Enables DNA-binding transcription factor activity and sequence-specific DNA binding activity. Acts upstream of or within several processes, including iridophore differentiation; negative regulation of macromolecule biosynthetic process; and nervous system development. Predicted to be located in nucleus. Is expressed in several structures, including mesoderm; nervous system; neural crest; neural keel; and neural plate. Human ortholog(s) of this gene implicated in vitiligo. Orthologous to human FOXD3 (forkhead box D3).