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Stock Analysis & ValuationCC Japan Income & Growth Trust plc (CCJI.L)

Professional Stock Screener
Previous Close
£232.00
Sector Valuation Confidence Level
High
Valuation methodValue, £Upside, %
Artificial intelligence (AI)99.96-57
Intrinsic value (DCF)76.99-67
Graham-Dodd Method2.58-99
Graham Formula4.77-98

Strategic Investment Analysis

Company Overview

CC Japan Income & Growth Trust plc (LSE: CCJI.L) is a UK-domiciled investment trust focused on generating income and capital growth through investments in Japanese equities. Launched in 2013 and managed by Coupland Cardiff Asset Management LLP, the fund targets diversified sectors within Japan's dynamic economy. With a market capitalization of approximately £248.6 million, CC Japan Income & Growth Trust offers investors exposure to Japan's corporate sector, known for its strong dividend culture and growth potential. The trust's strategy emphasizes income generation, reflected in its dividend yield, while capitalizing on Japan's economic reforms and corporate governance improvements. As part of the Financial Services sector, CC Japan Income & Growth Trust provides a specialized vehicle for investors seeking Japanese equity exposure with a focus on income and growth, distinguishing itself in the Asset Management - Income industry.

Investment Summary

CC Japan Income & Growth Trust plc presents an attractive option for investors seeking exposure to Japanese equities with a focus on income and growth. The trust's diversified portfolio across Japanese sectors mitigates single-stock risk, while its dividend yield of 5.45 GBp per share appeals to income-focused investors. With a beta of 0.84, the trust exhibits lower volatility compared to the broader market, offering a relatively stable investment. However, risks include currency fluctuations between GBP and JPY, as well as Japan's economic sensitivity to global trade dynamics. The absence of debt and positive net income (£37.9 million) underscore financial stability, but reliance on Japan's market performance remains a key consideration.

Competitive Analysis

CC Japan Income & Growth Trust plc competes in the niche market of Japan-focused income and growth investment trusts. Its competitive advantage lies in its specialized focus on Japanese equities, managed by Coupland Cardiff, which brings local market expertise. The trust's emphasis on dividend-paying stocks aligns with Japan's corporate governance reforms, enhancing shareholder returns. Compared to broader global or regional funds, CCJI.L offers targeted exposure, which can be both a strength and a limitation—while it provides concentrated access to Japan's market, it lacks diversification outside Japan. The trust's lower beta suggests a defensive positioning, appealing to risk-averse investors. However, its smaller size (£248.6 million market cap) may limit liquidity compared to larger peers. The absence of leverage (zero debt) is a conservative strength but may also constrain returns in bullish markets. Overall, CCJI.L is well-positioned for investors prioritizing Japanese income stocks but faces competition from larger, more diversified trusts.

Major Competitors

  • JPMorgan Japanese Investment Trust plc (JFJ.L): JPMorgan Japanese Investment Trust (JFJ.L) is a larger peer with a broader mandate focusing on capital growth in Japanese equities. Managed by JPMorgan, it benefits from extensive resources and research capabilities. However, its growth focus may not appeal to income-seeking investors as strongly as CCJI.L. JFJ.L's larger size enhances liquidity but may reduce agility in stock selection.
  • BlackRock Greater Europe Investment Trust plc (BJF.L): BlackRock Greater Europe (BJF.L) offers exposure to European equities, including Japan, providing broader geographic diversification. Its BlackRock management ensures strong analytical support, but its Europe-centric focus dilutes pure Japanese exposure. For investors seeking pan-European income, BJF.L is an alternative, though less specialized in Japan than CCJI.L.
  • Murray International Trust plc (MYI.L): Murray International Trust (MYI.L) is a global equity income trust with some Japanese holdings. Its diversified global portfolio reduces Japan-specific risks but also limits focused exposure. MYI.L's strong dividend track record competes with CCJI.L for income investors, though its broader mandate may not suit those seeking concentrated Japanese opportunities.
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