Over the first quarter, AJOT’s NAV declined by a modest -0.6%. The strength of the Pound against the Yen, which detracted 7.5% from returns, masked an otherwise respectable quarter.
The most important feature of our portfolio is that the overall corporate value of our 28 investee companies is increasing, whether that be through cash generation, earnings growth or a higher justifiable multiple due to improved business quality. In February and March, our companies reported earnings results, showing a solid recovery in profitability after the disruption from the pandemic with the weighted profits of the portfolio increasing by 16% year-on-year.
AVI Japan Opportunity Trust p.l.c is referred to as ‘AJOT’ throughout the website. AJOT’s investment managers, Asset Value Investors are referred to as ‘AVI’