Aberdeen Japan Investment Trust's net asset value per share rose to 573.5p in the six months to the end of September from 511.3p at the end of March.
NAV per share rose by 13% on a total return basis compared with a 21.8% rise in its benchmark.
Chairman Neil Gaskell said: "The Company's share price total return was almost 14% during the period helped by both a slight tightening of the discount and the slide in sterling following the Brexit referendum result, including the effect of the hedge which, as expected, reduced the sterling related gain. The market in Japan was more settled than in the preceding 12 months and some signs of better growth have started to emerge.
"The underlying portfolio outperformed the benchmark by 0.6% over the six month period continuing the delivery of good returns, averaging about 17.9% p.a., which is 4.5 % p.a. above the benchmark since the start of the current mandate almost 3 years ago.
"The Manager's success in investing in companies with niche strengths, good governance and long term commitment to delivering returns to shareholders has produced this strong underlying portfolio performance despite economic headwinds in Japan in terms of a stubbornly strong yen, disappointingly slow progress in Abenomics, and weak global growth for much of the period.
"In contrast to this positive portfolio performance, the sterling hedge produced a substantial loss of 9.3% during the period as a result of the 16% sterling devaluation vs the yen following the EU referendum in the UK in June. This unexpectedly sharp depreciation of sterling has turned the cumulative result of the hedge from virtually neutral at the end of the previous period to a reduction of about 2.7% p.a., although since the end of the period the yen has weakened. The Board, in consultation with the Manager, keeps the appropriate level of the sterling hedge under review in the light of the underlying yen exposure in the portfolio."
At 9:07am: (LON:AJIT) Aberdeen Japan Investment Trust share price was 0p at 513p