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The news came as JPMorgan Japanese investment trust reported a decline in net assets of 29.3 per cent during its final results for the year ended September 30 2008.

Jeremy Paulson-Ellis, chairman of the trust, said its underperformance in recent years was unacceptable to shareholders.

He added: “From our discussions with the team at JPMorgan in Tokyo, we are certain they are aware of the dissatisfaction felt by both the board and shareholders.”

However, Mr Paulson-Ellis said the market was well-placed to recover from the current crisis affecting Japanese trusts.

He added: “Looking beyond the immediate crisis, however, Japan's proximity to, and increasing trade with, the still growing Asian economies will continue to provide opportunities for many Japanese companies.”

Paul Chesson, head of Japanese equities at Invesco Perpetual and lead manager of the £149m Invesco Perpetual Japan fund, said a recovery in the Japanese equity markets was likely to occur in in late 2009 or 2010.

“The economy is awful, but it’s awful everywhere and I believe it will continue to be awful well into next year,” he said.

Meanwhile, the Prospect Japan fund also suffered from volatility in Japanese markets, having lost 54.75 per cent of its net asset value during the first nine months of 2008. The Morant Wright Japan Income trust also saw a drop in its net asset value, falling 23.3 per cent during October.