Asset Allocation & Fund Positioning, Copley Fund Research

Steven Holden

Asset Allocation & Fund Positioning

Copley Fund Research

Copley Fund Research provide research and data on asset allocation among Global and Emerging Market equity funds.  The analysis details absolute and relative positioning across countries, sectors and industries together with highly granular data on single stock and single fund allocations.  The data is updated monthly with time series going back to January 2011.

Global Research - Analysis of 165 prominent Global equity funds, combined AUM $335bn
GEM Research - Analysis of 127 prominent global EM equity funds, combined AUM $250bn

Asset Allocation - Global and GEM Equity

Thematic (Sector/Industry)

<ul>
<li>GEM funds reduce exposure to Taiwanese Semiconductors, switching from overweight to their largest underweight in over a decade.</li>
<li>Absolute positioning levels still high, with Taiwanese Semiconductors the largest country/industry allocation for 61% of the managers in our analysis and a top 3 allocation for 78%.</li>
<li>Value investors moved first, switching from near equal weight in early 2020 to -1.95% underweight today.  All Style groups are now positioned underweight the MSCI EM benchmark, on average.</li>
</ul>


GEM funds reduce exposure to Taiwanese Semiconductors, switching from overweight to their largest underweight in over a decade.
Absolute positioning levels still high, with Taiwanese Semiconductors the largest country/industry allocation for 61% of the managers in our analysis and a top 3 allocation for 78%.
Value investors moved first, switching from near equal weight in early 2020 to -1.95% underweight today.  All Style groups are now positioned underweight the MSCI EM benchmark, on average.


Taiwan Semiconductors: Value Funds Drive Underweight

Managing Director, Zero One, Zero One

Vincent Fernando, CFA

Managing Director, Zero One

Equity Bottom-Up

Taiwan Semiconductor (TSMC) - ADR / Equity Bottom-Up

<ul>
<li>TSMC -- Small premium currently, recent trading range appears unaffected by Buffett investment</li>
<li>UMC -- Bounced from discount to premium, now at a discount again</li>
<li>ChipMOS -- Bounced from discount to premium, now back to a decent discount</li>
</ul>


TSMC -- Small premium currently, recent trading range appears unaffected by Buffett investment
UMC -- Bounced from discount to premium, now at a discount again
ChipMOS -- Bounced from discount to premium, now back to a decent discount


Taiwan Dual-Listings: Premiums Bounced... And Have Now Declined Again

<ul>
<li>TSMC -- Trading near parity, decent setup opportunity at the current level.</li>
<li>UMC -- Trading at a discount, another decent setup opportunity.</li>
<li>Chunghwa Telecom -- Rare opportunity here, trading at a steep discount compared to the tight historical range.</li>
</ul>


TSMC -- Trading near parity, decent setup opportunity at the current level.
UMC -- Trading at a discount, another decent setup opportunity.
Chunghwa Telecom -- Rare opportunity here, trading at a steep discount compared to the tight historical range.


Taiwan Dual-Listings: TSMC & UMC Nice Setup Opportunities, Chunghwa Rare Deep Discount

Taiwan Semiconductor (TSMC) / Equity Bottom-Up

<ul>
<li>TSMC ADR's premium has reverted after going as high as 10.9%.</li>
<li>Hon Hai's London-listed GDRs are trading at a historically rare discount.</li>
<li>UMC ADRs also look interesting relative to the Taiwan shares given their rare discount.</li>
</ul>


TSMC ADR's premium has reverted after going as high as 10.9%.
Hon Hai's London-listed GDRs are trading at a historically rare discount.
UMC ADRs also look interesting relative to the Taiwan shares given their rare discount.


Taiwan Dual-Listings: TSMC Premium Reverts, Rare Hon Hai & UMC Discounts

<ul>
<li>Last week saw a wave of major tech companies report earnings with significance toward the semiconductor and technology space in Taiwan.</li>
<li>Memory chip takeaways - SK Hynix, Samsung see better supply/demand in 2023E. PC market -- Recent results discuss slight decline, potential stabilization in 2023E.</li>
<li>Mobile phones -- Relative strength in high-end vs. low-end. Auto &amp; Industrial -- Relative strength seen continuing. AMD, Qualcom, Elan, CHIPMos, Acer, Globalwafers results ahead.</li>
</ul>


Last week saw a wave of major tech companies report earnings with significance toward the semiconductor and technology space in Taiwan.
Memory chip takeaways - SK Hynix, Samsung see better supply/demand in 2023E. PC market -- Recent results discuss slight decline, potential stabilization in 2023E.
Mobile phones -- Relative strength in high-end vs. low-end. Auto &amp; Industrial -- Relative strength seen continuing. AMD, Qualcom, Elan, CHIPMos, Acer, Globalwafers results ahead.


Taiwan Tech Weekly: Earnings Insights Emerging for Memory, Mobiles, PCs, and Autos

Taiwan

ChipMOS TECHNOLOGIES INC. offers semiconductor testing and packaging solutions to companies, integrated device manufacturers, and foundries. The Company provides a broad range of back-end testing services for high density memory, mixed-signal and liquid crystal display.

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Chipmos Technologies (8150 TT)

Taiwan Semiconductors: Value Funds Drive Underweight

Taiwanese Semiconductor allocations among GEM active funds are well off the highs of 2021 as more funds scale back holdings and many move to an...

Steven Holden

Taiwan Dual-Listings: Premiums Bounced... And Have Now Declined Again

TSMC -- Small premium currently, recent trading range appears unaffected by Buffett investment. ChipMOS -- Decent entry point now.

Vincent Fernando, CFA

Taiwan Dual-Listings: TSMC & UMC Nice Setup Opportunities, Chunghwa Rare Deep Discount

Chunghwa Telecom -- Rare opportunity here, trading at a steep discount compared to the tight historical range. TSMC and UMC also present decent...

Vincent Fernando, CFA

Taiwan Dual-Listings: TSMC Premium Reverts, Rare Hon Hai & UMC Discounts

Hon Hai's London-listed GDRs are trading at a historically rare discount. UMC ADRs are also at a rare discount relative to history.

Vincent Fernando, CFA

Taiwan Tech Weekly: Earnings Insights Emerging for Memory, Mobiles, PCs, and Autos

Last week saw a wave of major tech companies report earnings with significance toward the semiconductor and technology space in Taiwan.

Vincent Fernando, CFA

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