FSA looks at the top-performing Japan equity funds as the asset class posts the highest performance among developed markets in the first half of 2026.

Japanese equity markets look to be on track for another year of outperformance after beating both the S&P 500 and MSCI World indices last year.

The TSE TOPIX delivered a 14.6% return in the first half of 2026, compared to a 10% return from the S&P 500 index and 9.7% from the broader MSCI World index, in US dollar terms.

As a result, Japanese equities are outperforming all other major developed market regions despite the significant currency headwind posed by a depreciating Japanese Yen.

This performance comes as Japanese-listed companies continue to benefit from the ongoing corporate governance overhaul that began in 2023, and the transition of the nation’s economic backdrop from a deflationary to an inflationary regime.

The recent election of prime minister Sanae Takaichi has also been a boost, given her party’s pledge to continue policy stability and push for economic growth.

The ongoing boom in Japanese manufacturing and industrial sectors on the back of the continued artificial intelligence (AI) buildout has also been a boost, although to a lesser extent compared to Korea and Taiwan.

With this backdrop, FSA highlights 10 active Japanese equity funds available for distribution in Hong Kong and/or Singapore with the highest returns in the first half of 2026, according to data from FE Fundinfo*.

Fund	Return (%)	ISIN
Alma Eikoh Japan Large Cap Equity	38.01	LU1013118051
Nomura Japan Sustainable Equity Core	33.71	IE000WNO0Z57
Comgest Growth Japan Compounders	28.44	IE000KM23O57
Fundsight Daiwa High Conviction Japanese Equity Fund	27.34	LU1983256782
FundRock Management Company S.A. AMOVA Japan Value	26.27	LU1314310316
Comgest Growth Japan	26.21	IE00BD1DJ122
Tokio Marine Japanese Equity Focus in US	25.75	IE00BYZSRZ06
Eastspring Inv Japan Dynamic	25.27	LU1118698981
RBC Funds (Lux) Japan Ishin	24.78	LU1868742187
CAIFS Select Equities Nomura Japan Equities	24.64	LU0564627916

The best performer was the Alma Eikoh Japan Large Cap Equity fund, which returned 38% over the period.

This $1.3bn actively managed strategy is run by James Pulsford and Tom Grew. They run a portfolio of roughly 40 positions, with a focus on cash flow return on investment as well as value creation.

Other standout funds include the Comgest Growth Japan fund, AMOVA Japan Value and Eastspring Inv Japan Dynamic.

*This article has been updated to fix an error in performance figures