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10 top-performing Japan equity funds of H1
Japanese equities are outperforming all other major developed market regions despite currency headwinds.
Japanese equities are outperforming all other major developed market regions despite currency headwinds.
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 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 | 23.53 | LU1013118051 |
| iShares MSCI Japan USD Hedged UCITS ETF | 23.53 | IE00BCLWRG39 |
| FundRock Management Company S.A. AMOVA Japan Value | 20.13 | LU1314310316 |
| GS Japan Equity Partners Portfolio | 19.8 | LU2475587056 |
| Amundi Core MSCI Japan | 19.5 | LU2133056387 |
| New Capital Japan Equity | 18.96 | IE00BF4J0Q30 |
| BCM Vitruvius Japanese Equity | 17.36 | LU0117772284 |
| SPARX Japan | 15.8 | IE0067168280 |
| MS INVF Japanese Equity | 13.06 | LU0512093898 |
| E.I. Sturdza Funds plc Nippon Growth (UCITS) Fund | 12.65 | IE00B45CFP81 |
One of the top performing funds was a currency hedged passive exchange-traded-fund, the $644m iShares MSCI Japan USD Hedged UCITS ETF, which has returned 23.53% over the period.
The hedged share class has helped mitigate the impact of the declining Japanese Yen, which has fallen roughly 10% over the past twelve months versus the US dollar.
The best performer was the Alma Eikoh Japan Large Cap Equity fund, which returned 23.53% 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.
Another standout fund was the GS Japan Equity Partners Portfolio. The strategy is managed by Goldman Sachs Asset Management’s Ichiro Kosuge, who leads the firm’s Japan equity team. The $2.6bn fund was closed to new investors as of the start of 2025.
Elsewhere, the SPARX Japan fund was another strong performer, returning 15.8% over the period. This $767m value-focused strategy has been managed by Masakazu Takeda since 2006. The strategy has $5.6bn in AUM, according to the firm’s latest factsheet.
Japanese equities are outperforming all other major developed market regions despite currency headwinds.
Singapore retains its position as the world’s most expensive city for the rich, according to the Julius Baer Global Wealth and Lifestyle Report 2026.
The MFS Meridian Funds – Euro Credit Short Term Bond fund is available to retail investors in Singapore.

Facts Only

* Japanese equities outperformed all other major developed market regions in the first half of 2026.
* The TSE TOPIX delivered a 14.6% return in the first half of 2026 (in US dollar terms).
* The S&P 500 index returned 10% in the same period.
* The MSCI World index returned 9.7% in the same period.
* This outperformance occurred despite currency headwinds from a depreciating Japanese Yen.
* Performance factors included corporate governance overhaul, the transition to an inflationary economic regime, and AI-driven growth in manufacturing/industry.
* Ten Japanese equity funds were highlighted with the highest returns for H1 2026 in Hong Kong/Singapore data.
* The iShares MSCI Japan USD Hedged UCITS ETF returned 23.53%.
* The Alma Eikoh Japan Large Cap Equity fund returned 23.53%.
* The GS Japan Equity Partners Portfolio returned 19.8%.

Executive Summary

Japanese equities outperformed other major developed market regions in the first half of 2026, despite currency headwinds from a depreciating Japanese Yen. The Tokyo Stock Exchange TOPIX returned 14.6%, compared to 10% for the S&P 500 and 9.7% for the MSCI World indices, when measured in US dollars. This performance is attributed to ongoing corporate governance reforms, the shift from deflation to inflation, and the boost from the AI buildout in the manufacturing and industrial sectors. The financial services association highlighted ten top-performing Japan equity funds for distribution in Hong Kong and Singapore based on returns in H1 2026 data. Among these, the iShares MSCI Japan USD Hedged UCITS ETF provided a 23.53% return, mitigating currency risk. Other strong performers included the Alma Eikoh Japan Large Cap Equity fund and the GS Japan Equity Partners Portfolio.

Full Take

The narrative positions Japanese equities as an outlier by successfully navigating specific domestic structural shifts—governance reform and the transition to inflation—while simultaneously facing external financial pressures like currency depreciation. The fact that passive, hedged strategies performed exceptionally well suggests a market pricing mechanism is rewarding stability and risk mitigation during periods of global uncertainty. The divergence in performance highlights how localized political and economic transitions can generate alpha even when global macroeconomic conditions are challenging. The focus on AI-driven manufacturing growth provides an internally generated driver for the outperformance, which acts as a source of resilience against external currency volatility. A critical question arises regarding the sustainability of this momentum; if the corporate governance or inflationary shifts reverse, or if the Yen stabilizes, will this performance persist? Furthermore, the prominence of actively managed funds like Alma Eikoh suggests that sophisticated investors are seeking tangible value creation alongside passive returns, which implies an underlying tension between market efficiency and fundamental valuation.

Sentinel — Human

Confidence

The text reads like a factual summary compiled from specific financial data, displaying the structure and density expected in professional market commentary rather than general synthetic prose.

Signals Detected

Sentence length variance is moderate; transitions are functional but not excessively mechanical.

The text flows logically from a major claim to supporting evidence (TSE return, currency context) to specific fund data. The balance seems appropriate for a financial report.

Specific figures (returns, ISINs) are presented clearly. Attribution is mixed (FSA, FE Fundinfo, fund managers).

The presence of specific fund names, ISINs, and manager names suggests grounded reporting, even if the context is curated.

Human Indicators

Use of specialized, highly specific financial data (ISINs, exact percentage returns tied to specific timeframes) that requires direct sourcing.

Integration of named figures and entity references (FSA, Takaichi, specific fund managers) typical of market reporting.