US large-cap technology funds regained popularity in Nomura Securities’ August mutual fund rankings, while the newly launched Nomura Structural Change Japan Equity Fund debuted at No. 6.
The Fidelity Growth Opportunity Fund D Course, which ranked No. 2 the previous month, returned to the top of Nomura Securities’ August mutual fund popularity rankings, indicating renewed demand for funds focused primarily on US large-cap technology and growth stocks. Meanwhile, Nikkei 225-linked index funds fell in the rankings, with the eMAXIS Nikkei 225 Index slipping to No. 5, reflecting an overall softening in Japanese equity index funds. The newly launched Nomura Structural Change Japan Equity Fund ranked No. 6.
Launched in July, the Nomura Structural Change Japan Equity Fund takes a medium- to long-term structural change investment approach. Its top holdings include major companies such as Mizuho Financial Group, Hitachi, Tokyo Electron and Advantest, and the fund holds 117 stocks. The top 10 holdings at the end of August were dominated by major domestic companies, but the portfolio had a TOPIX-based composition distinct from the constituents of the Nikkei 225.
Rising long-term interest rates have been identified as a risk factor for the Japanese equity market, with the 10-year Japanese government bond yield rising into the 3% range. Expectations of a shift in the Bank of Japan’s monetary policy are also a factor, and future interest-rate movements could influence investment decisions in Japanese equities. In the US market, meanwhile, NVIDIA’s earnings exceeded expectations, which is also likely to affect the performance of US equity funds, including those tracking the S&P 500.
In terms of monthly returns for August, the Fidelity Growth Opportunity Fund D Course returned 3.0% and the eMAXIS S&P 500 Index returned 3.3%, performing at a level comparable with Japanese equity funds. Funds investing in large technology stocks known as the Magnificent Seven are undergoing renewed reassessment. The S&P 500 remained near its record high in early August, and its future direction is attracting attention alongside earnings-related catalysts.