control 
                                                  systems of the Manager and other 
                                                  key third- party service providers, 
                                                  including those relating to cyber 
                                                  crime. 
Regulatory Risk                                  The Board is active in ensuring 
 The Company operates under a complex             that it fully complies with all 
 regulatory environment. Serious                  applicable laws and regulation 
 breaches of regulations, such as                 and is assisted by the Manager 
 Section 1158 of the Corporation                  and other advisers in doing this. 
 Tax Act 2010, the UKLA Listing Rules,            The Board believes that, while 
 Companies Act 2006 and the Alternative           the consequences of non-compliance 
 Investment Fund Managers Directive               can be severe, the control arrangements 
 could lead to a number of detrimental            it has put in place reduce the 
 outcomes and reputational damage.                likelihood of this happening. 
Share Price and Discount risk                    The price of the Company's shares 
 The principal risks described above              and its discount to NAV are not 
 can affect the movement of the Company's         wholly within the Company's control, 
 share price and in some cases have               as both are subject to market 
 the potential to increase the discount           volatility. However, the Board 
 in the market value of the Company               can influence this through the 
 compared with the NAV.                           ability to authorise the buyback 
                                                  of existing shares, when deemed 
                                                  to be in the best interests of 
                                                  shareholders. The share price, 
                                                  NAV and discount are monitored 
                                                  daily by the Manager and regularly 
                                                  reviewed by the Board. 
Leverage                                         The maximum level of borrowing 
 The Company may borrow money for                 permitted by the Company's investment 
 investment purposes. If investments              policy is 25% of net assets. All 
 fall in value, gearing has the effect            borrowing requires prior approval 
 of magnifying the extent of this                 of the Board. In order to manage 
 fall.                                            the level of gearing, the Board 
                                                  has established a gearing level 
                                                  of around 10% of net assets although, 
                                                  with stock market fluctuations, 
                                                  this may range between 5% and 
                                                  15%. The Board regularly reviews 
                                                  the Company's gearing levels and 
                                                  its compliance with bank covenants. 
 

In all other respects, the Company's principal risks and uncertainties have not changed materially since the year end.

Promoting the Success of the Company

The Board is required to report on how it has discharged its duties and responsibilities under section 172 of the Companies Act 2006 (the "s172 Statement"). Under section 172, the Directors have a duty to promote the success of the Company for the benefit of its members as a whole, taking into account the likely long term consequences of decisions, the need to foster relationships with the Company's stakeholders and the impact of the Company's operations on the environment.

The Company consists of four Directors and has no employees or customers in the traditional sense. As the Company has no employees, the culture of the Company is embodied in the Board of Directors. The Board seeks to promote a culture of strong governance and to challenge, in a constructive and respectful way, the Company's advisers and other stakeholders.

The Board's principal concern has been, and continues to be, the interests of the Company's shareholders and potential investors.

The Manager undertakes an annual programme of meetings with the largest shareholders and investors and reports back to the Board on issues raised at these meetings. The Investment Manager, who is based in the Manager's Tokyo office, will attend such meetings. In normal circumstances, the Board encourage all shareholders to attend and participate in the Company's AGM in normal circumstances and shareholders can contact the Directors via the Company Secretary. Shareholders and investors can obtain up-to-date information on the Company through its website and the Manager's information services and have direct access to the Company through the Manager's customer services team or the Company Secretary.

As an investment trust, a number of the Company's functions are outsourced to third parties. The key outsourced function is the provision of investment management services to the Manager and other stakeholders support the Company by providing secretarial, administration, depositary, custodial, banking and audit services.

The Board undertakes a robust evaluation of the Manager, including investment performance and responsible ownership, to ensure that the Company's objective of providing sustainable income and capital growth for its investors is met. The Board typically visits the Manager's offices in Tokyo on an annual basis. This enables the Board to conduct due diligence of the fund management and research teams. During the course of the financial year, a number of virtual meetings were held between the Board and the Manager's investment team in Tokyo to review portfolio construction and sector analysis. The portfolio activities undertaken by the Manager on behalf of the Company can be found in the Manager's Review and details of the Board's relationship with the Manager and other third party providers, including oversight, is provided in the Statement of Corporate Governance.

Whilst the Company's direct operations are limited, the Board recognises the importance of considering the impact of the Company's investment strategy and policy on the wider community and the environment. The Board believes that its oversight of environmental, social and governance ("ESG") matters is an important part of its responsibility to stakeholders, and its proper consideration aligns with the objective to achieve long-term capital growth. The Board's review of the Manager includes an assessment of their ESG approach, which embeds ESG considerations in the investment process. Further information on how the Manager addresses ESG is disclosed in the Statement of Corporate Governance and the Manager's ESG Approach.

During the year, the Board focused on the performance of the Manager in achieving the Company's investment objective within an appropriate risk framework. In addition to ensuring that the Company's investment objective was being pursued, key decisions and actions undertaken by the Directors during the financial year and up to the date of this report have included:

- as part of ongoing succession planning and Board refreshment, the appointment and induction of Sam Dean to the Board with effect from 1 December 2020.

- renewal of the Company's loan facilities which matured in January 2021, in order to continue to take advantage of the Company's investment structure to allow the use of gearing, where appropriate, to enhance long-term total returns to shareholders.

- working closely with the Manager to develop communications to raise the profile of the Company, in order to increase demand for and improve liquidity in the Company's shares. As part of this process, a review of external broking services was undertaken, leading to the appointment in November 2020 of a new corporate broker, Shore Capital, in order to assist and advise in best promoting the success of the company to existing and potential shareholders, and in trading the Company's shares.

- the convening of a General Meeting in May 2020 under the articles of association, to hold a continuation vote, which was successfully passed with 89% of the votes in favour.

- the decision to pay an interim dividend of 6.0p per share and a final dividend of 9.0p, in order to balance the objective of long term capital growth with the policy of providing a regular and sustainable dividend for shareholders.

In summary, the Directors are cognisant of their duties under section 172 and decisions made by the Board take into account the interests of all of the Company's key stakeholders and reflect the Board's belief that the long-term sustainable success of the Company is linked directly to its key stakeholders.

Key Performance Indicators ("KPIs")

Performance is compared against the Company's benchmark index and its Peer Group. In view of the Manager's style of investing, there can be, in the short-term, considerable divergence from both comparators. The Board uses a three year rolling performance for the following KPIs: total NAV return against the benchmark index and share price total return compared with the Peer Group. The KPI for the discount comparison to its Peer Group is over one year. The Company's Ongoing Charges Ratio is compared with the Peer Group, taking into account its size, to ensure that total running costs remain competitive.

 
KPI                                                           Achievement of KPI 
                                                                     Yes 
  *    NAV (total return) relative to the Company's 
       benchmark index (3 years) 
                                                                     Yes 
  *    Share price (total return) vs Peer Group (3 years) 
                                                                      No 
  *    Discount or premium of the share price to NAV vs Peer 
       Group on an annual average (1 year). 
                                                                     Yes 
  *    Ongoing Charges Ratio (1 year) ("OCR") 
 

Over the three year period to 31 March 2021, the Company's NAV and share price return outperformed its KPI.

The discount KPI underperformed. The Company's OCR for the year ended 31 March 2021 was 1.04%, in line with the previous year and is competitive within its Peer Group, relative to the size of its total assets and its fixed costs.

Duration

The Company does not have a fixed life. However, under the articles of association, if, in the 90 days preceding the Company's financial year-end (31 March), the Ordinary shares have been trading, on average, at a discount in excess of 10% to the underlying NAV over the same period, notice will be given of an ordinary resolution to be proposed at the following AGM to approve the continuation of the Company. In the 90 days to 31 March 2021, the Ordinary shares traded at an average discount of 8.6% to the underlying NAV and, as such, a continuation vote was not required.

Board Diversity

The Board recognises the importance of having a diverse group of Directors with the appropriate mix of competencies and expertise to allow the Board to fulfil its obligations. At 31 March 2021 there were two male Directors and two female Directors, all of whom bring a variety of knowledge, experience and skills and contribute distinctively to the Board's performance. Further detail is provided in the Statement of Corporate Governance.

Employee, Environmental, Social & Human Rights Issues

The Company has no employees as it has delegated operational management to the Manager. There are therefore no disclosures to be made in respect of employees. Further information on socially responsible investment can be found in the Manager's ESG Approach .

Global Greenhouse Gas Emissions and Streamlined Energy and Carbon Reporting ("SECR")

All of the Company's activities are outsourced to third parties. The Company therefore has no greenhouse gas emissions to report from the operations of its business, nor does it have responsibility for any other emissions producing sources under the Companies Act 2006 (Strategic Report and Directors' Reports) Regulations 2013. For the same reason as set out above, the Company considers itself to be a low energy user under the SECR regulations and therefore is not required to disclose energy and carbon information.

Modern Slavery Act

Due to the nature of the Company's business, being a company that does not offer goods and services to customers, the Board considers that it is not within the scope of the Modern Slavery Act 2015 because it has no turnover. The Company is therefore not required to make a slavery and human trafficking statement. In any event, the Board considers the Company's supply chains, dealing predominantly with professional advisers and service providers in the financial services industry, to be low risk in relation to this matter.

Viability Statement

The Company's business model is designed to deliver long term capital growth to its shareholders through investment in readily realisable stocks in the Japanese equity markets. Its plans are therefore based on having no fixed or limited life provided the global equity markets continue to operate normally.

The Board has assessed the Company's prospects over a three year period in accordance with the UK Corporate Governance Code. The Board considers that this period reflects a balance between looking out over a long-term horizon and the inherent uncertainties of looking out further than three years. In assessing the viability of the Company over the review period the Directors have focused upon the following factors:

   -    The ongoing relevance of the Company's investment objective in the current environment; 

- The principal risks detailed in the Strategic Report and the steps taken to mitigate these risks. In particular, the Board has considered the operational ability of the Company to continue in the current environment, which has been impacted by the global Covid-19 pandemic, and the ability of the key third-party suppliers to continue to provide essential services to the Company. Third party services have continued to be provided effectively;

- The liquidity of the Company's underlying portfolio. Recent stress testing has confirmed that shares can be easily liquidated, despite the more uncertain and volatile economic environment;

- The level of forecast revenue surplus generated by the Company and its ability to achieve the dividend policy;

- The level of gearing is closely monitored by the Board. Covenants are actively monitored and there is adequate headroom in place; and

- The Company has a fixed term loan facility of JPY 1.3 billion in place until January 2022 and a revolving loan facility of JPY 1.0 billion in place until January 2022. The Company has the ability to renew or repay its gearing through proceeds from equity sales.

Accordingly, taking into account the Company's current position and its prospects, and the potential impact of its principal risks and uncertainties, the Directors have a reasonable expectation that the Company will be able to continue in operation and meet its liabilities as they fall due for a period of three years from the date of this Report.

In making this assessment, the Board has considered that matters such as significant economic or stockmarket volatility (including the possibility of a greater than anticipated economic impact of the spread of the Covid-19), a substantial reduction in the liquidity of the portfolio, or changes in investor sentiment could have an impact on its assessment of the Company's prospects and viability in the future.

The Strategic Report was approved by the Board of Directors and signed on its behalf for Aberdeen Japan Investment Trust PLC by:

Karen Brade,

Chairman

7 June 2021

RESULTS

Financial Highlights

 
                                                 31 March        31 March   % change 
                                                     2021            2020 
 Total assets (as defined on page 90 of 
  the published 2021 Annual Report)        GBP118,585,000   GBP97,904,000      +21.1 
 Total equity shareholders' funds (net 
  assets)                                  GBP107,438,000   GBP85,206,000      +26.1 
 Market capitalisation                      GBP96,775,000   GBP75,943,000      +27.4 
 Share price (mid market)                         727.50p         550.00p      +32.3 
 Net asset value per Ordinary share               807.66p         617.09p      +30.9 
 Discount to net asset value{A}                      9.9%           10.9% 
 Net gearing{A}                                     10.0%           13.6% 
 
 Operating costs 
 Ongoing charges ratio{A}                           1.04%           1.04% 
 
 Earnings 
 Total return per Ordinary share                  203.49p          19.03p 
 Revenue return per Ordinary share                  6.57p           8.08p 
 Dividends per Ordinary share{B}                   15.00p          15.00p 
 Revenue reserves (prior to payment of       GBP1,758,000    GBP2,361,000 
  proposed final dividend) 
 
 {A} Considered to be an Alternative Performance Measure. See below 
  for more information. 
 {B} The figure for dividends reflects the years in which they were 
  earned 
 
 
  KEY PERFORMANCE INDICATORS 
 
                                                                         Return since 
                                     1 year    3 year    5 year        8 October 2013 
                                     return    return    return   (change of mandate) 
 Net asset value total return{A}     +33.5%    +23.7%    +68.0%               +133.0% 
 Index total return                  +24.8%    +19.5%    +72.0%               +105.2% 
 Share price total return{A}         +35.2%    +31.2%    +74.2%               +131.5% 
 Peer Group share price total 
  return                             +62.8%    +34.4%   +122.1%               +181.4% 
 
                                                                          Over period 
                                                                                since 
                                       Over      Over      Over        8 October 2013 
                                     1 year   3 years   5 years   (change of mandate) 
 Average discount - Company           12.6%     11.8%     11.7%                 10.3% 
 Average discount - Peer Group         9.1%      7.0%      6.5%                  6.3% 
 
 {A} Considered to be an Alternative Performance Measure. See below 
  for further details. 
 Source: Aberdeen Standard Investments, Lipper & Morningstar. 
 Based on share price and NAV per Morningstar (ie as available in 
  the market, not including the annual report NAV). 
 Peer group is the average of Baillie Gifford Japan, CC Japan Income 
  & Growth, Fidelity Japan, JP Morgan Japanese and Schroder Japan Growth. 
 
 

DIVIDS

 
                              Rate    Ex-dividend       Record date   Payment date 
                                             date 
 Proposed final dividend     9.00p   24 June 2021      25 June 2021   23 July 2021 
  2021 
 Interim dividend            6.00p     3 December   4 December 2020    31 December 
  2021                                       2020                             2020 
 Total dividends 2021       15.00p 
 Final dividend 2020         9.00p    2 July 2020       3 July 2020   31 July 2020 
 Interim dividend            6.00p    28 November       29 November    20 December 
  2020                                       2019              2019           2019 
 Total dividends 2020       15.00p 
 

INVESTMENT PORTFOLIO

Ten Largest Investments a s at 31 March 2021

 
 Toyota Motor Corporation                          Sony Corporation 
 The carmaker has continued to gain                The electronics giant has dominant 
  market share, while cost efficiencies             market share in the image sensor 
  from its global platform structure                business, and we are gaining more 
  protect its margins. It is also                   confidence in its management and 
  focused on hybrid technology, given               the trajectory of its underlying 
  rising structural trends such as                  business fundamentals. 
  vehicle electrification. 
 
 Tokio Marine Holdings, Inc.                       Shin-Etsu Chemical Company 
 Tokio Marine is the most progressive              Despite the challenging environment, 
  of the three largest local property               the Japanese maker of specialised 
  and casualty insurers. Of note                    chemicals remains a leader in 
  is its positive view on shareholder               its industry, due to its technological 
  returns, which we expect will grow                edge and a greater focus on profits 
  gradually as it makes further inroads             than most of its Japanese rivals. 
  abroad that add value to its business. 
 
 Amada Company                                     Asahi Group Holdings 
 Amada is a sheet-metal machinery                  Japan's largest brewer is well 
  maker, with a dominant domestic                   positioned to achieve growth through 
  market share, that is making inroads              premiumisation, cost synergies 
  in other parts of the world. It                   and cross-selling between different 
  has a strong balance sheet and                    brands. 
  its management has been progressive 
  in returning excess capital to 
  shareholders. 
 
 Recruit Holdings Corporation                      Nabtesco Corporation 
 Recruit has a dominant HR platform                Nabtesco produces parts for robotics 
  that drives its growth by capturing               and other industrial equipment. 
  hiring needs of the vast majority                 Thanks to its technological edge 
  of SMEs worldwide. It invests in                  in niche areas, the company has 
  technology, particularly in job                   leading market share across its 
  search, using cash generated from                 products. 
  its strong domestic HR and lifestyle-related 
  media businesses. 
 
 Nippon Sanso Holdings                             Keyence Corporation 
 Japan's largest industrial gas                    The leading maker of sensors has 
  company that is leveraging on domestic            a cash generative business and 
  industry consolidation to expand                  is backed by a strong balance 
  its overseas business, where margins              sheet and technological expertise. 
  are higher. 
 

INVESTMENT PORTFOLIO

Other Investments as at 31 March 2021

 
                                                                   Valuation    Total   Valuation 
                                                                        2021   assets        2020 
 Company                              Sector                         GBP'000        %     GBP'000 
                                      Automobiles and 
 Toyota Motor Corporation              Parts                           5,504      4.6       3,393 
 Sony Corporation                     Leisure Goods                    4,531      3.8       1,957 
 Tokio Marine Holdings, Inc.          Non-life Insurance               4,471      3.8       3,869 
 Shin-Etsu Chemical Company           Chemicals                        4,295      3.6       3,973 
 Amada Company                        Industrial Engineering           3,973      3.3       2,721 
 Asahi Group Holdings                 Beverages                        3,389      2.9           - 
                                      Industrial Support 
 Recruit Holdings Corporation          Services                        3,266      2.8       1,060 
 Nabtesco Corporation                 Industrial Engineering           2,975      2.5       1,714 
 Nippon Sanso Holdings                Chemicals                        2,924      2.5           - 
                                      Electronic and Electrical 
 Keyence Corporation                   Equipment                       2,835      2.4       3,273 
 Top ten investments                                                  38,163     32.2 
                                      Automobiles and 
 Stanley Electric Company              Parts                           2,764      2.3       1,371 
 Fanuc Corporation                    Industrial Engineering           2,748      2.3         371 
 Misumi Group                         Industrial Engineering           2,733      2.3       2,441 
                                      Construction and 
 Daikin Industries                     Materials                       2,604      2.2       3,304 
                                      Finance and Credit 
 Zenkoku Hosho Company                 Services                        2,581      2.2           - 
                                      Automobiles and 
 Koito Manufacturing                   Parts                           2,497      2.1           - 
                                      Real Estate Investment 
 Tokyu Fudosan Holdings                and Services                    2,454      2.1       1,730 
                                      Technology Hardware 
 Murata Manufacturing                  and Equipment                   2,274      1.9           - 
                                      Telecommunications 
 KDDI Corporation                      Service Providers               2,269      1.9       3,841 
 Resorttrust                          Travel and Leisure               2,167      1.8         850 
 Top twenty investments                                               63,254     53.3 
                                      Technology Hardware 
 Advantest Corporation                 and Equipment                   2,080      1.8           - 
 USS Company                          Retailers                        2,018      1.7       1,100 
 Kansai Paint Company                 General Industrials              1,816      1.5       1,747 
                                      Household Goods 
 Makita Corporation                    and Home Construction           1,772      1.5       2,105 
 NEC Networks & System Integration    Telecommunications 
  Corporation                          Equipment                       1,755      1.5           - 
                                      Pharmaceuticals 
 Astellas Pharma                       and Biotechnology               1,726      1.5           - 
                                      Software and Computer 
 Z Holdings Corporation                Services                        1,712      1.4       1,336 
 Yamaha Corporation                   Leisure Goods                    1,711      1.4       1,758 
                                      Real Estate Investment 
 Heiwa Real Estate                     and Services                    1,711      1.4       2,143 
                                      Medical Equipment 
 Hoya Corporation                      and Services                    1,696      1.4       1,416 
 Top thirty investments                                               81,251     68.4 
                                      Technology Hardware 
 Sanken Electric                       and Equipment                   1,603      1.4       1,050 
                                      Pharmaceuticals 
 Chugai Pharmaceutical Company         and Biotechnology               1,589      1.3       4,619 
                                      Investment Banking 
 WealthNavi                            and Brokerage Services          1,525      1.3           - 
                                      Finance and Credit 
 Tokyo Century Corporation             Services                        1,499      1.3       1,129 
 Nitori Holdings                      Retailers                        1,446      1.2       1,520 
 Shiseido Company                     Personal Goods                   1,391      1.2       2,023 
                                      Personal Care, Drug 
 Welcia Holdings Company               and Grocery Stores              1,280      1.1       2,704 
                                      Construction and 
 Sho-Bond Holdings Company             Materials                       1,260      1.1       2,072 
                                      Technology Hardware 
 Tokyo Electron                        and Equipment                   1,257      1.1           - 
                                      Household Goods 
 Shoei co                              and Home Construction           1,246      1.1           - 
 Top forty investments                                                95,347     80.5 
                                      Pharmaceuticals 
 Daiichi Sankyo                        and Biotechnology               1,239      1.0           - 
 Scroll Corporation                   Retailers                        1,205      1.0           - 
                                      Investment Banking 
 Japan Exchange Group                  and Brokerage Services          1,168      1.0       2,526 
                                      Technology Hardware 
 NEC Networks                          and Equipment                   1,148      1.0       2,264 
                                      Construction and 
 Takuma                                Materials                       1,061      0.9           - 
 Valuecommerce Company                Media                            1,024      0.9           - 
 Nippon Paint Holdings Company        General Industrials              1,017      0.9       2,515 
                                      Software and Computer 
 Sansan                                Services                          991      0.8         511 
 Taoka Chemical                       Chemicals                          976      0.8           - 
                                      Technology Hardware 
 Elecom Company                        and Equipment                     969      0.8       2,371 
 Top fifty investments                                               106,145     89.6 
 BML                                  Health Care Providers              953      0.8       1,061 
 Milbon Company                       Personal Goods                     864      0.7       1,089 
                                      Medical Equipment 
 Asahi Intecc Company                  and Services                      849      0.7       2,310 
 Edulab                               Consumer Services                  821      0.7           - 
                                      Software and Computer 
 Fukui Computer Holdings               Services                          767      0.6         430 
                                      Software and Computer 
 Zuken                                 Services                          715      0.6         526 
                                      Software and Computer 
 Coconala                              Services                          711      0.6           - 
                                      Medical Equipment 
 As One Corporation                    and Services                      629      0.5       1,094 
                                      Electronic and Electrical 
 Jeol                                  Equipment                         604      0.5           - 
                                      Software and Computer 
 Otsuka Corporation                    Services                          601      0.5       1,869 
 Top sixty investments                                               113,659     95.8 
                                      Telecommunications 
 Okinawa Cellular Telephone            Service Providers                 600      0.5         403 
                                      Investment Banking 
 Nihon M&A Centre                      and Brokerage Services            584      0.5         571 
                                      Medical Equipment 
 Menicon Company                       and Services                      577      0.5           - 
                                      Pharmaceuticals 
 Takara Bio                            and Biotechnology                 564      0.5           - 
                                      Personal Care, Drug 
 Pigeon Corporation                    and Grocery Stores                511      0.4       1,441 
 Daifuku                              Industrial Engineering             440      0.4         507 
 Workman                              Retailers                          421      0.4           - 
                                      Software and Computer 
 Appier Group                          Services                          355      0.3           - 
 Total investments                                                   117,711     99.3 
 Net current assets{A}                                                   874      0.7 
 Total assets                                                        118,585    100.0 
 
 {A} Excludes bank loans of GBP11,147,000. 
 Unless otherwise stated, foreign stock is held and all investments are 
  equity holdings. 
 In the 2020 valuation column "-" denotes stock not held at last year 
  end. 
 

GOING CONCERN

The Company's assets consist of equity shares in companies listed on recognised stock exchanges and in most circumstances are realisable within a short timescale. The Board has reviewed the results of stress testing prepared by the Manager in relation to the ability of the assets to be realised in the current market environment.

The Company does not have a fixed life. However, under the articles of association, if, in the 90 days preceding the Company's financial year-end (31 March), the Ordinary shares have been trading, on average, at a discount in excess of 10% to the underlying NAV over the same period, notice will be given of an ordinary resolution to be proposed at the following AGM to approve the continuation of the Company. In the 90 days to 31 March 2021, the Ordinary shares traded at an average discount of 8.6% to the underlying NAV. Accordingly, no resolution on the continuation of the Company will be put to the Company's shareholders at the Annual General Meeting.

The Company has a fixed term loan facility of JPY 1.3 billion in place until January 2022 and a revolving loan facility of JPY 1.0 billion in place until January 2022. The Board has set limits for borrowing and regularly reviews the Company's gearing levels and its compliance with bank covenants. A replacement option would be sought in advance of the expiry of the facility in January 2022, or, should the Board decide not to renew this facility, any outstanding borrowing would be repaid through the proceeds of equity sales as required.

The Board has considered the ongoing impact of Covid-19 and believe that this will have a limited financial impact on the Company's operational resources and existence. The results of stress testing prepared by the Manager, which models a sharp decline in market levels and income, demonstrated that the Company had the ability to raise sufficient funds so as to remain within its debt covenants and pay expenses.

Taking the above factors into consideration, the Board has a reasonable expectation that the Company has adequate resources to continue in operational existence for a period of at least 12 months from the date of approval of these financial statements. Accordingly, the Board continues to adopt the going concern basis in preparing the financial statements.

STATEMENT OF DIRECTORS' RESPONSIBILITIES

The Directors are responsible for preparing the Annual Report and the 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 they have elected to prepare the financial statements in accordance with UK accounting standards and applicable law, including FRS 102, The Financial Reporting Standard applicable in the UK and Republic of Ireland.

Under company law the Directors must not approve the financial statements unless they are satisfied that they give a true and fair view of the state of affairs of the Company and of the profit or loss of the Company for that period. In preparing these financial statements, the Directors are required to:

   -     select suitable accounting policies and then apply them consistently; 
   -     make judgements and 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;

- assess the Company's ability to continue as a going concern, disclosing, as applicable, matters related to going concern; and

- use the going concern basis of accounting unless they either intend to liquidate the company or to cease operations, or have no realistic alternative but to do so.

The Directors are responsible for keeping adequate 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 enable them to ensure that the financial statements comply with the Companies Act 2006. They are responsible for such internal control as they determine is necessary to enable the preparation of financial statements that are free from material misstatement, whether due to fraud or error, and have general responsibility for taking such steps as are reasonably open to them to safeguard the assets of the Company and to prevent and detect fraud and other irregularities.

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

The Directors are responsible for the maintenance and integrity of the corporate and financial information included on the Company's website. Legislation in the UK governing the preparation and dissemination of financial statements may differ from legislation in other jurisdictions.

Responsibility statement of the Directors in respect of the annual financial report

We confirm that to the best of our knowledge:

- the financial statements, prepared in accordance with the applicable set of accounting standards, give a true and fair view of the assets, liabilities, financial position and profit 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 issuer, together with a description of the principal risks and uncertainties that they face.

We consider the annual report and accounts, taken as a whole, is fair, balanced and understandable and provides the information necessary for shareholders to assess the Company's position and performance, business model and strategy.

For and on behalf of Aberdeen Japan Investment Trust PLC

Karen Brade,

Chairman

7 June 2021

FINANCIAL STATEMENTS

The following is the unaudited preliminary statement for the year to 31 March 2021 which was approved by the Board on 7 June 2021.

STATEMENT OF COMPREHENSIVE INCOME

 
                                           Year ended 31 March           Year ended 31 March 
                                                   2021                          2020 
                                       Revenue   Capital     Total   Revenue   Capital     Total 
                               Notes   GBP'000   GBP'000   GBP'000   GBP'000   GBP'000   GBP'000 
 Gains on investments           10           -    25,747    25,747         -     2,872     2,872 
 Income                          3       1,815         -     1,815     1,981         -     1,981 
 Exchange gains/(losses)        14           -     1,491     1,491         -     (844)     (844) 
 Management fee                  4       (275)     (412)     (687)     (254)     (381)     (635) 
 Administrative expenses         5       (423)      (14)     (437)     (334)      (20)     (354) 
                                         _____     _____   _______    ______    ______     _____ 
 Net return before finance 
  costs and taxation                     1,117    26,812    27,929     1,393     1,627     3,020 
 
 Finance costs                   6        (44)      (65)     (109)      (44)      (67)     (111) 
                                         _____     _____   _______    ______    ______     _____ 
 Net return before taxation              1,073    26,747    27,820     1,349     1,560     2,909 
 
 Taxation                        7       (181)         -     (181)     (198)         -     (198) 
                                         _____     _____   _______    ______    ______     _____ 
 Net return after taxation                 892    26,747    27,639     1,151     1,560     2,711 
                                         _____     _____   _______    ______    ______     _____ 
 Return per Ordinary share 
  (pence)                        9        6.57    196.92    203.49      8.08     10.95     19.03 
                                         _____     _____   _______    ______    ______     _____ 
 
 The total column of this statement represents the profit and loss 
  account of the Company. 
 All revenue and capital items in the above statement derive from continuing 
  operations. 
 The accompanying notes are an integral part of the financial statements. 
 

STATEMENT OF FINANCIAL POSITION

 
                                                             As at         As at 
                                                          31 March      31 March 
                                                              2021          2020 
                                               Notes       GBP'000       GBP'000 
 Fixed assets 
 Investments held at fair value through 
  profit or loss                                  10       117,711        96,247 
                                                       ___________   ___________ 
 Current assets 
 Debtors                                          11           916           982 
 Cash at bank and in hand                                      528         1,000 
                                                       ___________   ___________ 
                                                             1,444         1,982 
                                                       ___________   ___________ 
 Creditors: amounts falling due within 
  one year                                        12 
 Foreign currency bank loans                              (11,147)      (12,698) 
 Other creditors                                             (570)         (325) 
                                                       ___________   ___________ 
                                                          (11,717)      (13,023) 
                                                       ___________   ___________ 
 Net current liabilities                                  (10,273)      (11,041) 
                                                       ___________   ___________ 
 Net assets                                                107,438        85,206 
                                                       ___________   ___________ 
 Share capital and reserves 
 Called-up share capital                          13         1,582         1,582 
 Share premium                                               6,656         6,656 
 Capital redemption reserve                                  2,273         2,273 
 Capital reserve                                  14        95,169        72,334 
 Revenue reserve                                             1,758         2,361 
                                                       ___________   ___________ 
 Equity shareholders' funds                                107,438        85,206 
                                                       ___________   ___________ 
 Net asset value per Ordinary share (pence)       15        807.66        617.09 
                                                       ___________   ___________ 
 

STATEMENT OF CHANGES IN EQUITY

 
 For the year ended 
  31 March 2021 
                                                         Capital 
                                    Share     Share   redemption   Capital   Revenue 
                                  capital   premium      reserve   reserve   reserve     Total 
                          Notes   GBP'000   GBP'000      GBP'000   GBP'000   GBP'000   GBP'000 
 Balance at 31 March 
  2020                              1,582     6,656        2,273    72,334     2,361    85,206 
 Return after taxation                  -         -            -    26,747       892    27,639 
 Dividends paid               8         -         -            -     (548)   (1,495)   (2,043) 
 Purchase of Ordinary 
  shares to be held 
  in treasury                13         -         -            -   (3,364)         -   (3,364) 
                                   ______    ______        _____     _____     _____    ______ 
 Balance at 31 March 
  2021                              1,582     6,656        2,273    95,169     1,758   107,438 
                                   ______    ______        _____     _____     _____    ______ 
 
 For the year ended 
  31 March 2020 
                                                         Capital 
                                    Share     Share   redemption   Capital   Revenue 
                                  capital   premium      reserve   reserve   reserve     Total 
                                  GBP'000   GBP'000      GBP'000   GBP'000   GBP'000   GBP'000 
 Balance at 31 March 
  2019                              1,582     6,656        2,273    74,675     2,839    88,025 
 Return after taxation                  -         -            -     1,560     1,151     2,711 
 Dividends paid               8         -         -            -         -   (1,629)   (1,629) 
 Purchase of Ordinary 
  shares to be held 
  in treasury                13         -         -            -   (3,901)         -   (3,901) 
                                   ______    ______        _____     _____     _____    ______ 
 Balance at 31 March 
  2020                              1,582     6,656        2,273    72,334     2,361    85,206 
                                   ______    ______        _____     _____     _____    ______ 
 

STATEMENT OF CASHFLOWS

 
                                                Year ended   Year ended 
                                                  31 March     31 March 
                                                      2021         2020 
                                                   GBP'000      GBP'000 
 Operating activities 
 Net return before taxation                         27,820        2,909 
 Adjustment for: 
 Gains on investments                             (25,747)      (2,872) 
 Increase in other creditors                           150           41 
 Finance costs                                         109          111 
 Expenses taken to capital reserve                      14           20 
 Foreign exchange (gains)/losses                   (1,491)          844 
 Overseas withholding tax                            (181)        (198) 
 Increase in accrued dividend income                  (16)         (57) 
 Increase in other debtors                            (18)          (9) 
                                                    ______       ______ 
 Net cash inflow from operating activities             640          789 
                                                    ______       ______ 
 Investing activities 
 Purchases of investments                         (59,281)     (48,208) 
 Sales of investments                               63,755       52,495 
 Expenses allocated to capital                        (14)         (20) 
                                                    ______       ______ 
 Net cash inflow from investing activities           4,460        4,267 
                                                    ______       ______ 
 Financing activities 
 Bank and loan interest paid                         (107)        (111) 
 Equity dividends paid                             (2,043)      (1,629) 
 Purchase of own shares to treasury                (3,364)      (3,901) 
                                                    ______       ______ 
 Net cash outflow from financing activities        (5,514)      (5,641) 
                                                    ______       ______ 
 Decrease in cash                                    (414)        (585) 
                                                    ______       ______ 
 Analysis of changes in cash during the year 
 Opening balance                                     1,000        1,516 
 Effects of exchange rate fluctuations on 
  cash held                                           (58)           69 
 Decrease in cash as above                           (414)        (585) 
                                                    ______       ______ 
 Closing balance                                       528        1,000 
                                                    ______       ______ 
 
 
   NOTES TO THE FINANCIAL STATEMENTS 
   For the year ended 31 March 2021 
 
 1.     Principal activity. The Company is a closed-end investment company, 
         registered in England and Wales No 3582911, with its Ordinary 
         shares being listed on the London Stock Exchange. 
 
 
 
 2.   Accounting policies 
      (a)   Basis of accounting and going concern. The financial statements 
             have been prepared in accordance with Financial Reporting 
             Standard 102 and with the Statement of Recommended Practice 
             'Financial Statements of Investment Trust Companies and Venture 
             Capital Trusts' ("SORP") issued by the Association of Investment 
             Companies ("AIC") in April 2021. Although the SORP is applicable 
             for accounting periods beginning on or after 1 January 2021 
             early adoption is encouraged. They have also been prepared 
             on the assumption that approval as an investment trust will 
             continue to be granted. 
            The Company's assets consist mainly of equity shares in companies 
             listed on a recognised stock exchange and in most circumstances, 
             including in the current market environment, are considered 
             to be realisable within a short timescale. The Board has reviewed 
             the results of stress testing prepared by the Manager in relation 
             to the ability of the assets to be realised in the current 
             market environment. 
            The Company does not have a fixed life. However, under the 
             Articles of Association, if, in the 90 days preceding the 
             Company's financial year-end (31 March), the Ordinary shares 
             have been trading, on average, at a discount in excess of 
             10% to the underlying NAV over the same period, notice will 
             be given of an ordinary resolution to be proposed at the following 
             AGM to approve the continuation of the Company. In the 90 
             days to 31 March 2021, the Ordinary shares traded at an average 
             discount of 8.6% to the underlying NAV and therefore there 
             is no requirement to convene a general meeting of the Company. 
             The earliest date that the Company may be subject to a further 
             continuation vote would be at a general meeting of the Company 
             which would be likely to be held in mid-2022 following the 
             next review of the discount control mechanism within the Articles. 
            The Company has a fixed term loan facility of JPY 1.3 billion 
             and a revolving loan facility of JPY 1.0 billion, both maturing 
             on 21 January 2022. The Board has set limits for borrowing 
             and regularly reviews the Company's gearing levels and its 
             compliance with bank covenants. A replacement option would 
             be sought in advance of the expiry of the facility in January 
             2022, or, should the Board decide not to renew this facility, 
             any outstanding borrowing may be repaid through the proceeds 
             of equity sales as required. 
            The Board has considered the ongoing impact of Covid-19 and 
             believe that this will have a limited financial impact on 
             the Company's operational resources and existence. The results 
             of stress testing prepared by the Manager, which models a 
             sharp decline in market levels and income, demonstrated that 
             the Company had the ability to raise sufficient funds so as 
             to remain within its debt covenants and pay expenses. 
            Taking the above factors into consideration, the Board has 
             a reasonable expectation that the Company has adequate resources 
             to continue in operational existence for a period of at least 
             12 months from the date of approval of these financial statements. 
             Accordingly, the Board continues to adopt the going concern 
             basis in preparing the financial statements. 
            The Company's financial statements are presented in Sterling, 
             which is also the functional currency as it is the basis upon 
             which shareholders operate and expenses are generally paid. 
             All values are rounded to the nearest thousand pounds (GBP'000) 
             except when otherwise indicated. 
            The accounting policies applied are unchanged from the prior 
             year and have been applied consistently. 
      (b)   Valuation of investments. The Company's business is investing 
             in financial assets with a view to profiting from their total 
             return in the form of income and capital growth. This portfolio 
             of financial assets is managed and its performance evaluated 
             on a fair value basis, in accordance with a documented investment 
             strategy, and information about the portfolio is provided 
             internally on that basis to the Company's Board of Directors. 
             Accordingly, upon initial recognition the Company designates 
             the investments 'at fair value through profit or loss'. Fair 
             value is taken to be the investment's cost at the trade date 
             (excluding expenses incidental to the acquisition which are 
             written off in the Statement of Comprehensive Income, and 
             allocated to 'capital' at the time of acquisition). 
            Subsequent to initial recognition, investments continue to 
             be designated at fair value through profit or loss, which 
             is deemed to be bid prices, where the bid price is available, 
             or otherwise at fair value based on published price quotations. 
      (c)   Income. Dividends, including taxes deducted at source, are 
             included in revenue by reference to the date on which the 
             investment is quoted ex-dividend. Special dividends are reviewed 
             on a case-by-case basis and may be credited to capital, if 
             circumstances dictate. Dividends receivable on equity shares 
             where no ex-dividend date is quoted are brought into account 
             when the Company's right to receive payment is established. 
             Where the Company has elected to receive its dividends in 
             the form of additional shares rather than cash, the amount 
             of the cash dividend is recognised as income. Any excess in 
             the value of the shares received over the amount of the cash 
             dividend is recognised in capital reserves. Interest receivable 
             on bank balances is dealt with on an accruals basis. 
            Where applicable the dividend income is disclosed net of irrecoverable 
             taxes deducted at source. 
      (d)   Expenses. All expenses are accounted for on an accruals basis. 
             Expenses are allocated to revenue in the Statement of Comprehensive 
             Income except as follows: 
 
              *    expenses are allocated and borne by capital where a 
                   connection with the maintenance or enhancement of the 
                   value of the investments can be demonstrated. In this 
                   respect, the investment management fee is allocated 
                   40% to revenue and 60% to realised capital reserves 
                   to reflect the Company's investment policy and 
                   prospective income and capital growth; and 
            *    transactions costs are charged to capital. 
 
      (e)   Taxation. The tax payable is based on the taxable profit 
             for the year. Taxable profit differs from net profit as reported 
             in the Statement of Comprehensive Income because it excludes 
             items of income or expenditure that are taxable or deductible 
             in other years and it further excludes items that are never 
             taxable or deductible (see note 7 for a more detailed explanation). 
             The Company has no liability for current tax. 
            Deferred taxation. Deferred taxation is provided on all timing 
             differences, that have originated but not reversed at the 
             Statement of Financial Position date, where transactions or 
             events that result in an obligation to pay more or a right 
             to pay less tax in future have occurred at the Statement of 
             Financial Position date, measured on an undiscounted basis 
             and based on tax rates expected to apply in the period that 
             the timing differences reverse. This is subject to deferred 
             tax assets only being recognised if it is considered more 
             likely than not that there will be suitable profits from which 
             the future reversal of the underlying timing differences can 
             be deducted. Timing differences are differences arising between 
             the Company's taxable profits and its results as stated in 
             the accounts which are capable of reversal in one or more 
             subsequent periods. Due to the Company's status as an investment 
             trust company, and the intention to continue to meet the conditions 
             required to maintain approval for the foreseeable future, 
             the Company has not provided deferred tax on any capital gains 
             and losses arising on the revaluation or disposal of investments. 
      (f)   Nature and purpose of reserves 
            Called-up share capital. The Ordinary share capital on the 
             Statement of Financial Position relates to the number of shares 
             in issue and in treasury. Only when the shares are cancelled, 
             either from treasury or directly, is a transfer made to the 
             capital redemption reserve. This reserve is not distributable. 
            Share premium. The balance classified as share premium includes 
             the premium above nominal value from the proceeds on issue 
             of any equity share capital comprising Ordinary shares of 
             10p. This reserve is not distributable. 
            Capital redemption reserve. The capital redemption reserve 
             is used to record the amount equivalent to the nominal value 
             of any of the Company's own shares purchased and cancelled 
             in order to maintain the Company's capital. This reserve is 
             not distributable. 
            Capital reserve. Gains or losses on disposal of investments 
             and changes in fair values of investments are transferred 
             to the capital reserve. The capital element of the management 
             fee and relevant finance costs are charged to this reserve. 
             Any associated tax relief is also credited to this reserve. 
             The costs of share buybacks to be held in treasury are also 
             deducted from this reserve. The capital reserve, to the extent 
             that the gains are deemed realised, is distributable including 
             by way of dividend. 
            Revenue reserve. This reserve reflects all income and costs 
             which are recognised in the revenue column of the Statement 
             of Comprehensive Income. The revenue reserve represents the 
             amount of the Company's reserves distributable by way of dividend. 
      (g)   Foreign currencies. Transactions involving foreign currencies 
             are converted at the rate ruling at the date of the transaction. 
            Foreign currency asset and liability balances are translated 
             to Sterling at the middle rate of exchange at the year end. 
             Differences arising from translation are treated as capital 
             gain or loss to capital or revenue within the Statement of 
             Comprehensive Income depending upon the nature of the gain 
             or loss. 
      (h)   Dividends payable. Dividends are recognised in the financial 
             statements in the period in which they are paid. 
      (i)   Borrowings. All secured borrowings are initially recognised 
             at cost, being the fair value of the consideration received, 
             less issue costs where applicable. After initial recognition, 
             all interest bearing borrowings are subsequently measured 
             at amortised cost. The finance costs of such borrowings are 
             accounted for on an accruals basis using the effective interest 
             rate method and are charged 40% to revenue and 60% to realised 
             capital reserves to reflect the Company's investment policy 
             and prospective income and capital growth. 
      (j)   Significant estimates and judgements. The Directors do not 
             believe that any accounting judgements or estimates have been 
             applied to these financial statements that have a significant 
             risk of causing material adjustment to the carrying amount 
             of assets and liabilities within the next financial year. 
             The Directors believe that there is one key judgement. The 
             Company's investments and borrowings are made in Japanese 
             yen, however the Board considers the Company's functional 
             currency to be Sterling. In arriving at this conclusion, the 
             Board considered that the shares of the Company are listed 
             on the London Stock Exchange, it is regulated in the United 
             Kingdom, principally having its shareholder base in the United 
             Kingdom and also, pays dividends and expenses in Sterling. 
 
 
 3.    Income 
                                     2021      2020 
                                  GBP'000   GBP'000 
       Income from investments 
  Overseas dividends                1,815     1,980 
 
       Other income 
  Deposit interest                      -         1 
                                   ______    ______ 
  Total income                      1,815     1,981 
                                   ______    ______ 
 
 
 4.    Management fee 
                                        2021                             2020 
                            Revenue    Capital      Total    Revenue    Capital      Total 
                            GBP'000    GBP'000    GBP'000    GBP'000    GBP'000    GBP'000 
  Management fee                275        412        687        254        381        635 
                             ______     ______     ______     ______     ______     ______ 
 
  For the year ended 31 March 2021 management and secretarial services 
   were provided by Aberdeen Standard Fund Managers Limited ("ASFML"). 
   The agreement for the provision of management services has been 
   sub-delegated to Aberdeen Standard Investments (Japan) Limited. 
  The management fee was payable at a rate of 0.75% per annum of 
   the value of the Company's net assets until 31 May 2019. Since 
   1 June 2019, the management fee has been charged on the lesser 
   of the Company's net asset value or market capitalisation, payable 
   monthly in arrears. Market capitalisation is defined as the closing 
   share price quoted on the London Stock Exchange multiplied by 
   the number of shares in issue less the number of any shares held 
   in treasury, as determined on the last business day of the applicable 
   calendar month to which the fee relates. The balance due to ASFML 
   at the year end was GBP185,000 (2020 - GBP96,000). 
 
 
 5.    Administrative expenses 
                                               2021                          2020 
                                    Revenue   Capital     Total   Revenue   Capital     Total 
                                    GBP'000   GBP'000   GBP'000   GBP'000   GBP'000   GBP'000 
  Promotional fees                       51         -        51        51         -        51 
  Directors' fees                        90         -        90        93         -        93 
  Custody fees                           22         -        22        20         -        20 
  Depositary fees                        15         -        15        15         -        15 
  Registrars fees                        45         -        45        30         -        30 
  Printing and postage                   31         -        31        26         -        26 
  Legal and professional 
   fees                                  92         -        92         3         -         3 
  Transaction costs 
   on investment purchases                -        14        14         -        20        20 
       Auditor's remuneration 
        (excluding irrecoverable 
        VAT): 
  - fees payable to 
   the Company's auditor 
   for the audit of 
   the annual accounts                   35         -        35        23         -        23 
  Other                                  42         -        42        73         -        73 
                                     ______    ______    ______    ______    ______    ______ 
                                        423        14       437       334        20       354 
                                     ______    ______    ______    ______    ______    ______ 
 
  The management agreement with ASFML also provides for the provision 
   of promotional activities. The total fees paid and payable under 
   the management agreement in relation to promotional activities 
   were GBP51,000 (2020 - GBP51,000) with a balance of GBP38,000 
   (2020 - GBP13,000) being due to ASFML at the year end. The Company 
   has an agreement with ASFML for the provision of company secretarial 
   services and administration services; no separate fee is charged 
   to the Company in respect of this agreement. 
 
 
 6.    Finance costs 
                                   2021                          2020 
                        Revenue   Capital     Total   Revenue   Capital     Total 
                        GBP'000   GBP'000   GBP'000   GBP'000   GBP'000   GBP'000 
  Bank loans                 44        65       109        44        67       111 
                         ______    ______    ______    ______    ______    ______ 
 
 
 7.    Taxation 
                                                    2021                          2020 
                                         Revenue   Capital     Total   Revenue   Capital     Total 
                                         GBP'000   GBP'000   GBP'000   GBP'000   GBP'000   GBP'000 
       (a)    Analysis of charge 
               for the year 
   Irrecoverable 
    overseas taxation                        181         -       181       198         -       198 
                                          ______    ______    ______    ______    ______    ______ 
   Total tax charge                          181         -       181       198         -       198 
 
 
       (b)    Factors affecting current tax charge for the year. The tax 
               assessed for the year is lower (2020 - lower) than the standard 
               rate of corporation tax in the UK. The differences can be explained 
               below: 
 
                                                                2021                          2020 
                                         Revenue   Capital     Total   Revenue   Capital     Total 
                                         GBP'000   GBP'000   GBP'000   GBP'000   GBP'000   GBP'000 
   Net return before 
    taxation                               1,073    26,747    27,820     1,349     1,560     2,909 
                                          ______    ______    ______    ______    ______    ______ 
   Net return multiplied 
    by standard rate 
    of corporation 
    tax in the UK 
    of 19% (2020 
    - 19%)                                   204     5,082     5,286       256       296       552 
              Effects of: 
   Gains on investments 
    not taxable                                -   (4,889)   (4,889)         -     (546)     (546) 
   Currency (gains)/losses 
    not taxable                                -     (284)     (284)         -       160       160 
   Irrecoverable 
    overseas withholding 
    tax                                      181         -       181       198         -       198 
   Excess management 
    expenses                                 141        91       232       118        86       204 
   Expenses not 
    deductible for 
    tax purposes                               -         -         -         2         4         6 
   Non-taxable overseas 
    dividends                              (345)         -     (345)     (376)         -     (376) 
                                          ______    ______    ______    ______    ______    ______ 
   Total tax charge 
    for the year                             181         -       181       198         -       198 
                                          ______    ______    ______    ______    ______    ______ 
 
  (c)    Provision for deferred taxation. At 31 March 2021 the Company 
          had surplus management expenses and loan relationship debits 
          with a tax value of GBP2,734,000 (2020 - GBP2,502,000) based 
          on enacted tax rates, in respect of which a deferred tax asset 
          has not been recognised. No deferred tax asset has been recognised 
          because the Company is not expected to generate taxable income 
          in the future in excess of the deductible expenses of those 
          future periods. Therefore, it is unlikely that the Company 
          will generate future taxable revenue that would enable the 
          existing tax losses to be utilised. 
 
 
 
 8.    Dividends 
                                                                     2021       2020 
                                                                  GBP'000    GBP'000 
       Amounts recognised as distributions to equity 
        holders in the year: 
  Prior year final dividend (2020 - 9.00p; 2019 
   - 5.40p)                                                         1,233        782 
  Current year interim dividend (2020 - 6.00p; 
   2019 - 6.00p)                                                      810        847 
                                                                   ______     ______ 
                                                                    2,043      1,629 
                                                                   ______     ______ 
 
       In order to comply with the requirements of Sections 1158-1159 
        of the Corporation Tax Act 2010 the Company is required to make 
        a dividend distribution. 
       The proposed final dividend is subject to approval by shareholders 
        at the Annual General Meeting and has not been included as a liability. 
        It is proposed that the final dividend will be paid on 23 July 
        2021 to shareholders on the register at the close of business 
        on 25 June 2021. 
       The table below sets out the total dividends proposed in respect 
        of the financial year, which is the basis on which the requirements 
        of Sections 1158 -1159 are considered. The revenue available for 
        distribution by way of dividend for the year is GBP892,000 (2020 
        - GBP1,151,000). It is anticipated that the total dividend for 
        the year of 15.00p (2020 - 15.00p) will be funded 9.50p (2020 
        - 11.00p) from the revenue reserve and 5.50p (2020 - 4.00p) from 
        the capital reserve. 
 
                                                                     2021       2020 
                                                                  GBP'000    GBP'000 
  Current year proposed final dividend (2021 - 
   9.00p; 2020 - 9.00p)                                             1,185      1,233 
  Current year interim dividend (2021 - 6.00p; 
   2020 - 6.00p)                                                      810        847 
                                                                   ______     ______ 
                                                                    1,995      2,080 
                                                                   ______     ______ 
 
  The cost of the proposed final dividend for 2021 is based on 13,165,227 
   Ordinary shares in issue, being the number of Ordinary shares 
   in issue excluding treasury shares at the date of this report. 
 
 
 9.    Return per Ordinary share 
                                                2021         2021     2020         2020 
                                                   p      GBP'000        p      GBP'000 
       Returns per share are based 
        on the following figures: 
  Revenue return                                6.57          892     8.08        1,151 
  Capital return                              196.92       26,747    10.95        1,560 
                                              ______       ______   ______       ______ 
  Total return                                203.49       27,639    19.03        2,711 
                                              ______       ______   ______       ______ 
  Weighted average number of Ordinary 
   shares in issue                                     13,582,690            14,240,115 
                                                           ______                ______ 
 
 
 10.    Investments held at fair value through profit 
         or loss 
                                                                       2021        2020 
                                                                    GBP'000     GBP'000 
  Opening book cost                                                  84,216      80,360 
  Opening investment holding gains                                   12,031      17,349 
                                                                     ______      ______ 
  Opening fair value                                                 96,247      97,709 
 
        Analysis of transactions made during the year 
  Purchases at cost (excluding transaction costs)                    59,374      47,718 
  Sales - proceeds (net of transaction costs)                      (63,657)    (52,052) 
  Gains on investments                                               25,747       2,872 
                                                                     ______      ______ 
  Closing fair value                                                117,711      96,247 
                                                                     ______      ______ 
 
                                                                       2021        2020 
                                                                    GBP'000     GBP'000 
  Closing book cost                                                  97,537      84,216 
  Closing investment holding gains                                   20,174      12,031 
                                                                     ______      ______ 
  Closing fair value                                                117,711      96,247 
                                                                     ______      ______ 
 
        The Company received GBP63,657,000 (2020 - GBP52,052,000) from 
         investments sold in the period. The book cost of these investments 
         when they were purchased was GBP46,053,000 (2020 - GBP43,863,000). 
         These investments have been revalued over time and until they 
         were sold any unrealised gains/losses were included in the fair 
         value of the investments. 
        As at 31 March 2021, all investments held are in quoted stocks 
         (2020 - same). 
        Transaction costs. During the year expenses were incurred in 
         acquiring or disposing of investments designated as fair value 
         through profit or loss. Expenses incurred in acquiring investments 
         have been expensed through capital and are included within administration 
         expenses in the Statement of Comprehensive Income, whilst expenses 
         incurred in disposing of investments have been expensed through 
         capital and are included within gains on investments in the Statement 
         of Comprehensive Income. The total costs were as follows: 
 
                                                                       2021        2020 
                                                                    GBP'000     GBP'000 
  Purchases                                                              14          20 
  Sales                                                                  15          15 
                                                                         29          35 
                                                                     ______      ______ 
 
  The above transaction costs are calculated in line with the AIC 
   SORP. The transaction costs in the Company's Key Information Document 
   are calculated on a different basis and in line with the PRIIPs 
   regulations. 
 
 
 11.    Debtors: amounts falling due within one year 
                                                           2021      2020 
                                                        GBP'000   GBP'000 
  Amounts due from brokers                                  129       227 
  Prepayments and accrued income                            787       755 
                                                         ______    ______ 
                                                            916       982 
                                                         ______    ______ 
 
  All financial assets are included at amortised cost. 
 
 
 12.    Creditors 
                                                                         2021       2020 
                                                                      GBP'000    GBP'000 
        (a)    Foreign currency bank loans 
   Falling due within one year                                         11,147     12,698 
                                                                       ______     ______ 
 
               The Company entered into a one year fixed term loan facility 
                with ING Bank on 22 January 2021. At the year end, JPY1,300,000,000 
                (2020 - JPY1,300,000,000) equivalent to GBP8,523,000 (2020 
                - GBP9,711,000) had been drawn down at an all-in interest rate 
                of 0.900% (2020 - 0.715%) which is due to mature on 21 January 
                2022. 
               In addition, on 22 January 2021, the Company entered into a 
                one year JPY1,000,000,000 revolving credit facility with ING 
                Bank which has a final maturity on 21 January 2022. At the 
                year end JPY400,000,000 (2020 - JPY400,000,000), equivalent 
                to GBP2,624,000 (2020 - GBP2,987,000), had been drawn down 
                at an all-in interest rate of 0.95% (2020 - 0.70%). At the 
                date of this Report the Company had drawn down JPY400,000,000 
                at an all-in interest rate of 0.95%. 
               The terms of both loan facilities with ING Bank contain a covenant 
                that total borrowings should not exceed 35% of the adjusted 
                net asset value of the Company at any time and that the net 
                asset value should not fall below GBP40,000,000 at any time. 
                The Company has met these covenants throughout the period. 
 
                                                                         2021       2020 
        (b)    Other creditors falling due within one year            GBP'000    GBP'000 
   Amounts due to brokers                                                 214        121 
   Sundry creditors                                                       356        204 
                                                                       ______     ______ 
                                                                          570        325 
                                                                       ______     ______ 
 
 
 13.    Called-up share capital 
                                                  2021                      2020 
                                             Number      GBP'000       Number      GBP'000 
        Allotted, called-up and fully 
         paid 
  Ordinary shares of 10p each            13,302,459        1,330   13,807,780        1,381 
  Held in treasury                        2,519,113          252    2,013,792          201 
                                             ______       ______       ______       ______ 
                                         15,821,572        1,582   15,821,572        1,582 
                                             ______       ______       ______       ______ 
 
                                                        Ordinary     Treasury 
                                                          shares       shares        Total 
                                                          Number       Number       Number 
  Opening balance                                     13,807,780    2,013,792   15,821,572 
  Ordinary shares bought back 
   for holding in treasury                             (505,321)      505,321            - 
                                                        ________     ________     ________ 
  Closing balance                                     13,302,459    2,519,113   15,821,572 
                                                        ________     ________     ________ 
 
  During the year 505,321 Ordinary shares (2020 - 672,659) were 
   bought back and held in treasury at a cost of GBP3,364,000 (2020 
   - GBP3,901,000). Subsequent to the year end a further 137,232 
   Ordinary shares were bought back for holding in treasury at a 
   cost of GBP991,000. 
 
 
 14.    Capital reserve 
                                                                 2021      2020 
                                                              GBP'000   GBP'000 
  At 1 April 2020                                              72,334    74,675 
  Gains/(losses) over cost arising on movement 
   in investment holdings                                       8,143   (5,318) 
  Gains on realisation of investments at fair 
   value                                                       17,604     8,190 
  Currency gains/(losses)                                       1,491     (844) 
  Administrative expenses charged to capital                     (14)      (20) 
  Management fee charged to capital                             (412)     (381) 
  Buyback of Ordinary shares for holding in treasury          (3,364)   (3,901) 
  Finance costs charged to capital                               (65)      (67) 
        Final dividend 2020 - 4.00p paid from capital           (548)         - 
                                                               ______    ______ 
  At 31 March 2021                                             95,169    72,334 
                                                               ______    ______ 
 
        The capital reserve includes investment holding gains amounting 
         to GBP20,174,000 (2020 - gains of GBP12,031,000) as disclosed 
         in note 10. 
        Net currency gains arising during the year of GBP1,491,000 (2020 
         - losses of GBP844,000) are analysed further in the table below. 
 
                                                                 2021      2020 
                                                              GBP'000   GBP'000 
  Gains/(losses)on revaluation of bank loan                     1,549     (913) 
  (Losses)/gains on cash deposits                                (58)        69 
                                                               ______    ______ 
                                                                1,491     (844) 
                                                               ______    ______ 
 
 
 15.    Net asset value per share. The net asset value per share and 
         the net asset values attributable to Ordinary shareholders at 
         the year end calculated in accordance with the Articles of Association 
         were as follows: 
 
                                           Net asset value            Net asset values 
                                               per share                 attributable 
                                              2021         2020       2021             2020 
                                                 p            p    GBP'000          GBP'000 
  Ordinary shares                           807.66       617.09    107,438           85,206 
                                            ______       ______     ______           ______ 
 
        The movements during the year of the assets attributable to the 
         Ordinary shares were as follows: 
 
                                                                      2021             2020 
                                                                   GBP'000          GBP'000 
  Net assets attributable at 1 April 2020                           85,206           88,025 
  Capital return for the year                                       26,747            1,560 
  Revenue after taxation                                               892            1,151 
  Dividend paid from revenue                                       (1,495)          (1,629) 
        Dividend paid from capital                                   (548)                - 
  Purchase of Ordinary shares to be held in treasury               (3,364)          (3,901) 
 
  Net assets attributable at 31 March 2021                         107,438           85,206 
                                                                    ______           ______ 
 
  The net asset value per Ordinary share is based on net assets, 
   and on 13,302,459 (2020 - 13,807,780) Ordinary shares, being the 
   number of Ordinary shares in issue, after deducting 2,519,113 
   (2020 - 2,013,792) shares held in treasury, at the year end. 
 
 
 16.    Financial instruments 
        Risk management. The Company's investment activities expose it 
         to various types of financial risk associated with the financial 
         instruments and markets in which it invests. The Company's financial 
         instruments comprise securities and other investments, cash balances, 
         loans, debtors and creditors that arise directly from its operations; 
         for example, in respect of sales and purchases awaiting settlement, 
         and debtors for accrued income. 
        Certain risk management functions have been delegated to Aberdeen 
         Standard Fund Managers Limited ("ASFML" or "Manager") under the 
         terms of the management agreement (further details of which are 
         included under notes 4 and 5). The Board regularly reviews and 
         agrees policies for managing each type of risk, as summarised 
         below. This approach has been applied throughout the year within 
         the Manager's risk management framework which is described below 
         and has not changed since the previous accounting period. 
        Risk management framework . The directors of Aberdeen Standard 
         Fund Managers Limited collectively assume responsibility for ASFML's 
         obligations under the AIFMD including reviewing investment performance 
         and monitoring the Company's risk profile during the year. 
        ASFML is a fully integrated member of the Standard Life Aberdeen 
         Group ("the Group"), which provides a variety of services and 
         support to ASFML in the conduct of its business activities, including 
         in the oversight of the risk management framework for the Company. 
         The AIFM has delegated the day to day administration of the investment 
         policy to Aberdeen Standard Investments (Japan) Limited, which 
         is responsible for ensuring that the Company is managed within 
         the terms of its investment guidelines and the limits set out 
         in its pre-investment disclosures to investors (details of which 
         can be found on the Company's website). The AIFM has retained 
         responsibility for monitoring and oversight of investment performance, 
         product risk and regulatory and operational risk for the Company. 
        The Manager conducts its risk oversight function through the operation 
         of the Group's risk management processes and systems which are 
         embedded within the Group's operations. The Group's Risk Division 
         supports management in the identification and mitigation of risks 
         and provides independent monitoring of the business. The Division 
         includes Compliance, Business Risk, Market Risk and Risk Management. 
         The team is headed up by the Group's Head of Risk, who reports 
         to the CEO of the Group. The Risk Division achieves its objective 
         through embedding the Risk Management Framework throughout the 
         organisation using the Group's operational risk management system 
         ("SHIELD"). 
        The Group's Internal Audit Department is independent of the Risk 
         Division and reports directly to the Audit Committee of the Group's 
         Board of Directors and to the Group's CEO. The Internal Audit 
         Department is responsible for providing an independent assessment 
         of the Group's control environment. 
        The Group's corporate governance structure is supported by several 
         committees to assist the Board of Directors of the Group, its 
         subsidiaries and the Company to fulfil their roles and responsibilities. 
         The Group's Risk Division is represented on all committees, with 
         the exception of those committees that deal with investment recommendations. 
         The specific goals and guidelines on the functioning of those 
         committees are described on the committees' terms of reference. 
        Risk management. The main risks the Company faces from its financial 
         instruments are (i) market risk (comprising interest rate risk, 
         price risk and currency risk), (ii) liquidity risk and (iii) credit 
         risk. 
        Market risk. The fair value or future cash of a financial instrument 
         held by the Company may fluctuate because of changes in market 
         prices. This market price risk comprises three elements - interest 
         rate risk, price risk and currency risk. 
        Interest rate risk . Interest rate movements may affect: 
        - the level of income receivable on cash deposits; and 
        - interest payable on the Company's variable rate borrowings. 
        Management of the risk . The possible effects on fair value and 
         cash flows that could arise as a result of changes in interest 
         rates are taken into account when making investment and borrowing 
         decisions. 
        Interest rate sensitivity . Movements in interest rates would 
         not significantly affect net assets attributable to the Company's 
         shareholders and total profit due to there being no investments 
         in fixed interest securities during the year and a relatively 
         low level of bank borrowings. 
        Price risk . Price risks (ie changes in market prices other than 
         those arising from interest rate or currency risk) may affect 
         the value of quoted investments. 
        Management of the risk . It is the Board's investment policy 
         for the Company's assets to be invested in a selected portfolio 
         of securities in quoted companies as explained above. The Manager 
         has a dedicated investment management process, which ensures that 
         the risk inherent in this investment policy is controlled. Underlying 
         the process is the belief that risk is not that individual stock 
         prices fluctuate in the short term, or that movement in the value 
         of the portfolio deviates from the benchmark but that risk is 
         investment in poorly managed expensive companies which the Manager 
         does not understand. In-depth research and stock selection procedures 
         are in place based on this risk control philosophy. The portfolio 
         is reviewed on a periodic basis by the Manager's Investment Committee 
         and by the Board. 
        Price sensitivity . If market prices at the Statement of Financial 
         Position date had been 10% higher or lower while all other variables 
         remained constant, the return attributable to Ordinary shareholders 
         for the year ended 31 March 2021 would have increased/(decreased) 
         by GBP11,771,000 (2020 increased/(decreased) by GBP9,625,000) 
         and equity reserves would have increased/(decreased) by the same 
         amount. 
        Foreign currency risk . The Company primarily invests in the 
         shares of companies which are listed in Japan but can include 
         companies listed on other stock markets which earn significant 
         revenue from trading in Japan or hold net assets predominantly 
         in Japan. The Statement of Financial Position, therefore, can 
         be significantly affected by movements in foreign exchange rates. 
        Management of the risk . The Company may, from time to time, 
         match specific overseas investment with foreign currency borrowings. 
         The Company's borrowings, as detailed in note 12, are also in 
         foreign currency. 
        The revenue account is subject to currency fluctuation arising 
         on dividends paid in foreign currencies. The Company does not 
         hedge this currency risk. 
        Foreign currency risk exposure by currency of denomination: 
 
                                        31 March 2021                               31 March 2020 
                                                     Net      Total                          Net           Total 
                                 Overseas       monetary   currency      Overseas       monetary        currency 
                              investments         assets   exposure   investments         assets        exposure 
                                  GBP'000        GBP'000    GBP'000       GBP'000        GBP'000         GBP'000 
 
  Japanese Yen                    117,711       (10,051)    107,660        96,247       (10,996)          85,251 
                                   ______         ______     ______        ______         ______          ______ 
 
        Foreign currency sensitivity . The following table details the 
         positive impact to a 10% decrease in Sterling against the foreign 
         currency in which the Company has exposure (based on exposure 
         >5% of total exposure including foreign exchange contracts). The 
         sensitivity analysis includes foreign currency denominated monetary 
         items and adjusts their translation at the year end for a 10% 
         change in foreign currency rates. In the event of a 10% increase 
         in Sterling then there would be a negative impact on the Company's 
         returns. 
 
                                                               2021          2021           2020            2020 
                                                            Revenue     Equity{A}        Revenue       Equity{A} 
                                                            GBP'000       GBP'000        GBP'000         GBP'000 
  Japanese Yen                                                  182        10,766            198           8,525 
                                                             ______        ______         ______          ______ 
 
  {A} Represents equity exposure to relevant currencies. 
 
  Liquidity risk. This is the risk that the Company will encounter 
   difficulty in meeting obligations associated with financial liabilities. 
  Management of the risk. Liquidity risk is not considered to be 
   significant as the Company's assets mainly comprise readily realisable 
   securities which can be sold to meet funding requirements if necessary 
   and flexibility is achieved through the use of loan facilities, 
   details of which may be found in note 12. 
  Liquidity risk exposure. At 31 March 2021, the Company had a 
   short term bank loan of GBP8,523,000 (2020 - GBP9,711,000) which 
   is due to mature on 21 January 2022 with interest due on the principal 
   every six months. The Company also had a rolling facility of GBP2,624,000 
   (2020 - GBP2,987,000) which matures on 21 January 2022 with interest 
   payable at each set maturity date. 
  Credit risk. This is the risk of failure of the counterparty 
   to a transaction to discharge its obligations under that transaction 
   that could result in the Company suffering a loss. 
  Management of the risk . Investment transactions are carried 
   out with a large number of brokers of good quality credit standing, 
   and cash is held only with reputable banks with high quality external 
   credit enhancements. 
  In addition, both stock and cash reconciliations to the Depositary's 
   records are performed on a daily basis to ensure discrepancies 
   are investigated on a timely basis. 
  None of the Company's financial assets are secured by collateral 
   or other credit enhancements and none are past due or impaired. 
  Credit risk exposure. The amount of cash at bank and in hand 
   of GBP528,000 (2020 - GBP1,000,000) and debtors of GBP916,000 
   (2020 - GBP982,000) in the Statement of Financial Position represent 
   the maximum exposure to credit risk at 31 March. 
  Fair values of financial assets and financial liabilities. The 
   fair value of borrowings has been calculated at GBP11,147,000 
   as at 31 March 2021 (2020 - GBP12,698,000) compared to an accounts 
   value in the financial statements of GBP11,147,000 (2020 - GBP12,698,000) 
   (note 12), due to the short-term maturity. The fair value of each 
   loan is determined by aggregating the expected future cash flows 
   for that loan discounted at a rate comprising the borrower's margin 
   plus an average of market rates applicable to loans of a similar 
   period of time and currency. The carrying value of all other assets 
   and liabilities is an approximation of fair value. 
 
 
 
 17.    Analysis of changes in net debt 
                                  At       Currency                 Non-cash          At 
                            31 March    differences   Cash flows   movements    31 March 
                                2020                                                2021 
                             GBP'000        GBP'000      GBP'000     GBP'000     GBP'000 
  Cash and cash 
   equivalents                 1,000           (58)        (414)           -         528 
  Debt due within 
   one year                 (12,698)          1,549            -           2    (11,147) 
                              ______         ______       ______      ______      ______ 
                            (11,698)          1,491        (414)           2    (10,619) 
                              ______         ______       ______      ______      ______ 
 
                                  At       Currency                 Non-cash          At 
                            31 March    differences   Cash flows   movements    31 March 
                                2019                                                2020 
                             GBP'000        GBP'000      GBP'000     GBP'000     GBP'000 
  Cash and cash 
   equivalents                 1,516             69        (585)           -       1,000 
  Debt due within 
   one year                 (11,785)          (913)            -           -    (12,698) 
                              ______         ______       ______      ______      ______ 
                            (10,269)          (844)        (585)           -    (11,698) 
                              ______         ______       ______      ______      ______ 
 
  A statement reconciling the movement in net funds to the net cash 
   flow has not been presented as there are no differences from the 
   above analysis. 
 
 
 18.   Capital management policies and procedures. The Company's capital 
        management objectives are: 
 
         *    to ensure that the Company will be able to continue 
              as a going concern; and 
 
         *    to maximise the income and capital return to its 
              equity shareholders through an appropriate balance of 
              equity capital and debt. The Company's investment 
              policy states that the maximum gearing level is 25% 
              of net assets, however gearing will normally be set 
              at a stable and lower level than the maximum. The 
              Board has currently established a gearing level of 
              around 10% of net assets although, with stock market 
              fluctuations, this may range between 5% and 15%. 
       The Board monitors and reviews the broad structure of the Company's 
        capital on an ongoing basis. This review includes the nature and 
        planned level of gearing, which takes account of the Manager's 
        views on the market and the extent to which revenue in excess 
        of that which is required to be distributed should be retained. 
       The Company's objectives, policies and processes for managing 
        capital are unchanged from the preceding accounting period and 
        year end positions are presented in the Statement of Financial 
        Position. 
 
 
 19.   Fair value hierarchy. FRS 102 requires an entity to classify 
        fair value measurements using a fair value hierarchy that reflects 
        the significance of the inputs used in making the measurements. 
        The fair value hierarchy has the following classifications: 
       Level 1 - unadjusted quoted prices in an active market for identical 
        assets or liabilities that the entity can access at the measurement 
        date. 
       Level 2 - inputs other than quoted prices included within Level 
        1 that are observable (ie developed using market data) for the 
        asset or liability, either directly or indirectly. 
       Level 3 - inputs are unobservable (ie for which market data is 
        unavailable) for the asset or liability. 
       All of the Company's investments are in quoted equities actively 
        traded on a recognised stock exchange, with their fair value being 
        determined by reference to their quoted bid prices at the reporting 
        date (2020 - same). The total value of the investments (2021 - 
        GBP117,711,000; 2020 - GBP96,247,000) have therefore been deemed 
        as Level 1. 
 
 
 20.   Related party transactions and transactions with the Manager 
       Directors' fees and interests. Fees payable during the year to 
        the Directors and their interest in shares of the Company are 
        disclosed within the Directors' Remuneration Report on pages 48 
        and 49 of the published 2021 Annual Report. 
       Transactions with the Manager. The Company has agreements with 
        ASFML to provide management, accounting, administrative and secretarial 
        duties. Details of the transactions and balances outstanding at 
        the year end are disclosed in notes 4 and 5. 
 

Additional notes to Annual Financial Report:

The final dividend, subject to shareholder approval, will be paid on 23 July 2021 to shareholders on the register at the close of business on 25 June 2021. The ex-dividend date is 24 June 2021.

The financial information set out above does not constitute the Company's statutory accounts for the years ended 31 March 2021 or 2020 but is derived from those accounts. Statutory accounts for 2020 have been delivered to the registrar of companies, and those for 2021 will be delivered in due course. The auditor has reported on those accounts; their reports were (i) unqualified, (ii) did not include a reference to any matters to which the auditor drew attention by way of emphasis without qualifying their report and (iii) did not contain a statement under section 498 (2) or (3) of the Companies Act 2006

The statutory accounts for the financial year ended 31 March 2021 have been approved by the Board and audited but will not be filed with the Registrar of Companies until after the Company's Annual General Meeting which will be held at 9.00am on 20 July 2021 at Bow Bells House, One Bread Street, London EC4M 9HH.

The Annual Report will be posted to shareholders in June 2021 and copies will be available from the Manager or from the Company's website ( www.aberdeen-japan.co.uk * ).

 
 ALTERNATIVE PERFORMANCE MEASURES 
 Alternative performance measures are numerical measures of the 
  Company's current, historical or future performance, financial 
  position or cash flows, other than financial measures defined or 
  specified in the applicable financial framework. The Company's 
  applicable financial framework includes FRS 102 and the AIC SORP. 
  The Directors assess the Company's performance against a range 
  of criteria which are viewed as particularly relevant for closed-end 
  investment companies. 
 Total return. Total return is considered to be an alternative 
  performance measure. NAV and share price total returns show how 
  the NAV and share price has performed over a period of time in 
  percentage terms, taking into account both capital returns and 
  dividends paid to shareholders. NAV total return involves investing 
  the net dividend in the NAV of the Company with debt at fair value 
  on the date on which that dividend goes ex-dividend. Share price 
  total return involves reinvesting the net dividend in the share 
  price of the Company on the date on which that dividend goes ex-dividend. 
 The tables below provide information relating to the NAVs and share 
  prices of the Company on the dividend reinvestment dates during 
  the years ended 31 March 2021 and 31 March 2020. 
 
                                                    Dividend                 Share 
 2021                                                   rate        NAV      price 
 31 March 2020                                           N/A    617.09p    550.00p 
 2 July 2020                                           9.00p    718.97p    642.50p 
 3 December 2020                                       6.00p    826.50p    735.00p 
 31 March 2021                                           N/A    807.66p    727.50p 
 Total return                                                    +33.5%     +35.2% 
 
                                                    Dividend                 Share 
 2020                                                   rate        NAV      price 
 31 March 2019                                           N/A    607.89p    525.00p 
 13 June 2019                                          5.40p    623.10p    552.50p 
 28 November 2019                                      6.00p    702.31p    632.50p 
 31 March 2020                                           N/A    617.09p    550.00p 
 Total return                                                     +3.3%      +6.8% 
 
 Discount to net asset value per Ordinary share. The discount is 
  the amount by which the share price of 727.50p (2020 - 550.00p) 
  is lower than the net asset value per share of 807.66p (2020 - 
  617.09p), expressed as a percentage of the net asset value. 
 Net gearing. Net gearing measures the total borrowings of GBP11,147,000 
  (31 March 2020 - GBP12,698,000) less cash and cash equivalents 
  of GBP443,000 (31 March 2020 - GBP1,106,000) divided by shareholders' 
  funds of GBP107,438,000 (31 March 2020 - GBP85,206,000), expressed 
  as a percentage. Under AIC reporting guidance cash and cash equivalents 
  includes net amounts due to brokers at the year end of GBP85,000 
  (2020 - net amount due from broker GBP106,000) as well as cash 
  at bank and in hand of GBP528,000 (2020 - GBP1,000,000). 
 Ongoing charges . Ongoing charges is considered to be an alternative 
  performance measure. The ongoing charges ratio has been calculated 
  in accordance with guidance issued by the AIC as the total of investment 
  management fees and administrative expenses and expressed as a 
  percentage of the average net asset values with debt at fair value 
  throughout the year. 
 
 
                                                                   2021       2020 
 Investment management fees (GBP'000)                               687        635 
 Administrative expenses (GBP'000)                                  437        354 
 Less: non recurring charges{A} (GBP'000)                          (27)          - 
 Less: transaction costs on investment purchases 
  (GBP'000)                                                        (14)       (20) 
                                                                 ______     ______ 
 Ongoing charges (GBP'000)                                        1,083        969 
                                                                 ______     ______ 
 Average net assets (GBP'000)                                   103,977     93,581 
                                                                 ______     ______ 
 Ongoing charges ratio                                            1.04%      1.04% 
                                                                 ______     ______ 
 
 {A} Comprises legal and professional fees which are not expected 
  to recur. 
 
 At 31 March 2021 the Company's OCR was 1.04% as above compared 
  to the Peer Group weighted average OCR of 0.8% (average net assets 
  at 31 March 2021 - GBP489 million) (Source AIC).The ongoing charges 
  ratio provided in the Company's Key Information Document is calculated 
  in line with the PRIIPs regulations which includes amongst other 
  things, the cost of borrowings and transaction costs. 
 

Please note that past performance is not necessarily a guide to the future and that the value of investments and the income from them may fall as well as rise and may be affected by exchange rate movements. Investors may not get back the amount they originally invested.

*Neither the Company's website nor the content of any website accessible from hyperlinks on that website (or any other website) is (or is deemed to be) incorporated into, or forms (or is deemed to form) part of this announcement.

For Aberdeen Japan Investment Trust PLC

Aberdeen Asset Management PLC, Secretary

END

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