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<p><strong>Your capital is at risk. Past performance is not a guide to future returns.</strong></p>
<p> </p>
<p class="MsoNormal"><strong>Alison Henry:</strong> Japan has qualified for the World Cup eight times, making them one of Asia’s most consistent qualifiers. Affectionately known as the Samurai Blue, there was much excitement when they made it to the knockout stage, only to be beaten by Brazil in the 96th minute at the end of June.</p>
<p class="MsoNormal">Markets have had their own version of tournament fever. Major US AI-related IPOs, strong semiconductor earnings and rising expectations for the AI supply chain have all lifted anticipation. In Japan, the Nikkei 225 recently burst through 70,000, only months after reaching a record 60,000. This was the result of an impressive quarter dominated by AI hardware, with enthusiasm also broadening towards perceived AI beneficiaries.</p>
<p class="MsoNormal">Companies focused on automation, robotics and semiconductor supply chains all saw sustained demand as they benefited from global tech trends and capital expenditure cycles. This backdrop, although narrow in terms of market returns, has been supportive for your portfolio, which outperformed the index strongly over the quarter.</p>
<p class="MsoNormal">The winners came from companies linked to AI infrastructure, semiconductors and automation. These included Kioxia, SoftBank and Murata, as well as automation names Yaskawa, FANUC and Harmonic Drive. During the quarter, we witnessed a striking change in Japan’s market dynamic. Toyota has for decades been the country’s largest company and most recognised brand, but it relinquished the top spot, first to SoftBank and then to memory chip maker Kioxia, which we don’t own.</p>
<p class="MsoNormal">Much like Brazil has won more World Cups than any other, it has only managed one consecutive win because cycles change and new players enter the game. And similarly, could this shift in the Japanese market signal the start of a more fundamental shift in the opportunity set? From cyclical origins to one increasingly defined by semiconductors, AI infrastructure and technology. So while we don’t own Kioxia, which has become a beneficiary of AI-related spend, we do have significant weight in the next stack, in businesses like SoftBank, which is the portfolio’s largest position. Through its 90 percent holding in chip designer Arm and roughly 13 percent holding in OpenAI, it is critical to enabling the next layer of AI infrastructure.</p>
<p class="MsoNormal">Murata was also a key contributor. It is a specialist manufacturer of multi-layer ceramic capacitors critical in AI. And although this part of its business remains relatively small overall, it matters disproportionately given the opportunity. And automation names also performed well. And this is an area where Japan has long been a leader. So Yaskawa, FANUC and Harmonic Drive all are exposed to longer-term need for greater productivity, especially in a country facing labour shortages and rising wages. And so these companies are seeing record orders, a larger backlog and better than expected earnings, which suggests that the automation cycle is finally beginning to turn, and their products are helping factories to do more with less, which should remain a powerful structural theme in Japan.</p>
<p class="MsoNormal">Detractors to performance included financial services providers SBI Holdings and SBI Shinsei. Both companies represent a new breed of entrepreneurial disruptors that are growing aggressively and a bit like a burnt-out football player. The fear is that they may not be able to deliver in the second half, but we believe that these online companies will be able to deliver come extra time, unlike the incumbents who have slow legacy business models that are struggling to adapt.</p>
<p class="MsoNormal">To summarise, while this market rally has been narrow, we believe the opportunity in Japan remains attractive for long-term growth investors. Market conditions have moved away from supporting cyclical plays and should continue to reward companies with genuine competitive advantages, strong management execution and clear pathways to durable growth. In football, tournaments are won by teams that can combine flair with discipline, and the same is true in investing.</p>
<p class="MsoNormal">Japan’s market has enjoyed a powerful run, but the real prize will come from high-quality growth companies that can keep compounding long after the final whistle.</p>
<p class="MsoNormal"> </p>
<h3 class="TABLEHEADER1212pt">Japanese Equities</h3>
<p><strong>Annual past performance to 30 June each year (%)</strong></p>
<table border="1" style="border-collapse: collapse; width: 100.018%; border-width: 0px; height: 74.6668px;">
<tbody>
<tr style="height: 18.6667px;">
<td style="border-width: 1px 1px 2px; border-style: solid; border-color: rgb(204, 204, 204) rgb(204, 204, 204) rgb(0, 0, 0); border-image: initial; padding: 10px; height: 18.6667px; width: 54.9295%;"> </td>
<td style="border-width: 1px 1px 2px; border-style: solid; border-color: rgb(204, 204, 204) rgb(204, 204, 204) rgb(0, 0, 0); border-image: initial; padding: 10px; height: 18.6667px; text-align: right; width: 8.98136%;"><strong>2022</strong></td>
<td style="border-width: 1px 1px 2px; border-style: solid; border-color: rgb(204, 204, 204) rgb(204, 204, 204) rgb(0, 0, 0); border-image: initial; padding: 10px; height: 18.6667px; text-align: right; width: 8.98136%;"><strong>2023</strong></td>
<td style="border-width: 1px 1px 2px; border-style: solid; border-color: rgb(204, 204, 204) rgb(204, 204, 204) rgb(0, 0, 0); border-image: initial; padding: 10px; height: 18.6667px; text-align: right; width: 8.98136%;"><strong>2024</strong></td>
<td style="border-width: 1px 1px 2px; border-style: solid; border-color: rgb(204, 204, 204) rgb(204, 204, 204) rgb(0, 0, 0); border-image: initial; padding: 10px; height: 18.6667px; text-align: right; width: 8.98136%;"><strong>2025</strong></td>
<td style="border-width: 1px 1px 2px; border-style: solid; border-color: rgb(204, 204, 204) rgb(204, 204, 204) rgb(0, 0, 0); border-image: initial; padding: 10px; height: 18.6667px; text-align: right; width: 8.98136%;"><strong>2026</strong></td>
</tr>
<tr style="height: 18.6667px;">
<td style="border: 1px solid rgb(204, 204, 204); padding: 10px; height: 18.6667px; width: 54.9295%;">Japanese Equities All Cap Composite (gross)</td>
<td style="border: 1px solid rgb(204, 204, 204); padding: 10px; height: 18.6667px; text-align: right; width: 8.98136%;">-27.6</td>
<td style="border: 1px solid rgb(204, 204, 204); padding: 10px; height: 18.6667px; text-align: right; width: 8.98136%;">10.8</td>
<td style="border: 1px solid rgb(204, 204, 204); padding: 10px; height: 18.6667px; text-align: right; width: 8.98136%;">6.9</td>
<td style="border: 1px solid rgb(204, 204, 204); padding: 10px; height: 18.6667px; text-align: right; width: 8.98136%;">14.1</td>
<td style="border: 1px solid rgb(204, 204, 204); padding-top: 10px; padding-right: 10px; padding-bottom: 10px; height: 18.6667px; text-align: right; width: 8.98136%;">18.4</td>
</tr>
<tr style="height: 18.6667px;">
<td style="border: 1px solid rgb(204, 204, 204); padding: 10px; height: 18.6667px; width: 54.9295%;">Japanese Equities All Cap Composite (net)</td>
<td style="border: 1px solid rgb(204, 204, 204); padding: 10px; height: 18.6667px; text-align: right; width: 8.98136%;">-28.0</td>
<td style="border: 1px solid rgb(204, 204, 204); padding: 10px; height: 18.6667px; text-align: right; width: 8.98136%;">10.1</td>
<td style="border: 1px solid rgb(204, 204, 204); padding: 10px; height: 18.6667px; text-align: right; width: 8.98136%;">6.2</td>
<td style="border: 1px solid rgb(204, 204, 204); padding-top: 10px; padding-right: 10px; padding-bottom: 10px; height: 18.6667px; text-align: right; width: 8.98136%;">13.4</td>
<td style="border: 1px solid rgb(204, 204, 204); padding: 10px; height: 18.6667px; text-align: right; width: 8.98136%;">17.7</td>
</tr>
<tr>
<td style="border: 1px solid rgb(204, 204, 204); padding: 10px; width: 54.9295%;">Japanese Equities Growth Composite (gross)</td>
<td style="border: 1px solid rgb(204, 204, 204); padding: 10px; text-align: right; width: 8.98136%;">-33.8</td>
<td style="border: 1px solid rgb(204, 204, 204); padding: 10px; text-align: right; width: 8.98136%;">13.2</td>
<td style="border: 1px solid rgb(204, 204, 204); padding: 10px; text-align: right; width: 8.98136%;">6.0</td>
<td style="border: 1px solid rgb(204, 204, 204); padding: 10px; text-align: right; width: 8.98136%;">9.3</td>
<td style="border: 1px solid rgb(204, 204, 204); padding: 10px; text-align: right; width: 8.98136%;">25.6</td>
</tr>
<tr>
<td style="border: 1px solid rgb(204, 204, 204); padding: 10px; width: 54.9295%;">Japanese Equities Growth Composite (net)</td>
<td style="border: 1px solid rgb(204, 204, 204); padding: 10px; text-align: right; width: 8.98136%;">-34.2</td>
<td style="border: 1px solid rgb(204, 204, 204); padding: 10px; text-align: right; width: 8.98136%;">12.5</td>
<td style="border: 1px solid rgb(204, 204, 204); padding: 10px; text-align: right; width: 8.98136%;">5.4</td>
<td style="border: 1px solid rgb(204, 204, 204); padding: 10px; text-align: right; width: 8.98136%;">8.7</td>
<td style="border: 1px solid rgb(204, 204, 204); padding: 10px; text-align: right; width: 8.98136%;">24.8</td>
</tr>
<tr style="height: 18.6667px;">
<td style="border: 1px solid rgb(204, 204, 204); padding: 10px; height: 18.6667px; width: 54.9295%;">TOPIX Index</td>
<td style="border: 1px solid rgb(204, 204, 204); padding: 10px; height: 18.6667px; text-align: right; width: 8.98136%;">19.5</td>
<td style="border: 1px solid rgb(204, 204, 204); padding: 10px; height: 18.6667px; text-align: right; width: 8.98136%;">18.1</td>
<td style="border: 1px solid rgb(204, 204, 204); padding: 10px; height: 18.6667px; text-align: right; width: 8.98136%;">12.8</td>
<td style="border: 1px solid rgb(204, 204, 204); padding: 10px; height: 18.6667px; text-align: right; width: 8.98136%;">15.9</td>
<td style="border: 1px solid rgb(204, 204, 204); padding: 10px; height: 18.6667px; text-align: right; width: 8.98136%;">27.3</td>
</tr>
</tbody>
</table>
<p> </p>
<p><strong>Annualised returns to 30 June 2026 (%)</strong></p>
<table border="1" style="border-collapse: collapse; width: 100%; border-width: 0px; height: 93.0001px;">
<tbody>
<tr style="height: 37px;">
<td style="border-width: 1px 1px 2px; border-style: solid; border-color: rgb(204, 204, 204) rgb(204, 204, 204) rgb(0, 0, 0); border-image: initial; padding: 10px; height: 37px; width: 61.4377%;"> </td>
<td style="border-width: 1px 1px 2px; border-style: solid; border-color: rgb(204, 204, 204) rgb(204, 204, 204) rgb(0, 0, 0); border-image: initial; padding: 10px; height: 37px; width: 13.0165%; text-align: right;"><strong>1 year</strong></td>
<td style="border-width: 1px 1px 2px; border-style: solid; border-color: rgb(204, 204, 204) rgb(204, 204, 204) rgb(0, 0, 0); border-image: initial; padding: 10px; height: 37px; width: 12.626%; text-align: right;"><strong>5 years</strong></td>
<td style="border-width: 1px 1px 2px; border-style: solid; border-color: rgb(204, 204, 204) rgb(204, 204, 204) rgb(0, 0, 0); border-image: initial; padding: 10px; height: 37px; width: 12.7561%; text-align: right;"><strong>10 years</strong></td>
</tr>
<tr style="height: 18.6667px;">
<td style="border: 1px solid rgb(204, 204, 204); padding: 10px; height: 18.6667px; width: 61.4377%;">Japanese Equities All Cap Composite (gross)</td>
<td style="border: 1px solid rgb(204, 204, 204); padding: 10px; height: 18.6667px; width: 13.0165%; text-align: right;">18.4</td>
<td style="border: 1px solid rgb(204, 204, 204); padding: 10px; height: 18.6667px; width: 12.626%; text-align: right;">3.0</td>
<td style="border: 1px solid rgb(204, 204, 204); padding: 10px; height: 18.6667px; width: 12.7561%; text-align: right;">8.9</td>
</tr>
<tr style="height: 18.6667px;">
<td style="border: 1px solid rgb(204, 204, 204); padding: 10px; height: 18.6667px; width: 61.4377%;">Japanese Equities All Cap Composite (net)</td>
<td style="border: 1px solid rgb(204, 204, 204); padding: 10px; height: 18.6667px; width: 13.0165%; text-align: right;">17.7</td>
<td style="border: 1px solid rgb(204, 204, 204); padding: 10px; height: 18.6667px; width: 12.626%; text-align: right;">2.4</td>
<td style="border: 1px solid rgb(204, 204, 204); padding: 10px; height: 18.6667px; width: 12.7561%; text-align: right;">8.3</td>
</tr>
<tr>
<td style="border: 1px solid rgb(204, 204, 204); padding: 10px; width: 61.4377%;">Japanese Equities Growth Composite (gross)</td>
<td style="border: 1px solid rgb(204, 204, 204); padding: 10px; width: 13.0165%; text-align: right;">25.6</td>
<td style="border: 1px solid rgb(204, 204, 204); padding: 10px; width: 12.626%; text-align: right;">1.7</td>
<td style="border: 1px solid rgb(204, 204, 204); padding: 10px; width: 12.7561%; text-align: right;">8.3</td>
</tr>
<tr>
<td style="border: 1px solid rgb(204, 204, 204); padding: 10px; width: 61.4377%;">Japanese Equities Growth Composite (net)</td>
<td style="border: 1px solid rgb(204, 204, 204); padding: 10px; width: 13.0165%; text-align: right;">24.8</td>
<td style="border: 1px solid rgb(204, 204, 204); padding: 10px; width: 12.626%; text-align: right;">1.1</td>
<td style="border: 1px solid rgb(204, 204, 204); padding: 10px; width: 12.7561%; text-align: right;">7.6</td>
</tr>
<tr style="height: 18.6667px;">
<td style="border: 1px solid rgb(204, 204, 204); padding: 10px; height: 18.6667px; width: 61.4377%;">TOPIX Index</td>
<td style="border: 1px solid rgb(204, 204, 204); padding: 10px; height: 18.6667px; width: 13.0165%; text-align: right;">27.3</td>
<td style="border: 1px solid rgb(204, 204, 204); padding: 10px; height: 18.6667px; width: 12.626%; text-align: right;">9.6</td>
<td style="border: 1px solid rgb(204, 204, 204); padding: 10px; height: 18.6667px; width: 12.7561%; text-align: right;">9.9</td>
</tr>
</tbody>
</table>
<p><span style="font-size: 7.0pt; font-family: 'Helvetica Now Text',sans-serif; mso-fareast-font-family: 'Times New Roman'; mso-bidi-font-family: Arial; mso-ansi-language: EN-GB; mso-fareast-language: JA; mso-bidi-language: AR-SA;">Source: Revolution, Japan Exchange Group. US dollars. Net returns have been calculated by reducing the gross return by the highest annual management fee for the composite. 1 year figures are not annualised.</span><span style="font-size: 7.0pt; font-family: 'Helvetica Now Text',sans-serif; mso-fareast-font-family: 'Times New Roman'; mso-bidi-font-family: Arial; mso-ansi-language: EN-GB; mso-fareast-language: JA; mso-bidi-language: AR-SA;"></span></p>
<p><strong>Past performance is not a guide to future returns.</strong></p>
<p><span style="font-size: 7.0pt; font-family: 'Helvetica Now Text',sans-serif; mso-fareast-font-family: 'Times New Roman'; mso-bidi-font-family: Arial; mso-ansi-language: EN-GB; mso-fareast-language: JA; mso-bidi-language: AR-SA;">Legal notice: The TOPIX Index Value and the TOPIX Marks are subject to the proprietary rights owned by Tokyo Stock Exchange, Inc. and Tokyo Stock Exchange, Inc. owns all rights and know-how relating to the TOPIX such as calculation, publication and use of the TOPIX Index Value and relating to the TOPIX Marks. No Product is in any way sponsored, endorsed or promoted by Tokyo Stock Exchange, Inc.</span></p>
<p> </p>
<h3>Risk factors </h3>
<p>This communication was produced and approved in July 2026 and has not been updated subsequently. It represents views held at the time and may not reflect current thinking.</p>
<p>The views expressed should not be considered as advice or a recommendation to buy, sell or hold a particular investment. They reflect opinion and should not be taken as statements of fact nor should any reliance be placed on them when making investment decisions.</p>
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<p>The images used in this communication are for illustrative purposes only.</p>
<p> </p>
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