#Japan #Tokyo #S&P Dow Jones #SPIVA Japan #Active Equity Funds

Insights from the 2025 Mid-Year SPIVA Japan Scorecard

In a recent release, S&P Dow Jones Indices (S&P DJI) unveiled the 2025 Mid-Year SPIVA Japan Scorecard, showcasing that 63% of large-cap actively managed equity funds in Japan outperformed their benchmarks. The scorecard evaluates the performance of Japan's active investment trusts across various time frames, including metrics on large, mid, and small-cap segments, as well as international and global equity funds.

Sue Lee, the Head of Index Investment Strategy for the Asia-Pacific region at S&P DJI, commented on the current state of the Japanese stock market. Despite a stable market over the past two years, Lee noted that the first half of 2025 saw price declines. Influences such as uncertainties surrounding US tariffs and a significant appreciation of the yen raised concerns regarding the adverse effects on Japan’s export-dependent economy, diminishing market sentiment.

Highlights from the 2025 SPIVA Japan Scorecard

Large-Cap Funds:

The S&P/TOPIX 150 Index recorded a 2.3% rise in the first half of 2025, while the average actively managed large-cap funds climbed by 4.0% and 2.8% when weighted equally and by assets, respectively. Notably, only 27% of active funds underperformed their benchmarks during this period. However, over the long term, a significantly higher percentage, exceeding 80%, fell short against the benchmark over both 10- and 15-year periods.

Mid and Small-Cap Funds:

In the realm of actively managed mid and small-cap funds, 63% failed to outperform their respective benchmarks in the first half of 2025. Nonetheless, this category has demonstrated commendable relative performance over the long term, with underperformance rates of 54% and 66% across 10- and 15-year periods, respectively.

Global Equity Funds:

The first half of 2025 saw 74% of global equity funds underperforming their benchmarks, with alarming statistics revealing that over 90% did so over periods of three years or longer.

US Equity Funds:

While the S&P 500 index dropped by 2.4% (in yen terms), a staggering 83% of actively managed US equity funds suffered greater losses, averaging a negative return of 5.8% when weighted by assets.

International Equity Funds:

A concerning trend for international equity funds was evident, with 78% underperforming the S&P World Ex Japan Index in the first half of 2025. Alarmingly, as measurement periods extended, this figure grew, reaching 100% underperformance over a 15-year span.

Emerging Market Equity Funds:

Emerging market equity funds had a surprisingly strong performance in the first half of 2025, with just 28% underperforming their benchmarks. However, examining a 10-year timeline reveals that all funds in this category have underperformed, suggesting that the positive performance in early 2025 might be an anomaly.

Fund Survival Rate:

The overall fund liquidation rate remains low, with only 0.8% of actively managed funds merging or being liquidated in the first half of 2025. Over a broader 15-year span, approximately 53% of funds failed to endure.

Detailed datasets and analysis for each fund category can be found in the full report. For interviews with the authors of this report, please reach out using the provided contact details.

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