There are five Japan equity funds that are delivering returns over 25% year-to-date, outpacing both the TSE TOPIX and S&P 500 index during the same period, according to data from FE fundinfo.
Japanese equities have continued to edge up so far in 2025 despite the uncertainty posed by US trade tariffs and a shake up in the country’s upper house election.
In US dollar terms, the TSE TOPIX is up 18.4% year-to-date, versus the S&P 500 index return of 10.4%. This performance has been boosted by currency moves, where the Japanese yen has risen 6.5% year-to-date versus the US dollar.
As corporate governance reforms in Japan continue to gain traction, some funds have managed to outpace the wider market so far this year.
Below, FSA highlights five Japanese equity funds available for distribution in either Singapore or Hong Kong that are outperforming year-to-date.
BCM Vitruvius Japanese Equity
The BCM Vitruvius Japanese Equity fund is up 34.5% year-to-date, versus 18.4% from the TOPIX index. Over the past three years, the fund is up 119%.
The fund’s investment adviser, Nippon Finance Management, uses a top-down sectoral approach combined with fundamental company analysis focusing on companies’ competitive positions and management strategies, according to its factsheet.
It has a large overweight allocation towards industrial stocks, where it has 34.5% weighted to the industrials sector, versus 24.8% from the MSCI Japan index.
Franklin Templeton Japan
The Franklin Templeton Japan fund is up 31.1% year-to-date. Over the past three years, it is up 69.3%.
Managed by Ferdinand Cheuk out of Hong Kong and Chen Hsung Khoo out of Singapore, the fund takes a highly concentrated approach to investing in Japan, with just 29 holdings, according to its latest factsheet.
It has a slight overweight to industrials, consumer discretionary and financials, and a slight underweight to information technology.
Fidelity Japan Value
The Fidelity Japan Value fund has delivered a 29.2% return year-to-date and 57.2% over the past three years. This $1.9bn strategy is managed by Min Zeng out of Tokyo.
The fund takes a value investing approach to Japanese equities, with 67 positions. Compared with the TOPIX index, the strategy has a large overweight exposure to the construction sector, at 12.8% versus the index 2.3%.
It has large top-10 positions in engineering firm Hitachi and engineering construction firm Kinden Corporation, according to its latest factsheet.
Morant MW Japan
The Morant MW Japan fund has returned 29.2% year-to-date, and 97.24% over the past three years.
This strategy is managed by the Morant Wright team, which includes its two founders Stephen Morant and Ian Wright. The firm uses a value-focused approach to investing in the region.
The managers in their latest investor letter believe that the trend of Japanese company restructuring remains “firmly in place and if anything are accelerating”. It has 60 positions, with three media firms in its top-10 holdings.
Nikko AM Shenton Japan
The Nikko AM fund has returned 27.9% year-to-date, and 66.1% over the past three years.
The strategy takes a moderately concentrated approach, with 85 holdings and a notable overweight towards industrials at 28% of the fund, according to its latest factsheet.
Some of its largest holdings are invested in the Japanese companies behind some globally recognised brands such as Sony Group and Toyota Motor Corp.
