Is the “high-dividend” boom spreading to investment trusts? What is inside the “Japan Equity High-Dividend Fund,” attracting more attention than the Nikkei 225’s strong returns?

In Chiba Bank's ranking of over-the-counter sales at the end of August, Diversification Master retained the top spot, while the Japanese High-Dividend Equity Fund (Dividend Master) surged to second place and the World Economic Index Fund jumped to third. Funds diversified across equities, bonds and REITs appear to be attracting the attention of investors who prioritize risk management.

Despite its high returns, the Nikkei 225 Index Fund fell to 10th place. The report explains that concerns over the possibility of prolonged higher crude oil prices due to the extended conflict in the Middle East, as well as higher domestic interest rates, are prompting a shift away from the risks of investing solely in equities. The view presented is that diversified funds retained the top spot by reflecting an approach of “avoiding losses rather than seeking major gains.”

Dividend Master has an average dividend yield of 2.8% and 133 holdings, with banks such as Mitsubishi UFJ, Sumitomo Mitsui and Mizuho among its top holdings. Its returns as of the end of August were 47.89% over 1 year and 114.58% over 3 years. This was above the Nikkei 225's estimated dividend yield, and the fund is characterized by an investment strategy seeking to combine dividend income with capital gains. The World Economic Index Fund recorded returns of 23.90% over 1 year and 54.90% over 3 years.

The ranking also shows that although the Nikkei 225 Index Fund delivered strong equity returns, the importance of diversification is influencing investors' choices. The importance of diversifying risk in response to changing market conditions has once again come into focus.