Morningstar

The Best-Performing Funds in February

Global stock markets rallied last month, with Korea and Japan equity funds claiming the top spots.

Collage illustration featuring a Torii gate and Japanese Yen currency.

Key Takeaways:

  • In the UK, 109 funds saw double-digit growth in February 2026, with the best performers close to a 20% return.
  • Asia equity funds dominated the top 10 list last month.
  • Invesco Japanese Smaller Companies was the best-performing fund over the month.

February was a strong month for stock markets, and the vast majority of funds available to UK investors benefited. Of the 3,130 funds with a Morningstar Medalist Rating, 2,919 had a positive month, with 109 funds enjoying double-digit returns.

Most of the strongest performers had an Asia equity mandate, with South Korea and Japan outperforming. The Morningstar Korea Index soared 23% in GBP terms over the month and has achieved 54% growth so far this year. The Morningstar Japan Index returned 12% in February and 16% in 2026 so far.

The rally in Korean equities follows on from a strong 2025, driven by the market’s exposure to the artificial intelligence supply chain and the defense industry, as well as shareholder-friendly policy reforms, says Marcus Weyerer, director of ETF investment strategy EMEA at Franklin Templeton ETFs.

Meanwhile, Japan equities have reacted positively to recent election results, and prime minister Sanae Takaichi’s “pro-growth, pro stimulus agenda”, says Ben Yearsley, director at Fairview Investing. The Bank of Japan is also predicted to be on a rising interest rate path, which could boost the dominant financial sector.

The Best-Performing UK Funds in February 2026

Invesco Japanese Smaller Companies

The £37.7 million Invesco Japanese Smaller Companies rose 19.95% in February, beating the Japan small/mid-cap equity category’s return of 2.55%. Year to date, the Invesco fund rose 25.44%. Over the past three years annualized, the fund has climbed 14.38%, underperforming the category return of 22.96%.

Barings Korea Equity

The £184.4 million Barings Korea Equity rose 19.79% in February, narrowly beating the Korea equity category’s 19.07% return. Year to date, the Barings fund rose 50.24%. Over the past three years annualized, the fund has climbed 34.47%, below the 38.48% annualized average of the category.

JPMorgan Korea

The £2.6 billion JPMorgan Korea increased 18.53% in February while the Korea equity category returned a slightly higher 19.07%. Year to date, the fund has grown 44.24%. On average over the past three years, the fund has returned 34.61%, slightly below the category average of 38.48%. The fund was launched in May 2008.

PineBridge Japan Small Cap Equity

The £25 million PineBridge Japan Small Cap Equity rose 15.89% in February, beating the Japan small/mid-cap equity category’s return of 12.55%. Year to date, the PineBridge fund rose 17.79%. Over the past three years annualized, the fund has climbed 5.0%, significantly underperforming the category’s average return of 24.36%.

Morant Wright Nippon Yield

The £1.2 billion Morant Wright Nippon Yield rose 15.62% in February, beating the Japan large-cap value equity category, which grew 11.74%. Year to date, the Morant Wright fund rose 22.63%. Over the past three years, the fund has climbed an average of 30.29%, below the category return of 33.44%.

GMO Usonian Japan Value Creation

The £32.6 million GMO Usonian Japan Value Creation rose 15.43% in February, outperforming the Japan large-cap value equity category return of 11.74%. Year to date, the GMO fund rose 19.64%. The fund was launched in Dec. 2024.

Fidelity Japan

The £625.2 million Fidelity Japan rose 14.93% in February, beating the Japan large-cap blend equity category’s return of 9.45%. Year to date, the Fidelity fund rose 20.71%. Over the past three years, the fund has climbed 23.76% and underperformed the category, which has an annualized return of 27.04%.

Janus Henderson Institutional Asia Pacific ex Japan Index Opportunities

The £110.8 million Janus Henderson Institutional Asia Pacific ex Japan Index Opportunities rose 14.86% in February. The fund beat the Asia-Pacific ex-Japan equity category’s average return of 6.39%. Year to date, the Janus Henderson fund rose 27.86%. Over the past three years annualized, the fund has climbed 22.72%, surpassing the category return of 17.90%.

State Street AUT Asia Pacific Ex-Japan Screened (ex Controversies and CW) Index Equity

The £69.7 million State Street AUT Asia Pacific Ex-Japan Screened (ex Controversies and CW) Index Equity rose 14.56% in February and outperformed the Asia-Pacific ex-Japan equity category’s average return of 6.39%. Year to date, the State Street fund rose 29.01%. Over the past three years, the fund has climbed 19.57% on average while the category return was 17.90%.

Amova Japan Value

The £319.6 million Amova Japan Value rose 14.54% in February. It outperformed the Japan large-cap blend equity category’s return of 9.45%. Year to date, the Amova fund rose 19.78%, while over the past three years, it has climbed 22.59%. Meanwhile, the annualized category return is higher, at 27.04%.

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