CHIKARA # CC Japan Income & Growth Trust plc Annual Report and Accounts for the year ended 31 October 2025 ![img-0.jpeg](img-0.jpeg) --- # CC Japan Income & Growth Trust plc ## Investment Objective The investment objective of the CC Japan Income & Growth Trust plc (the “Company” or “CCJI”) is to provide shareholders with dividend income combined with capital growth, mainly through investment in equities listed or quoted in Japan. ## Contents ### Strategic report - Investment objective: IFC - Financial information and performance summary: 1 - Highlights: 2 - Chairman's Statement: 4 - Portfolio Manager's Report: 6 - Top Ten Holdings: 8 - Holdings In Portfolio: 10 - Top Ten Sectors/Business Areas: 11 - Top Ten Contracts for Difference: 12 - Approach To Environmental, Social and Governance (“ESG”): 13 - Business Review: 16 - Risk and Risk Management: 19 - Stakeholder Engagement: 22 ### Governance - Board of Directors: 25 - Directors' Report: 26 - Corporate Governance: 30 - Directors' Remuneration Implementation Report: 35 - Report of the Audit and Risk Committee: 39 - Statement of Directors' Responsibilities: 41 - Independent Auditor's Report: 42 ### Financial statements - Income Statement: 49 - Statement of Financial Position: 50 - Statement of Changes in Equity: 51 - Statement of Cash Flows: 52 - Notes to the Accounts: 53 ### Other information - Glossary and Alternative Performance Measures: 70 - The Securities Financing Transactions Regulation (Unaudited): 74 - Company Information: 76 - Notice of Annual General Meeting: 77 - Notes to the Notice of Annual General Meeting: 79 - Form of Proxy: 83 --- Overview # Financial Information As at 31 October 2025 £324.0m Net assets (2024: £265.8m) 240.5p Net asset value ("NAV") per share (2024: 197.3p) 222.0p Share price (2024: 178.8p) 7.7% Share price discount to NAV² (2024: 9.4%) 1.06% Ongoing charges² (2024: 1.03%) 19.3% Gearing (net)² (2024: 19.2%) Performance summary | | For the year to 31 Oct 2025 % change | For the year to 31 Oct 2024 % change | | --- | --- | --- | | NAV cum-income total return per share^{1,2,3} | 25.2% | 16.1% | | Share price total return^{1,2,3} | 27.9% | 13.2% | | Tokyo Stock Exchange Price Index ("TOPIX") total return | 24.1% | 13.4% | | Revenue return per share | 5.02p | 5.32p | | Dividends per share: | | | | First interim dividend | 1.65p | 1.60p | | Second interim dividend | 4.25p | 3.85p | | Total dividends per share for the year | 5.90p | 5.45p | 1. Measured on a cum-income basis. 2. This is an Alternative Performance Measure ("APM"). Definitions of APMs used in this report, together with how these measures have been calculated, are disclosed on pages 70 to 73 of this report. 3. Total returns are stated in sterling, including dividends reinvested. Source: Frostrow Capital LLP. CC Japan Income & Growth Trust plc Annual Report and Accounts 2025 --- # Highlights ![img-1.jpeg](img-1.jpeg) CCJI NAV and share price total return since inception CCJI annual performance summary | Year to October unless otherwise stated | Launch to 2016¹ | 2017 | 2018 | 2019 | 2020 | 2021 | 2022 | 2023 | 2024 | 2025 | | --- | --- | --- | --- | --- | --- | --- | --- | --- | --- | --- | | Share price (p) | 122.40 | 152.00 | 153.00 | 150.00 | 119.50 | 154.00 | 138.75 | 162.50 | 178.75 | 222.00 | | Share price total return (%) | 23.5 | 27.2 | 2.8 | 0.7 | (17.3) | 32.7 | (7.1) | 20.9 | 13.2 | 27.9 | | NAV per share (p) | 123.90 | 146.00 | 148.60 | 158.90 | 136.80 | 165.40 | 151.09 | 174.50 | 197.31 | 240.52 | | NAV total return per share (%) | 24.9 | 20.7 | 4.1 | 9.9 | (11.1) | 24.3 | (5.9) | 18.9 | 16.1 | 25.2 | | TOPIX total return in sterling (%) | 32.7 | 10.1 | (0.4) | 7.2 | 0.3 | 11.9 | (9.5) | 12.0 | 13.4 | 24.1 | | Revenue return per share (p) | 3.60 | 4.06 | 4.55 | 5.26 | 5.04 | 4.75 | 5.14 | 5.37 | 5.32 | 5.92 | | Dividends per share (p) | 3.00 | 3.45 | 3.75 | 4.50 | 4.60 | 4.75 | 4.90 | 5.30 | 5.45 | 5.90* | 1 Period from the Company's launch on 15 December 2015 to 31 October 2016. 2 Includes second interim dividend of 4.25p for the year ended 31 October 2025. CC Japan Income & Growth Trust plc Annual Report and Accounts 2025 --- CC Japan Income & Growth Trust plc Annual Report and Accounts 2025 3 ## Dividend performance since inception ![img-2.jpeg](img-2.jpeg) ## Comparison of NAV total return performance of the Company with TOPIX total return over five years and since inception ![img-3.jpeg](img-3.jpeg) --- Strategic Report # Chairman's Statement "Since its launch on 15 December 2015 to 31 October 2025, the Company has comfortably outperformed the TOPIX and has been the best performer in its AIC peer group, having returned 189.8% and 216.0% on a share price and Net Asset Value ("NAV") per share total return basis respectively, compared with the TOPIX which returned 149.1%." 15 December 2025 marked the Company's tenth anniversary since launch, and the Board was delighted to be joined on this day by the investment management team, founding Directors, shareholders and advisers to acknowledge this milestone at the market closing bell ceremony at the London Stock Exchange. ![img-4.jpeg](img-4.jpeg) This milestone was worthy of celebration. Since its launch on 15 December 2015 to 31 October 2025, the Company has comfortably outperformed the TOPIX and has been the best performer in its AIC peer group, having returned 189.8% and 216.0% on a share price and Net Asset Value ("NAV") per share total return basis respectively, compared with the TOPIX which returned 149.1%. Furthermore, the Company's dividend has risen every year since inception, and will achieve a tenth consecutive increase upon the payment of the Company's second interim dividend for the year ended 31 October 2025 on 2 March 2026 earning the Company a coveted place on the AIC's 'Next Generation Dividend Heroes' list. The Company's performance showcases the resilience of the Investment Manager's quality-led, differentiated approach to investing in Japan. Throughout the ten years, the investment process has remained consistent. The Investment Manager focuses on high quality Japanese companies that prioritise growth and shareholder returns, and trade at reasonable valuations. In addition the portfolio companies are benefitting from ongoing corporate governance reforms. This long-term outperformance has largely stemmed from the Investment Manager's disciplined adherence to process and consistent value added through careful stock selection. We thank shareholders for their continued support, which we witnessed at the Company's Annual General Meeting held in March 2025, where shareholders voted overwhelmingly in favour of the Company's continuation as an investment trust for a further three-year period, with 99.9% of votes cast in favour of the resolution. ## The year under review I am pleased to report that the Company has delivered another year of strong performance in what has been a volatile market environment. The 12 month reporting period included a sharp sell-off following "Liberation Day", and despite the subsequent tariff-related volatility that rattled Japanese markets, performance for the full year was again ahead of the TOPIX, supported by strong stock selection, particularly among financials. For the twelve months to 31 October 2025, the Company's share price total return was 27.9% and the net NAV total return per share was 25.2%. The discount at which the shares trade relative to NAV narrowed during the year, enhancing shareholder returns. The TOPIX, a widely used measure of Japanese equity performance, returned 24.1% in sterling terms and on a total return basis. It is pleasing that against all the challenges, the Company's disciplined investment approach has continued to deliver attractive returns for shareholders. ## Discount The share price discount to NAV ended the year at 7.7% (31 October 2024: 9.4%). The Board did not consider it necessary to undertake share buybacks in the year, but it continues to monitor the discount closely and will act quickly and decisively when it judges intervention to be in shareholders' best interests. ## Income and dividends The Company remains committed to a progressive dividend policy. Net revenue per share for the year was 5.92 pence, compared with 5.32 pence in the prior year. The Board has declared total dividends of 5.90 pence per share, representing an increase of 8.3% over last year. Having paid an initial first interim dividend of 1.65 pence per share on 1 August 2025, a second interim dividend of 4.25 pence per share will be paid on 2 March 2026 to shareholders on the register as at 30 January 2026, with an ex-dividend date of 29 January 2026. We believe the Company remains well positioned to sustain its record of dividend growth, supported not only by a portfolio of cash-generative businesses and strong reserves, but also Japan's broader shift towards improved capital efficiency, governance and shareholder returns. ## Gearing Structural gearing, maintained at approximately 20% of shareholders' funds, remains a core component of the Company's investment strategy. While gearing can increase short-term volatility, the Board continues to believe that a consistent, disciplined use of leverage, whilst amplifying short-term market movements, can enhance long-term capital and income returns for shareholders, removing any additional market timing risk. ## Investment Manager and company advisers As a reminder, our Investment Management team has been led by Richard Aston since the Company's inception. Richard has extensive knowledge of the Japanese market built over the last three decades, which has seen him cultivate strong relationships with company managements and establish a respected reputation among Japanese corporates. Richard is supported by portfolio managers/analysts Megumi Takayama and Theo Wyld. Megumi, who joined Chikara Investments LLP ("Chikara") in December 2018, specialises in CC Japan Income & Growth Trust plc Annual Report and Accounts 2025 --- Japanese small and mid-caps, and brings with her extensive experience in the IPO market. She began her career at Bloomberg in 2006 before moving into Japanese equity sales at SMBC Nikko and later Nomura. We were pleased to welcome Theo to the Company's investment management team in October 2024, and he is already proving to be a great addition. Before joining Chikara, Theo spent more than five years at Ruffer, where he was latterly the co-manager of the Ruffer Japanese Fund. Prior to this, he spent three years as a research analyst at JM Finn, covering UK and global equities. Our operational arrangements have also been bolstered this year following a review completed by the Board in 2024. Frostrow Capital LLP ("Frostrow") was appointed with effect from 1 January 2025 as the Company's Alternative Investment Fund Manager ("AIFM"), Administrator and Company Secretary. Frostrow was also appointed to provide investor relations and marketing services to the Company, alongside the team at Chikara. This new relationship will enhance the quality of financial reporting and improve governance standards by adding an additional layer of independent oversight. It will also strengthen our marketing and investor relations efforts, enhancing shareholder communications and generating further demand for the Company's shares. To this end you will note a higher profile for the Company through various media to include videos, podcasts and in-person meetings, together with ongoing interaction with national and investment industry journalists. We will continue to appraise methods for increasing engagement with shareholders and disseminating information through various communication channels. We were pleased to launch the Company's redesigned website in September. The new site can be found at https://www.ccjapanincomeandgrowthtrust.com, or by scanning the QR code below. ![img-5.jpeg](img-5.jpeg) ## Annual General Meeting ("AGM") The Company's tenth AGM will be held at the offices of Stephenson Harwood LLP, 1 Finsbury Circus, London EC2M 7SH at 12 noon on Friday, 27 February 2026. The Portfolio Managers will give a presentation to shareholders on the Company's recent performance, notable portfolio changes and their thoughts on the outlook for the Japanese equity market. Shareholders will have an opportunity to meet the Directors, the investment management team and other Company advisers. We very much look forward to seeing as many shareholders as possible this year. For those investors who are not able to attend the meeting in person, a video recording of the Portfolio Manager's presentation will be uploaded to the website after the meeting. Shareholders can submit questions in advance by writing to the Company Secretary at cosec@frostrow.com. If shareholders are unable to attend the meeting in person, they are strongly encouraged to vote by proxy and to appoint the "Chair of the Meeting" as their proxy. Details of how to vote, either electronically, by proxy form or through CREST, can be found in the Notes to the Notice of AGM on pages 79 to 81. ## Outlook The Company has outperformed the TOPIX over the past 12 months and remains well placed to benefit from several supportive trends: high-quality growth companies using strong balance sheets to allocate capital more efficiently; the resilience of strong domestic businesses less exposed to global trade frictions; and the undervalued corporate governance-driven winners emerging across the market. Japan's stock market has delivered strong performance over the period since the Company's inception. The Board and Investment Manager believe that the economic and regulatory changes in Japan are likely to benefit good domestic businesses and that Japan will remain a favourable environment for investors. While the yen is unusually weak by any measure, it is worth remembering that foreign investors are still significantly underweight the Japanese market. On behalf of the Board, I would like to thank shareholders for their continued support. June Aitken Chairman 20 January 2026 ![img-6.jpeg](img-6.jpeg) CC Japan Income & Growth Trust plc Annual Report and Accounts 2025 --- Strategic Report # Portfolio Manager's Report "The Japanese equity market has continued to build on the strong performance of recent years, with accelerating corporate reforms and the transition within the domestic economy from deflation to inflation both contributing significantly to a robust corporate earnings environment." ## Performance review The NAV per share of CC Japan Income & Growth Trust rose by 25.2% in total return sterling terms during the year to 31 October 2025. The Japanese equity market recorded strong returns over the reporting period, with the TOPIX returning 24.1% (in sterling terms and on a total return basis) despite extreme volatility at different stages during the year as sentiment towards equities reflected broader geopolitical discourse and evolving economic concerns. The healthy annual return continues the strong performance track record of the Company in the 10 years since launch on 15 December 2015, with a capital return of 144.8% complemented by an average 8.0% increase year on year in the distributable dividend. This attractive long-term return profile is consistent with the opportunity outlined at the inception of the Company in December 2015. The Japanese equity market has continued to build on the strong performance of recent years, with accelerating corporate reforms and the transition within the domestic economy from deflation to inflation both contributing significantly to a robust corporate earnings environment. It is encouraging that these trends have not been derailed by heightened uncertainties over the direction of the global economy or deteriorating international relations. The Corporate Governance Code, introduced by the Japanese Financial Services Agency in 2015, is also approaching its 10th anniversary, and has been a significant factor in the improving corporate outlook and consistency of equity market returns. Upcoming amendments to this Code augur well for the forward-looking investment opportunity. The top performing holding over the period was Fujikura which is a beneficiary of the capital expenditure required to deliver artificial intelligence. An important distinction is that its financial returns are being realised now and are not based on speculative projections. Fujikura is an industry leading manufacturer of optical fibre and optical connectors which are vital components in the construction of datacentres. SBI Holdings, Japan's leading online financial services company, and Nintendo, the video game and entertainment company, were also top active contributors. SBI Holdings gained increasing recognition for its successful transition to a financial conglomerate at the forefront of exciting domestic opportunities in banking, venture capital, asset management and cryptocurrency. Nintendo launched its new hardware model, the Switch 2, to strong acclaim and is set to further its reputation and financial success as a global entertainment provider. Despite strong performance Nintendo remains undervalued, having one of the highest ratios of net cash to equity in Japan. The widespread pressures to improve capital efficiency and corporate governance in Japan have accelerated all aspects of corporate reform with notable examples of consolidation and privatisation. Within the portfolio, Carta Holdings, a listed subsidiary of marketing giant Dentsu, was subject to a tender offer by NTT DoCoMo at a premium to the prevailing share price. This has resulted in the mobile telephone company becoming the largest shareholder and enhancing its collaboration with Dentsu to accelerate the benefits of Carta's digital marketing expertise. Additionally, Technopro announced a management buyout at a significant premium to the share price. There has been a common theme in the recent quarterly results of the weakest performers in the portfolio over the last twelve months. Shin-Etsu Chemical, Shimano and Hamamatsu Photonics had all established world leading positions in their respective operations but are not immune to industry vagaries. Recent turbulence in trading activity due to inventory consolidation and capital investment delays has resulted in a temporary slowdown in demand which has affected their near-term expectations. The fact that the challenges have emerged in such a short period of time also suggests that the recovery may appear just as quickly when the issues subside. The commitment to capacity investment and shareholder returns at each of these companies confirms our confidence in their longer-term prospects. Emphasis on the long-term investment potential remains a key characteristic of the strategy and the process behind it. An exuberance over artificial intelligence has been a notable feature over the last few months. While acknowledging the opportunities this advancing technology presents, it is important to maintain a disciplined approach to stock selection and to not compromise on valuation, governance standards or cashflow generation which are the key facets of our approach. ## Portfolio positioning We believe that the Japanese equity market has become increasingly attractive to both domestic and international investors, underpinned by the structural reforms aimed at improving capital efficiency and corporate governance. The Tokyo Stock Exchange's market restructuring and its 2023 initiative urging companies to adopt "management conscious of cost of capital and stock price" have encouraged firms to optimise balance sheets, enhance profitability, and boost valuations through measures such as share buybacks, dividend hikes and unwinding of crossholdings. Complementing this, Japan's Financial Services Agency ("FSA") has reinforced governance standards through revisions to the Stewardship and Corporate Governance Codes, promoting transparency, board independence, and shareholder engagement. But, very importantly, firms are not merely shrinking to realise inherent value. We see increasing evidence that companies are seeking to create value and expressing a renewed ambition by allocating resources to strategic areas for growth such as digital transformation, advanced technologies, and overseas expansion to strengthen long-term competitiveness. Consequently, our universe of investment candidates continues to broaden and highlighted overleaf are recently established holdings new to the strategy. CC Japan Income & Growth Trust plc Annual Report and Accounts 2025 --- Fujikura has established a strong global presence in specialist fields including optical fibre and telecommunication infrastructure. Technological advances have resulted in a dramatic pick-up in demand in recent years which has allowed the company to improve its financial standing and reward shareholders through a significant rise in its annual dividend distribution. Hoya is a world leader in optical technologies with strong global positions in the fields of technology and healthcare. The company has indicated an improved shareholder return policy going forward with progressive dividend increases and a more tightly defined allocation of the cashflow generated and retained on its balance sheet. We believe the combination of investment for growth with a greater consistency of dividend and share buybacks going forward will offer an attractive total return. Shimano is a leading global manufacturer of bicycle parts and fishing equipment. It has experienced an unusually long inventory correction in the aftermath of the pandemic which is now coming to an end, particularly in Europe, its main market. The company announced a new mid-term plan with much clearer commitments on cash allocation and initiatives to improve capital efficiency which have offered a considerably more attractive investment proposition. Noritsu Koki has over the years transitioned from a family run manufacturing company to an independent investment vehicle with primary interests in a small number of niche sectors including audio equipment and peripherals, parts and materials manufacturing, and healthcare and research services. Its operating businesses are cash generative which, combined with a clear shareholder return policy, offer the potential of rising returns. Conversely, some companies face new challenges and the holdings in Noevir, Tokyo Metro and GMO Internet have been fully exited over the reporting period. Cosmetic manufacturer Noevir is experiencing new competitive pressures from Korean makers and consequently a more challenging outlook for its products. We are concerned that the company management has taken a very conservative stance which could threaten the long-term track record of dividend increases. The first mid-term plan released by Tokyo Metro since its IPO disappointingly fell short of expectations in relation to capital efficiency, cost control and consequently shareholder return. GMO Internet, a network infrastructure provider, performed well during the first half of the year in response to selected business portfolio restructuring, but we believe that the sprawling parent-subsidiary group structure falls short of the governance standards that we encourage. Financial companies feature prominently in the current portfolio. The leading banks, Sumitomo Mitsui Financial Holdings and Mitsubishi UFJ Holdings, have been beneficiaries of the Bank of Japan's intention to normalise monetary policy which has progressed during the last 12 months but has further to go. Sumitomo Mitsui Trust Holdings, JAFCO, and Japan Securities Finance will benefit from improving prospects for financial returns as interest rates are gradually increased. ## Outlook As the Company reaches its 10th anniversary, it is possible to demonstrate how the combined efforts of the Japanese government, the Tokyo Stock Exchange ("TSE") and the FSA have been the catalyst for a cultural shift in Japanese corporate responsibilities. This has resulted in considerable benefits to investors of this Company through a combination of capital appreciation complemented by a progressive increase in the annual dividend. We believe this track record serves as the foundation of more to come. In an interview for the Nikkei newspaper, Hiromi Yamaji, the Chief Executive Officer of the Japan Exchange Group and the architect of the market reform initiative, highlighted the substantial progress so far but also suggested that this represented less than a fifth of the ultimate potential. To this end, we believe that the speed of change is accelerating and is evident in data reflecting associated activity such as dividend growth, share buybacks and unwinding of cross-shareholdings. A revision of the Corporate Governance Code due in 2026 will encourage companies to move beyond basic reform and balance sheet optimisation towards more efficient allocation of resources for strategic expansion. This aligns closely with the perspectives promoted by Japan's new Prime Minister, Sanae Takaichi, and indeed the investment principles of this strategy. Such a strong commitment to sustainable, long-term value creation signals an additional change in corporate behaviour and enhances the investment attraction of Japanese equities. Richard Aston, Portfolio Manager Chikara Investments LLP 20 January 2026 CC Japan Income & Growth Trust plc Annual Report & Accounts 2025 --- Strategic Report # Top Ten Holdings 1. Sumitomo Mitsui Financial Group Inc 4.8% of net assets (2024: 7.0%) Sumitomo Mitsui Financial Group was established through the merger of Sumitomo Bank and Sakura Bank in 2001. It is one of Japan's leading financial groups offering services such as commercial banking, leasing, securities, consumer finance and asset management. The company targets continued growth in shareholder value by promoting disciplined investment and alliances, sound financials and progressive shareholder returns. 2. Fujikura Ltd 4.6% of net assets (2024: nil) Fujikura is a leading manufacturer of optical fibre, optical components and other advanced products used across a range of industries. Recent strong global demand for datacentres and AI infrastructure has driven a dramatic turnaround in operational performance. The most recent mid-term plan seeks to capture the opportunity through further growth investment whilst maintaining a disciplined approach to capital allocation. Consequently, the business expansion will be accompanied by favourable trends in dividend distribution and share buybacks. 3. Nintendo Co Ltd 4.6% of net assets (2024: 4.1%) Nintendo is an international console and handheld gaming company with leading positions in both hardware and software production. Initiatives to improve the financial return on the company's extensive intellectual property are being accompanied by efforts to bolster its corporate governance. Management has a clear policy towards dividends and is taking a more proactive stance towards share buybacks. 4. Mitsubishi UFJ Financial Group Inc 4.3% of net assets (2024: 4.9%) Mitsubishi UFJ Financial Group ("MUFJ") was established in 2005 through the merger of Mitsubishi Tokyo Financial Group and UFJ Holdings. It is now one of Japan's leading financial services groups with established operations around the world, most prominently in Asia and North America. This includes a strategic alliance and a 23% stake in Morgan Stanley. MUFJ continues to promote a balanced capital management policy maintaining a strong capital base, appropriate allocations to strategic growth opportunities and enhancing shareholder returns. 5. Hoya Corp 4.2% of net assets (2024: nil) Hoya operates in two main business segments in which it has established world leading positions. The information technology division, which includes hard disk drive substrates, extreme ultraviolet mask blanks and image related products, and the Life Care division which covers healthcare and medical related products such as eyeglasses. The shareholder return policy prioritises capital allocation for future growth through organic expansion and M&A activity but this has been accompanied recently by a clearer focus on balance sheet efficiency and intent to deliver a more consistent and progressive dividend. CC Japan Income & Growth Trust plc Annual Report and Accounts 2025 --- CC Japan Income & Growth Trust plc Annual Report and Accounts 2025 9 6 ITOCHU Corp 4.1% of net assets (2024: 4.4%) Itochu is one of Japan's leading trading companies involved in a broad range of businesses from the provision of upstream raw materials to downstream retail activities. In recent years Itochu has successfully introduced a business investment strategy based on high levels of capital efficiency and appropriate cash allocation including increasing returns to shareholders in the form of dividend and share buybacks. 7 Mitsubishi Corp 4.0% of net assets (2024: 3.2%) Mitsubishi Corp is a diversified conglomerate with broad industrial interests including mineral resources, natural gas, food, automotive and other sectors. Its business performance has been strengthened by strategic rebalancing of its business portfolio and improvements in capital efficiency. Management has raised their distribution targets for shareholders with an emphasis on progressive increases in dividend distribution and flexible consideration of dividends. 8 Tokyo Electron Ltd 3.9% of net assets (2024: 2.0%) Tokyo Electron is a global supplier of semiconductor production equipment, holding leading market shares in a number of key segments in the manufacturing process. It has maintained a proactive shareholder return policy, balancing financial soundness with investment opportunities and the goal of achieving strong performance, both operating and investment, through industry cycles. 9 Shin-Etsu Chemical Co Ltd 3.7% of net assets (2024: 3.7%) Shin-Etsu Chemical is a manufacturer with top global market share in PVC, semiconductor silicon wafers and a number of other semiconductor related and functional materials. The company established a global production base and developed a list of top tier international customers, which has allowed it to generate a strong track record of growth despite underlying volatility in individual markets. The company has, in recent years, given greater attention to shareholder returns within their capital policy, while maintaining emphasis on stability and progression. 10 SoftBank Corp 3.6% of net assets (2024: 4.1%) SoftBank Corp provides telecommunication and associated network services in Japan and is a subsidiary of the SoftBank Group. The company continues to demonstrate strong growth in its business services segment and from its "beyond carrier" strategy which includes e-commerce leader Yahoo Japan, online fashion retailer Zozo, social network Line and electronic payment service PayPay. After a period of significant investment the management expects growth opportunities to accelerate and enhance returns to shareholders commensurately. --- Strategic Report # Holdings in Portfolio As at 31 October 2025 | Company | Main business area | Tokyo Stock Exchange ("TSE") sector | Market value £'000 | % of net assets | | --- | --- | --- | --- | --- | | Sumitomo Mitsui Financial Group Inc | Banks | Banks | 15,429 | 4.8 | | Fujikura Ltd | Optical technology | Other products | 14,911 | 4.6 | | Nintendo Co Ltd | Gaming | Other products | 14,824 | 4.6 | | Mitsubishi UFJ Financial Group Inc | Banks | Banks | 14,044 | 4.3 | | Hoya Corp | Optical technology | Precision instruments | 13,639 | 4.2 | | ITOCHU Corp | Trading company | Wholesale | 13,243 | 4.1 | | Mitsubishi Corp | Trading company | Wholesale | 12,837 | 4.0 | | Tokyo Electron Ltd | Semiconductor production equipment | Electrical appliances | 12,641 | 3.9 | | Shin-Etsu Chemical Co Ltd | Silicon wafers & PVC | Chemicals | 12,080 | 3.7 | | SoftBank Corp | Mobile telecoms & services | Info & communications | 11,513 | 3.6 | | Tokio Marine Holdings Inc | Insurance | Insurance | 11,424 | 3.5 | | SBI Holdings Inc | Financial services & investment | Securities & commodities | 10,248 | 3.2 | | Dexerials Corp | Functional materials | Chemicals | 9,253 | 2.9 | | Hamamatsu Photonics KK | Optical technology | Electrical appliances | 9,235 | 2.8 | | Chugai Pharmaceutical Co Ltd | Pharmaceutical | Pharmaceutical | 9,023 | 2.7 | | JAFCO Group Co Ltd | Venture capital | Other financing business | 8,793 | 2.7 | | Kyocera Corp | Electronic components | Electrical appliances | 7,954 | 2.5 | | Japan Securities Finance Co Ltd | Specialist financial services | Other financing business | 7,773 | 2.4 | | Marui Group Co Ltd | Retail | Retail trade | 7,595 | 2.3 | | Sompo Holdings Inc | Insurance | Insurance | 7,561 | 2.3 | | Sumitomo Mitsui Trust Group Inc | Banks | Banks | 7,104 | 2.2 | | Nissan Chemical Corp | Functional materials | Chemicals | 6,692 | 2.1 | | Nippon Parking Development Co Ltd | Real estate | Real estate | 6,648 | 2.0 | | Shimano Inc | Bicycle components | Transport equipment | 6,006 | 1.9 | | Noritsu Koki Co Ltd | Manufacturing | Precision instruments | 5,885 | 1.8 | | ARE Holdings Inc | Recycling | Precious metals | 5,876 | 1.8 | | Nippon Gas Co Ltd | Utilities | Retail trade | 5,823 | 1.8 | | Sinko Industries Ltd | Air conditioning systems | Machinery | 5,712 | 1.8 | | Daiichi Sankyo | Pharmaceutical | Pharmaceutical | 5,525 | 1.7 | | ZOZO Inc | Online fashion retail | Retail trade | 5,522 | 1.7 | | Hitachi Ltd | IT & infrastructure | Electrical appliances | 5,256 | 1.6 | | Insourc e Co Ltd | Corporate training | Services | 5,049 | 1.5 | | PILLAR Corp | Industrial materials | Machinery | 4,800 | 1.5 | | Kao Corp | Cosmetics & toiletries | Chemicals | 4,345 | 1.3 | | Denso Corp | Automotive components | Transport equipment | 4,166 | 1.3 | | WingArc1st Inc | Data solutions | Info & communications | 2,487 | 0.8 | | Shoei Co Ltd | Motorbike helmets | Other products | 1,694 | 0.5 | | Total holdings | | | 312,610 | 96.4 | | Other net assets | | | 8,680 | 2.7 | | Royal London Short-Term Money Market Fund | Cash and cash equivalents | - | 2,759 | 0.9 | | Net asset value | | | 324,049 | 100.0 | CC Japan Income & Growth Trust plc Annual Report and Accounts 2025 --- # Top Ten As at 31 October 2025 Top Ten (Tokyo Stock Exchange ("TSE") sector) | TSE sector | % of net assets | | --- | --- | | Banks | 11.3 | | Electrical appliances | 10.7 | | Chemicals | 10.0 | | Other products | 9.7 | | Wholesale | 8.1 | | Precision instruments | 6.0 | | Insurance | 5.8 | | Retail trade | 5.8 | | Other financing business | 5.1 | | Pharmaceutical | 4.5 | | Top Ten | 77.0 | | Other sectors¹ | 19.4 | | Other net assets | 3.6 | | Total | 100.0 | ¹ Other Sectors comprise seven sectors, which individually, is less than 4.5% each of the net assets. Top Ten (main business areas) | Main business area | % of net assets | | --- | --- | | Optical technology | 11.6 | | Banks | 11.3 | | Trading company | 8.1 | | Insurance | 5.8 | | Functional materials | 5.0 | | Gaming | 4.6 | | Pharmaceutical | 4.5 | | Semiconductor production | 3.9 | | Silicon wafers & PVC | 3.7 | | Mobile telecoms & services | 3.6 | | Top Ten | 62.1 | | Other business areas | 34.3 | | Other net assets | 3.6 | | Total | 100.0 | CC Japan Income & Growth Trust plc Annual Report and Accounts 2025 --- Strategic Report Top Ten continued Top Ten Contracts For Difference ("CFDs") | Company | Main business area | TSE sector | Absolute value £'000 | Absolute value as a % of net assets | Market value £'000 | | --- | --- | --- | --- | --- | --- | | Sumitomo Mitsui Financial Group Inc | Banks | Banks | 3,086 | 1.0 | 127 | | Fujikura Ltd | Optical technology | Other products | 2,982 | 0.9 | 649 | | Nintendo Co Ltd | Gaming | Other products | 2,965 | 0.9 | 149 | | Mitsubishi UFJ Financial Group Inc | Banks | Banks | 2,809 | 0.9 | 53 | | Hoya Corp | Optical technology | Precision instruments | 2,728 | 0.8 | 360 | | ITOCHU Corp | Trading company | Wholesale | 2,649 | 0.8 | 116 | | Mitsubishi Corp | Trading company | Wholesale | 2,567 | 0.8 | 92 | | Tokyo Electron Ltd | Semiconductor production equipment | Electrical appliances | 2,528 | 0.8 | 357 | | Shin-Etsu Chemical Co Ltd | Silicon wafers & PVC | Chemicals | 2,416 | 0.7 | (189) | | SoftBank Corp | Mobile telecoms & services | Info & communications | 2,303 | 0.7 | 40 | | Top Ten CFDs | | | 27,033 | 8.3 | 1,754 | | Other CFDs | | | 35,489 | 11.0 | (12) | | Total CFDs | | | 62,522 | 19.3 | 1,742 | CC Japan Income & Growth Trust plc Annual Report and Accounts 2025 --- # Approach to Environmental, Social and Governance ("ESG") The Board believes that ESG related issues can affect both the performance and sustainability of an investment portfolio and that ESG factors can be potential indicators of management quality and operational performance. Companies with strong, sustainable profiles will, it believes, have greater potential to grow and survive in all market conditions. The Investment Manager is responsible for engagement on ESG matters and has a structured, yet flexible approach to incorporating ESG into the investment process. Its fundamental, hands-on research approach allows it to integrate seamlessly its responsible investing efforts alongside the Company's investment strategy in an effective manner, which the Board believes will achieve the best long-term results for the Company's investors. ## ESG research The Investment Manager considers whether ESG factors are relevant and where they may have a material impact on stock performance. The factors considered by the Investment Manager vary by the industry and company under review and may include the following: - Environmental: Pollution, site management / consideration, greenhouse gas emissions, climate change, habitat protection, recycling, water. - Social: Human/employee rights, working conditions, health and safety, firm-employee relations, child / forced labour, conflict zones. - Governance: Board composition, independence, transparency, compensation and accountability, shareholder rights and relations, cyber security, protection of personal data, corruption. The ESG factors are integrated into the Investment Manager's bottom-up investment process and these issues are considered alongside financial and strategic issues during assessment and engagement with companies. The ESG risks are qualitative factors rather than quantitative inputs in a financial model. The investment team conducts its own research which is complemented by data and research of third parties. Chikara has engaged a third party ESG and climate data provider, who provides ESG related metrics and analysis. These reports are reviewed by the investment team where available and assist them in identifying potential areas for engagement with companies as it relates to ESG factors. Third party reporting includes Climate Impact Reporting and Norms Based Research. The Investment Manager has a policy that prohibits investment in a list of companies that manufacture controversial weapons but does not specifically exclude investment in industries or individual companies on standardised ESG factors. ## Engagement and stewardship A key component of the ESG process is engagement. The Investment Manager dedicates a significant amount of time and resource focusing on the ESG characteristics of the companies in which the Investment Manager invests, and monitoring is carried out through investment reviews. The strategy of the portfolio has an explicit focus on improving relationships between corporate managers and shareholders in Japan. Consequently, corporate governance is a key point of discussion in every meeting held with company management. The goal in each case is to help the senior representatives of the company develop not only an understanding of the role and requirements of long-term shareholders but also the realisation that their actions must be consistent with mutually determined objectives. The team at Chikara typically conducts over 300 meetings and calls a year with the management of many different companies. Engagement serves three main purposes as it relates to ESG: 1. Due diligence – engaging with companies, conducting due diligence, and understanding potential risks and opportunities relating to the investment. 2. Education – through engagement with companies, sharing best practices and providing insights into the ESG practices of peers (e.g., disclosures, targets, and benchmarking). 3. Action – engaging with companies to encourage disclosures and target setting. Although the Investment Manager does not seek to agitate management through aggressive behaviour with public disclosures or proposals, it does and will vote against resolutions which it believes are inconsistent with the future growth and development of the company. The Investment Manager is also prepared to sell the shareholding if necessary. CC Japan Income & Growth Trust plc Annual Report and Accounts 2025 --- Strategic Report Approach to Environmental, Social and Governance ("ESG") continued Japan Stewardship Code: The Investment Manager is a signatory to the Japan Stewardship Code and its statement of commitment is set out on its website: https://www.chikarainvestments.com/japan-stewardship-code. UK Stewardship Code: The Investment Manager is a signatory to the UK Stewardship Code and its statement of compliance with the Code can be found on its website: https://www.chikarainvestments.com/stewardship-code. Principles of Responsible Investment ("PRI"): Chikara became a signatory to the UN-supported PRI on 6 December 2018. The PRI is a global standard for investment managers' ESG alignment. As a signatory to the Principles, the Investment Manager publicly commits to adopt and implement them, where consistent with its fiduciary responsibilities. The Principles can be found here: https://www.unpri.org/about-PRI/what-principles-for-responsible-investment. The Investment Manager also commits to evaluate the effectiveness and improve the content of the Principles over time. It believes this will improve its ability to meet commitments to beneficiaries as well as better align its investment activities with the broader interests of society. Chikara reports annually to the PRI on the firm's responsible investment initiatives, activities and achievements and seeks to meet the standards expected by the PRI in doing so. ![img-7.jpeg](img-7.jpeg) CC Japan Income & Growth Trust plc Annual Report and Accounts 2025 --- Example of engagement ## Financial services company We engaged with a leading financial company following media reports of a historical harassment incident which, we believed, had the potential to damage its reputation among institutional investors. The issue, stemming from a 2019 report, escalated into broader governance and workplace culture questions. We sought to understand the company's response and its concrete plans for risk mitigation. The company demonstrated a proactive commitment to raising standards by introducing formal policies, including regular anti-harassment training, and establishing an external whistleblowing hotline. Crucially, the company has continued to enhance the measures in place and launched a formal human rights policy in May 2025, filling a major governance gap. This policy not only demonstrates management commitment to the highest ethical standards internally but is also an effort to achieve best practice within the industry. We were encouraged by the company's comprehensive response, viewing these actions as positive evidence of strengthened social and governance frameworks, and continue to own the position. ![img-8.jpeg](img-8.jpeg) ![img-9.jpeg](img-9.jpeg) CC Japan Income & Growth Trust plc Annual Report and Accounts 2025 --- Strategic Report # Business Review The Directors present the Strategic Report for the Company's year ended 31 October 2025 The aim of the Strategic Report is to provide shareholders with the ability to assess how the Directors have performed their duty to promote the success of the Company for the collective benefit of shareholders. The financial highlights and ten year record together with the Chairman's Statement, Portfolio Manager's Report, Principal and Emerging Risks, Long Term Viability Statement and Section 172 Statement form part of this Strategic Report. ## The Company's purpose, values and culture The primary purpose of the Company is to provide shareholders with dividend income combined with capital growth, mainly through investment in equities listed or quoted in Japan. The Company has been investing in Japanese equities since launch in 2015. Whilst the Company does not have a benchmark, the Board measures performance against the TOPIX Total Return and High Yield indices. The Board of Directors is responsible for employing and overseeing an investment management company that has the appropriate capability, resources and controls in place to actively manage the Company's assets in order to meet its investment objective. As the Company has no employees and acts through its service providers, its culture is represented by the values and behaviour of the Board and third parties to which it delegates the provision of services. To ensure that the Company's purpose, values, strategy and culture are aligned, the Board comprises independent Non-Executive Directors, who together bring a wide range of knowledge, skills and experience. The Board members contribute to a transparent culture ensuring effective oversight, critical support and challenge to the Investment Manager, and all other third-party suppliers. For further information on the Board's engagement with stakeholders, please refer to the Company's Section 172 Statement on pages 22 and 23. ## Investment objective The Company's investment objective is to provide shareholders with dividend income combined with capital growth, mainly through investment in equities listed or quoted in Japan. ## Business model CC Japan income & Growth Trust plc is an investment trust and public limited company, incorporated in England and Wales, limited by shares, and listed on the London Stock Exchange. In seeking to achieve its objective the Company has engaged Chikara, as its Investment Manager, to actively manage the Company's assets. The Investment Manager has a well-defined investment strategy and process which is regularly and rigorously monitored and reviewed by the Board. The Investment Manager identifies companies which are undervalued, have strong balance sheets, strong business franchises, and favourable attitudes to shareholder returns in the form of sustainable and growing dividends and share buyback policies. The Board has determined an investment policy and related guidelines and limits, as described below. The Company is subject to UK and European legislation and regulations (where EU regulation has been 'onshored' into UK law) including UK company law, UK Financial Reporting Standards, the FCA Listing, Prospectus, Disclosure Guidance and Transparency Rules, the UK Market Abuse Regulation, taxation law and the Company's own Articles of Association. The Company is an investment company within the meaning of Section 833 of the Companies Act 2006 and has been approved by HM Revenue & Customs as an investment trust (for the purposes of Sections 1158 and 1159 of the Corporation Tax Act 2010). The Directors have no reason to believe that the Company will not continue to retain its investment trust status. The Company is not a close company for taxation purposes. A review of the Company's activities and prospects is given in the Chairman's Statement on pages 4 and 5, and in the Portfolio Manager's Report on pages 6 and 7. ## Investment policy The Company invests in equities listed or quoted in Japan. The Company may also invest in exchange traded funds in order to gain exposure to such equities. Investment in exchange traded funds shall be limited to not more than 20 per cent. of gross assets at the time of investment. The Company may also invest in listed Japanese real estate investment trusts ("J-REITs"). The Company may enter into long only contracts for difference or equity swaps for gearing and efficient portfolio management purposes. No single holding (including any derivative instrument) will represent more than 10 per cent. of gross assets at the time of investment and, when fully invested, the portfolio is expected to have between 30 to 40 holdings, although there is no guarantee that this will be the case and it may contain a lesser or greater number of holdings at any time. The Company has the flexibility to invest up to 10 per cent. of its gross assets at the time of investment in unquoted or untraded companies. The Company is not constrained by any index benchmark in its asset allocation. CC Japan Income & Growth Trust plc Annual Report and Accounts 2025 --- # Borrowing policy The Company may use borrowings for settlement of transactions, to meet on-going expenses and may be geared through borrowings and/or by entering into long only contracts for difference ("CFDs") or equity swaps that have the effect of gearing the Company's portfolio to seek to enhance performance. The aggregate of borrowings and long only CFDs and equity swap exposure will not exceed 25 per cent. of net asset value at the time of drawdown of the relevant borrowings or entering into the relevant transaction, as appropriate, although the Company's normal policy will be to utilise and maintain gearing to a lower limit of 20 per cent. of net asset value at the time of drawdown of the relevant borrowings or entering into the relevant transaction, as appropriate. It is expected that any borrowings entered into will principally be denominated in yen. # Hedging policy The Company does not currently intend to enter into any arrangements to hedge its underlying currency exposure to investments denominated in yen, although the Investment Manager and the Board may review this from time to time. # Results and dividend The Company's revenue return after tax for the financial year amounted to £7,980,000 (2024: £7,173,000). In August 2025, the Company paid an interim dividend of 1.65p (2024: 1.60p) per share. On 16 January 2026, the Directors declared a second interim dividend for the year ended 31 October 2025 of 4.25p (2024: 3.85p) per share, which will be paid on 2 March 2026 to shareholders on the register at 30 January 2026. Therefore, the total dividend in respect of the financial year to 31 October 2025 will be 5.90p (2024: 5.45p) per share. The Company made a capital gain after tax of £57,638,000 (2024: gain of £30,758,000). The total return, including income, after tax for the year was a gain of £65,618,000 (2024: gain of £37,931,000). # Key Performance Indicators ("KPIs") The Board measures the Company's success in attaining its investment objective by reference to the following KPIs: ## (i) Long-term capital growth The Board considers the Company's NAV total return figures to be the best indicator of performance over time and this therefore is the main indicator of performance used by the Board. The NAV total return for the year to 31 October 2025 was 25.2% (2024: 16.1%) in sterling terms, and the NAV total return from the Company's inception on 15 December 2015 to 31 October 2025 was 216.0%. The Chairman's Statement on pages 4 and 5 incorporates a review of the highlights during the year. The Portfolio Manager's Report on pages 6 and 7 gives details on investments made during the year and how performance has been achieved. ## (ii) Revenue return per share and dividends The Company's revenue return per share, based on the weighted average number of shares in issue during the year, was 5.92p (2024: 5.32p). The Company's proposed total dividend payable in respect of the year ended 31 October 2025, including an interim dividend of 1.65p per share paid on 1 August 2025 and a second interim dividend of 4.25p payable on 2 March 2026, is 5.90p (2024: 5.45p) per share. ## (iii) Discount/premium to NAV The discount/premium relative to the NAV per share represented by the share price is closely monitored by the Board. The share price closed at a 7.7% discount to the NAV as at 31 October 2025 (2024: 9.4% discount). ## (iv) Control of the level of ongoing charges The Board monitors the Company's operating costs carefully. Growing the size of the Company offers many benefits, as not all of the Company's operating costs increase in line with the Company's assets under management. Based on the Company's average net assets for the year ended 31 October 2025, the Company's ongoing charges figure calculated in accordance with the AIC methodology was 1.06% (2024: 1.03%). Whilst the ongoing charges figure has increased this year, the Board has negotiated the inclusion of a tier into the management fee calculation which reduces the percentage rate charged when the Company's net assets grow in excess of £300 million. At the date of this report, the Company's net assets remain above £300 million and therefore we expect the ongoing charges figure to reduce whilst net assets are above this tier level. # Other information ## Modern slavery disclosure The Company considers that it does not fall within the scope of the Modern Slavery Act 2015, and it is not, therefore, obliged to make a slavery and human trafficking statement. The Company considers its supply chains to be of low risk as its suppliers are typically professional advisers. A statement from Chikara, the Company's Investment Manager, on the steps it takes to investigate and mitigate the risk of modern slavery and human trafficking can be found on Chikara's website (https://www.chikarainvestments.com/modern-slavery-statement). ## Greenhouse gas emissions The Company has no employees, physical assets, property or operations of its own, does not provide goods or services and does not have its own customers. It follows that the Company has little to no direct environmental impact. In consequence, the Company has limited greenhouse gas emissions to report from its operations, nor does it have responsibility for any other sources of emissions under the Companies Act 2006 (Strategic Report and Directors' Reports) Regulations 2013. As the Company has no material operations and therefore has little energy use, it falls below the threshold to produce an energy and carbon report. The Company's ESG policy is contained on pages 13 and 14. CC Japan Income & Growth Trust plc Annual Report and Accounts 2025 --- Strategic Report Business Review continued ## Employees, social, community, environmental and human rights issues The Company is managed by its Investment Manager, has no employees and all of its Directors are non-executive. The day to day activities are carried out by third parties. There are therefore no disclosures to be made in respect of employees. ## Anti-bribery, corruption and tax evasion It is the Company's policy to conduct all of its business in an honest and ethical manner. The Company takes a zero-tolerance approach to bribery, corruption and tax evasion and is committed to acting professionally, fairly and with integrity in all its business dealings and relationships wherever it operates. Taking account of the nature of the Company's business and operations, the Board has adopted policies and procedures that allow it to have reasonable assurance that persons associated with the Company are prevented from engaging in bribery, corruption or tax evasion; and has adopted the same standard of zero tolerance. ## Viability statement The Directors have assessed the viability of the Company for the period until 31 October 2030 (the "Period") taking into account the long-term nature of the Company's investment strategy and the principal risks and emerging risks outlined on pages 19 to 21. The Board has chosen a five-year period to assess the Company's viability because of the expected long-term nature of equity investment, the Investment Manager's holding period and the fact that the investment objective is unlikely to change significantly over this period. In their assessment of the prospects of the Company, the Directors have considered each of the principal and emerging risks and uncertainties set out on pages 19 to 21 and the liquidity and solvency of the Company. The Directors have considered the Company's income and expenditure projections and the fact that the Company's investments comprise securities which can be readily realised and could, if necessary, be sold to meet the Company's funding requirements. Portfolio activity and market developments are discussed at quarterly Board meetings. The internal control framework of the Company is subject to a formal review on at least an annual basis. The Directors do not expect there to be any material increase in the annual ongoing charges of the Company over the Period. The Company's income from investments and cash that can be realised from the sale of its investments provide substantial cover to the Company's operating expenses, and any other costs likely to be faced by the Company over the period of their assessment. The Chairman's Statement and Portfolio Manager's Report present a positive long-term investment case for Japanese equities, which also underpins the Company's viability for the period. The continuation of the Company is subject to approval by shareholders every three years with the next continuation vote due to be held at the Annual General Meeting in 2028. The viability assessment also takes into account the impact of the principal and emerging risks highlighted in the Principal and Emerging Risks section on pages 19 to 21. The Directors have a reasonable expectation that the Company will be able to continue in operation and meet its liabilities as they fall due over the Period. ## Outlook The outlook for the Company is discussed in the Chairman's Statement on pages 4 and 5 and the Portfolio Manager's Report on pages 6 and 7. ## Strategic Report The Strategic Report set out on pages 1 to 23 of this Annual Report and Accounts was approved by the Board of Directors on 20 January 2026. June Aitken Chairman 20 January 2026 CC Japan Income & Growth Trust plc Annual Report and Accounts 2025 --- # Risk and Risk Management ## Principal and emerging risks and uncertainties The Board is responsible for the management of risks faced by the Company and delegates this role to the Audit and Risk Committee (the "Committee"). The Committee carries out, at least annually, a robust assessment of principal and emerging risks and uncertainties and monitors these risks on an ongoing basis. The Committee has a dynamic risk management register in place to help identify key risks in the business and oversee the effectiveness of internal controls and processes. The risk management register and associated risk heat map provide a visual reflection of the Company's identified principal and emerging risks. These fall into three categories: - Strategic and business risk; - Financial and operational risk; and - Regulatory and compliance risk. The Committee considers both the impact and the probability of each risk occurring and ensures appropriate controls are in place to reduce risk to an acceptable level. The Committee continues to review the processes in place to mitigate risk; and to ensure that these are appropriate and proportionate in the current market environment. The principal risks, together with a summary of the processes and internal controls used to manage and mitigate risks where possible, are outlined on the following pages. There have been no material changes to the principal risks during the year. ## Emerging risks The Committee considers emerging risks which it defines as potential trends, sudden events or changing risks which are characterised by a high degree of uncertainty in terms of occurrence probability and possible effects on the Company. As the impact of emerging risks is understood, they may be entered on the Company's risk matrix and mitigating actions considered as necessary. In assessing the risks and how they can be mitigated, the Board has given particular attention to those risks that might threaten the viability of the Company. The Board considers the current global economic environment to be a factor which exacerbates existing risks, rather than it being a new emerging risk. ![img-10.jpeg](img-10.jpeg) CC Japan Income & Growth Trust plc Annual Report and Accounts 2025 --- Strategic Report Risk and Risk Management continued | Principal Risks | Militisation | Movement during the year | | --- | --- | --- | | Poor investment performance | | | | The Company's investment performance depends on the Investment Manager's ability to identify successful investments in accordance with the Company's investment policy. The Company's share price may not always reflect underlying net asset value. | • The Investment Manager has a well-defined investment strategy and process which is regularly reviewed by the Board. • The Board monitors the Company's investment performance against its peer group over a range of periods. • Whilst the Company does not have a benchmark, the Board measures performance for reference purposes against the TOPIX and High Yield indices. At each meeting, the Board discusses the Japanese investment environment, and receives reports on the composition of the portfolio, any recent sales and purchases, and expectations of dividend income. • The Management Engagement Committee reviews the appointment of the Investment Manager on an annual basis. • The Board monitors the share price discount to NAV and has authority to buy back shares. | ← | | Market risk | | | | Changes in the investment, economic or political conditions in Japan, and/or in the countries in which the Company's investee companies operate could substantially and adversely affect the Company's prospects. In addition to changing economic factors such as interest rates, foreign exchange rates and employment, unpredictable factors such as natural disasters and diplomatic events may impact market risk. | • The Directors acknowledge that market risk is inherent in the investment process. The Company maintains a diversified portfolio of quoted investments. • The Board reviews the impact of economic indicators on the portfolio with the Investment Manager at every Board meeting. • The Company's investment policy states that no single holding will represent more than 10 per cent. of the Company's Gross Assets at the time of investment and the portfolio is expected to have between 30 to 40 holdings in normal circumstances. • The portfolio is comprised of listed, liquid, realisable securities. • In addition to receiving regular market updates from the Investment Manager and reports at Board meetings, the Board convenes more often during periods of extreme volatility. • The Company's policy is not to hedge against any foreign currency movements. Income received from investee companies is translated into sterling on receipt. | ← | | Geopolitical risk | | | | War and conflict can impact investor confidence and threaten global economic growth. Geopolitical instability in the region may increase volatility, reduce economic growth, and affect the prospects of the companies in the portfolio. | • The Board discusses the impact of geopolitics on the portfolio with the Investment Manager at every Board meeting. • The Company has built up a revenue reserve and the Board regularly reviews the net income available for distribution using the Investment Manager's sensitivity analysis of revenue estimates. • The Company also has a Special Reserve available for distribution in the event of unforeseen revenue shortfall. • The Manager's emphasis on companies which can pay sustainable dividends has helped alleviate the impact. • The board recognises that the potential for mitigation is likely to be limited other than through diversification. | ← | | Key person risk | | | | Loss of investment manager or key personnel. The departure of any key individuals from the Investment Manager without adequate succession planning could have a material impact on the Company's business. | • The Board ensures that adequate resources are in place to manage the Company. • Richard Aston attends all Board meetings, and the Board also meets regularly with other members of the Chikara team, including portfolio managers/analysts Megumi Takayama and Theo Wyld. • The Investment Manager's key individuals are significantly invested in the Company ensuring interests with the Company's shareholders are aligned. | ← | CC Japan Income & Growth Trust plc Annual Report and Accounts 2025 --- Principal Risks Mitigation Movement during the year # Excess leverage The Company uses borrowings to seek to enhance investment returns. While this has the potential to enhance investment returns in rising markets, in falling markets the impact could be detrimental to performance. - An ability to gear is a unique advantage of closed-end companies and structural gearing is a clearly stipulated component of the Company's investment policy. This is highlighted in shareholder communications. - Gearing is monitored and strict restrictions on borrowings are imposed: gearing continues to operate within a limit of 25% of NAV at the time of investment. - The gearing is achieved using derivatives in the form of Contracts for Difference ("CFDs"). Further information on financial instruments and risk can be found in Note 2(c) to the Financial Statements on page 54 and in Note 16 to the Financial Statements beginning on page 61. # Cyber risk Cyber crime or fraud could impact any of the Company's service providers, the Investment Manager, the Depositary or the Administrator. Business interruption could mean service providers are unable to meet their contractual obligations or that information is late, misleading or inaccurate, or data privacy is breached. - All key service providers produce annual internal control reports for review by the Audit and Risk Committee. These reviews include consideration of their business continuity plans and the associated cyber security risks. - Penetration testing is carried out by the Investment Manager. - The Board reviews the cyber security policies of all service providers. # Service provider operational risk Poor performance of appointed services providers including Company Secretary, Depositary, Custodian, Administrator and/or Registrar can result in operational disruption, business interruption or reputational damage. - The performance of appointed professional service providers is closely monitored by the Board to ensure they meet contractual obligations. - The Company Secretary provided a summary of internal controls reports from all service providers. - During the year under review and after assessing competitive alternatives, the Board appointed Frostrow Capital LLP to provide Administration and Company Secretarial services. The new appointment is aimed at enhancing the accuracy and quality of financial reporting. Frostrow Capital LLP has also been appointed as the Company's AIFM in accordance with the Alternative Investment Fund Managers Directive ("AIFMD"). # ESG and climate change Potential reputational damage from non-compliance with regulations or incorrect disclosures. Climate change leads to additional costs and risks for portfolio companies. - The Company's ESG Policy, which is updated annually, is published on the Company's website and the AIC website. - The Investment Manager's approach is to include ESG factors for consideration in the investment process, such as climate change, where they are relevant and have a material impact on stock performance. - Chikara Investments LLP (the Investment Manager) is a signatory to the UN Principles of Responsible Investment ("PRI") and reports annually according to the PRI reporting framework. - The Investment Manager also complies with the obligations of both the UK Stewardship Code and the Japan Stewardship Code. CC Japan Income & Growth Trust plc Annual Report and Accounts 2025 --- Strategic Report # Stakeholder Engagement This section of the Annual Report and Accounts covers the Board's considerations and activities in discharging their duties under Section 172(1) of the Companies Act 2006, in promoting the success of the Company for the benefit of its members as a whole. This statement includes consideration of the likely consequences of the decisions of the Board in the longer term, how the Board has taken wider stakeholders' needs into account and the impact of the Company's operations on the environment. The Board, together with the Investment Manager, sets an overall investment strategy and reviews this on an ongoing basis. In order to ensure good governance of the Company, the Board has set various limits on the investments in the portfolio, including the size of individual holdings and the level of gearing. These limits and guidelines are regularly monitored. The Board is ultimately responsible for all stakeholder engagement. As an externally managed investment company, the Company does not have any employees; rather it employs external suppliers to fulfil a range of functions, including investment management, secretarial, administration, public and investor relations, corporate broking, depositary and banking services. All these service providers, who are stakeholders in the Company themselves, help the Board to fulfil its responsibility to engage with the shareholders and other stakeholders. The aim of the Board is to ensure the long-term sustainable success of the Company and in doing so, it has identified the following as the major stakeholders in the Company's business. The Directors are cognisant of their duties laid out under Section 172 of the Companies Act 2006 to make decisions taking into account the long-term consequences of all 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. For and on behalf of the Board June Aitken Chairman 20 January 2026 ## Shareholders ### Why it is important to engage The Board places great importance on maintaining an open dialogue with shareholders who own the Company. This engagement is critical to the continuing successful existence of the Company. The Investment Manager along with the Company's corporate broker regularly meets with the Company's shareholders to provide Company updates and to foster regular dialogue. Feedback from meetings between the Investment Manager, the AIFM and shareholders is communicated to the Board. A fundamental consideration of the Board is whether the investment objective of the Company is continuing to meet shareholder expectations. ### Engagement and key Board decisions The principal forum for communicating with shareholders is the Company's Annual General Meeting ("AGM"), where shareholders have the opportunity to meet with the Board and the Investment Manager. The Board has appointed an independent research consultancy, Kepler, to ensure that information and news about the Company is regularly available for existing and potential shareholders. The Board reports formally to shareholders twice a year by way of the Annual and Half Yearly Reports. This information is supplemented by the Company's daily publication of the NAV per share, routine ad hoc regulatory announcements, monthly factsheets. The Chairman and Directors are available to meet with shareholders on request. Shareholders wishing to contact the Board may do so by writing to the Company Secretary (cosec@frostrow.com). #### Key decisions: During the year the Company's Broker, Peel Hunt, the AIFM, Frostrow and the Investment Manager held regular discussions with larger shareholders. The Company launched a redesigned website to deliver a clearer, more informative and accessible online experience for shareholders. The website provides performance data, insights, regulatory news and documents, shareholder communications, and investor tools. The new site can be found at https://www.ccjapanincomeandgrowthtrust.com. The Board has declared a total dividend for the 2025 year of 5.90p per share, an increase of 8.3% on last year's full year distribution of 5.45p per ordinary share; paid out of income received. The dividend has risen every year since inception and since this now covers a period of ten years, the Company will join the AIC's Next Generation of Dividend Heroes in 2026. ## Investment Manager ### Why it is important to engage Chikara is the Company's appointed Investment Manager. The Investment Manager is responsible for the management of the Company's portfolio in accordance with the Company's investment policy and the terms of the Investment Management Agreement. ### Engagement and key Board decisions The Board monitors the Company's investment performance in relation to its objectives and investment policy and strategy. The Board regularly assesses the experience and resources of the Investment Management team and the commitment of the Investment Manager to promote the Company, foster shareholder relations and to ensure that the Company's objective of providing dividend income combined with capital growth for its investors is met. An open and active relationship is maintained with the Investment Manager, at Board meetings, and between meetings as required. Richard Aston has managed the investment portfolio since launch in December 2015. During the year, the Board received regular reports from the team at Chikara and Frostrow who are responsible for marketing the Company. As AIFM to the Company, representatives from Frostrow attended board meetings and reported on compliance processes and controls. #### Key decisions: The Management Engagement Committee met during the year and unanimously endorsed the continued appointment of the Company's Investment Manager. With effect from 1 November 2024, the Company's management fee has been calculated on a tiered basis of 0.75% per annum on the first £300 million of net assets and 0.60% on net assets in excess of £300 million. This compares with the flat fee arrangement of 0.75% per annum on net assets which was levied since the Company's inception. CC Japan Income & Growth Trust plc Annual Report and Accounts 2025 --- CC Japan Income & Growth Trust plc Annual Report and Accounts 2025 23 ![img-11.jpeg](img-11.jpeg) ## Service providers ### Why it is important to engage As an externally managed investment trust, the Company conducts all its business through its key service providers. The Board ensures that the appropriate capability, resources, controls and performance record are in place to deliver the required services. Before the engagement of a service provider, the Board ensures that the service provider's business outlook as well as its values are similar to those of the Company. ### Engagement and key Board decisions The continued appointment of all service providers is reviewed by the Board on an annual basis to ensure that the Company continues to receive high quality service at a competitive cost. The Board receives comprehensive annual internal control reports from key service providers. The Board also seeks annual assurance from its service providers as regards governance, including whistleblowing, prevention of tax evasion and anti-bribery policy and cyber security procedures. #### Key decisions: Following a review of the Company's operational arrangements, the Board decided to appoint Frostrow Capital LLP to provide Administration, Company Secretarial and marketing / investor relations services with effect from 1 January 2025. Frostrow has also been appointed as the Company's AIFM in accordance with the Alternative Investment Fund Managers Directive ("AIFMD"), for the purpose of providing portfolio management and risk management services to the Company. The Board is confident that these operational changes are in the interests of all stakeholders and put the Company in a strong position to grow. At the AGM, shareholders approved the appointment of the Auditor, Johnston Carmichael LLP who has provided independent audit services to the Company for the third time this year. ## Wider community and environment ### Why it is important to engage The Company and its appointed professional suppliers keep abreast of the rules and regulations affecting the investment company sector. The Investment Manager, Chikara, as steward of the Company's assets, engages with investee companies to ensure high standards of governance. The investment strategy of the Company is predicated upon the improving standards of shareholder governance in Japan and the commitment of investee companies to act in the interests of all stakeholders. ### Engagement and key Board decisions The Company Secretary and AIFM regularly report to the Board any changes in the regulatory environment. As AIC members, the Board draws on their resources including the detailing of regulatory changes. The Company has articulated its policy on ESG factors involved in the investment decision-making and evidence of constructive engagement with investee companies. See pages 13 to 15. The ESG policy is available on both the Company's website and the AIC's website. The Investment Manager is committed to being a responsible investor and applies, and is a signatory to, the United Nations PRI, which demonstrates its extensive efforts in terms of ESG integration, active ownership, investor collaboration and transparency. The Investment Manager is a listed signatory to the UK Stewardship Code 2020 and the Japan Stewardship Code. Further information on Chikara's approach to the principles and guidance of the 2020 Japan Stewardship Code can be found on their website: https://www.chikarainvestments.com/legal-disclosures. The Board reviews the governance engagement reports and discusses the voting record with the Investment Manager each year. --- # Governance ![img-12.jpeg](img-12.jpeg) CC Japan Income & Growth Trust plc Annual Report and Accounts 2025 --- # Board of Directors The Directors have a broad range of relevant experience to meet the Company's requirements, and their biographies are given below: ## June Aitken Chairman of the Board and the Management Engagement Committee ### Appointed on 1 February 2022 ![img-13.jpeg](img-13.jpeg) June has over 30 years of experience in Asian and emerging equity markets, and held numerous senior roles at HSBC Bank plc, London and at UBS AG. June is a Non-Executive Director and Chairman of the Audit Committee of JPMorgan Asia Growth and Income plc and Schroder Income Growth Fund plc. June was previously on the board of BBGI Global Infrastructure S.A., HSBC Bank Japan, Aquarius Fund, an Asian fixed income fund, Australian Securities Exchange listed Emerging Markets Masters Fund and the Asian Masters Fund Limited, Erudine Holdings Ltd, a financial software consultancy firm and the Shepherds Bush Housing Group. She was a founding partner and investor of Osmosis Investment Management LLP. June holds a degree in Politics, Philosophy and Economics from Oxford University. ## Kate Cornish-Bowden Director and Chairman of the Audit and Risk Committee ### Appointed on 3 September 2018 ![img-14.jpeg](img-14.jpeg) Kate worked for Morgan Stanley Investment Management for 12 years, where she was a Managing Director and head of Morgan Stanley Investment Management's Global Core Equity business. Prior to joining Morgan Stanley, Kate worked for M&G Investment Management as a research analyst. Kate is a Non-Executive Director and Chairman of International Biotechnology Trust plc and a Non-Executive Director of The European Smaller Companies Trust PLC and Finsbury Growth & Income Trust plc. Kate was formerly a Non-Executive Director and Senior Independent Director of Schroder Oriental Income Fund Ltd and European Assets Trust plc. Kate is an Associate of the Institute of Investment Management and Research (formerly AIMR, now Chartered Financial Analyst Institute), holds a Master's in Business Administration (MBA), and has completed the Financial Times Non-Executive Director Diploma. She is also a Mentor for The Prince's Trust. ## Craig Cleland Director, Senior Independent Director and Chairman of the Nomination Committee ### Appointed on 1 February 2022 ![img-15.jpeg](img-15.jpeg) Craig has over 35 years of investment trust and fund management experience. Since 2013, he has been Head of Corporate Development: Investment Trusts (on a part-time basis) at CQS (UK) LLP, a multi-asset asset management firm in London business with a focus on credit markets. He is also a Non-Executive Director of BlackRock Latin American Investment Trust. Craig also served as a member of the AIC Technical Committee for 10 years and is an Associate of the Institute of Bankers in Scotland. Craig was a Managing Director at JPMorgan Asset Management (UK) Limited as a Client Director of their investment trust business. He was also Director and Senior Company Secretary at Fleming Investment Trust Management, transferring to JPMorgan Chase after the acquisition of Robert Fleming Holdings Limited. He was formerly a Non-Executive Director of Invesco Global Equity Income Trust plc. ## John Charlton-Jones Director ### Appointed on 1 October 2023 ![img-16.jpeg](img-16.jpeg) John has over 35 years of experience working with institutions who invest in the Japanese stock market, as a stockbroker working first for James Capel/HSBC, and then for CLSA (UK) Limited, in both cases becoming Managing Director of Japan equity sales across UK/ Europe for over 15 years. During this time, he spent five years living in Tokyo. John holds a degree in History from Cambridge University. He is also a Trustee of the Daiwa Anglo-Japanese Foundation. CC Japan Income & Growth Trust plc Annual Report and Accounts 2025 --- Governance # Directors' Report ## Strategic report The Directors' Report should be read in conjunction with the Strategic Report on pages 1 to 23. ## Corporate governance The Corporate Governance Statement on pages 30 to 34 forms part of this report. ## Legal and taxation status The Company is an investment company within the meaning of Section 833 of the Companies Act 2006. The Company conducts its affairs to meet the requirements for approval as an investment trust under section 1158 of the Corporation Tax Act 2010. In the opinion of the Directors, the Company has met the conditions and requirements for approval as an investment trust for the year ended 31 October 2025 and intends to continue to do so. ## Management Chikara has been appointed as the Company's Investment Manager. Chikara is authorised and regulated by the Financial Conduct Authority. The Investment Management Agreement is subject to not less than six months' written notice. There is no compensation payable on termination of the agreement. The Board has agreed with the Investment Manager that, with effect from 1 November 2024, the Company's management fee is calculated on a tiered basis of 0.75% per annum on the first £300 million of net assets and 0.60% on net assets in excess of £300 million. This compares with the flat fee arrangement of 0.75% per annum on net assets which has been levied since the Company's inception. In accordance with the Directors' policy on the allocation of expenses between revenue and capital, 80% of the management fee is charged to capital and the remaining 20% to revenue. The Board reviews this policy on a periodic basis and confirms this allocation remains consistent with their expectations of future returns from the portfolio. ## Management engagement The Board carefully reviewed the Investment Manager's appointment during the year. The Directors are satisfied that the Investment Manager has the suitable skills and experience to manage the Company's investments and believe that the continuing appointment of the Investment Manager is in the interests of shareholders as a whole. Since inception in 2015, the Company has met its objectives set out in the prospectus in relation to the annual dividend, which has risen every year. ## AIFM, Administrator and Company Secretary Following a review of the Company's operational arrangements, the Board appointed Frostrow Capital LLP ("Frostrow") with effect from 1 January 2025 as its Alternative Investment Fund Manager ("AIFM"), Administrator and Company Secretary. Frostrow has also been appointed to provide investor relations and marketing services to the Company, alongside the team at Chikara. Frostrow's appointment will improve the standard of governance by providing an additional level of independent oversight. In consequence of this appointment, the Company's registered office has changed to 25 Southampton Buildings, London WC2A 1AL. ## Alternative Investment Fund Managers Directive ("AIFMD") During the reporting year and until 1 January 2025, Chikara fulfilled the role as the Company's AIFM, in accordance with the AIFMD. With effect from 1 January 2025, Frostrow was appointed as the Company's AIFM. The AIFM must ensure that an annual report containing certain information on the Company is made available to investors for each financial year. The FCA Investment Funds Sourcebook (the "Sourcebook") details the requirements of the annual report. All the information required by those rules is included in this Annual Report and Accounts or will be made available on the Company's website: (https://www.ccjapanincomeandgrowthtrust.com/corporate-information/important-documents/). ## Leverage (under AIFMD) The AIFM is required to set leverage limits as a percentage of net assets for the Company utilising methods prescribed under AIFMD. These methods are known as the gross method and the commitment method. Under both methods the AIFM has set current maximum limits of leverage for the Company of 200%. A leverage percentage of 100% equates to nil leverage. The Company's leverage under each of these methods at its year end is shown below: | | Gross method1 | Commitment method | | --- | --- | --- | | Maximum leverage limit | 200% | 200% | | Actual leverage at 31 October 2025 | 118% | 118% | 1 Alternative Performance Measure, see glossary and alternative performance measures on pages 70 to 73. CC Japan Income & Growth Trust plc Annual Report and Accounts 2025 --- # Dividend policy The Company pays dividends on a semi-annual basis, with dividends normally declared in January/February and June and paid in March and July/August each year. In accordance with regulation 19 of the Investment Trust (Approved Company) (Tax) Regulations 2011, the Company will not (except to the extent permitted by those regulations) retain more than 15% of its income (as calculated for UK tax purposes) in respect of an accounting year. In order to increase the distributable reserves available to facilitate the payment of future dividends, the amount standing to the credit of the share premium account of the Company immediately following completion of the first issue of shares on 15 December 2015 was cancelled and transferred to a special distributable reserve. The Company may, at the discretion of the Board, pay all or part of any future dividends out of this special distributable reserve, taking into account the Company's investment objective. Dividends will normally be funded through distributions from portfolio companies including dividends and other distributions, taking account of share buybacks by portfolio companies. The Company declared an interim dividend of 1.65p per share in June 2025 which was paid on 1 August 2025. On 16 January 2026, the Directors declared a second interim dividend in respect of the year ended 31 October 2025 of 4.25p per share, which, will be paid on 2 March 2026, to shareholders on the register at 30 January 2026. # General authority to issue shares A general authority to issue up to 13,473,061 shares and to disapply pre-emption rights when issuing those shares was granted at the Company's last Annual General Meeting. This authority will expire at the time of the Annual General Meeting to be held in March 2026. During the year ended 31 October 2025, the Company did not utilise its authority to issue shares. However, the Board recommends that the Company is granted a new authority to issue up to a maximum of 13,473,061 shares (representing approximately 10% of the shares in issue at the date of this document) and to disapply pre-emption rights when issuing those shares. Resolutions to this effect will be put to shareholders at the Annual General Meeting. Any share issues will be issued at a premium to NAV. # Treasury shares The Companies Act 2006 allows companies to hold shares acquired by way of market purchases to be held as Treasury shares, rather than having to cancel them. This would give the Company the ability to re-issue shares quickly and cost effectively, thereby improving liquidity and providing the Company with additional flexibility in the management of its capital base. No shares will be sold from Treasury at a price less than NAV per existing share at the time of their sale unless they are first offered pro rata to existing shareholders. No shares were bought back during the year ended 31 October 2025 and no shares are currently held in Treasury. # Discount management The Directors recognise the importance to existing shareholders of the Company's shares not trading at a significant discount to their prevailing NAV. To the extent that the shares trade at a significant discount to their prevailing NAV, the Board will consider whether, in the light of the prevailing circumstances, the Company should purchase its own shares, whether pursuant to the general authority referred to below or pursuant to tender offers made on appropriate terms. There is, however, no guarantee or assurance that any discount control mechanisms proposed by the Board will reduce any discount. The Directors currently have the authority to make market purchases of up to 20,196,118 shares. The maximum price (exclusive of expenses) which may be paid for a share must not be more than the higher of: (i) 5 per cent. above the average of the mid-market values of the shares for the five Business Days before the purchase is made: or (ii) the higher of the price of the last independent trade and the highest current independent bid for the shares. Shares will be repurchased only at prices below the prevailing NAV per share, which should have the effect of increasing the NAV per share for remaining shareholders. It is intended that a renewal of the authority to make market purchases will be sought from shareholders at each annual general meeting of the Company and such a resolution will put forward at the forthcoming Annual General Meeting. Purchases of shares may be made only in accordance with the Companies Act, the Listing Rules and the Disclosure Guidance and Transparency Rules. # Life of the Company The Company has no fixed life but, pursuant to the Articles of Association, an ordinary resolution for the continuation of the Company will be proposed at the Annual General Meeting every three years. The last continuation vote was in March 2025 and was supported by 99.9% of those shareholders who voted. The next continuation vote will be proposed at the Annual General Meeting to be held in 2028. Upon any such resolution not being passed, within 90 days proposals will be put forward to the effect that the Company be wound up, liquidated, reconstructed or unitised. CC Japan Income & Growth Trust plc Annual Report and Accounts 2025 --- Governance Directors' Report continued ## Market information The Company's shares are admitted to the closed-ended investment funds category of the Official List of the FCA and are traded on the main market of the London Stock Exchange. The daily NAV per share is published through a regulatory information service. ## Bank overdraft facility The Company has a bank overdraft facility with The Northern Trust Company. Under the terms of the facility a maximum of £12 million, or the equivalent in Japanese yen, can be drawn down. As at the year-end date, none (2024: none) of the overdraft facility was utilised on the Japanese yen bank account. ## Derivatives The Company may use long only contracts for difference ("CFDs") or equity swaps for gearing and efficient portfolio management purposes. Where the Company uses such instruments, it takes a credit risk with regard to the parties with whom it trades and may also bear the risk of settlement default. As at 31 October 2025, the Company held contracts for difference with an absolute exposure of £62,522,000 (2024: £51,153,000). Further information on CFDs can be found in Note 2c of the Accounting Policies, and Note 16 Financial Instruments and Capital Disclosures. ## Financial instruments The financial instruments of the Company generate liquidity risk, credit risk and market risk. An explanation of these risks and how they are managed; and the policy and practice with regard to financial instruments are contained in Note 16 of the financial statements. ## Depositary and custodian The depositary is the entity we are required by regulation to appoint to carry out certain services in relation to the Company, namely, safekeeping of the assets, cash monitoring and regulatory oversight. The trustee and depositary of the Company is Northern Trust Investor Services Limited ("NTISL"). NTISL is a company established in England and Wales and is authorised by the FCA to be a trustee and depositary. ## Capital structure and voting rights At the financial year end, the Company's issued share capital comprised 134,730,610 shares of 1p nominal value. Each share held entitles the holder to one vote. All shares carry equal voting rights and there are no restrictions on those voting rights. Voting deadlines are stated in the Notice of Annual General Meeting and Form of Proxy and are in accordance with the Companies Act 2006. There are no restrictions on the transfer of shares, nor are there any limitations or special rights associated with the shares. ## Significant shareholders As at 31 October 2025, the Company has been formally notified of the following shareholdings in the issued share capital of the Company in accordance with DTR 5 (The Disclosure and Guidance Transparency Directive): | Significant Shareholders | Holding | % | | --- | --- | --- | | 1607 Capital Partners LLC | 14,915,255 | 11.1 | | Rathbone Investment Management Ltd | 13,404,704 | 9.9 | | J M Finn Nominees Limited | 12,078,743 | 9.0 | | Christ Church, Oxford University | 8,706,850 | 6.5 | | TrinityBridge Limited | 6,778,757 | 5.0 | Subsequent to the year end, 1607 Capital Partners LLC notified the Company that on 19 December 2025 it held 14,818,354 shares in the Company, representing 10.9% at the time of notification. No other material changes to the above holdings have been notified. ## Settlement of share transactions Settlement of share transactions in the Company are settled by the CREST share settlement system. ## Political donations The Company does not make political donations. ## Notice of general meetings For the annual general meeting at least twenty-one days' notice shall be given to all the members and to the auditor. All other general meetings shall also be convened by not less than twenty-one days' notice to all those members and to the auditor. A special resolution will be proposed at the forthcoming Annual General Meeting to renew the authority to reduce the period of notice for general meetings to fourteen days. Reduced notice will be used only under exceptional circumstances. ## Going concern The Directors have adopted the going concern basis in preparing the Company's accounts. The following is a summary of the Directors' assessment of the going concern status of the Company, which should be read in conjunction with the Viability statement on page 18. The Company's ability to continue as a going concern is for the period assessed by the Directors, being the period to 31 January 2027, which is at least 12 months from the date the financial statements were authorised for issue. CC Japan Income & Growth Trust plc Annual Report and Accounts 2025 --- The going concern assessment took account of wars in Ukraine and the Middle East; the increase in geopolitical tension between the US and China and the potential for increases in global trade tariffs. The Company's principal risks are market-related and the recent volatile market conditions have demonstrated the resilience of the Company and its investment objective and policy. An explanation of the market, liquidity and credit risks and how they are managed is contained in Note 16 to the financial statements. The Directors have also considered the liquidity of the Company's portfolio of investments as well as its cash position, income, and expense flows. The Company's net assets as at 31 October 2025 were £324.0 million (2024: £265.8 million). As at 31 October 2025, the Company held approximately £315.4 million in quoted investments (2024: £258.5 million) and had cash of £4.4 million (2024: £4.0 million). The results of liquidity stress tests indicate that even in an extreme stress scenario where the market falls by 75%, the Company would be able to liquidate 85.7% of holdings within seven days and 100.0% of holdings within 30 days. The total expenses (excluding finance costs and taxation) for the year ended 31 October 2025 were £3.0 million (2024: £2.8 million), which represented approximately 1.06% (2024: 1.03%) of average net assets during the year. At the date of approval of this report, based on the aggregate net assets of investments and cash held, the Company has substantial operating expenses cover. The Directors have fully considered and assessed the Company's portfolio of investments. A prolonged and deep market decline could lead to falling values of the investments or interruptions to cash flow. However, the Company currently has more than sufficient liquidity available to meet future obligations. In accordance with the Company's Articles of Association, shareholders have the right to vote on the continuation of the Company as an investment trust every three years and a resolution to that effect was last approved at the AGM in March 2025. Accordingly, the next continuation vote will be proposed at the AGM in 2028. ## Appointment and replacement of Directors The rules governing the appointment and replacement of Directors are contained in the Company's Articles of Association which require that Board members retire at every third Annual General Meeting after appointment. However, the Board has agreed that all Directors will be subject to annual re-election. If a Board member does not put themselves forward for re-election at the Annual General Meeting, or the resolution to re-elect them to the Board fails, they will step down. Furthermore, the Board may determine that a Board member may decide to step down at any time. No Board member is subject to compensation for loss of office. ## Articles of Association Any amendment of the Company's Articles of Association requires shareholder approval. ## Directors' indemnities Details on the Directors' indemnities in place are provided in the Directors' Remuneration Implementation Report. ## Auditor information Each of the Directors at the date of the approval of this report confirms that: - so far as the Director is aware, there is no relevant audit information of which the Company's auditor is unaware; and - the Director has taken all steps that they ought to have taken as Director to make themselves aware of any relevant information and to establish that the Company's auditor is aware of that information. This confirmation is given and should be interpreted in accordance with the provisions of Section 418 of the Companies Act 2006. In accordance with Section 489 of the Companies Act 2006, a resolution to re-appoint Johnston Carmichael LLP as the Company's auditor will be put forward at the forthcoming Annual General Meeting. ## Future trends Details of the main trends and factors likely to affect the future development, performance and position of the Company's business can be found in the Portfolio Manager's Report section of this Strategic Report on pages 6 and 7. Further details as to the risks affecting the Company are set out in the 'Principal and Emerging Risks and Uncertainties' on pages 19 to 21. ## Annual General Meeting The Company's forthcoming Annual General Meeting will be held at 12 noon on 27 February 2026. The Notice of the Annual General Meeting can be found on pages 77 to 81 of this Annual Report and Accounts and downloaded from the website. By order of the Board ## Frostrow Capital LLP Company Secretary 20 January 2026 CC Japan Income & Growth Trust plc Annual Report and Accounts 2025 --- Governance # Corporate Governance ## Chairman's introduction Corporate governance is the process by which the board looks after the interests of shareholders and seeks to enhance shareholder value. Shareholders delegate authority to the Directors to enable them to manage the Company, and hold the Directors responsible for the Company's performance. The Board is ultimately responsible for setting the Company's strategy, ensuring itself that this and its culture are aligned, and for monitoring and managing the risks to which the Company is exposed. Good governance includes engaging effectively with shareholders, and the Board is committed to maintaining high standards of business integrity, transparency and accuracy in financial reporting. The Company's sole business is portfolio investment and in common with most investment trust companies it has no executive directors or management, no operating assets and no employees. The Company delegates the management of its day-to-day activities to third-parties which are specialists in their fields, the most important of which are the Investment Manager, the Administrator and Company Secretary, the Custodian of the Company's assets and the Depositary. As a result, much of the work of the Board is the monitoring and supervision of the services provided to the Company by these third-parties. The division of responsibilities among these independent third-party service providers is also a key element of the system of controls the board uses to check and verify the information provided to it, to protect the Company's assets and to manage the risks to which the Company is exposed. This statement of corporate governance forms part of the Directors' Report and explains how the board complies with the Company's reporting requirements and how it performs its functions. ## Corporate governance compliance statement The Board is committed to high standards of corporate governance. It has considered the principles and provisions of the AIC Code of Corporate Governance published in 2019 (the "AIC Code"), which addresses the principles and provisions set out in the UK Corporate Governance Code (the "UK Code") published in 2018, as they apply to investment trust companies. It considers that reporting against the AIC Code, therefore, provides more appropriate information to the Company's shareholders. The Board confirms that the Company has complied with the principles and provisions of the AIC Code, in so far as they apply to the Company's business, throughout the year under review. In January 2024, the Financial Reporting Council updated the UK Code. The AIC subsequently published an updated AIC Code in August 2024 (the "new AIC Code") to reflect the changes made to the UK Code. The new AIC Code will apply to financial years beginning on or after 1 January 2025, with the exception to Provision 34 which is applicable for accounting periods beginning on or after 1 January 2026. The Company will be reporting against the new AIC Code in next year's Annual Report and Accounts. As all of the Company's day-to-day management and administrative functions are outsourced to third parties, it has no executive directors, employees or internal operations and therefore has not reported in respect of the following: - the role of the executive directors and senior management; - executive directors' and senior management remuneration; - the workforce; and - the need for an internal audit function. Copies of the UK Code and AIC Code may be found on the respective organisations' websites: www.frc.org.uk and www.theaic.co.uk. ## The Board of Directors As at 31 October 2025, the Company had four Non-Executive Directors including the Chairman, comprising two male (50%) and two female (50%) directors. Biographical details can be found on page 25. All Directors, including the Chairman, June Aitken, are regarded as independent of the Company's Investment Manager. The Board believes that during the year ended 31 October 2025 its composition was appropriate for an investment company of the Company's nature, meeting both gender and ethnic diversity guidelines. Further information can be found on pages 31 and 32. All of the Directors are able to allocate sufficient time to the Company to discharge their responsibilities effectively. ## Responsibilities of the Chairman, the Board, and its Committees The Chairman leads the Board and is responsible for its overall effectiveness in directing the affairs of the Company. The Company has adopted a document setting out the responsibilities of the Chairman. CC Japan Income & Growth Trust plc Annual Report and Accounts 2025 --- CC Japan Income & Growth Trust plc Annual Report and Accounts 2025 31 # Tenure, independence and succession Generally, Directors are initially appointed by the Board, until the following Annual General Meeting when, as required by the Company's Articles of Association, they will stand for election by shareholders. All Directors will stand for annual re-election on a voluntary basis. The Board recognises the benefits to the Company of having longer serving Directors together with progressive refreshment of the Board. The Board does not believe that length of service in itself necessarily disqualifies a Director from acting independently. However, the Board will take into account the requirements of the AIC Code when making a recommendation for a Director's reappointment. Accordingly, the Board may decide to recommend a director with more than nine years' service for re-election at the Company's AGM. In order to ensure continuity, the Board has adopted corporate governance best practice and has a succession plan in place that allows for gradual refreshment. No Director of the Company has served for nine years or more and all Directors remain independent of the Company's Investment Manager. However, the Board is mindful of when the Board members will reach their ninth anniversary. # Induction and training On appointment, each Director receives a complete induction programme including the opportunity to meet with the Investment Manager and other service providers. The Directors receive other relevant training as necessary. A procedure has been adopted for Directors, in the furtherance of their duties, to take independent professional advice at the expense of the Company. Copies of the Directors' appointment letters are available on request from the Company Secretary. # Board committees ## Audit and Risk Committee A report on pages 39 and 40 provides details of the role and composition of the Audit and Risk Committee together with a description of the work of the Audit and Risk Committee in discharging its responsibilities. ## Management Engagement Committee The Company has a Management Engagement Committee which is chaired by the Chairman of the Board, June Aitken, and consists of all the Directors. The Management Engagement Committee's principal duties are to consider the terms of appointment of the Investment Manager and to review annually the appointment and the terms of the Investment Management Agreement. The Management Engagement Committee also reviews the continued appointment and performance of the Company's other service providers. ## Nomination Committee The Company has a Nomination Committee which is chaired by the Senior Independent Director, Craig Cleland. The Nomination Committee is responsible for identifying and proposing candidates for the office of Director of the Company. The Nomination Committee also considers and reviews remuneration payable to the Directors and makes recommendations regarding Directors' fees to the Board. The terms of reference for these committees can be found on the Company's website: https://ccjapanincomeandgrewthtrust.com. ## Board diversity The Company's policy is that the Board should have an appropriate level of diversity in the boardroom, taking into account relevant skills, experience, gender, social and ethnic backgrounds, cognitive and personal strengths. Brief biographies of the Directors are shown on page 25. The policy is to ensure that the Company's Directors bring a wide range of knowledge, experience, skills, backgrounds and perspectives to the Board. There will be no discrimination on the grounds of gender, religion, race, ethnicity, sexual orientation, age or physical ability. The overriding aim of the policy is to ensure that the Board is composed of the best combination of people for ensuring effective oversight of the Company and constructive support and challenge to the Investment Manager. Consideration is given to the recommendations of the AIC Code and the Board supports the recommendations of the Hampton Alexander review, the FTSE Women Leaders review and the Parker review. The Board appraises its collective set of cognitive and personal strengths, independence and diversity on an annual basis, and especially during the recruitment process, so as to ensure it is aligned with the Company's strategic priorities. The performance appraisal process is described below. The Board believes its composition is appropriate for the Company's circumstances. However, in line with the Board's succession planning and tenure policy, or should strategic priorities change, the Board will review and, if required, adjust its composition. As at date of this Report, the Board comprises two female and two male Board members. The Board takes account of the FCA's listing rule (UKLR6.6.6R (9)(a)) concerning public disclosures on whether a company has met the following targets on board diversity: a) at least 40% of individuals on the board are women; b) at least one of the senior board positions (defined by the FCA as either the chair, senior independent director, chief executive or chief financial officer) is held by a woman; and c) at least one individual on the board is from a minority ethnic background. As at 31 October 2025, the Board meets the criteria of all three targets as a) 50% of the Board are women, b) the role of Chair of the Board is held by a woman, and c) one Board member is from a minority ethnic background. --- Governance Corporate Governance continued The below tables set out the diversity data required under UKLR6.6.6R (10) as at 31 October 2025. As an externally managed investment company, the Board employs no executive staff, and therefore does not have a chief executive officer (CEO) or a chief financial officer (CFO), both of which are deemed to be senior board positions by the FCA. Although not defined as such under UKLR6.6.6R (9)(a) and therefore not included in the tables below, the Board considers the Chair of the Audit and Risk Committee to be a senior board position, given the nature of the Company as an investment trust, the importance of the position and the time it commands. The following information has been provided by each Director. There have been no changes since 31 October 2025. ## Board diversity as at 31 October 2025 | Gender | Number of Board members | Percentage of the Board | Number of senior positions on the Board | | --- | --- | --- | --- | | Men | 2 | 50% | 1^{1} | | Women | 2 | 50% | 1^{2} | | Prefer not to say | - | - | - | 1. Craig Cleland is Senior Independent Director. 2. June Aitken is Chairman of the Board. | Ethnic background | Number of Board members | Percentage of the Board | Number of senior positions on the Board | | --- | --- | --- | --- | | White British or Other White (including minority-white groups) | 3 | 75% | 1^{1} | | Asian/Asian British | 1 | 25% | 1^{2} | | Prefer not to say | - | - | - | 1. Craig Cleland is Senior Independent Director. 2. June Aitken is Chairman of the Board. ## Meeting attendance The number of formal meetings of the Board and Committees held during the year ended 31 October 2025 was as follows, together with individual Directors' attendance at those meetings. | | Quarterly Board | Board Strategy Meeting | Audit and Risk Committee | Management Engagement Committee | Nomination Committee | | --- | --- | --- | --- | --- | --- | | Number of meetings held | 4 | 1 | 3 | 1 | 1 | | June Aitken | 4 | 1 | 3 | 1 | 1 | | Kate Cornish-Bowden | 4 | 1 | 3 | 1 | 1 | | Craig Cleland | 4 | 1 | 3 | 1 | 1 | | John Charlton-Jones | 4 | 1 | 3 | 1 | 1 | Several other ad hoc Board and Committee meetings were held during the year to deal with administrative matters, market updates and approve documentation. CC Japan Income & Growth Trust plc Annual Report and Accounts 2025 --- # Performance appraisal A performance review of the Investment Manager was undertaken using a programme of open and closed ended questions from each of the Board members which were reviewed by the Chairman of the Management Engagement Committee and discussed with the Board. The results were discussed and the Board concluded that the continued appointment of the Investment Manager was in the best interests of the Company's shareholders. The Committee separately considered each of its other service providers. Directors completed a formal annual appraisal process to review the performance of the Board, the committees and the individual Directors. A programme consisting of open and closed-ended questions was used as the basis for this appraisal. The results were reviewed by the Chairman of the Nomination Committee and discussed with the Board. A separate appraisal of the Chairman has been carried out by the other members of the Board and the results reported back by the Senior Independent Director to the Chairman. The results of the performance evaluation were positive and demonstrated that the Board, Chair, Committee Chairs and individual Directors showed the necessary commitment and have the requisite experience for the fulfilment of their duties. # Conflicts of interest As required by law, a Director must avoid a situation where he or she has an interest that conflicts with the Company's interests. The Company's Articles of Association provide the Directors authority to authorise potential conflicts of interest. The Directors are able to impose limits or conditions when giving authorisation if they think this is appropriate. The procedure observed by the Board in considering dealing with conflicted matters is as follows: - Any Board member so conflicted must recuse themselves from the discussion involving the relevant conflict; - Only Directors who have no interest in the matter being considered are able to debate the matter and take the relevant decision; and - In taking the decision the Directors must act in a way they consider, in good faith, will be most likely to promote the Company's success. The Directors have declared any potential conflicts of interest to the Company. These are entered into the Company's register of potential conflicts, which is reviewed regularly by the Board. The Directors are obliged to advise the Company Secretary as soon as they become aware of any potential conflicts of interest. # Internal control The AIC Code requires the Board to review the effectiveness of the Company's system of internal controls. The Board recognises its ultimate responsibility for the Company's system of internal controls and for monitoring its effectiveness. The system of internal controls is designed to manage rather than eliminate the risk of failure to achieve business objectives. It can provide only reasonable assurance against material misstatement or loss. The Board has undertaken a review of the aspects covered by the guidance and has identified risk management controls in the key areas of strategic and business risk, financial risk, operational risk, and regulatory and compliance risk. The Board believes that the existing arrangements, set out below, represent an appropriate framework to meet the internal control requirements. The Directors have kept under review the effectiveness of the internal control system throughout the year and up to the date of this report. # Financial aspects of internal control The Directors are responsible for the internal financial control systems of the Company and for reviewing their effectiveness. These aim to ensure the security of the Company's assets and the accuracy of the financial information upon which business decisions are taken and used for publication. The Board reviews the internal control framework established by the Investment Manager, the Administrator and the Company's Custodian to provide reasonable assurance on the effectiveness of internal financial controls. The key procedures include a monthly review of the Company's management accounts and the daily review of the Net Asset Value and the monitoring of performance of the key service providers at the quarterly Board meetings. The Directors also employ an independent auditor to perform an external audit. The administrative function is segregated from that of securities and cash custody, and from the investment management function. Appropriate Directors and Officers insurance is in place and renewed annually. The Company's key service providers report regularly to the Board on their procedures to mitigate cyber security risks. In addition, procedures have been put in place for the authorisation of all expense payments. The Statement of Directors' Responsibilities in respect of the accounts is on page 41 and a Statement of Going Concern is on pages 28 and 29. The Report of the Independent Auditor is on pages 42 to 47. # Other aspects of internal control The Board holds quarterly meetings, and additional meetings as required. Between these meetings there is regular contact with the Investment Manager, the Company Secretary and Administrator. The Board has agreed policies with the Investment Manager on key operational issues. The Investment Manager reports in writing to the Board on operational and compliance issues. The Investment Manager reports directly to the Audit and Risk Committee concerning the internal controls applicable to the Investment Manager's dealing, investment and general office procedures. CC Japan Income & Growth Trust plc Annual Report and Accounts 2025 33 --- Governance Corporate Governance continued The Board reviews detailed management accounts from the Administrator, including holdings in the portfolio, transactions, and other aspects of the financial position of the Company. The Depositary provides oversight reports detailing performance against key performance indicators for the quarterly Board meetings. Additional ad hoc reports are received as required and the Directors have access at all times to the advice and services of the Company Secretary, ensuring that Board procedures are followed and that the Board complies with applicable rules and regulations. Regular contact with the Investment Manager and the other key service providers enables the Board to monitor the Company's progress towards its objectives and encompasses an analysis of the risks involved. The effectiveness of the Company's risk management and internal controls systems is monitored and a formal review, utilising a detailed risk assessment programme has been completed. This included consideration of the Administrator's, the Investment Manager's, the Depositary's and the Registrar's internal controls reports. There are no significant findings to report from the review. ## Principal and emerging risks The Directors confirm that they have carried out a robust assessment of the emerging and principal risks facing the Company, including those that would threaten its business model, future performance, solvency or liquidity. The principal risks and how they are being managed are set out in the Strategic Report on pages 19 to 21. ## Shareholder relations The Notice of Annual General Meeting, beginning on page 77, sets out the business of the Annual General Meeting. Separate resolutions are proposed for each substantive issue. The Investment Manager has a programme of meetings with significant shareholders and reports back to the Board on its findings. The Chairman and the Board welcome direct feedback from shareholders. ## Exercise of voting powers and stewardship code The Company and the Investment Manager support the UK Stewardship Code issued by the Financial Reporting Council. The Investment Manager is a signatory to the UK Stewardship code 2020 and has published its proxy voting policy and statement of commitment to the principles of best practice of the Stewardship Code on its website at https://www.chikarainvestments.com/stewardship-code it is also a signatory to the Japan Stewardship Code and has published its statement of commitment to its principles on its website at https://www.chikarainvestments.com/japan-stewardship-code. June Aitken Chairman 20 January 2026 CC Japan Income & Growth Trust plc Annual Report and Accounts 2025 --- # Directors' Remuneration Implementation Report This report has been prepared in accordance with Schedule 8 of the Large and Medium-sized Companies and Groups (Accounts and Reports) (Amendment) Regulations 2013. An Ordinary Resolution will be proposed at the forthcoming Annual General Meeting ("AGM") to be held on 27 February 2026 to re-approve the Remuneration Policy. The Board is required to put the Remuneration Policy to its shareholders, as a binding vote, at least at every third AGM. The provisions set out in this policy apply until they are next put forward for shareholder approval. In the event of any proposed variation to the policy, shareholder approval will be sought for the proposed new policy prior to its implementation. It is the Board's intention that the proposed Remuneration Policy continue for three years following the forthcoming AGM to the financial year ending 31 October 2029. The below stated Remuneration Policy remains unchanged from the Remuneration Policy last placed before shareholders at the Company's AGM held in 2023. The Directors' Remuneration Implementation Report is put forward for approval by shareholders on an annual basis. The result of the shareholder resolution on the Implementation Report is non-binding on the Company, although it gives shareholders an opportunity to express their views, which will be taken into account by the Board. An ordinary resolution to approve this Directors' Remuneration Implementation Report will be put forward for approval at the Company's Annual General Meeting to be held on 27 February 2026. The law requires the Company's auditor to audit certain of the disclosures provided. Where disclosures are audited, they are indicated as such. The auditor's opinion is on page 42. ## Remuneration implementation The Company currently has four Non-Executive Directors. The Board has not established a separate Remuneration Committee. Board fees are considered annually by the Board as a whole through the Nomination Committee. The Board sets its fees by reference to other investment trusts of a similar nature to that of the Company, to RPI and CPI and other inflationary measures, the time commitment of the Board and the size and the impact to the Company's ongoing charges following a rise in fees. Board fees are not considered against any performance measure. Directors' fees, with effect from 1 November 2024, were payable at the rate of £45,000 for the Chairman of the Board; £36,500 for the Chairman of the Audit and Risk Committee; £31,000 for the Senior Independent Director and £30,000 per annum for the other Board members. Following the year end, a review was undertaken and after careful consideration the Board approved with effect from 1 November 2025 an increase in annual Directors' fees to £47,000 for the Chairman of the Board; £38,000 for the Chairman of the Audit and Risk Committee; £33,250 for the Senior Independent Director and £31,250 per annum for the other Board members. The Board believes that the level of increase and resulting fees appropriately reflects prevailing market rates for an investment trust of the Company's complexity and size, the increasing level of regulation and resultant time spent by the Directors on matters, and it will also enable the Company to continue to attract appropriately experienced Directors in the future. Due to the size and nature of the Company, it was not deemed necessary to use a remuneration consultant although the Nomination Committee did take into consideration views from external search consultants on the level of the Company's fees against prevailing market rates. The Directors' fees and taxable benefits are shown in the table on page 36. ## Directors' service contracts The Directors do not have service contracts with the Company. The Directors are not entitled to compensation on the loss of office and no payment was made to past directors for loss of office. The Directors have appointment letters which do not provide for any specific term. In accordance with best practice the Board put themselves forward for annual re-election. There are no restrictions on transfers of the Company's shares held by the Directors, or any special rights attached to such shares. The Directors' letters of appointment can be inspected at the Company's registered office. ## Directors' indemnities As permitted by the Company's Articles of Association, the Directors have the benefit of an indemnity, as defined by section 234 of the Companies Act 2006. It is the Company's policy to indemnify its Directors in respect of costs or other liabilities which they may incur in connection with any claims made against them relating to their performance as Directors or the performance of the Company. These indemnities would provide additional financial support if the level of cover provided by the Directors' and Officers' liability insurance maintained by the Company were exhausted. There is no cover against fraudulent or dishonest actions. A policy of insurance against Directors' and Officers' liabilities is maintained by the Company. ## Director search and selection fees No Director search and selection fees were incurred during the year under review. CC Japan Income & Growth Trust plc Annual Report and Accounts 2025 --- Governance Directors' Remuneration Implementation Report continued # Ten year performance The following chart shows the performance of the Company's share price by comparison with the TOPIX since inception, on a total return basis. The Board deems the TOPIX to be the most appropriate comparator for this report. ![img-17.jpeg](img-17.jpeg) # Directors' emoluments for the year ended 31 October 2025 The Directors who served during the year ended 31 October 2025 received the following remuneration for qualifying services. ## Fees and taxable benefits | | Fees Year ended 31 October 2025 £ | Taxable benefits | Total | Fees Year ended 31 October 2024 £ | | --- | --- | --- | --- | --- | | June Aitken^{1} | 45,000 | – | 45,000 | 38,253 | | Kate Cornish-Bowden | 36,500 | – | 36,500 | 34,500 | | Craig Cleland^{2} | 31,000 | – | 31,000 | 29,203 | | John Charlton-Jones | 30,000 | – | 30,000 | 28,500 | | Harry Wells^{3} | – | – | – | 14,836 | | Total | 142,500 | – | 142,500 | 145,292 | 1. June Aitken was appointed as Chairman of the Board on 5 March 2024. 2. Craig Cleland was appointed as Senior Independent Director on 5 March 2024. 3. Harry Wells retired on 5 March 2024. CC Japan Income & Growth Trust plc Annual Report and Accounts 2025 --- In addition to the above, the Company paid no other expenses to the Directors (2024: £3,000). None of the above fees were paid to third parties. There were no taxable benefits claimed during the years ended 31 October 2025 or 31 October 2024. The current aggregate remuneration that can be paid to Directors under the Company's Articles of Association is £500,000 per annum, until otherwise determined by an Ordinary Resolution of the Company. ## Annual percentage change in directors' remuneration The table below contains the annual percentage change in remuneration over the five financial years prior to the current year in respect of the various director roles. | Fee rates: | Year to 31 October 2021 | Year to 31 October 2022 | Year to 31 October 2023 | Year to 31 October 2024 | Year to 31 October 2025 | | --- | --- | --- | --- | --- | --- | | Chairman | £37,500 | £39,000 | £40,500 | £42,750 | £45,000 | | | 0.0% | +4.0% | +3.8% | +5.6% | +5.3% | | Chair of the Audit and Risk Committee | £30,125 | £31,330 | £32,500 | £34,500 | £36,500 | | | 0.0% | +4.0% | +3.7% | +6.2% | +5.8% | | Directors | £25,000 | £26,000 | £27,000 | £28,500 | £30,000 | | | 0.0% | +4.0% | +3.8% | +5.6% | +5.3% | | Additional fee for SID role | £1,000 | £1,040 | £1,000 | £1,000 | £1,000 | | | 0.0% | +4.0% | -3.8% | 0.0% | 0.0% | A non-binding ordinary resolution to approve the Directors' Remuneration Implementation Report contained in the Annual Report and Accounts for the year ended 31 October 2024 was put forward at the Annual General Meeting held on 3 March 2025. The resolution, which is put before shareholders at each Annual General Meeting, was passed with proxies representing 99.87% of the shareholders voting, voted in favour of the resolution. The Directors' Remuneration Policy was last put forward at the Annual General Meeting held on 1 March 2023. The resolution was passed with proxies representing 99.99% of the shares voted in favour of the resolution. The Directors' Remuneration Policy will next be put forward for approval at the Annual General Meeting to be held on 27 February 2026. The Board takes an active role in shareholder engagement and particularly voting outcomes. Shareholders have the opportunity to express their views and ask questions in respect of the Remuneration Policy and Remuneration Implementation Report at the Annual General Meeting. ## Relative importance of spend on pay The following table sets out the total level of Directors' remuneration compared with management fees and other expenses incurred by the Company and the distributions to shareholders by way of dividends. | | Year to 31 October 2025 £'000 | Year to 31 October 2024 £'000 | | --- | --- | --- | | Directors' fees | 143 | 145 | | Management fees and other expenses | 3,059 | 2,758 | | Dividends paid and payable to shareholders | 7,949 | 7,343 | The information in the table above is required by the regulations with the exception of management fees and other expenses which have been included to show the total operating expenses of the Company. CC Japan Income & Growth Trust plc Annual Report and Accounts 2025 --- Governance Directors' Remuneration Implementation Report continued # Directors' holdings The interests of the Directors in the shares of the Company as at 31 October 2025 and at 31 October 2024 were as follows. All share holdings are beneficially owned. | | Shares as at 31 October 2025 | Shares as at 31 October 2024 | | --- | --- | --- | | June Aitken | 44,011 | 42,774 | | Kate Cornish-Bowden | 50,412 | 50,000 | | Craig Cleland | 45,000 | 45,000 | | John Charlton-Jones | 29,954 | 22,403 | Directors are not specifically required to own shares in the Company. # Statement On behalf of the Board and in accordance with Part 2 of Schedule 8 of the Large and Medium-sized Companies and Groups (Accounts and Reports) (Amendment) Regulations 2013, I confirm that the above Report on Remuneration Implementation summarises, as applicable, for the year to 31 October 2025: (a) the major decisions on Directors' remuneration; (b) any substantial changes relating to Directors' remuneration made during the year; and (c) the context in which the changes occurred, and decisions have been taken. June Aitken Chairman 20 January 2026 CC Japan Income & Growth Trust plc Annual Report and Accounts 2025 --- # Report of the Audit and Risk Committee The AIC Code recommends that boards should establish audit committees consisting of at least three independent non-executive directors. The Board is required to satisfy itself that at least one member of the Audit and Risk Committee has recent and relevant financial experience. The main role and responsibilities of the Audit and Risk Committee should be set out in written terms of reference covering certain matters described in the Code. The Company complies with the AIC Code. ## Composition All the Directors of the Board are members of the Audit and Risk Committee. Each committee member is independent and together they bring a variety of relevant and recent investment and financial expertise. The UK Code recommends that the Chair of the Board should not be a member of the Audit and Risk Committee. However, as permitted by the AIC Code, the Directors believe that membership of the Audit and Risk Committee of the independent Chair of the Board, June Aitken is appropriate, and welcome her contribution. The Audit and Risk Committee has formal written terms of reference and copies of these are available on the Company's website or on request to the Company Secretary. The Committee has considered the need for an internal audit function. Given that the Company has no employees and outsources all its operating activities to external providers, the Committee considers that an internal audit function is not needed. The Committee keeps the need for an internal audit function under annual review. ## Role of the Audit and Risk Committee The Audit and Risk Committee meets formally at least three times a year. The responsibilities of the committee include: - Ensuring integrity, transparency and accuracy of the financial reports; - Assisting in the preparation and review of the annual and half year reports and accounts; - Considering the appointment, independence and objectivity, and remuneration of the auditor; - Considering the effectiveness of the annual audit; - Reviewing the internal controls of the Company; - Reviewing the internal controls of the Company's service providers; and - Reviewing the principal and emerging risks, and the Company's processes to mitigate risk. ## Performance evaluation In line with best practice, the Audit and Risk Committee is subject to an annual review of its performance. The evaluation of the Audit and Risk Committee conducted this year confirmed that the Committee operates effectively and continues to meet requirements. Further details of the evaluation of the Committee can be found on page 33. ## Internal controls and risk management The Board has overall responsibility for the Company's risk management and systems of internal controls and for reviewing their effectiveness. In common with most investment trusts, investment management, accounting, company secretarial, registrar and depository services have been delegated to third parties. The effectiveness of the internal controls of all service providers is assessed by the Audit and Risk Committee on a continuing basis and the Committee receives regular assurance reports concerning any errors and omissions. ## Risk management The Audit and Risk Committee meets at least once during the financial year to review the key risks facing the company and to ensure the effectiveness of measures put in place to manage and mitigate risk. These risks fall into three categories: strategic and business risk, financial and operational risk, and regulatory and compliance risk. The outcome of the risk assessment and the details of the Company's principal and emerging risks are outlined on page 19. ## Meetings There have been three Audit and Risk Committee meetings in the year ended 31 October 2025. Meeting attendance is shown on page 32 of this Annual Report and Accounts. ## Financial statements and significant accounting matters considered during the year The Committee considered the following significant accounting issues in relation to the Company's financial statements for the year ended 31 October 2025. ### Valuation and existence of investments The Company holds its assets in quoted investments, derivatives and cash. The valuation and existence of these investments is currently the most material matter in the production of the financial statements. Investments are valued using independent pricing sources and the holding quantities at the year end were agreed with the Depositary's records. The Committee reviewed the Administrator's procedures in place for ensuring accurate valuation and existence of investments. The Committee also receives and reviews any significant pricing or custody reconciliation exceptions and reports from the Depositary. ### Recognition of income Income may not be accrued in the correct period and/or incorrectly allocated to revenue or capital. The Committee reviewed the Administrator's procedures for recognition of income and reviewed the treatment of any special dividends receivable in the year. The Committee also reviewed the Administrator's forecast of revenue against actual revenue received at each Committee meeting. CC Japan Income & Growth Trust plc Annual Report and Accounts 2025 --- Governance Report of the Audit and Risk Committee continued ## S1158 of the Corporation Tax Act 2010 The Committee considers the reports produced by the AIFM confirming compliance with the investment trust qualifying rules. ## Going concern and viability statements Having reviewed the Company's financial position, liabilities, principal/emerging risks and uncertainties, the Committee recommended to the Directors that it was appropriate for the Directors to prepare the financial statements on the going concern basis. The Committee considered the appropriateness of the assumptions used in the viability statement and is confident that these are sufficiently robust. The going concern assessment and viability statements can be found on pages 28 and 29 and page 18, respectively. ## Audit tenure The appointment of the auditor is reviewed annually by the Committee and is subject to approval by shareholders. This year will be the third year that Johnston Carmichael has been the Company's Auditor. Shareholders approved the reappointment of Johnston Carmichael as the Company's Auditor at the AGM in March 2025. ## Effectiveness of external audit The Audit and Risk Committee is responsible for reviewing the effectiveness of the external audit process. The Committee met to discuss the audit plan with the auditor prior to the commencement of the 2025 audit, and attended a presentation of the results of the audit following completion of the main audit testing. The Committee performed a review of the external auditor following the presentation of the results of the audit. The review included a discussion of the audit process and the ability of the external auditor to fulfil its role. I spoke to Richard Sutherland, the partner at Johnston Carmichael, and his team during the year to discuss feedback from the external auditor and am pleased to report that no significant issues arose during the audit process. The Committee is satisfied that Johnston Carmichael has provided effective independent challenge in carrying out its responsibilities. ## Provision of non-audit services The Committee has reviewed the FRC's Guidance on Audit Committees and has formulated a policy on the provision of non-audit services by the Company's auditor. The Committee has determined that the Company's appointed auditor will not be considered for the provision of certain non-audit services, such as accounting and preparation of the financial statements, internal audit and custody. The auditor's eligibility to provide non-audit services will be judged on a case-by-case basis; however no non-audit services were provided during the financial year under review. ## Audit fees The audit fees (excluding VAT) incurred during the year amounted to £43,300 (2024: £41,000). ## Auditor independence The Committee considered the independence of the auditor and the objectivity of the audit process and is satisfied that Johnston Carmichael has fulfilled its obligations to shareholders and as independent auditor to the Company for the year. After due consideration, the Committee recommends the re-appointment of Johnston Carmichael, and their re-appointment will be put to the Company's shareholders at the 2026 AGM. ## Conclusion with respect to the Annual Report and Accounts Following a thorough process of review, the Committee has concluded that the Annual Report and Accounts for the year ended 31 October 2025, taken as a whole, is fair, balanced and understandable and provides the information necessary for shareholders to assess the Company's business model, strategy and performance. The Committee has reported its conclusions to the Board of Directors. Kate Cornish-Bowden Audit and Risk Committee Chairman 20 January 2026 CC Japan Income & Growth Trust plc Annual Report and Accounts 2025 --- # Statement of Directors' Responsibilities The Directors are responsible for preparing the Annual Report and Accounts in accordance with applicable laws and regulations. Company law requires the Directors to prepare financial statements for each financial year. Under that law, the Directors have elected to prepare the financial statements in accordance with United Kingdom Generally Accepted Accounting Practice, including FRS 102, which is the Financial Reporting Standard applicable to the UK and Republic of Ireland and applicable law. 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 the Company's affairs as at the end of the year and of the net return for the year. In preparing these financial statements, the Directors are required to: - select suitable accounting policies and then apply them consistently; - make judgements and estimates, which are reasonable and prudent; - state whether applicable accounting standards have been followed, subject to any material departures disclosed and explained in the financial statements; - prepare the financial statements on a going concern basis unless it is inappropriate to presume that the Company will continue in business; and - prepare a directors' report, a strategic report and directors' remuneration report which comply with the requirements of the Companies Act 2006. The Directors are responsible for keeping adequate accounting records that are sufficient to show and explain the Company's transactions and which 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 also responsible for safeguarding the assets of the Company and hence for taking reasonable steps for the prevention and detection of fraud and other irregularities. The Directors are also responsible for preparing a Strategic Report, Directors' Report, Directors' Remuneration Report and Corporate Governance Statement that comply with applicable laws and regulations. The Company Reports and Accounts are published on its website at www.ccjapanincomeandgrowthtrust.com which is maintained by Frostrow. The work carried out by the auditor does not involve consideration of the maintenance and integrity of this website and, accordingly, the auditor accepts no responsibility for any changes that have occurred to the financial statements since being initially presented on the website. Legislation in the United Kingdom governing the preparation and dissemination of financial statements may differ from legislation in other jurisdictions. ## Directors' confirmation statement The Directors each confirm to the best of their knowledge that: (a) the financial statements, prepared in accordance with United Kingdom Generally Accepted Accounting Practice, including FRS 102, give a true and fair view of the assets, liabilities, financial position and profit of the Company; and (b) this Annual Report and Accounts includes a fair review of the development and performance of the business and position of the Company, together with a description of the principal risks and uncertainties that it faces. Having taken advice from the Audit and Risk Committee, the Directors consider that 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 performance, business model and strategy. For and on behalf of the Board June Aitken Chairman 20 January 2026 CC Japan Income & Growth Trust plc Annual Report and Accounts 2025 --- Governance # Independent Auditor’s Report to the Members of CC Japan Income & Growth Trust plc ## Opinion We have audited the financial statements of CC Japan Income & Growth Trust plc (the "Company"), for the year ended 31 October 2025, which comprise the Income Statement, Statement of Financial Position, Statement of Changes in Equity, Statement of Cash Flows and Notes to the Accounts, including significant accounting policies. The financial reporting framework that has been applied in their preparation is applicable law and United Kingdom Accounting Standards, including Financial Reporting Standard 102 The Financial Reporting Standard applicable in the UK and Republic of Ireland (United Kingdom Generally Accepted Accounting Practice). In our opinion the financial statements: - Give a true and fair view of the state of the Company's affairs as at 31 October 2025 and of its return for the year then ended; - Have been properly prepared in accordance with United Kingdom Generally Accepted Accounting Practice; and - Have been prepared in accordance with the requirements of the Companies Act 2006. ## Basis for opinion We conducted our audit in accordance with International Standards on Auditing (UK) (ISAs (UK)) and applicable law. Our responsibilities under those standards are further described in the Auditor responsibilities for the audit of the financial statements section of our report. We are independent of the Company in accordance with the ethical requirements that are relevant to our audit of the financial statements in the UK, including the FRC's Ethical Standard, as applied to listed public interest entities, and we have fulfilled our other ethical responsibilities in accordance with these requirements. We believe that the audit evidence we have obtained is sufficient and appropriate to provide a basis for our opinion. ## Our approach to the audit We planned our audit by first obtaining an understanding of the Company and its environment, including its key activities delegated by the Board to relevant approved third-party service providers and the controls over provision of those services. We conducted our audit using information maintained and provided by Chikara Investments LLP (the "Investment Manager"), Frostrow Capital LLP (the "Alternative Investment Fund Manager", the "Administrator" and the "Company Secretary"), Northern Trust Investor Services Limited (the "Depositary" and the "Custodian") and MUFG Corporate Markets (the "Registrar") to whom the Company has delegated the provision of services. We tailored the scope of our audit to reflect our risk assessment, taking into account such factors as the types of investments within the Company, the involvement of the Administrator, the accounting processes and controls, and the industry in which the Company operates. The scope of our audit was influenced by our application of materiality. We set certain quantitative thresholds for materiality. These together with qualitative considerations, helped us to determine the scope of our audit and the nature, timing and extent of our audit procedures on the individual financial statement line items and disclosures and in the evaluation of the effect of misstatements, both individually and in aggregate on the financial statements as a whole. ## Key audit matters Key audit matters are those matters that, in our professional judgement, were of most significance in our audit of the financial statements of the current period and include the most significant assessed risks of material misstatement (whether or not due to fraud) that we identified. These matters included those which had the greatest effect on: the overall audit strategy; the allocation of resources in the audit; and directing the efforts of the engagement team. These matters were addressed in the context of our audit of the financial statements as a whole, and in forming our opinion thereon, we do not provide a separate opinion on these matters. We summarise below the key audit matters in arriving at our audit opinion above, together with how our audit addressed these matters and the results of our audit work in relation to these matters. CC Japan Income & Growth Trust plc Annual Report and Accounts 2025 --- | Key audit matters | How our audit addressed the key audit matters and our conclusions | | --- | --- | | Valuation of investments (as per page 39 (Report of the Audit and Risk Committee), pages 53 to 55 (Accounting Policies) and Note 3). | We performed a walkthrough of the investment valuation process at the Administrator to evaluate the design of the process and implementation of key controls. | | As at 31 October 2025, the valuation of the level 1, listed investments portfolio was £312.6m, the valuation of the level 2 money market funds was £2.8m and the valuation of the level 2 contracts for difference ("CFDs") was £1.7m. | We compared market prices and exchange rates applied to all level 1 listed investments, level 2 money market funds, and level 2 CFDs held at 31 October 2025 to an independent third-party source and recalculated the investment valuations. | | As this is the largest component of the Company's Statement of Financial Position, and a key driver of the Company's net assets and total return, this has been designated as a key audit matter, being one of the most significant assessed risks of material misstatement due to error. | We obtained average trading volumes from an independent third-party source for all listed investments held at year end and assessed their liquidity. We also assessed trading activity for evidence of an active market. | | There is a further risk that the investments held at fair value may not be actively traded and the quoted prices may not therefore be reflective of fair value. | From our completion of these procedures, we identified no material misstatements in relation to the valuation of investments. | | Revenue recognition, including allocation of special dividends as revenue or capital returns (as per page 39 (Report of the Audit and Risk Committee), pages 53 to 55 (Accounting Policies) and Note 4). | We performed a walkthrough of the revenue recognition process, including the process for allocating special dividends, at the Administrator to evaluate the design of the process and implementation of key controls. | | Investment income recognised for the year to 31 October 2025 was £10.5m, consisting primarily of dividend income from listed investments and CFDs. | We evaluated whether income was recognised and disclosed in accordance with the financial reporting framework, including the AIC SORP and the Company's accounting policies. | | Revenue-based performance metrics are often one of the key performance indicators for stakeholders. The investment income received by the Company during the year directly impacts these metrics and the minimum dividend required to be paid by the Company. | We recalculated 100% of dividends due to the Company, from equity holdings and CFDs, based on investment holdings throughout the year and announcements made by investee companies. | | There is a risk that revenue is incomplete, did not occur or is inaccurate through failure to recognise income entitlements or failure to appropriately account for their treatment. It has therefore been designated as a key audit matter, being one of the most significant assessed risks of material misstatement due to error. | We compared exchange rates applied to all overseas dividends received from the investee companies during the year to an independent third-party source. | | Additionally, there is a further fraud risk of incorrect allocation of special dividends as revenue or capital returns, as judgement is required in determining their allocation within the Income Statement. | We agreed a sample of dividends received to bank statements. | | | We assessed the completeness of the special dividend population with reference to third-party market data and assessed management's judgement for allocating special dividends as revenue or capital returns with reference to the underlying commercial circumstances of dividend payments. | | | From our completion of these procedures, we identified no material misstatements in relation to revenue recognition, including allocation of special dividends as revenue or capital returns. | CC Japan Income & Growth Trust plc Annual Report and Accounts 2025 --- Governance Independent Auditor's Report to the Members of CC Japan Income & Growth Trust plc continued # Our application of materiality We define materiality as the magnitude of misstatement in the financial statements that makes it probable that the economic decisions of a reasonably knowledgeable person would be changed or influenced. We use materiality in determining the nature and extent of our work and in evaluating the results of that work. | Materiality measure | Value | | --- | --- | | Materiality for the financial statements as a whole | | | We have set materiality as 1% of net assets as we believe that net assets is the primary performance measure used by investors and is the key driver of shareholder value. We determined the measurement percentage to be commensurate with the risk and complexity of the audit and the Company's listed status. | £3.24m (2024: £2.66m) | | Performance materiality | | | Performance materiality represents amounts set by the auditor at less than materiality for the financial statements as a whole, to reduce to an appropriately low level the probability that the aggregate of uncorrected and undetected misstatements exceeds materiality for the financial statements as a whole. | £2.43m (2024: £1.99m) | | In setting this we consider the Company's overall control environment, and our past experience of the audit that indicates a lower risk of material misstatements. Based on our judgement of these factors, we have set performance materiality at 75% of our overall financial statement materiality. | | | Specific materiality | | | Recognising that there are transactions and balances of a lesser amount which could influence the understanding of users of the financial statements we calculate a lower level of materiality for testing such areas. | £0.45m (2024: £0.41m) | | Specifically, given the importance of the distinction between revenue and capital for the Company, we also applied a separate testing threshold for the revenue column of the Income Statement, set as 5% of the net revenue return on ordinary activities before tax. | | | We have set a specific materiality in respect of related party transactions and Directors' remuneration. | | | We used our judgement in setting these thresholds and considered our past experience of the audit, the history of misstatements and industry benchmarks for specific materiality. | | | Audit and Risk Committee reporting threshold | | | We agreed with the Audit and Risk Committee that we would report to them all differences in excess of 5% of overall materiality in addition to other identified misstatements that warranted reporting on qualitative grounds, in our view. For example, an immaterial misstatement as a result of fraud. | £0.16m (2024: £0.13m) | During the course of the audit, we reassessed initial materiality and found no reason to alter the basis of calculation used at year-end. # Conclusions relating to going concern In auditing the financial statements, we have concluded that the Directors' use of the going concern basis of accounting in the preparation of the financial statements is appropriate. Our evaluation of the Directors' assessment of the Company's ability to continue to adopt the going concern basis of accounting included: - Evaluating management's method of assessing going concern, including consideration of market conditions and macro-economic uncertainties; - Assessing and challenging the forecast cashflows and associated sensitivity modelling used by management in support of their going concern assessment by reference to supporting documentation; - Obtaining and recalculating management's assessment of the Company's ongoing maintenance of investment trust status; and - Assessing the adequacy of the Company's going concern disclosures included in the Annual Report. Based on the work we have performed, we have not identified any material uncertainties relating to events or conditions that, individually or collectively, may cast significant doubt on the Company's ability to continue as a going concern for a period of at least twelve months from when the financial statements are authorised for issue. CC Japan Income & Growth Trust plc Annual Report and Accounts 2025 --- In relation to the Company's reporting on how it has applied the UK Corporate Governance Code, we have nothing material to add or draw attention to in relation to the Directors' statement in the financial statements about whether the Directors considered it appropriate to adopt the going concern basis of accounting. Our responsibilities and the responsibilities of the Directors with respect to going concern are described in the relevant sections of this report. ## Other information The other information comprises the information included in the Annual Report and Accounts other than the financial statements and our auditor's report thereon. The Directors are responsible for the other information contained within the Annual Report and Accounts. Our opinion on the financial statements does not cover the other information and, except to the extent otherwise explicitly stated in our report, we do not express any form of assurance conclusion thereon. Our responsibility is to read the other information and, in doing so, consider whether the other information is materially inconsistent with the financial statements or our knowledge obtained in the course of the audit, or otherwise appears to be materially misstated. If we identify such material inconsistencies or apparent material misstatements, we are required to determine whether this gives rise to a material misstatement in the financial statements themselves. If, based on the work we have performed, we conclude that there is a material misstatement of this other information, we are required to report that fact. We have nothing to report in this regard. ## Opinions on other matters prescribed by the Companies Act 2006 In our opinion, the part of the Directors' Remuneration Report to be audited has been properly prepared in accordance with the Companies Act 2006. In our opinion, based on the work undertaken in the course of the audit: - The information given in the Strategic Report and the Directors' Report for the financial year for which the financial statements are prepared is consistent with the financial statements; and - The Strategic Report and the Directors' Report have been prepared in accordance with applicable legal requirements. ## Matters on which we are required to report by exception In the light of the knowledge and understanding of the Company and its environment obtained in the course of the audit, we have not identified material misstatements in the Strategic Report or the Directors' Report. We have nothing to report in respect of the following matters in relation to which the Companies Act 2006 requires us to report to you if, in our opinion: - Adequate accounting records have not been kept by the Company, or returns adequate for our audit have not been received from branches not visited by us; or - The financial statements and the part of the Directors' Remuneration Report to be audited are not in agreement with the accounting records and returns; or - Certain disclosures of Directors' remuneration specified by law are not made; or - We have not received all the information and explanations we require for our audit; or - A corporate governance statement has not been prepared by the Company. ## Corporate governance statement We have reviewed the Directors' statement in relation to going concern, longer-term viability and that part of the Corporate Governance Statement relating to the entity's compliance with the provisions of the UK Corporate Governance Code specified for our review by the Listing Rules. Based on the work undertaken as part of our audit, we have concluded that each of the following elements of the Corporate Governance Statement is materially consistent with the financial statements or our knowledge obtained during the audit: - The Directors' statement with regards to the appropriateness of adopting the going concern basis of accounting and any material uncertainties identified set out on pages 28 and 29; - The Directors' explanation as to its assessment of the Company's prospects, the period this assessment covers and why the period is appropriate set out on page 18; - The Directors' statement on fair, balanced and understandable set out on page 41; - The Directors' statement on whether it has a reasonable expectation that the Company will be able to continue in operation and meets its liabilities set out on pages 28 and 29; - The Board's confirmation that it has carried out a robust assessment of the emerging and principal risks set out on page 34; - The section of the Annual Report that describes the review of the effectiveness of risk management and internal control systems set out on pages 33 and 34; and - The section describing the work of the Audit and Risk Committee set out on pages 39 and 40. CC Japan Income & Growth Trust plc Annual Report and Accounts 2025 --- Governance Independent Auditor's Report to the Members of CC Japan Income & Growth Trust plc continued # Responsibilities of Directors As explained more fully in the Directors' Responsibilities Statement set out on page 41, the Directors are responsible for the preparation of the financial statements and for being satisfied that they give a true and fair view, and for such internal control as the Directors determine is necessary to enable the preparation of financial statements that are free from material misstatement, whether due to fraud or error. In preparing the financial statements, the Directors are responsible for assessing the Company's ability to continue as a going concern, disclosing, as applicable, matters related to going concern and using the going concern basis of accounting unless the Directors either intend to liquidate the Company or to cease operations, or have no realistic alternative but to do so. # Auditor's responsibilities for the audit of the financial statements Our objectives are to obtain reasonable assurance about whether the financial statements as a whole are free from material misstatement, whether due to fraud or error, and to issue an auditor's report that includes our opinion. Reasonable assurance is a high level of assurance but is not a guarantee that an audit conducted in accordance with ISAs (UK) will always detect a material misstatement when it exists. Misstatements can arise from fraud or error and are considered material if, individually or in the aggregate, they could reasonably be expected to influence the economic decisions of users taken on the basis of these financial statements. A further description of our responsibilities for the audit of the financial statements is located on the Financial Reporting Council's website at: http://www.frc.org.uk/auditorsresponsibilities. This description forms part of our auditor's report. # Extent to which the audit was considered capable of detecting irregularities, including fraud Irregularities, including fraud, are instances of non-compliance with laws and regulations. We design procedures in line with our responsibilities, outlined above, to detect material misstatements in respect of irregularities, including fraud. The extent to which our procedures are capable of detecting irregularities, including fraud is detailed below. We assessed whether the engagement team collectively had the appropriate competence and capabilities to identify or recognise non-compliance with laws and regulations by considering their experience, past performance and support available. All engagement team members were briefed on relevant identified laws and regulations and potential fraud risks at the planning stage of the audit. Engagement team members were reminded to remain alert to any indications of fraud or non-compliance with laws and regulations throughout the audit. We obtained an understanding of the legal and regulatory frameworks that are applicable to the Company and the sector in which it operates, focusing on those provisions that had a direct effect on the determination of material amounts and disclosures in the financial statements. The most relevant frameworks we identified include: - Companies Act 2006; - Financial Conduct Authority ("FCA") listing and Disclosure Guidance and Transparency Rules ("DTR"); - The principles of the UK Corporate Governance Code applied by the AIC Code of Corporate Governance (the "AIC Code"); - Industry practice represented by the Statement of Recommended Practice: Financial Statements of Investment Trust Companies and Venture Capital Trusts ("the SORP") issued in July 2022; - The Company's qualification as an investment Trusts under section 1158 of the Corporation Tax Act 2010; and - UK Generally Accepted Accounting Practice. We gained an understanding of how the Company is complying with these laws and regulations by making enquiries of management and those charged with governance. We corroborated these enquiries through our review of relevant correspondence with regulatory bodies and board meeting minutes. We assessed the susceptibility of the financial statements to material misstatement, including how fraud might occur, by meeting with management and those charged with governance to understand where it was considered there was susceptibility to fraud. This evaluation also considered how management and those charged with governance were remunerated and whether this provided an incentive for fraudulent activity. We considered the overall control environment and how management and those charged with governance oversee the implementation and operation of controls. In areas of the financial statements where the risks were considered to be higher, we performed procedures to address each identified risk. We identified a heightened fraud risk in relation to: - Management override of controls; and - Completeness and allocation of special dividends. Audit procedures performed in response to the risks relating to the completeness and allocation of special dividends are set out in the section on key audit matters above, and audit procedures performed in response to the risk of management override of controls are included below. In addition to the above, the following procedures were performed to provide reasonable assurance that the financial statements were free of material fraud or error: - Reviewing minutes of meetings of those charged with governance for reference to: breaches of laws and regulation or for any indication of any potential litigation and claims; and events or conditions that could indicate an incentive or pressure to commit fraud or provide an opportunity to commit fraud; CC Japan Income & Growth Trust plc Annual Report and Accounts 2025 --- - Reviewing the level of and reasoning behind the Company's procurement of legal and professional services; - Performing audit procedures over the risk of management override of controls, including testing of journal entries and other adjustments for appropriateness, unpredictability testing, recalculating the investment management fee, evaluating the business rationale of significant transactions outside the normal course of business and assessing judgements made by management in their calculation of accounting estimates for potential management bias; - Completion of appropriate checklists and use of our experience to assess the company's compliance with the Companies Act 2006 and the Listing Rules; and - Agreement of the financial statement disclosures to supporting documentation. Our audit procedures were designed to respond to the risk of material misstatements in the financial statements, recognising that the risk of not detecting a material misstatement due to fraud is higher than the risk of not detecting one resulting from error, as fraud may involve intentional concealment, forgery, collusion, omission or misrepresentation. There are inherent limitations in the audit procedures performed and the further removed non-compliance with laws and regulations is from the events and transactions reflected in the financial statements, the less likely we would become aware of it. ## Other matters which we are required to address Following the recommendation of the Audit and Risk Committee, we were appointed by the Board on 1 March 2023 to audit the financial statements for the year ended 31 October 2023 and subsequent financial years. The period of our total uninterrupted engagement is three years, covering the years ended 31 October 2023 to 31 October 2025. The non-audit services prohibited by the FRC's Ethical Standard were not provided to the Company and we remain independent of the Company in conducting our audit. Our audit opinion is consistent with the additional report to the Audit and Risk Committee. ## Use of our report This report is made solely to the Company's members, as a body, in accordance with Chapter 3 of Part 16 of the Companies Act 2006. Our audit work has been undertaken so that we might state to the Company's members those matters we are required to state to them in an auditor's report and for no other purpose. To the fullest extent permitted by law, we do not accept or assume responsibility to anyone other than the Company and the Company's members as a body, for our audit work, for this report, or for the opinions we have formed. Richard Sutherland (Senior statutory auditor) For and on behalf of Johnston Carmichael LLP Statutory Auditor Edinburgh, United Kingdom 20 January 2026 CC Japan Income & Growth Trust plc Annual Report and Accounts 2025 --- # Financial Statements ![img-18.jpeg](img-18.jpeg) CC Japan Income & Growth Trust plc Annual Report and Accounts 2025 --- # Income Statement For the year ended 31 October 2025 | | Note | Year ended 31 October 2025 | | | Year ended 31 October 2024 | | | | --- | --- | --- | --- | --- | --- | --- | --- | | | | Revenue £'000 | Capital £'000 | Total £'000 | Revenue £'000 | Capital £'000 | Total £'000 | | Gains on investments | 3 | - | 60,189 | 60,189 | - | 34,432 | 34,432 | | Currency losses | | - | (500) | (500) | - | (1,841) | (1,841) | | Income | 4 | 10,496 | - | 10,496 | 9,357 | - | 9,357 | | Investment management fee | 5 | (423) | (1,691) | (2,114) | (400) | (1,599) | (1,999) | | Other expenses | 6 | (908) | - | (908) | (759) | - | (759) | | Return on ordinary activities before finance costs and taxation | | 9,165 | 57,998 | 67,163 | 8,198 | 30,992 | 39,190 | | Finance costs | 7 | (153) | (360) | (513) | (97) | (234) | (331) | | Return on ordinary activities before taxation | | 9,012 | 57,638 | 66,650 | 8,101 | 30,758 | 38,859 | | Taxation | 8 | (1,032) | - | (1,032) | (928) | - | (928) | | Return on ordinary activities after taxation | | 7,980 | 57,638 | 65,618 | 7,173 | 30,758 | 37,931 | | Return per share | 13 | 5.92p | 42.78p | 48.70p | 5.32p | 22.83p | 28.15p | The total column of the Income Statement is the profit and loss account of the Company. All revenue and capital items in the above statement were derived from continuing operations. Both the supplementary revenue and capital columns are prepared under guidance from the Association of Investment Companies. There is no other comprehensive income and therefore the return for the year is also the total comprehensive income for the year. The notes on pages 53 to 68 form part of these financial statements. CC Japan Income & Growth Trust plc Annual Report and Accounts 2025 --- Financial Statements # Statement of Financial Position As at 31 October 2025 | | Note | 31 October 2025 £'000 | 31 October 2024 £'000 | | --- | --- | --- | --- | | Fixed assets | | | | | Investments at fair value through profit or loss | 3 | 315,369 | 258,478 | | Current assets | | | | | Cash and cash equivalents | | 4,359 | 4,006 | | Cash collateral in respect of Contracts for Difference ("CFDs") | | 659 | 413 | | Amounts due in respect of CFDs | | 2,860 | 8,027 | | Other debtors | 10 | 4,190 | 4,062 | | | | 12,068 | 16,508 | | Creditors: amounts falling due within one year | | | | | Cash collateral in respect of CFDs | | (1,917) | (8,837) | | Amounts payable in respect of CFDs | | (1,119) | (17) | | Other creditors | 11 | (352) | (291) | | | | (3,388) | (9,145) | | Net current assets | | 8,680 | 7,363 | | Total assets less current liabilities | | 324,049 | 265,841 | | Net assets | | 324,049 | 265,841 | | Capital and reserves | | | | | Share capital | 12 | 1,348 | 1,348 | | Share premium | | 98,067 | 98,067 | | Special reserve | | 64,671 | 64,671 | | Capital reserve | | | | | - Revaluation gains on equity investments held at year end | 3 | 75,495 | 35,561 | | - Other capital reserves | | 76,023 | 58,319 | | Revenue reserve | | 8,445 | 7,875 | | Total shareholders' funds | | 324,049 | 265,841 | | NAV per share - shares (pence) | 14 | 240.52p | 197.31p | Approved by the Board of Directors and authorised for issue on 20 January 2026 and signed on their behalf by: June Aitken Director CC Japan Income & Growth Trust plc is incorporated in England and Wales with registration number 9845783. The notes on pages 53 to 68 form part of these financial statements. CC Japan Income & Growth Trust plc Annual Report and Accounts 2025 --- # Statement of Changes in Equity For the year ended 31 October 2025 For the year ended 31 October 2025 | | Note | Share capital £'000 | Share premium £'000 | Special reserve £'000 | Capital reserve £'000 | Revenue reserve £'000 | Total £'000 | | --- | --- | --- | --- | --- | --- | --- | --- | | Balance at 1 November 2024 | | 1,348 | 98,067 | 64,671 | 93,880 | 7,875 | 265,841 | | Return on ordinary activities after taxation | | – | – | – | 57,638 | 7,980 | 65,618 | | Dividends paid | 9 | – | – | – | – | (7,410) | (7,410) | | Balance at 31 October 2025 | | 1,348 | 98,067 | 64,671 | 151,518 | 8,445 | 324,049 | For the year ended 31 October 2024 | | Note | Share capital £'000 | Share premium £'000 | Special reserve £'000 | Capital reserve £'000 | Revenue reserve £'000 | Total £'000 | | --- | --- | --- | --- | --- | --- | --- | --- | | Balance at 1 November 2023 | | 1,348 | 98,067 | 64,671 | 63,122 | 7,910 | 235,118 | | Return on ordinary activities after taxation | | – | – | – | 30,758 | 7,173 | 37,931 | | Dividends paid | 9 | – | – | – | – | (7,208) | (7,208) | | Balance at 31 October 2024 | | 1,348 | 98,067 | 64,671 | 93,880 | 7,875 | 265,841 | The Company's distributable reserves consist of the Special reserve, Revenue reserve and Capital reserve attributable to realised profits. The notes on pages 53 to 68 form part of these financial statements. CC Japan Income & Growth Trust plc Annual Report and Accounts 2025 --- Financial Statements # Statement of Cash Flows For the year ended 31 October 2025 | | Year ended 31 October 2025 £ 000 | Year ended 31 October 2024 £ 000 | | --- | --- | --- | | Operating activities cash flows | | | | Return on ordinary activities before finance costs and taxation¹ | 67,163 | 39,190 | | Adjustment for: | | | | Gains on equity investments | (49,541) | (26,332) | | Realised gains on CFDs | (16,943) | (122) | | Movement in CFD balances | (897) | (11) | | Increase in other debtors | (367) | (73) | | Increase/(decrease) in other creditors | 49 | (52) | | Tax withheld on overseas income | (1,032) | (928) | | Net cash flow from operating activities | (1,568) | 11,672 | | Investing activities cash flows | | | | Purchases of equity investments | (116,996) | (63,521) | | Proceeds from sales of equity investments | 109,885 | 62,923 | | Realised gains on CFDs | 16,943 | 122 | | Net cash flow used in investing activities | 9,832 | (476) | | Financing activities cash flows | | | | Equity dividends paid | (7,410) | (7,208) | | Finance costs paid | (501) | (322) | | Net cash flow used in financing activities | (7,911) | (7,530) | | Increase in cash and cash equivalents | 353 | 3,666 | | Cash and cash equivalents at the beginning of the year | 4,006 | 340 | | Cash and cash equivalents at the end of the year | 4,359 | 4,006 | 1 Inflow from dividends was £9,076,000 (2024: £8,314,000). The notes on pages 53 to 68 form part of these financial statements. CC Japan Income & Growth Trust plc Annual Report and Accounts 2025 --- # Notes to the Accounts ## 1. General Information CC Japan Income & Growth Trust plc (the "Company") was incorporated in England and Wales on 28 October 2015 with registered number 9845783, as a closed-ended investment company. The Company commenced its operations on 15 December 2015. The Company carries on business as an investment trust within the meaning of Chapter 4 of Part 24 of the Corporation Tax Act 2010. The Company's investment objective is to provide shareholders with dividend income combined with capital growth, mainly through investment in equities listed or quoted in Japan. The Company's shares were admitted to the Official List of the Financial Conduct Authority on 15 December 2015. On the same day, trading of the shares commenced on the London Stock Exchange. The principal activity of the Company is that of an investment trust within the meaning of section 1158 of the Corporation Tax Act of 2010. With effect from 1 January 2025, the Company's registered office changed from 6th Floor, 125 London Wall, London, EC2Y 5AS to 25 Southampton Buildings, London, WC2A 1AL, following the appointment of Frostrow Capital LLP as AIFM, Administrator and Company Secretary. ## 2. Accounting Policies The principal accounting policies followed by the Company are set out below: ### (a) Basis of accounting The financial statements have been prepared in accordance with FRS 102 ("the Financial Reporting Standard applicable in the UK and Republic of Ireland") issued by the Financial Reporting Council, with the Statement of Recommended Practice "Financial Statements of Investment Trust Companies and Venture Capital Trusts" issued by the Association of Investment Companies in July 2022 and the Companies Act 2006. The financial statements have been prepared on a historical cost basis except for the modification to a fair value basis for certain financial instruments as specified in the accounting policies below. They have also been prepared on the assumption that approval as an investment trust will continue to be granted. As required by its Articles of Association, a vote for the Company's continuation will be put forward at the AGM in 2028, having last been passed at the AGM on 3 March 2025. ### Going concern The financial statements have been prepared on a going concern basis. In forming this opinion, the Directors have considered any potential impact of wars in Ukraine and the Middle East; and the increase in geopolitical tension between the US and China, on the going concern and viability of the Company. In making their assessment, the Directors have reviewed income and expense projections and the liquidity of the investment portfolio, and considered the mitigation measures which key service providers, including the Investment Manager, continue to have in place to maintain operational resilience. The Company's net assets as at 31 October 2025 were £324.0 million (2024: £265.8 million). As at 31 October 2025, the Company held approximately £315,369 million in quoted investments (2024: £258.5 million) and had cash of £4.4 million (2024: £4.0 million). The total expenses (excluding finance costs and taxation) for the year ended 31 October 2025 were £3.0 million (2024: £2.8 million), which represented approximately 1.06% (2024: 1.03%) of average net assets during the year. At the date of approval of this report, based on the aggregate net assets of investments and cash held, the Company has substantial operating expenses cover. The Company's ability to continue as a going concern for the period assessed by the Directors has been considered over the period to 31 January 2027, which is at least 12 months from the date the financial statements were authorised for issue. The financial statements have been presented in sterling, which is also the functional currency as this is the currency of the primary economic environment in which the Company operates. The Board, having regard to the currency of the Company's share capital and the predominant currency in which it pays distributions, expenses and its shareholders operate, has determined that sterling is the functional currency. In preparing these financial statements the Directors have considered the impact of ESG and climate change risk as an emerging risk as set out on page 21 and have concluded that while climate change impacts operating conditions of portfolio companies and increases obligations, it does not have a material impact on the value of the Company's investments. In line with FRS 102, investments are valued at fair value, which for the Company are quoted bid prices for investments in active markets at 31 October 2025 and therefore reflect market participants' view of climate change risk. ### (b) Investments As the Company's business is investing in financial assets with a view to profiting from their total return in the form of increases in fair value, financial assets are held at fair value through profit or loss in accordance with FRS 102 Section 11: 'Basic Financial Instruments', and Section 12: 'Other Financial Instruments Issues'. The Company manages and evaluates the performance of these investments on a fair value basis in accordance with its investment strategy, and information about the investments is provided on this basis to the Board of Directors. Upon initial recognition, investments are classified by the Company as "at fair value through profit or loss". They are recognised on the date they are traded and are measured initially at fair value, which is taken to be their transaction price, excluding expenses incidental to purchases which are expensed to capital on acquisition. Subsequently investments are revalued at fair value, which is the bid market price for listed investments over the time until they are sold. Any unrealised gains/losses are included in the fair value of the investments. CC Japan Income & Growth Trust plc Annual Report and Accounts 2025 --- Financial Statements Notes to the Accounts continued Changes in the fair value of investments held at fair value through profit or loss and gains or losses on disposal are included in the capital column of the Income Statement within "gains on investments". Money market funds are classified as listed investments and are measured at fair value through profit and loss. ## (c) Derivatives Derivatives comprise Contracts for Difference ("CFDs"), which are measured at fair value and valued by reference to the underlying market value of the corresponding security, the valuation of which is detailed in Note 2b. CFDs are held for investment purposes. Where the fair value is positive the CFD is presented as a current asset, and where the fair value is negative the CFD is presented as a current liability. Gains or losses on these derivative transactions are recognised in the Income Statement. They are recognised in either the capital or revenue column of the Income Statement depending on their nature. To the extent that any gains or losses are of a mixed revenue and capital nature, they are apportioned between revenue and capital accordingly. The CFD balance is made up of transactions in relation to the underlying equity held by the Company, with the risks embedded in the CFDs disclosed in Note 16. ## (d) Foreign currency Transactions denominated in foreign currencies including dividends are translated into sterling at exchange rates as at the date of the transaction. Assets and liabilities denominated in foreign currencies at the year end are reported at the rates of exchange prevailing at the year end. Foreign exchange movements on investments and derivatives are included in the Income Statement within gains on investments. Any other gain or loss is included as an exchange gain or loss to capital or revenue in the Income Statement as appropriate. ## (e) Income Investment income has been accounted for on an ex-dividend basis or when the Company's right to the income is established. Special dividends are credited to capital or revenue in the Income Statement, according to the circumstances surrounding the payment of the dividend. Overseas dividends are included gross of withholding tax recoverable. Interest receivable on deposits is accounted for on an accrual basis. ## (f) Dividends payable Interim dividends are recognised when the Company pays the dividend. Final dividends are recognised in the period in which they are approved by the shareholders. This year, as was also the case last year, a second interim dividend is being paid in substitution for a final dividend. ## (g) Expenses All expenses are accounted for on an accruals basis and are charged as follows: - the investment management fee is charged 20% to revenue and 80% to capital; - CFD finance costs are charged 20% to revenue and 80% to capital; - investment transactions costs are allocated to capital; and - other expenses are charged wholly to revenue. ## (h) Taxation The tax expense represents the sum of the tax currently payable and deferred tax. The tax currently payable is based on the taxable profit for the year. Taxable profit differs from net profit as reported in the Income Statement because it excludes items of income or expenses that are taxable or deductible in other years and it further excludes items that are never taxable or deductible. The Company's liability for current tax is calculated using tax rates that were applicable at the financial reporting date. Where expenses are allocated between capital and revenue any tax relief in respect of the expenses is allocated between capital and revenue returns on the marginal basis using the Company's effective rate of corporation taxation for the relevant accounting period. Deferred taxation is recognised in respect of all timing differences that have originated but not reversed at the financial reporting date, where transactions or events that result in an obligation to pay more tax in the future or right to pay less tax in the future have occurred at the financial reporting date. 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 timing differences can be deducted. Deferred tax assets and liabilities are measured at the rates applicable to the legal jurisdictions in which they arise. ## (i) Other receivables and other payables Other receivables and other payables do not carry any interest and are short term in nature and are accordingly stated at their nominal value. ## (j) Segmental reporting The Directors are of the opinion that the Company is engaged in a single segment of business, that of an investment trust, as disclosed in Note 1. CC Japan Income & Growth Trust plc Annual Report and Accounts 2025 --- CC Japan Income & Growth Trust plc Annual Report and Accounts 2025 55 ## 2. Accounting Policies continued ### (k) Accounting estimates, judgements and assumptions The preparation of financial statements requires the Directors to make estimates and assumptions that affect the reported amounts of assets and liabilities at the date of the financial statements. Although these estimates are based on management's best knowledge of current facts, circumstances and, to some extent, future events and actions, the Company's actual results may ultimately differ from those estimates, possibly significantly. There have not been any instances requiring any significant estimates or judgements in the year. ### (l) Cash and cash equivalents Cash comprises cash and demand deposits. Cash equivalents, including bank overdrafts and short-term, highly liquid investments that are readily convertible to known amounts of cash, are subject to insignificant risks of changes in value, and are held for the purpose of meeting short-term cash commitments rather than for investment or other purposes. ### (m) Cash collaterals Cash collaterals are held in segregated accounts on behalf of brokers against the CFDs. Cash collaterals are accounted for and shown on the Statement of Financial Position either as a receivable or payable, depending on whether cash is due from or due to the broker. ## 3. Investments ### (a) Summary of valuation | | As at 2024 £'000 | As at 2024 £'000 | | --- | --- | --- | | Investments listed on a recognised overseas investment exchange | 315,369 | 258,478 | | | 315,369 | 258,478 | ### (n) Reserves #### Capital reserves Profits/(losses) from selling investments and changes in fair value arising upon the revaluation of investments that remain in the portfolio are shown in the capital column of the Income Statement and allocated to the capital reserve. Capital reserves attributable to realised profits are distributable. #### Special distributable reserve As stated in the Company's prospectus dated 13 November 2015, in order to increase the distributable reserves available to facilitate the flexibility and source of future dividends, the Company resolved that, conditional upon First Admission to listing on the London Stock Exchange and the approval of the Court, the net amount standing to the credit of the share premium account of the Company immediately following completion of the First Issue be cancelled and transferred to a special distributable reserve. This reserve is distributable. #### Revenue reserves The revenue reserve reflects all income and expenditure recognised in the revenue column of the Income Statement and is distributable by way of dividends. #### Share premium The Company's share premium is the excess of the issue price of the share over its nominal value on shares issued subsequent to the First Issue. The share premium is not available for distribution. --- Financial Statements Notes to the Accounts continued ## (b) Movements During the year ended 31 October 2025 | | 2025 £'000 | 2024 £'000 | | --- | --- | --- | | Book cost at the beginning of the year | 222,917 | 207,351 | | Revaluation gains on equity investments held at beginning of the year | 35,561 | 24,636 | | Valuation at beginning of the year | 258,478 | 231,987 | | Purchases at cost | 116,996 | 63,321 | | Sales: | | | | - proceeds | (109,646) | (63,162) | | - gains on investment holdings sold during the year | 9,607 | 15,407 | | Movements in revaluation gains on investments held at year end | 39,934 | 10,925 | | Valuation at end of the year | 315,369 | 258,478 | | Book cost at end of the year | 239,874 | 222,917 | | Revaluation gains on equity investments held at year end | 75,495 | 35,561 | | Valuation at end of the year | 315,369 | 258,478 | Transaction costs on investment purchases for the year ended 31 October 2025 amounted to £47,800 (2024: £26,500) and on investment sales for the year amounted to £46,200 (2024: £27,200). The Company received £109,646,000 (2024: £63,162,000) from investments sold during the year. The book cost of these investments when they were purchased was £100,039,000 (2024: £47,755,000). 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. ## (c) Gains/(Losses) on investments | | Year ended 31 October 2025 £'000 | Year ended 31 October 2024 £'000 | | --- | --- | --- | | Gains on equity investment holdings sold during the year | 9,607 | 15,407 | | Movements in revaluation gains on investment held at year end | 39,934 | 10,925 | | Other capital (losses)/gains | (26) | 3 | | Total gains on equity investments held at fair value | 49,515 | 26,335 | | Realised gains on CFD assets and liabilities | 16,943 | 122 | | Movement in unrealised (losses)/gains on CFD assets and liabilities | (6,269) | 7,975 | | Total gains on investments held at fair value | 60,189 | 34,432 | CC Japan Income & Growth Trust plc Annual Report and Accounts 2025 --- # 4. Income | | Year ended 31 October 2025 £'000 | Year ended 31 October 2024 £'000 | | --- | --- | --- | | Income from investments: | | | | Overseas dividends | 10,327 | 9,278 | | Money market fund dividends | 148 | - | | Deposit interest | 21 | 79 | | Total | 10,496 | 9,357 | Overseas dividend income is translated into sterling on receipt. # 5. Investment Management Fee | | Year ended 31 October 2025 £'000 | Year ended 31 October 2024 £'000 | | --- | --- | --- | | Fee: | | | | 20% charged to revenue | 423 | 400 | | 80% charged to capital | 1,691 | 1,599 | | Total | 2,114 | 1,999 | The Company's Investment Manager during the financial year was Chikara Investments LLP. The Investment Manager is entitled to receive a management fee payable monthly in arrears which, until 31 October 2024, was payable at the rate of one-twelfth of 0.75% of net assets per calendar month. With effect from 1 November 2024, the Company's management fee is calculated on a tiered basis of 0.75% per annum on the first £300 million of net assets and 0.60% on net assets in excess of £300 million. There is no performance fee payable to the Investment Manager. # 6. Other Expenses | | Year ended 31 October 2025 £'000 | Year ended 31 October 2024 £'000 | | --- | --- | --- | | Administration and secretarial services¹ | 322 | 171 | | Other expenses | 400 | 402 | | Auditor's remuneration - statutory audit services | 43 | 41 | | Directors' fees | 143 | 145 | | Other expenses - Revenue | 908 | 759 | 1 Frostrow Capital LLP was appointed on 1 January 2025 as Alternative Investment Fund Manager ("AIFM"), Administrator and Company Secretary, as well as to serve as the Company's investor relations and marketing adviser. CC Japan Income & Growth Trust plc Annual Report and Accounts 2025 --- Financial Statements Notes to the Accounts continued # 7. Finance Costs | | Year ended 31 October 2025 £'000 | Year ended 31 October 2024 £'000 | | --- | --- | --- | | Interest paid – 100% charged to revenue | 63 | 39 | | CFD finance cost and structuring fee – 20% charged to revenue | 89 | 57 | | Structuring fees – 20% charged to revenue | 1 | 1 | | | 153 | 97 | | CFD finance cost and structuring fee – 80% charged to capital | 356 | 230 | | Structuring fees – 80% charged to capital | 4 | 4 | | | 360 | 234 | | Total finance costs | 513 | 331 | # 8. Taxation | | Year ended 31 October 2025 | | | Year ended 31 October 2024 | | | | --- | --- | --- | --- | --- | --- | --- | | | Revenue £'000 | Capital £'000 | Total £'000 | Revenue £'000 | Capital £'000 | Total £'000 | | (a) Analysis of tax charge in the year: | | | | | | | | Overseas withholding tax | 1,032 | - | 1,032 | 928 | - | 928 | | Total tax charge for the year (see Note 8 (b)) | 1,032 | - | 1,032 | 928 | - | 928 | # (b) Factors affecting the tax charge for the year: The effective UK corporation tax rate for the year is 25.00% (2024: 25.00%). The tax charge for the Company differs from the charge resulting from applying the standard rate of UK corporation tax for an investment trust company. The differences are explained below: | | Year ended 31 October 2025 | | | Year ended 31 October 2024 | | | | --- | --- | --- | --- | --- | --- | --- | | | Revenue £'000 | Capital £'000 | Total £'000 | Revenue £'000 | Capital £'000 | Total £'000 | | Total return before taxation | 9,012 | 57,638 | 66,650 | 8,101 | 30,758 | 38,859 | | Effective UK corporation tax at 25.00% (2024: 25.00%) | 2,253 | 14,410 | 16,663 | 2,025 | 7,690 | 9,715 | | Effects of: | | | | | | | | Overseas withholding tax suffered | 1,032 | - | 1,032 | 928 | - | 928 | | Non-taxable overseas dividends | (2,619) | - | (2,619) | (2,320) | - | (2,320) | | Capital gains not subject to tax | - | (14,922) | (14,922) | - | (8,148) | (8,148) | | Finance costs not tax deductible | 38 | 90 | 128 | 24 | 59 | 83 | | Movement in unutilised management expenses | 328 | 422 | 750 | 271 | 399 | 670 | | Total tax charge for the year | 1,032 | - | 1,032 | 928 | - | 928 | CC Japan Income & Growth Trust plc Annual Report and Accounts 2025 --- CC Japan Income & Growth Trust plc Annual Report and Accounts 2025 59 # 8. Taxation continued ## (b) Factors affecting the tax charge for the year: continued The Company has an unrecognised deferred tax asset of £2,335,000 (2024: £1,543,000) based on the long-term prospective corporation tax rate of 25% (2024: 25%). No asset has been recognised in the accounts because, given the composition of the Company's portfolio, it is unlikely that this asset will be utilised in the foreseeable future. The Company has not provided for deferred tax on any tax losses. # 9. Dividend ## (i) Dividends paid during the financial year | | Year ended 31 October 2025 £'000 | Year ended 31 October 2024 £'000 | | --- | --- | --- | | Second Interim - year ended 31 October 2024 3.85p (2023: 3.75p) | 5,187 | 5,052 | | Interim dividend - year ended 31 October 2025 1.65p (2024: 1.60p) | 2,223 | 2,156 | | Total | 7,410 | 7,208 | ## (ii) The dividend relating to the year ended 31 October 2025, which is the basis on which the requirements of Section 1159 of the Corporation Tax Act 2010 are considered, is detailed below: | | Year ended 31 October 2025 | | Year ended 31 October 2024 | | | --- | --- | --- | --- | --- | | | Pence per Share | £'000 | Pence per Share | £'000 | | Interim dividend | 1.65p | 2,223 | 1.60p | 2,156 | | Second interim dividend¹ | 4.25p | 5,726 | 3.85p | 5,187 | | | 5.90p | 7,949 | 5.45p | 7,343 | 1 Not included as a liability in the year ended 31 October 2025 accounts. The Directors have declared a second interim dividend for the financial year ended 31 October 2025 of 4.25p per share. The dividend will be paid on 2 March 2026 to shareholders on the register at the close of business on 30 January 2026. # 10. Other Debtors | | As at 31 October 2025 £'000 | As at 31 October 2024 £'000 | | --- | --- | --- | | Accrued income | 3,955 | 3,588 | | Sales for settlement | - | 239 | | VAT receivable | 156 | 193 | | Prepayments | 79 | 42 | | Total | 4,190 | 4,062 | --- Financial Statements Notes to the Accounts continued ## 11. Other Creditors | | As at 31 October 2025 £'000 | As at 31 October 2024 £'000 | | --- | --- | --- | | Amounts falling due within one year: | | | | Accrued finance costs | 36 | 24 | | Accrued expenses | 316 | 267 | | Total | 352 | 291 | ## 12. Share Capital Share capital represents the nominal value of shares that have been issued. The share premium includes any premiums received on issue of share capital. Any transaction costs associated with the issuing of shares are deducted from share premium. | | As at 31 October 2025 | | As at 31 October 2024 | | | --- | --- | --- | --- | --- | | | No. of shares | £'000 | No. of shares | £'000 | | Allotted, issued & fully paid: | | | | | | Shares of 1p | | | | | | Opening balance | 134,730,610 | 1,348 | 134,730,610 | 1,348 | | Closing balance | 134,730,610 | 1,348 | 134,730,610 | 1,348 | Since the year end, the Company has not issued any shares and there were 134,730,610 shares in issue as at 20 January 2026. ## 13. Return per Share Total return per share is based on the return on ordinary activities, including income, a profit for the year after taxation of £65,618,000 (2024: profit of £37,931,000) and the weighted average number of shares in issue for the year to 31 October 2025 of 134,730,610 (2024: 134,730,610). The returns per share were as follows: | | As at 31 October 2025 | | | As at 31 October 2024 | | | | --- | --- | --- | --- | --- | --- | --- | | | Revenue | Capital | Total | Revenue | Capital | Total | | Return per share | 5.92p | 42.78p | 48.70p | 5.32p | 22.83p | 28.15p | ## 14. Net Asset Value per Share Total shareholders' funds and the net asset value ("NAV") per share attributable to shareholders at the year end calculated in accordance with the Articles of Association were as follows: NAV per Share | | As at 31 October 2025 | As at 31 October 2024 | | --- | --- | --- | | Net Asset Value (£'000) | 324,049 | 265,841 | | Shares in issue | 134,730,610 | 134,730,610 | | NAV per share | 240.52p | 197.31p | CC Japan Income & Growth Trust plc Annual Report and Accounts 2025 --- CC Japan Income & Growth Trust plc Annual Report and Accounts 2025 61 # 15. Related Party Transactions ## Investment Manager Fees The Company provides additional information concerning its relationship with the Investment Manager and its former AIFM, Chikara Investments LLP. The fees for the period are disclosed in Note 5 and amounts outstanding at the year ended 31 October 2025 were £199,000 (2024: £171,000). ## Research purchasing agreement MiFID II treats investment research provided by brokers and independent research providers as a form of "inducement" to investment managers and requires research to be paid separately from execution costs. In the past, the costs of broker research were primarily borne by the Company as part of execution costs through dealing commissions paid to brokers. With effect from 3 January 2018, this practice has changed, as brokers subject to MiFID II are now required to price, and charge for, research separately from execution costs. Equally, the rules require the Investment Manager, as an Investment Manager, to ensure that the research costs borne by the Company are paid for through a designated Research Payment Account ("RPA") funded by direct research charges to the Investment Manager's clients, including the Company. The research charge for the year 1 January 2025 to 31 December 2025, as agreed between the Investment Manager and the Company, was US $31,000 (31 December 2024: US $31,000). The research charge for the year 1 January 2026 to 31 December 2026, as budgeted by the Investment Manager, is US $31,000. ## Directors' fees and shareholdings The Directors' fees and shareholdings are disclosed in the Directors' Remuneration Implementation Report on pages 35 to 38 in this Annual Report and Accounts. # 16. Financial Instruments and Capital Disclosures ## Risk Management Policies and Procedures As an investment trust the Company invests in equities and equity related derivatives for the long term so as to secure its investment objective stated on the inside front cover. In pursuing its investment objective, the Company is exposed to a variety of risks that could result in either a reduction in the Company's net assets or a reduction of the profits available for dividends. These risks include market risk (comprising currency risk, interest rate risk, and other price risk), liquidity risk, and credit risk, and the Directors' approach to the management of them is set out follows. The objectives, policies and processes for managing the risks, and the methods used to measure the risks, are set out below. ### (a) Market risk #### Economic conditions Changes in economic conditions in Japan (for example, interest rates and rates of inflation, industry conditions, competition, political events and other factors) and in the countries in which the Company's investee companies operate could substantially and adversely affect the Company's prospects. The Company is subject to concentration risk as it only invests in Japanese companies but has diversified investments across the different sectors in the Japanese market. #### Sectoral diversification The Company has no limits on the amount it may invest in any sector. This may lead to the Company having significant concentrated exposure to portfolio companies in certain business sectors from time to time. Concentration of investments in any one sector may result in greater volatility in the value of the Company's investments and consequently its NAV and may materially and adversely affect the performance of the Company and returns to shareholders. #### Unquoted companies The Company may invest in unquoted companies from time to time. Such investments, by their nature, involve a higher degree of valuation and performance uncertainties and liquidity risks than investments in listed and quoted securities and they may be more difficult to realise. However, the Company does not currently hold and has never held any unquoted securities. --- Financial Statements Notes to the Accounts continued ## Management of market risk The Company is invested in a diversified portfolio of investments. The Company's investment policy states that no single holding (including any derivative instrument) will represent more than 10% of the Company's gross assets at the time of investment and, when fully invested, the portfolio is expected to have between 30 to 40 holdings although there is no guarantee that this will be the case and it may contain a lesser or greater number of holdings at any time. A maximum of 10% of the Company's gross assets at the time of investment may be invested in unquoted or untraded companies at time of investment. The Investment Manager's approach will in most cases achieve diversification across a number of sectors as shown in the Holdings in Portfolio on page 10. ## (b) Currency risk The majority of the Company's assets will be denominated in a currency other than sterling (predominantly in yen) and changes in the exchange rate between sterling and yen may lead to a depreciation of the value of the Company's assets as expressed in sterling and may reduce the returns to the Company from its investments and, therefore, negatively impact the level of dividends paid to shareholders. ### Management of currency risk The Investment Manager monitors the currency risk of the Company's portfolio on a regular basis. Foreign currency exposure is regularly reported to the Board by the Investment Manager. The Company does not currently intend to enter into any arrangements to hedge its underlying currency exposure to investment denominated in yen, although the Investment Manager and the Board will keep this approach under regular review. ### Foreign currency exposures An analysis of the Company's assets priced in yen is as follows: | | As at 31 October 2025 £'000 | As at 31 October 2024 £'000 | | --- | --- | --- | | Equity Investments: yen | 315,369 | 258,478 | | Receivables (due from brokers, dividends, and other income receivable) | 3,955 | 3,827 | | CFD: yen (absolute exposure) | 1,742 | 8,010 | | Cash and cash equivalent: yen | 2,710 | (4,849) | | Total | 323,776 | 265,466 | ### Foreign currency sensitivity If the Japanese yen had appreciated or depreciated by 10% as at 31 October 2025 (2024: 10%) then the value of the portfolio as at that date would have increased or decreased as shown below. | | Increase in Fair Value As at 31 October 2025 £'000 | Decrease in Fair Value As at 31 October 2024 £'000 | Increase in Fair Value As at 31 October 2024 £'000 | Decrease in Fair Value As at 31 October 2024 £'000 | | --- | --- | --- | --- | --- | | Impact on capital return - increase/(decrease) | 32,378 | (32,378) | 26,547 | (26,547) | | Return after taxation - increase/(decrease) | 32,378 | (32,378) | 26,547 | (26,547) | CC Japan Income & Growth Trust plc Annual Report and Accounts 2025 --- CC Japan Income & Growth Trust plc Annual Report and Accounts 2025 63 # 16. Financial Instruments and Capital Disclosures continued ## (c) Leverage risk ### Derivative instruments The Company may utilise long only CFDs or equity swaps for gearing and efficient portfolio management purposes. Leverage may be generated through the use of CFDs or equity swaps. Such financial instruments inherently contain much greater leverage than a non-margined purchase of the underlying security or instrument. This is due to the fact that, generally, only a very small portion (and in some cases none) of the value of the underlying security or instrument is required to be paid in order to make such leveraged investments. As a result of any leverage employed by the Company, small changes in the value of the underlying assets may cause a relatively large change in the Net Asset Value of the Company. Many such financial instruments are subject to variation or other interim margin requirements, which may force premature liquidation of investment positions. ### Borrowing risks The Company may use borrowings to seek to enhance investment returns. While the use of borrowings can enhance the total return on the shares where the return on the Company's underlying assets is rising and exceeds the cost of borrowing, it will have the opposite effect where the return on the Company's underlying assets is rising at a lower rate than the cost of borrowing or falling, further reducing the total return on the shares. As a result, the use of borrowings by the Company may increase the volatility of the Net Asset Value per share. The Company had no borrowings at the year end. Any reduction in the value of the Company's investments may lead to a correspondingly greater percentage reduction in its Net Asset Value (which is likely to adversely affect the price of a share). Any reduction in the number of shares in issue (for example, as a result of buy backs) will, in the absence of a corresponding reduction in borrowings, result in an increase in the Company's level of gearing. To the extent that a fall in the value of the Company's investments causes gearing to rise to a level that is not consistent with the Company's gearing policy or borrowing limits, the Company may have to sell investments in order to reduce borrowings, which may give rise to a significant loss of value compared with the book value of the investments, as well as a reduction in income from investments. ### Management of leverage risk The aggregate of borrowings and long only CFDs and equity swap exposure will not exceed 25% of Net Asset Value at the time of drawdown of the relevant borrowings or entering into the relevant transaction, as appropriate, although the Company's normal policy will be to utilise and maintain gearing to a lower limit of 20% of Net Asset Value at the time of drawdown of the relevant borrowings or entering into the relevant transaction, as appropriate. It is expected that any borrowings entered into will principally be denominated in yen. The Company's level of gearing as at 31 October 2025 is disclosed in the Alternative Performance Measures section on page 71 of this Annual Report and Accounts. ## (d) Interest rate risk The Company is exposed to interest rate risk specifically through its cash holdings and on positions within the CFD portfolio. Interest rate movements may affect the level of income receivable from any cash at bank and on deposits. The effect of interest rate changes on the earnings of the companies held within the portfolio may have a significant impact on the valuation of the Company's investments. Movements in interest rates will also have an impact on the valuation of the CFD derivative contracts. Interest receivable on cash balances or paid on overdrafts is at fixed rate. ### Management of interest rate 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 decisions. Derivative contracts are not used to hedge against the exposure to interest rate risk. Interest income earned on deposits and paid on overdraft by the Company is primarily derived from fixed interest rates, and as such does not have a material exposure to interest rate risk. The bank overdraft is an integral part of cash management and the Company has a legal right of offset and has the intention to settle this at net. --- Financial Statements Notes to the Accounts continued ## Interest rate exposure The exposure at 31 October 2025 of financial assets and liabilities to interest rate risk is shown by reference to floating interest rates – when the interest rate is due to be reset. Due to the current low interest rate environment in Japan, no sensitivity analysis is shown as the total impact will not be material. | | As at 31 October 2025 due within one year £'000 | As at 31 October 2024 due within one year £'000 | | --- | --- | --- | | Exposure to floating interest rates: CFD derivative contract – (absolute exposure) | 62,522 | 51,153 | | Collateral paid in respect of CFDs | 659 | 413 | ## (e) Credit risk Credit risk is the possibility of a loss to the Company due to the failure of the counterparty to a transaction discharging its obligations under that transaction. ### Cash and other assets held by the Depositary The cash and other assets held by the Depositary or its sub-custodians are subject to counterparty credit risk as the Company's access to its cash could be delayed should the counterparties become insolvent or bankrupt. ### Derivative instruments The Company's holdings in CFD contracts present counterparty credit risks, with the risk of the counterparty (Morgan Stanley & Co International plc) defaulting. ### Management of credit risk #### Cash and other assets held by the Depositary Cash and other assets that are required to be held in custody will be held by the Depositary or its sub-custodians. Cash and other assets may not be treated as segregated assets and will therefore not be segregated from any custodian's own assets in the event of the insolvency of a custodian. Cash held with any custodian will not be treated as client money subject to the rules of the Financial Conduct Authority ("FCA") and may be used by a custodian in the course of its own business. The Company will therefore be subject to the creditworthiness of its custodians. In the event of the insolvency of a custodian, the Company will rank as a general creditor in relation thereto and may not be able to recover such cash in full, or at all. The Company has appointed Northern Trust Investor Services Limited as its Depositary. The credit rating of Northern Trust was reviewed at time of appointment and will be reviewed on a regular basis by the Investment Manager and/or the Board. The Fitch's credit rating of Northern Trust is AA-. ### Derivative instruments Where the Company utilises CFDs or equity swaps, it is likely to take a credit risk with regard to the parties with whom it trades and may also bear the risk of settlement default. These risks may differ materially from those entailed in exchange-traded transactions that generally are backed by clearing organisation guarantees, daily marking-to-market and settlement, and segregation and minimum capital requirements applicable to intermediaries. Transactions entered into directly between counterparties generally do not benefit from such protections and expose the parties to the risk of counterparty default. CFD contracts generally require variation margins, and the counterparty credit risk is monitored by the Investment Manager. The Investment Manager monitors the Company's exposure to its counterparties on a regular basis and the position is reviewed by the Directors at Board meetings. Investment transactions are carried out with a number of brokers, whose credit-standing is reviewed periodically by the Investment Manager, and limits are set on the amount that may be due from any one broker. CC Japan Income & Growth Trust plc Annual Report and Accounts 2025 --- # 16. Financial Instruments and Capital Disclosures continued ## (e) Credit risk continued In summary, the exposure to credit risk as at 31 October 2025 was as follows: | | As at 31 October 2025 3 months or less £'000 | As at 31 October 2024 3 months or less £'000 | | --- | --- | --- | | Cash at bank | 4,359 | 4,006 | | Amounts due in respect of CFDs | 2,860 | 8,027 | | Collateral paid in respect of CFDs | 659 | 413 | | Debtors | 3,955 | 4,062 | | Total | 11,833 | 16,503 | None of the above assets or liabilities was impaired or past due but not impaired. ## (f) Other price risk Other price risk is the risk that the fair value or future cash flows of a financial instrument will fluctuate because of changes in market prices (other than those arising from interest rate risk or currency risk), whether those changes are caused by factors specific to the individual financial instrument or its issuer, or factors affecting similar financial instruments traded in the market. The Company is exposed to market price risk arising from its equity investments and its exposure to the positions within the CFD portfolio. The movements in the prices of these investments result in movements in the performance of the Company. The Company's exposure to other changes in market prices at 31 October 2025 of its equity investments was £315,369,000 (2024: £258,478,000). In addition, the Company's gross market exposure to these price changes through its CFD portfolio was £62,522,000 through long positions (2024: £51,153,000). The Company uses CFDs as part of its investment policy. These instruments can be highly volatile and potentially expose investors to a higher risk of loss. The low initial margin deposits normally required to establish a position in such instruments permit a high degree of leverage. As a result, a relatively small movement in the price of a contract may result in a profit or loss which is high in proportion to the value of the net exposures in the underlying CFD positions. In addition, daily limits on price fluctuations and speculative position limits on exchanges may prevent prompt liquidation of positions resulting in potentially greater losses. The Company limits the gross market exposure, and therefore the leverage, of this strategy to approximately 200% of the Company's net assets. The CFDs utilised have a linear performance to referenced stocks quoted on exchanges and therefore have the same volatility profile to the underlying stocks. Market exposure to derivative contracts is disclosed below. The Company's exposure to CFDs is the aggregate of Long CFD Positions. The gross and net market exposure is the same as the Company does not hold Short CFD Positions. Exposures are monitored daily by the Investment Manager. The Company's Board also reviews exposures regularly. The gross underlying notional exposures within the CFD portfolio as at 31 October 2025 were: | | As at 31 October 2025 | | As at 31 October 2024 | | | --- | --- | --- | --- | --- | | | £'000 | % of net assets | £'000 | % of net assets | | CFDs - (absolute exposure) | 62,522 | 19.29% | 51,153 | 19.24% | | CFDs - (net exposure) | 62,522 | 19.29% | 51,153 | 19.24% | The Board of Directors manages the market price risks inherent in the investment portfolio by ensuring full and timely access to relevant information from the Investment Manager. The Board meets regularly and at each meeting reviews investment performance. The Board monitors the Investment Manager's compliance with the Company's objective. CC Japan Income & Growth Trust plc Annual Report and Accounts 2025 --- Financial Statements Notes to the Accounts continued Concentration of exposure to other price risk A sector breakdown of the portfolio can be found on page 11. Other price risk sensitivity The following table illustrates the sensitivity of the profit after taxation for the period to an increase or decrease of 10% in the fair values of the Company's equities and CFDs. This level of change is considered to be reasonably possible based on observation of current market conditions. The sensitivity analysis is based on the notional exposure of the Company's equities investments and long CFDs. | | As at 31 October 2025 | | As at 31 October 2024 | | | --- | --- | --- | --- | --- | | | Increase in Fair Value £'000 | Decrease in Fair Value £'000 | Increase in Fair Value £'000 | Decrease in Fair Value £'000 | | Impact on capital return - increase/(decrease) | 37,615 | (37,615) | 30,162 | (30,162) | | Return after taxation - increase/(decrease) | 37,615 | (37,615) | 30,162 | (30,162) | (g) Liquidity risk The securities of small-to-medium-sized (by market capitalisation) companies may have a more limited secondary market than the securities of larger companies. Accordingly, it may be more difficult to effect sales of such securities at an advantageous time or without a substantial drop in price than it would be for securities of a company with a large market capitalisation and broad trading market. In addition, securities of small-to-medium-sized companies may have greater price volatility as they can be more vulnerable to adverse market factors such as unfavourable economic reports. Management of liquidity risk The Company's Investment Manager monitors the liquidity of the Company's portfolio on a regular basis. Liquidity risk exposure The undiscounted gross cash outflows of the financial liabilities as at 31 October 2025, based on the earliest date on which payment can be required, were as follows: | | As at 31 October 2020 less than 3 months £'000 | As at 31 October 2024 less than 3 months £'000 | | --- | --- | --- | | Amounts payable in respect of CFDs | 3,036 | 8,854 | | Other payables | 352 | 291 | | Total | 3,388 | 9,145 | The Company is exposed to liquidity risks from the leverage employed through exposure to long only CFD positions. However, timely sale of trading positions can be impaired by many factors including decreased trading volume and increased price volatility. As a result, the Company could experience difficulties in disposing of assets to satisfy liquidity demands. Liquidity risk is minimised by holding sufficient liquid investments which can be readily realised to meet liquidity demands. The Company's liquidity risk is managed on a daily basis by the Investment Manager in accordance with established policies and procedures in place. CC Japan Income & Growth Trust plc Annual Report and Accounts 2025 --- # 16. Financial Instruments and Capital Disclosures continued ## (h) Fair value measurements of financial assets and financial liabilities The financial assets and liabilities are either carried in the Statement of Financial Position at their Fair Value, or the Statement of Financial Position amount is a reasonable approximation of Fair Value (due from brokers, dividends receivable, accrued income, due to brokers, accruals and cash and cash equivalents). The valuation techniques for investments and derivatives used by the Company are explained in the accounting policies Notes 2 (b and c) on pages 53 and 54. The table below sets out Fair Value measurements using Fair Value Hierarchy. | 31 October 2025 | Level 1 £'000 | Level 2 £'000 | Level 3 £'000 | Total £'000 | | --- | --- | --- | --- | --- | | Assets: | | | | | | Equity investments | 312,610 | 2,759 | - | 315,369 | | CFDs - Unrealised Fair Value gains | - | 2,860 | - | 2,860 | | Liabilities: | | | | | | CFDs - Unrealised Fair Value losses | - | (1,119) | - | (1,119) | | Total | 312,610 | 4,500 | - | 317,110 | | 31 October 2024 | Level 1 £'000 | Level 2 £'000 | Level 3 £'000 | Total £'000 | | Assets: | | | | | | Equity investments | 255,765 | 2,713 | - | 258,478 | | CFDs - Unrealised Fair Value gains | - | 8,027 | - | 8,027 | | Liabilities: | | | | | | CFDs - Unrealised Fair Value losses | - | (17) | - | (17) | | Total | 255,765 | 10,723 | - | 266,488 | There were no transfers between levels during the year (2024: nil). Categorisation within the hierarchy has been determined on the basis of the lowest level input that is significant to the Fair Value measurement of the relevant asset as follows: Level 1 - valued using quoted prices in active markets for identical assets. Level 2 - valued by reference to valuation techniques using observable inputs including quoted prices. Level 3 - valued by reference to valuation techniques using inputs that are not based on observable market data. There were no Level 3 investments as at 31 October 2025 (2024: nil). CC Japan Income & Growth Trust plc Annual Report and Accounts 2025 --- Financial Statements Notes to the Accounts continued ## (i) 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 provide dividend income combined with capital growth, mainly through investment in equities listed or quoted in Japan and by utilising the leverage effect of CFD. The key performance indicators are contained in the strategic report on page 17. The Company is subject to several externally imposed capital requirements: - As a public company, the Company has to have a minimum share capital of £50,000. - In order to be able to pay dividends out of profits available for distribution by way of dividends, the Company has to be able to meet one of the two capital restriction tests imposed on investment companies by company law. The Company's capital at 31 October 2025 comprises called up share capital and reserves totalling £324,049,000 (2024: £265,841,000). The Board regularly monitors, and has complied with, the externally imposed capital requirements. ## 17. Distributable Reserves The Company's distributable reserves consist of the Special reserve, Revenue reserve and Capital reserve attributable to realised profits. As at 31 October 2025, the total distributable Capital reserve was £76,023,000 (2024: £58,319,000), and the total undistributable Capital reserve was £75,495,000 (2024: £35,561,000). Special reserve: As stated in the Company's prospectus dated 13 November 2015, in order to increase the distributable reserves available to facilitate the flexibility and source of future dividends, the Company resolved that, conditional upon First Admission to listing on the London Stock Exchange and the approval of the Court, the net amount standing to the credit of the share premium account of the Company immediately following completion of the First Issue be cancelled and transferred to a special distributable reserve. Following approval by the Court, the cancellation became effective on 23 March 2016 and an amount of £64,671,250 was transferred to the above Special reserve at that time. The Special reserve is distributable. As at 31 October 2025, the Company had total distributable reserves of £149,139,000 (2024: £130,865,000). ## 18. Post Balance Sheet Events There were no post balance sheet events other than those already disclosed in this report. CC Japan Income & Growth Trust plc Annual Report and Accounts 2025 --- # Other information ![img-19.jpeg](img-19.jpeg) CC Japan Incorporated Growth Trust plc Annual Report and Accounts 2025 69 --- Other information # Glossary and Alternative Performance Measures | Administrator | The Company's administrator, the current such administrator effective 1 January 2025 being Frostrow Capital LLP, and prior to that Apex Listed Companies Services (UK) Limited. | | | --- | --- | --- | | AIC | Association of Investment Companies. | | | Alternative Investment Fund or “AIF” | An investment vehicle under AIFMD. Under AIFMD (see below) the Company is classified as an AIF. | | | Alternative Investment Fund Managers Directive or “AIFMD” | The UK version of an European Union Directive which came into force on 22 July 2013 and which is part of UK law by virtue of the European Union (Withdrawal) Act 2018, as amended by The Alternative Investment Fund Managers (Amendment etc.) (EU Exit) Regulations 2019. | | | Alternative Performance Measure or “APM” | A financial measure of historical or future financial performance, financial position, or cash flows, other than a financial measure defined or specified in the applicable financial reporting framework. | | | Annual General Meeting or “AGM” | A meeting held once a year, which shareholders are entitled to attend, and where they can vote on resolutions to be put forward at the meeting and ask Directors questions about the Company. | | | Absolute exposure | The absolute difference between the Company's long positions and short positions. | | | CFD or Contract for Difference | A financial instrument, which provides exposure to an underlying equity with the provider financing the cost to the buyer with the buyer receiving the difference of any gain or paying for any loss. | | | Custodian | An entity that is appointed to hold and safeguard a company's assets. | | | Depositary | Certain AIFs must appoint depositaries under the requirements of AIFMD. A depositary's duties include, inter alia, safekeeping of the Company's assets and cash monitoring. Under AIFMD the depositary is appointed under a strict liability regime. The Company's Depositary is Northern Trust Investor Services Limited. | | | Dividend | Income receivable from an investment in shares. | | | Discount (APM) | The amount, expressed as a percentage, by which the share price is less than the NAV per share. | | | As at 31 October 2025 | | | | NAV per share (pence) | a | 240.5 | | Share price (pence) | b | 222.0 | | Discount | (b+a)-1 | 7.7% | | As at 31 October 2024 | | | | NAV per share (pence) | a | 197.3 | | Share price (pence) | b | 178.8 | | Discount | (b+a)-1 | 9.4% | CC Japan Income & Growth Trust plc Annual Report and Accounts 2025 --- CC Japan Income & Growth Trust plc Annual Report and Accounts 2025 71 | Ex-dividend date | The date from which a shareholder is not entitled to receive a dividend which has been declared and is due to be paid to shareholders. | | | --- | --- | --- | | Financial Conduct Authority or “FCA” | The independent body that regulates the financial services industry in the UK. | | | Gearing (APM) | A way to magnify income and capital returns, but which can also magnify losses. The Company may be geared through the CFDs and if utilised, the overdraft facility, with The Northern Trust Company. | | | As at 31 October 2025 | | £'000 | | CFD notional market value¹ | a | 62,522 | | Non-base cash borrowings² | b | - | | NAV | c | 324,049 | | Gearing (net) | ((a+b)/c) | 19.3% | | As at 31 October 2024 | | £'000 | | CFD notional market value¹ | a | 51,153 | | Non-base cash borrowings² | b | - | | NAV | c | 265,841 | | Gearing (net) | ((a+b)/c) | 19.2% | 1 CFD positions in underlying asset value. 2 Non-base cash borrowings represents borrowings in yen. | Gross assets (APM) | The Company’s total assets including any leverage amount. | | --- | --- | | Index | A basket of stocks which is considered to replicate a particular stock market or sector. | | Gross market exposure | The Company’s total exposure investment value in the financial market prices. | | Gross underlying notional exposure | The Company’s total exposure value on the underlying asset of its derivatives. | | Investment company | A company formed to invest in a diversified portfolio of assets. | | Investment trust | A closed end investment company which is based in the United Kingdom (“UK”) and which meets certain tax conditions which enables it to be exempt from UK corporation tax on its capital gains. This Company is an investment trust. | | Leverage (APM) | Under the Alternative Investment Fund Managers Directive (“AIFMD”), leverage is any method by which the exposure of an Alternative Investment Fund (“AIF”) is increased through borrowing of cash or securities or leverage embedded in derivative positions. Under AIFMD, leverage is broadly similar to gearing, but is expressed as a ratio between the assets (excluding borrowings) and the net assets (after taking account of borrowing). Under the gross method, exposure represents the sum of the Company’s positions after deduction of cash balances, without taking account of any hedging or netting arrangements. Under the commitment method, exposure is calculated without the deduction of cash balances and after certain hedging and netting positions are offset against each other. Under both methods the AIFM has set current maximum limits of leverage for the Company of 200%. | --- Other information Glossary and Alternative Performance Measures continued | As at 31 October 2025 | | Gross £'000 | Commitment £'000 | | --- | --- | --- | --- | | Security market value | a | 315,369 | 315,369 | | CFD notional market value | b | 62,522 | 62,522 | | Cash and cash equivalents¹ | c | 5,226 | 3,100 | | NAV | d | 324,049 | 324,049 | | Leverage | (a+b+c)/d | 118% | 118% | | As at 31 October 2024 | | Gross £'000 | Commitment £'000 | | --- | --- | --- | --- | | Security market value | a | 258,478 | 258,478 | | CFD notional market value | b | 51,153 | 51,153 | | Cash and cash equivalents¹ | c | 4,616 | 4,186 | | NAV | d | 265,841 | 265,841 | | Leverage | (a+b+c)/d | 118% | 118% | 1 Cash and cash equivalents represent gross overdraft and net overdraft with Northern Trust. | Market liquidity | The extent to which investments can be bought or sold at short notice. | | | --- | --- | --- | | Net assets | An investment company's assets less its liabilities. | | | Net Asset Value or NAV per share | Net assets divided by the number of shares in issue (excluding any shares held in Treasury). | | | Net exposure | The difference between the Company's long positions and short positions. | | | Ongoing charges (APM) | A measure, expressed as a percentage of the regular, recurring annual costs of running an investment company. | | | Year end 31 October 2025 | | | | --- | --- | --- | | Average NAV | a | 284,089,803 | | Annualised expenses | b | 3,013,000 | | Ongoing charges | (b+a) | 1.06% | | Year end 31 October 2024 | | | | --- | --- | --- | | Average NAV | a | 266,974,122 | | Annualised expenses | b | 2,758,000 | | Ongoing charges | (b+a) | 1.03% | CC Japan Income & Growth Trust plc Annual Report and Accounts 2025 --- CC Japan Income & Growth Trust plc Annual Report and Accounts 2025 73 Portfolio A composition of different investment holdings constructed and held in order to deliver returns to shareholders and to spread risk. Share Premium to Net Asset Value (APM) The amount, expressed as a percentage, by which the share price is more than the Net Asset Value per share. Share buyback A purchase by a company of its own shares. Shares can either be bought back for cancellation or held in Treasury. Share price The price of a share as determined by buyers and sellers on the relevant stock exchange. Treasury shares A company's own shares held in Treasury account by the company but which are available to be resold in the market. Total return (APM) A measure of performance that takes into account both income and capital returns. | Year end 31 October 2025 | | Share price | NAV | | --- | --- | --- | --- | | Opening at 1 November 2024 (in pence) | a | 178.8 | 197.3 | | Closing at 31 October 2025 (in pence) | b | 222.0 | 240.5 | | Price movement (b+a)-1 | c | 24.2% | 21.9% | | Dividend reinvestment^{1} | d | 3.7% | 3.3% | | Total return | (c+d) | 27.9% | 25.2% | | Year end 31 October 2024 | | Share price | NAV | | --- | --- | --- | --- | | Opening at 1 November 2023 (in pence) | a | 162.5 | 174.5 | | Closing at 31 October 2024 (in pence) | b | 178.8 | 197.3 | | Price movement (b+a)-1 | c | 10.0% | 13.1% | | Dividend reinvestment^{1} | d | 3.2% | 3.0% | | Total return | (c+d) | 13.2% | 16.1% | 1 The dividend reinvestment is calculated on the assumption that dividends paid out by the Company are reinvested into the shares of the Company at NAV at the ex-dividend date. Volatility A statistical measure of how much and how quickly an asset's price changes over time. --- Other information # The Securities Financing Transactions Regulation (Unaudited) The Securities Financing Transactions Regulation ("SFTR") came into effect on 12 January 2016. Article 13 requires information to be provided as to the use of securities financing transactions (SFTs) and total return swaps (TRS). A Securities Financing Transaction ("SFT") is defined as per Article 3 (11) of the SFTR as: - a repurchase transaction; - securities or commodities lending and securities or commodities borrowing; - a buy-sell back transaction or sell-buy back transaction; or - a margin lending transaction. As at 31 October 2025 the Company held the following types of SFTs: None (2024: None). As at 31 October 2025 the Company held the following types of Total Return Swaps: Contracts for Difference (2024 Same). The amount of securities and commodities on loan as a proportion of total lendable assets (excluding cash and cash equivalents) was 0% as at 31 October 2025 (2024: 0%). ## GLOBAL DATA: | Type of Asset | Absolute Amount £'000 | Proportion of AUM % | | --- | --- | --- | | Security lending | 0 | 0 | | Repo | 0 | 0 | | Total return swap (CFDs) | 62,522 | 16.4% | ## CONCENTRATION DATA: The largest collateral issuer across all SFTs and Total Return Swaps is as follows: | Collateral Issuers | Volume of the collateral securities and commodities £'000 | | --- | --- | | JPY Cash Collateral | 1,258 | The top counterparties across all SFTs and Total Return Swaps is as follows: | Counterparty | Gross volume of outstanding trades (£'000) | | --- | --- | | Morgan Stanley & Co Intl Plc | 60,780 | | Macquarie Bank Limited | Nil | CC Japan Income & Growth Trust plc Annual Report and Accounts 2025 --- AGGREGATE TRANSACTION DATA: | | Type of collateral | Quality | Currency | Maturity tenor (collateral) | Maturity tenor (SFTs/Total Return Swaps) | Country of counterparty establishment (not collateral) | Settlement and clearing | | --- | --- | --- | --- | --- | --- | --- | --- | | Total Return Swap | | | | | | | | | Morgan Stanley & Co Intl Plc | Cash | High | JPY | <1 Day | >1 yr | UK | Bilateral | | Macquarie Bank Limited | Cash | High | JPY | <1 Day | >1 yr | Australia | Bilateral | REUSE OF COLLATERAL: The share of collateral that is reused is 0%, this is in comparison with the maximum of 0% as expressed in the prospectus. The cash collateral reinvestment returns to the company were nil. SAFEKEEPING – Collateral Received: | Custodian | Collateral assets safe-kept ($, 000) | | --- | --- | | Northern Trust Global Services Limited | 1,258 | SAFEKEEPING – Collateral Granted: The proportion of collateral held in segregated accounts, in pooled accounts or any other accounts is 0%. RETURN/COSTS: | Type of Asset | Cost £'000 | Absolute Returns £'000 | % overall returns of Transaction Type | | --- | --- | --- | --- | | Alternative Investment Fund: | | | | | Total Return Swaps | (445) | 18,684 | 100 | | Manager of the Alternative Investment Fund: | | | | | Third parties: | Nil | Nil | Nil | CC Japan Income & Growth Trust plc Annual Report and Accounts 2025 --- Other information # Company Information ## DIRECTORS June Aitken (Chairman) Kate Cornish-Bowden (Audit and Risk Committee Chairman) Craig Cleland (Senior Independent Director and Nomination Committee Chairman) John Charlton-Jones ## BROKER Peel Hunt LLP 100 Liverpool Street London EC2M 2AT ## DEPOSITARY AND CUSTODIAN Northern Trust Investor Services Limited 50 Bank Street London E14 5NT ## REGISTRAR MUFG Corporate Markets Central Square 29 Wellington Street Leeds LS1 4DL ## LEGAL ADVISER Stephenson Harwood LLP 1 Finsbury Circus London EC2M 7SH ## INVESTMENT MANAGER Chikara Investments LLP 5 Bolton Street London W1J 8BA Website - www.chikarainvestments.com ## REGISTERED OFFICE* 25 Southampton Buildings London WC2A 1AL ## AIFM, ADMINISTRATOR and COMPANY SECRETARY (With effect from 1 January 2025) Frostrow Capital LLP 25 Southampton Buildings London WC2A 1AL Website - www.frostrow.com ## AUDITOR Johnston Carmichael LLP 7-11 Melville Street Edinburgh EH3 7PE ## COMPANY SECURITY INFORMATION AND IDENTIFICATION CODES WEBSITE ISSN SEDOL BLOOMBERG TICKER LEGAL ENTITY IDENTIFIER (LEI) GG00BYSRMH16 BYSRMH1 CCJI LN 549 300 FZANMYIORK 1K98 GLOBAL INTERMEDIARY IDENTIFICATION NUMBER (GIN) 6 HEK HT-99999-SL-826 *Registered in England no. 9845783 CC Japan Income & Growth Trust plc Annual Report and Accounts 2025 --- # Notice of Annual General Meeting ("AGM") Notice is hereby given that the Annual General Meeting of CC Japan Income & Growth Trust plc will be held on 27 February 2026 at 12 noon at the offices of Stephenson Harwood LLP, at 1 Finsbury Circus, London EC2M 7SH, United Kingdom for the following purposes: To consider and if thought fit pass the following resolutions of which resolutions 1 to 11 will be proposed as ordinary resolutions and resolutions 12 to 14 will be proposed as special resolutions. ## Ordinary resolutions 1. To receive the Company's Annual Report and Accounts for the year ended 31 October 2025, with the reports of the Directors and auditors thereon. 2. To approve the Directors' Remuneration Implementation Report included in the Annual Report and Accounts for the year ended 31 October 2025. 3. To approve the Directors' remuneration policy report. 4. To re-elect June Aitken as a Director of the Company. 5. To re-elect Kate Cornish-Bowden as a Director of the Company. 6. To re-elect Craig Cleland as a Director of the Company. 7. To re-elect John Charlton-Jones as a Director of the Company. 8. To authorise the Directors to declare and pay dividends on a semi-annual basis. 9. To re-appoint Johnston Carmichael LLP as Auditor to the Company. 10. To authorise the Directors to fix the remuneration of the Auditor until the conclusion of the next Annual General Meeting of the Company. 11. That the Directors be and are hereby generally and unconditionally authorised (in substitution for all subsisting authorities to the extent unused) to exercise all powers of the Company to allot relevant securities (as defined in section 551 of the Companies Act 2006) up to an aggregate nominal amount equal to £134,730.61 PROVIDED THAT the Directors may not allot relevant securities of an aggregate nominal amount more than 10% of the nominal value of the issued share capital (excluding Treasury shares) at the date of the Annual General Meeting and that this authority shall expire (unless previously varied, revoked or renewed by the Company in general meeting) at the conclusion of the Annual General Meeting of the Company to be held in 2027 or, if earlier, on the expiry of 15 months from the passing of this resolution (the "section 551 period") but so that the Directors may, at any time prior to the expiry of the section 551 period, make an offer or agreement which would or might require relevant securities to be allotted after the expiry of the section 551 period and the Directors may allot relevant securities in the pursuance of such an offer or agreement as if the authority granted by this resolution had not expired. ## Special resolutions 12. That, subject to the passing of resolution 11, in substitution for any existing power under section 570 of the Companies Act 2006 but without prejudice to the exercise of any such power prior to the date hereof, the Directors be and are hereby empowered, pursuant to section 570 of that Act, to allot and make offers or agreements to allot equity securities (as defined in section 560 of that Act) and/or sell equity securities held as Treasury shares pursuant to section 573 of that Act, in each case for cash pursuant to the authority and for the period of the authority conferred by resolution 11, up to an aggregate nominal amount of £134,730.61 as if section 561(1) of that Act did not apply to such allotment (subject to a maximum of 10% of the aggregate nominal value of the issued share capital at the date of this resolution). 13. That the Company be and is hereby generally and unconditionally authorised in accordance with section 701 of the Companies Act 2006 (the "Act") to make market purchases (within the meaning of section 693(4) of the Act) of its shares of 1p each, provided that: (a) the maximum number of shares hereby authorised to be purchased shall be 20,196,118 (representing 14.99 per cent of the Company's issued share capital (excluding shares held in Treasury) at the date of the notice of this meeting); (b) the minimum price (exclusive of any expenses) which may be paid for an share is 1p; (c) the maximum price (excluding expenses) which may be paid for a share is not more than the higher of (i) 5 per cent above the average of the middle market quotations for the shares for the five business days immediately before the day on which it purchases that share and (ii) the higher of the price of the last independent trade and the highest current independent bid for the shares; CC Japan Income & Growth Trust plc Annual Report and Accounts 2025 --- Other information Notice of Annual General Meeting ("AGM") continued (d) the authority hereby conferred shall expire at the conclusion of the Annual General Meeting of the Company in 2027 or, if earlier, on the expiry of 15 months from the passing of this resolution, unless such authority is renewed prior to such time; and (e) the Company may make a contract to purchase shares under the authority hereby conferred prior to the expiry of such authority, which will or may be executed wholly or partly after the expiration of such authority and may make a purchase of shares pursuant to any such contract. 14. That a general meeting of the Company other than an Annual General Meeting may be called on not less than 14 days' notice, provided that this authority shall expire at the conclusion of the Company's next Annual General Meeting after the date of the passing of this resolution. Registered Office: By order of the Board 25 Southampton Buildings Frostrow Capital LLP London Company Secretary WC2A 1AL 20 January 2026 CC Japan Income & Growth Trust plc Annual Report and Accounts 2025 --- # Notes to Notice of Annual General Meeting ("AGM") ## Website address 1. Information regarding the meeting, including the information required by section 311A of the Companies Act 2006, is available from https://ccjapanincomeandgrowthtrust.com. ## Entitlement to attend and vote 2. Only those holders of shares registered on the Company's register of members at close of business on 25 February 2026 or, if this meeting is adjourned, at close of business on the day two days prior to the adjourned meeting, shall be entitled to vote at the meeting. ## Appointment of Proxies 3. Pursuant to Section 324 of the Companies Act 2006, a member entitled to attend and vote at the meeting may appoint more than one proxy, provided that each proxy is appointed to exercise the rights attached to different shares held by him. A proxy need not be a member of the Company. If shareholders are not attending the AGM, shareholders are strongly urged to appoint the Chair as their proxy to vote on their behalf. Section 324 does not apply to persons nominated to receive information rights pursuant to Section 146 of the Companies Act 2006. Persons nominated to receive information rights under Section 146 of the Companies Act 2006 have been sent this notice of meeting and are hereby informed, in accordance with Section 149(2) of the Companies Act 2006, that they may have the right under an agreement with the registered member by whom they are nominated to be appointed, or to have someone else appointed, as a proxy for this meeting. If they have such right or do not wish to exercise it, they may have a right under such an agreement to give instructions to the member as to the exercise of voting rights. Nominated persons should contact the registered member by whom they were nominated in respect of these arrangements. The statement of rights of shareholders in relation to the appointment of proxies does not apply to nominated persons. ## Proxies' rights to vote 4. On a vote on a show of hands, each proxy has one vote. If a proxy is appointed by more than one member and all such members have instructed the proxy to vote in the same way, the proxy will only be entitled, on a show of hands, to vote "for" or "against" as applicable. If a proxy is appointed by more than one member, but such members have given different voting instructions, the proxy may, on a show of hands, vote both "for" and "against" in order to reflect the different voting instructions. On a poll, all or any of the voting rights of the member may be exercised by one or more duly appointed proxies. However, where a member appoints more than one proxy, Section 285(4) of the Companies Act does not authorise the exercise by the proxies taken together of more extensive voting rights than could be exercised by the member in person. Voting on the Resolution will be conducted by way of a poll. As soon as practicable following the meeting, the results of the voting will be announced via a regulatory information service and also placed on the Company's website. ## Voting by corporate representatives 5. Corporate representatives are entitled to attend and vote on behalf of the corporate member in accordance with Section 323 of the Companies Act provided they do not do so in relation to the same shares. ## Receipt and termination of proxies 6. The Form of Proxy and any power of attorney (or a notarially certified copy or office copy thereof) under which it is executed must be received by MUFG Corporate Markets at 12 noon on 25 February 2026 in respect of the meeting. Any Forms of Proxy received before such time will be deemed to have been received at such time. In the case of an adjournment, the Form of Proxy must be received by MUFG Corporate Markets no later than 48 hours before the rescheduled meeting. We strongly urge you to appoint the Chair of the meeting as your proxy. On completing the Form of Proxy, sign it and return it to MUFG Corporate Markets at the address shown on the Form of Proxy in the envelope provided. As postage has been pre-paid no stamp is required. CC Japan Income & Growth Trust plc Annual Report and Accounts 2025 --- Other information Notes to Notice of Annual General Meeting ("AGM") continued In order to revoke a proxy instruction you will need to send a signed hard copy notice clearly stating your intention to revoke your proxy appointment to the MUFG Corporate Markets, PXS 1, Central Square, 29 Wellington Street, Leeds, LS1 4DL no later than 12.00 noon 25 February 2026. In the case of a shareholder which is a company, the revocation notice must be executed under its common seal or signed on its behalf by an officer of the company or an attorney for the company. The original of any power of attorney or any other authority under which the revocation notice is signed (or a duly certified copy of such power or authority) must be included with the revocation notice. In accordance with the Company's Articles of Association, in determining the time for delivery of proxies, no account shall be taken of any part of a day that is not a working day. Shareholders can vote electronically via the Investor Centre, a free app for smartphone and tablet provided by MUFG Corporate Markets (the company's registrar). It allows you to securely manage and monitor your shareholdings in real time, take part in online voting, keep your details up to date, access a range of information including payment history and much more. The app is available to download on both the Apple App Store and Google Play, or by scanning the relevant QR code below. Alternatively, you may access the Investor Centre via a web browser at: https://uk.investorcentre.mpms.mufg.com/. ![img-20.jpeg](img-20.jpeg) ![img-21.jpeg](img-21.jpeg) If you are an institutional investor you may be able to appoint a proxy electronically via the Proxymity platform, a process which has been agreed by the Company and approved by the Registrar. For further information regarding Proxymity, please go to www.proxymity.io. Your proxy must be lodged by 12.00 noon on 25 February 2026 in order to be considered valid or, if the meeting is adjourned, by the time which is 48 hours before the time of the adjourned meeting. Before you can appoint a proxy via this process you will need to have agreed to Proxymity's associated terms and conditions. It is important that you read these carefully as you will be bound by them and they will govern the electronic appointment of your proxy. An electronic proxy appointment via the Proxymity platform may be revoked completely by sending an authenticated message via the platform instructing the removal of your proxy vote. ## Appointment of Proxy through CREST 7. CREST members who wish to appoint a proxy or proxies through the CREST electronic proxy appointment service may do so for the meeting to be held on the above date and any adjournment(s) thereof by using the procedures described in the CREST Manual. CREST Personal Members or other CREST sponsored members, and those CREST members who have appointed a voting service provider(s), should refer to their CREST sponsor or voting service provider(s), who will be able to take the appropriate action on their behalf. In order for a proxy appointment or instruction made using the CREST service to be valid, the appropriate CREST message (a "CREST Proxy Instruction") must be properly authenticated in accordance with Euroclear UK & International Limited's specifications and must contain the information required for such instructions, as described in the CREST Manual. The message, regardless of whether it constitutes the appointment of a proxy or an amendment to the instruction given to a previously appointed proxy, must, in order to be valid, be transmitted so as to be received by the Company's agent (ID: RA10) by the latest time(s) for receipt of proxy appointments specified in the notice of meeting. For this purpose, the time of receipt will be taken to be the time (as determined by the timestamp applied to the message by the CREST Applications Host) from which the Company's agent is able to retrieve the message by enquiry to CREST in the manner prescribed by CREST. After this time any change of instructions to a proxy's appointee through CREST should be communicated to the appointee through other means. CREST members and, where applicable, their CREST sponsors or voting service providers should note that Euroclear UK & International Limited does not make available special procedures in CREST for any particular messages. Normal system timings and limitations will therefore apply in relation to the input of CREST Proxy Instructions. It is the responsibility of the CREST member concerned to take (or, if the CREST member is a CREST personal member or sponsored member or has appointed a voting service provider(s), to procure that his CREST sponsor or voting service provider(s) take(s)) such action as shall be necessary to ensure that a message is transmitted by means of the CREST system by any particular time. In this connection, CREST members and, where applicable, their CREST sponsors or voting service providers are referred, in particular, to those sections of the CREST Manual concerning practical limitations of the CREST system and timings. CC Japan Income & Growth Trust plc Annual Report and Accounts 2025 --- The Company may treat as invalid a CREST Proxy Instruction in the circumstances set out in Regulation 35(5) (a) of the Uncertificated Securities Regulations 2001. All messages relating to the appointment of a proxy or an instruction to a previously appointed proxy, which are to be transmitted through CREST, must be lodged at 12 noon on 25 February 2026 in respect of the meeting. Any such messages received before such time will be deemed to have been received at such time. In the case of an adjournment, all messages must be lodged with MUFG Corporate Markets no later than 48 hours before the rescheduled meeting. Unless otherwise indicated on the Form of Proxy, CREST, Proxymity or any other electronic voting instruction, the proxy will vote as they think fit or, at their discretion, withhold from voting. ## Nominated Persons 8. If you are a person who has been nominated under section 146 of the Companies Act 2006 to enjoy information rights: - You may have a right under an agreement between you and the member of the Company who has nominated you to have information rights (Relevant Member) to be appointed or to have someone else appointed as a proxy for the meeting. - If you either do not have such a right or if you have such a right but do not wish to exercise it, you may have a right under an agreement between you and the Relevant Member to give instructions to the Relevant Member as to the exercise of voting rights. - Your main point of contact in terms of your investment in the Company remains the Relevant Member (or, perhaps, your custodian or broker) and you should continue to contact them (and not the Company) regarding any changes or queries relating to your personal details and your interest in the Company (including any administrative matters). The only exception to this is where the Company expressly requests a response from you. If you are not a member of the Company but you have been nominated by a member of the Company to enjoy information rights, you do not have a right to appoint any proxies under the procedures set out in the notes to the form of proxy. ## Questions at the Meeting 9. Under section 319A of the Companies Act 2006, the Company must answer any question you ask relating to the business being dealt with at the meeting unless: - answering the question would interfere unduly with the preparation for the meeting or involve the disclosure of confidential information; - the answer has already been given on a website in the form of an answer to a question; or - it is undesirable in the interests of the Company or the good order of the meeting that the question be answered. If shareholders would like to ask any questions prior to the meeting, shareholders are invited to submit their questions to cosec@frostrow.com. Please note all questions should be submitted by close of business on 25 February 2026. ## Issued shares and total voting rights 10. The total number of shares in the Company in respect of which members are entitled to exercise voting rights is 134,730,610 shares of £0.01 each, of which 0 is held in Treasury. The total number of voting rights in relation to the shares in the Company is 134,730,610. ## Communication 11. Except as provided above, members who have general queries about the meeting should use the following means of communication (no other methods of communication will be accepted): - calling MUFG Corporate Markets shareholder helpline (lines are open from 9:00 a.m. to 5:30 p.m. Monday to Friday, excluding public holidays in England and Wales) +44 371 664 0300 (calls are charged at the standard geographic rate and will vary by provider. Calls outside the United Kingdom will be charged at the applicable international rate; - emailing MUFG Corporate Markets at shareholderenquiries@cm.mpms.mufg.com; or - in writing to MUFG Corporate Markets at Central Square, 29 Wellington Street, Leeds, LS1 4DL. You may not use any electronic address provided either in this notice of meeting or in any related documents (including the Form of Proxy for this meeting) to communicate with the Company for any purposes other than those expressly stated. CC Japan Income & Growth Trust plc Annual Report and Accounts 2025 --- # CC Japan Income & Growth Trust plc Form of Proxy I/We of (BLOCK CAPITALS PLEASE) being (a) member(s) of CC Japan Income & Growth Trust plc appoint the Chair of the meeting, or (see note 1) of as my/our proxy and, on a poll, to vote for me/us on my/our behalf at the Annual General Meeting of the Company to be held on 27 February 2026 at 12 noon and any adjournment thereof. Please indicate with an 'X' in the spaces provided how you wish your votes to be cast on the resolutions specified. | | Resolution | For | Against | Withheld | Discretionary | | --- | --- | --- | --- | --- | --- | | 1. | To receive and adopt the Annual Report and Accounts for the year ended 31 October 2025 | | | | | | 2. | To approve the Directors' remuneration implementation report | | | | | | 3. | To approve the Directors' remuneration policy report | | | | | | 4. | To re-elect June Aitken as a Director of the Company | | | | | | 5. | To re-elect Kate Cornish-Bowden as a Director of the Company | | | | | | 6. | To re-elect Craig Cleland as a Director of the Company | | | | | | 7. | To re-elect John Charlton-Jones as a Director of the Company | | | | | | 8. | To authorise the Directors to declare and pay dividends on a semi-annual basis | | | | | | 9. | To re-appoint Johnston Carmichael LLP as Auditor to the Company | | | | | | 10. | To authorise the Directors to fix the remuneration of the Auditor | | | | | | 11. | To give authority to allot new shares | | | | | | 12. | To give authority to allot new shares free from pre-emption rights | | | | | | 13. | To give authority for the Company to purchase its own shares | | | | | | 14. | To authorise calling general meetings (other than Annual General Meetings) on 14 clear days' notice | | | | | Subject to any voting instructions so given the proxy will vote, or may abstain from voting, on any resolution as he may think fit. Signature ___________________________________________________________ Dated this _______________ day of _______________ 2026 ## NOTES 1. If any other proxy is preferred, strike out the words "Chair of the Meeting" and add the name and address of the proxy you wish to appoint and initial the alteration. The proxy need not be a member. 2. If the appointer is a corporation this form must be completed under its common seal or under the hand of some officer or attorney duly authorised in writing. 3. A vote withheld is not a vote in law and will not be counted in the calculation of the proportion of the votes for or against a resolution. 4. The signature of any one of joint holders will be sufficient, but the names of all the joint holders should be stated. 5. To appoint more than one proxy you may photocopy this form. Please indicate the proxy holder's name and the number of shares in relation to which they are authorised to act as your proxy (which, in aggregate, should not exceed the number of shares held by you). Please also indicate if the proxy instruction is one of multiple instructions being given. All forms must be signed and should be returned together in the same envelope. 6. To be valid, this form and the power of attorney or other authority (if any) under which it is signed, or a notarially certified copy of such power, must reach the registrars of the Company, MUFG Corporate Markets not less than forty-eight hours before the time appointed for holding the Annual General Meeting or adjournment as the case may be. 7. The completion of this form will not preclude a member from attending the Meeting and voting in person. 8. Any alteration of this form must be initialled. Your completed and signed proxy form should be posted, in the enclosed reply paid envelope, to the Company's Registrars, MUFG Corporate Markets, PXS 1, MUFG Corporate Markets, Central Square, 29 Wellington Street, Leeds, LS1 4DL, so as to arrive by 12 noon on 25 February 2026. Alternatively you can vote via the Investor Center app or via the website https://uk.investorcentre.mpms.mufg.com/. --- Designed and printed by: perivan.com Designed and printed by: perivan.com --- CC Japan Income & Growth Trust plc www.ccjapanincomeandgrowthtrust.com