The results have also revealed that since the change in investment objective to focus purely in Japan (8 October 2013), the trust has seen a Share Price Total Return of +90.6% and Net Asset Value Total Return of +91.1% outperforming the Topix Index Total Return of +84.4%.

A final dividend of 5.4p per ordinary share in respect of the year ended 31 March 2019 (2018 – 5.2p) was paid to shareholders on 12 July 2019. This was the level required to maintain investment company status, consistent with the Company’s dividend policy.

A new enhanced dividend policy was endorsed by shareholders at the AGM in July this year. In line with this policy, the board has declared for the first time an interim dividend of 6.0p which will be paid to shareholders on 20 December 2019. The record date is 29 November 2019. Dividend distributions will now be made on a semi-annual basis.

The board recognises the importance of income to our shareholders and believes that a regular, sustainable dividend will help the company to broaden the shareholder base and help to maintain the discount at reasonable levels.

The enhanced dividend to be paid to shareholders will consist of the company’s earnings for the year, plus 3.0p from revenue reserves, plus an amount from capital reserves. As a guide, by using the company’s financial results for the year to 31 March 2019, a minimum distribution of 15.0p for the year ending 31 March 2020 is anticipated.

Karen Brade, chair of Aberdeen Japan Investment Trust, said: “The Japanese stock market will continue to face the same litany of risks that it has done over the past half year. At the forefront is the protracted trade negotiations between the world’s two largest economies and the unpredictability of the messages on these and other issues emerging from the US President.

“Also affecting share prices are the geopolitical uncertainties that compel investors to flood into the yen as a safe haven each time volatility spikes. Japan/China relations have however improved (although Japan/Korea relations have deteriorated) and prospects for a resolution of US/Japan trade tensions (and perhaps also those between US and China), and the possibility that the forthcoming UK general election may bring some clarity on the way forward on Brexit, may help to calm market uncertainty.

“The slowdown in China in 2019, however, has had a consequential impact on the Japanese manufacturing and service sectors.

“The fundamentals of the underlying stocks within your company’s portfolio remain robust. Many of these are market leaders in their own fields and will continue to do well regardless of the external pressures they may face.

“Even though stock prices have risen, valuations remain attractive, given the prospects for these companies. The board has confidence that your manager will continue to be a good steward of the company’s assets and the optimistic stance adopted should stand the company in good stead as we seek further solid growth.”

Kwok Chern-Yeh, manager of Aberdeen Japan Investment Trust, added: “While the macroeconomic outlook remains highly uncertain, with indicators suggesting broad weakness in the global economy, there is optimism that geopolitical concerns are abating: the US-China trade dispute appears to be nearing an initial agreement, and central banks stand ready to support a decelerating global economy.

“Nevertheless, the sentiment for Japanese equities remains muted in the near term. Stocks boosted by the recent consumption tax hike may correct in the coming quarter; while order book forecasts of industrial firms point to a bottom. But the market appears to be looking past these issues and has remained relatively resilient thus far.”