Lion-Nomura Japan Active ETF Singapore Guide (2026)

Singapore’s first actively managed Japan equity ETF — how it works, what it costs, and whether it belongs in your portfolio.

The Lion-Nomura Japan Active ETF (SGX: JPN) is Singapore’s first actively managed Japan equity ETF, listed on the Singapore Exchange (SGX) in 2024. Managed by Lion Global Investors and Nomura Asset Management, it targets Japanese growth stocks using active stock selection — unlike passive ETFs that simply track an index. The TER is 0.75% p.a. and the fund is denominated in SGD-hedged and unhedged share classes, making it accessible to Singapore retail investors without the need for a separate foreign brokerage account.

Not financial advice. All figures are for educational reference only. Data as at May 2026 unless noted.

Table of Contents

What Is the Lion-Nomura Japan Active ETF?

The Lion-Nomura Japan Active ETF is jointly managed by Lion Global Investors — one of Southeast Asia’s largest asset managers — and Nomura Asset Management, Japan’s largest fund manager by AUM. The ETF was listed on the Singapore Exchange (SGX) under the ticker JPN and gives Singapore retail investors access to a concentrated portfolio of Japanese equities selected through active fundamental research.

Unlike a passive ETF that mechanically tracks an index such as the MSCI Japan or Nikkei 225, this ETF’s portfolio managers select individual Japanese companies based on factors including corporate governance improvements, earnings growth potential, shareholder return programmes (share buybacks and dividend increases), and valuation relative to peers. The investment thesis is that Japan’s ongoing corporate reform wave — driven by the Tokyo Stock Exchange’s push for companies to improve their Price-to-Book ratios — creates alpha opportunities that a passive index cannot fully capture.

The fund is available in two share classes on SGX: an SGD-hedged class and an SGD-unhedged class. The hedged class uses currency forwards to reduce the impact of JPY/SGD fluctuations on returns, while the unhedged class gives full exposure to yen movements alongside equity performance.

Key Facts at a Glance

Source: SGX ETF listings, Lion Global Investors fund documents, May 2026

Why Singapore Investors Are Looking at Japan in 2026

Japan’s equity market has attracted significant global investor attention since 2023, driven by a structural shift that is still playing out in 2026. Three factors are most relevant for Singapore investors:

1. Corporate governance reform: The Tokyo Stock Exchange launched its landmark request to listed companies trading below book value (Price-to-Book ratio < 1x) to disclose plans for improving capital efficiency. This led to a wave of share buybacks, dividend increases, and cross-shareholding unwinds not seen in decades. As at early 2026, hundreds of Japanese companies are still underway with reform programmes, and many analysts believe the re-rating of Japanese equities is still in its early-to-middle stages.

2. End of negative interest rates: The Bank of Japan raised its policy rate out of negative territory in 2024 for the first time since 2007, signalling a normalisation of monetary policy. This has strengthened the structural case for Japanese financial stocks — banks and insurers that were structurally unprofitable under negative rates now benefit from rising net interest margins. This is a theme an active manager can overweight; a passive MSCI Japan index is more broadly spread.

3. Warren Buffett’s Japan trade: Berkshire Hathaway’s ongoing investment in Japan’s five major trading houses (the “Sogo Shosha”) brought global attention to Japanese value stocks. While the easy money in direct Berkshire-basket trades may have been made, the renewed global investor interest in Japan’s undervalued corporate sector continues to attract fund flows in 2026.

For a Singapore investor, Japan represents geographic diversification beyond the typical S-REIT and US equity-heavy portfolio. The JPY/SGD dynamic is also relevant — a weaker yen makes Japanese exports competitive but reduces SGD returns for unhedged investors, which is why the hedged share class of JPN exists.

Active vs Passive: What’s the Difference for Japan?

Most ETFs available to Singapore investors — CSPX tracking the S&P 500, VWRA tracking the FTSE All-World — are passive index ETFs. They hold every stock in the index at its market-cap weight, providing broad diversification at very low cost (TERs of 0.07%–0.22%).

An active ETF like Lion-Nomura JPN takes a different approach: the portfolio managers select a concentrated basket of Japanese stocks they believe will outperform, based on fundamental research, management meetings, and on-the-ground knowledge of the Japanese corporate landscape. Nomura Asset Management’s Japanese equity team has native-language access to Japanese company managements — an edge that is genuinely hard to replicate from Singapore.

The trade-off is cost. At 0.75% p.a., JPN costs roughly 5–8 times more than a passive Japan ETF like Xtrackers MSCI Japan UCITS (XDJP on LSE, 0.09% TER) or SPDR MSCI Japan UCITS (JPLG on LSE, 0.15% TER). Over a 20-year investment horizon on a SGD 50,000 portfolio, that cost difference compounds significantly.

Whether active management in Japan can consistently justify the fee premium is an open question. Japan is one of the more analyst-covered developed markets, but it also has structural inefficiencies — particularly in small and mid-cap names and in the ongoing governance reform trade — where active managers argue they can add alpha. Investors should review JPN’s reported performance versus the MSCI Japan index once sufficient track record data is available from SGX.

Expense Ratio and Total Costs

The estimated TER for Lion-Nomura JPN is 0.75% per annum. For context, this is higher than passive Japan ETFs available to Singapore investors, but significantly lower than most actively managed unit trusts (OEICs) that charge 1.5%–2.0% p.a. plus front-end load fees.

Here is what the TER drag looks like in SGD terms at different portfolio sizes:

Source: Author calculation based on published TER data, May 2026. TER is deducted from NAV daily and not paid separately by the investor.

Note that the TER is embedded in the fund’s NAV — it is not a separate fee you see on your brokerage statement. The fund’s quoted price already reflects this daily deduction.

Transaction costs on top of TER: when buying JPN on SGX, you pay brokerage commissions and the SGX clearing fee (0.0325% of trade value). For most Singapore brokers, commissions range from SGD 0.99 to SGD 25 per trade depending on the platform and trade size.

How to Buy the Lion-Nomura Japan ETF in Singapore (Step-by-Step)

Because JPN is listed on SGX, it can be bought through virtually any Singapore-based brokerage that provides SGX access — no international broker account or foreign currency conversion needed. Here is how to buy it on the most common platforms:

Interactive Brokers (IBKR): Search for ticker “JPN” and select the SGX exchange. IBKR’s SGX commissions are among the lowest available, starting at SGD 1.50 per trade or 0.05% of trade value (whichever is higher). IBKR is the most cost-effective option for larger purchases above SGD 10,000. You can also use IBKR to buy passive Japan ETFs on the LSE (such as XDJP or JPLG in GBP) if you prefer the lower-TER passive route.

Syfe Brokerage: Syfe’s brokerage platform provides access to SGX-listed ETFs. For Singapore investors who prefer a clean mobile-first interface and are already using Syfe for their Syfe referral code and sign-up bonus, JPN can be added to a self-directed portfolio alongside other SGX holdings. Check the moomoo Singapore review for a comparison of brokerage fees before choosing your platform.

Standard Chartered Online Trading / DBS Vickers / Maybank Securities: All major Singapore bank-linked brokerages provide SGX access. These tend to have higher commissions (SGD 10–25 per trade minimum) but may be convenient if you already have accounts with these banks. They are generally not the most cost-efficient for regular ETF purchasing.

FSMOne: FSMOne provides SGX ETF access and a clean ETF screener. Use the FSMOne referral code for a sign-up bonus when opening a new account. FSMOne charges a flat brokerage commission for SGX trades.

Step-by-step for most platforms:
1. Log in to your brokerage account
2. Navigate to “Buy” or “Trade”
3. Search for ticker: JPN (SGD-hedged) or JPNU (SGD-unhedged)
4. Select “SGX” as the exchange
5. Enter your lot size (JPN trades in board lots of 100 units)
6. Place a limit order at or near the current market price
7. Confirm — no currency conversion required as JPN is priced in SGD

One key advantage for Singapore investors: because JPN is SGX-listed, you avoid the foreign currency conversion costs that come with buying LSE-listed ETFs in GBP or USD. For smaller portfolios, this can offset a portion of the TER premium versus passive alternatives.

Alternatives: Other Japan ETF Options for SG Investors

Singapore investors who want Japan equity exposure have several options beyond JPN. The right choice depends on whether you prioritise active management potential, cost minimisation, currency hedging, or simplicity.

Source: SGX, iShares, Xtrackers, SPDR fund factsheets, May 2026. TER figures from latest available fund documents.

Note that VWRA (the Vanguard FTSE All-World UCITS ETF) already allocates approximately 5–6% to Japanese equities at market weight. If you hold VWRA as your core global ETF, you already have Japan exposure — the question is whether you want to overweight Japan specifically, which is the use case for a dedicated Japan ETF like JPN.

For investors who prefer the simplicity of a Singapore retirement calculator-driven approach — maximising long-term wealth through low-cost index investing — the passive LSE-listed options (XDJP at 0.09%) offer the same geographic exposure at a fraction of the cost.

Who Should Buy the Lion-Nomura Japan Active ETF?

JPN may be suitable if you:

• Have a specific conviction on the Japan corporate governance reform trade and want active management to identify the best beneficiaries
• Prefer SGX-listed products and want Japan exposure without opening a foreign brokerage account
• Want JPY/SGD currency risk managed through the hedged share class
• Are comfortable paying a higher TER for the potential of active outperformance
• Have a medium-to-long investment horizon (5 years or more) to allow the active strategy time to demonstrate its value

Consider alternatives if you:

• Are primarily a passive, low-cost investor — the 0.66% TER premium over XDJP is significant over a 20-year horizon
• Already hold VWRA or a global ETF with built-in Japan allocation at market weight
• Have an Interactive Brokers account and are comfortable buying LSE-listed ETFs in GBP — the passive options are significantly cheaper
• Are sensitive to the limited track record of JPN (the ETF was relatively newly listed as at 2026)

This ETF is not CPF-investable (CPFIS-approved ETFs are limited to SGX-listed Nikko AM and SPDR STI ETFs as at 2026). However, it may be compatible with SRS funds depending on your SRS broker — confirm eligibility directly with your SRS operator before investing. See our guide to CPF investment strategy Singapore for a full breakdown of CPF-investable options.

For Singapore investors building a diversified passive income Singapore portfolio, Japan allocation fits naturally alongside S-REITs (for income) and global ETFs (for growth) — particularly given Japan’s low correlation with SGX-listed assets and growing dividend culture among Japanese corporates.

Disclaimer: This article is for educational purposes only and does not constitute financial advice. Always consult a licensed financial adviser before making investment decisions. Past performance of any ETF or fund is not indicative of future results.

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