Fidelity Japan Trust Plc - Response to AJOT Announcement

4 April 2025

FIDELITY TRUST PLCJAPAN (the 'Company')

Response to AJOT Announcement

The Board of Fidelity Japan Trust Plc ("FJV" or the "Company") notes the announcement yesterday by AVI Japan Opportunity Trust Plc ("AJOT") regarding a proposal for the combination of the assets of FJV and AJOT by way of a scheme of reconstruction of FJV pursuant to section 110 of the Insolvency Act 1986 and a rollover of its assets into AJOT with a cash exit capped at 25% (the "AJOT Proposals").

The Board confirms that it considered, reviewed and rejected a non-binding indicative proposal it had received from AJOT in .August 2024 In addition, prior to publishing the Company’s 2024 final results on (the “2024 Final Results”), in which the Board recommended continuation of the Company at the forthcoming AGM, the Board gave careful deliberation to various options as well as verbal proposals from parties, including from the Board of AJOT.27 March 2025  

The Board of FJV believes that the Fidelity Japan investment team is one of the best resourced in the industry. Fidelity has had a presence in since 1969 and has overJapanUS$13.1bn1invested in Japanese equities’ mandates. FJV has generated significant outperformance in the past and the Board believes that there will be a reversion to a market environment where the investment style of the Fidelity team will once again generate strong performance. Over the ten years to , the Net Asset Value of FJV rose by 146% against 140% for the reference index. In 2019, FJV outperformed its reference index by 22%, and in 2020 it outperformed by 15.8%. The Board believes that investing requires an ability to withstand the gyrations of the markets and take a long-term view and that it will again see such levels of outperformance from FJV.31 December 2024

As set out in the 2024 Final Results, at the forthcoming AGM in May shareholders are being asked to vote in favour of continuation of FJV, an investment trust with a style very different from that of AJOT. Linked to this is an unconditional tender offer for 100% of the Company’s issued capital (excluding shares in Treasury) following the three years to .31 December 2027

, Chair of FJV, commented:David Graham

“The Board remains focused on ensuring the Company returns to delivering strong investment performance and is confident that the portfolio is well placed to benefit from the more positive outlook for the Japanese market. The Board of FJV, which has a duty to act in the best interests of all FJV’s shareholders, recommends shareholders vote in favour of continuation of the Company at the AGM in .May 2025

The Board believes it is appropriate to allow all shareholders a chance to vote on the Company’s continuation in May and does not consider it is in shareholders’ interests to take forward the AJOT Proposals in isolation at this time. Regardless of the outcome of the continuation vote, the Board will always consider any proposal it receives as a matter of good corporate governance.” 

For further information:

 Source: Fidelity International. Data as of .31 December 2024

Performance data are calculated in GBP. The reference index is the TOPIX Total Return Index (in sterling terms). Prior to , the reference index was the Russell Nomura Mid/Small-Cap Index (in sterling terms).¹22 May 2018

Link to AJOT announcement

Fidelity Japan Trust Plc
                         Via Stifel


       Tel: +44 (0) 20 7710 7600David Graham (Chairman)

StifelEdward Gibson-WattAndrew Yeo