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>While most of the semi industry is reducing capex due to market weakness -- Samsung says it will still expand capacity next year.</li>
<li>China chip restrictions get more severe -- Now Arm is not selling its most advanced chip architectures to Chinese firms.</li>
<li>TSMC in advanced talks to set up its first European production capacity in Germany.</li>
</ul>


While most of the semi industry is reducing capex due to market weakness -- Samsung says it will still expand capacity next year.
China chip restrictions get more severe -- Now Arm is not selling its most advanced chip architectures to Chinese firms.
TSMC in advanced talks to set up its first European production capacity in Germany.


Taiwan Tech Weekly: Samsung Will Keep Expanding Capacity, China Chip Restrictions Tighten Further

Equity Long-Short Analyst

Pyari Menon

<ul>
<li>We again write about one stock each from the large, mid and small cap portfolios, briefly giving the reasons behind their inclusion.</li>
<li>The three companies we write about this week are <strong><a href="https://www.smartkarma.com/entities/nestle-sa" target="_blank" data-smartkarma-citation="entities:22581:1" rel="noopener">Nestle SA (NESN VX)</a> , <a href="https://www.smartkarma.com/entities/regeneron-pharmaceuticals" target="_blank" data-smartkarma-citation="entities:9167:1" rel="noopener">Regeneron Pharmaceuticals (REGN US)</a></strong> and <strong><a href="https://www.smartkarma.com/entities/masimo-corp" target="_blank" data-smartkarma-citation="entities:20667:1" rel="noopener">Masimo Corp (MASI US)</a></strong> </li>
<li>For the five weeks ended 23 Dec the combined innovation portfolio was -1.4%, versus DJIA -1.6%, S&amp;P500 -3.0%, Nasdaq -5.8% &amp; MSCI-ACWI-ETF -2.2%, all in US$ terms.</li>
</ul>


We again write about one stock each from the large, mid and small cap portfolios, briefly giving the reasons behind their inclusion.
The three companies we write about this week are Nestle SA (NESN VX) , Regeneron Pharmaceuticals (REGN US) and Masimo Corp (MASI US) 
For the five weeks ended 23 Dec the combined innovation portfolio was -1.4%, versus DJIA -1.6%, S&amp;P500 -3.0%, Nasdaq -5.8% &amp; MSCI-ACWI-ETF -2.2%, all in US$ terms.


Taiwan Semiconductor (TSMC) / Equity Bottom-Up

<ul>
<li>Micron released its latest results, missing expectations and implying more near-term pain for the memory chip space.</li>
<li>Hon Hai could shift 30% of its production for Apple outside of China according to an industry report.</li>
<li>Intel delays German expansion citing cost inflation, seeking additional government subsidies.</li>
</ul>


Micron released its latest results, missing expectations and implying more near-term pain for the memory chip space.
Hon Hai could shift 30% of its production for Apple outside of China according to an industry report.
Intel delays German expansion citing cost inflation, seeking additional government subsidies.


Taiwan Tech Weekly: Micron Earnings Miss Implies Margin Downside, Hon Hai Moving 30% Apple Business

<ul>
<li>We again write about one stock each from the large, mid and small cap portfolios, briefly giving the reasons behind their inclusion.</li>
<li>The three companies we write about this week are <a href="https://www.smartkarma.com/entities/mastercard-inc-class-a" target="_blank" data-smartkarma-citation="entities:15529:1" rel="noopener">Mastercard (MA US)</a> , <a href="https://www.smartkarma.com/entities/vertex-pharmaceuticals-inc" target="_blank" data-smartkarma-citation="entities:4864:1" rel="noopener">Vertex Pharmaceuticals (VRTX US)</a> and <a href="https://www.smartkarma.com/entities/pearson-plc" target="_blank" data-smartkarma-citation="entities:680:1" rel="noopener">Pearson Plc (PSON LN)</a> </li>
<li>For the four weeks ended 16 Dec the combined innovation portfolio was -1.1%, versus DJIA -2.4%, S&amp;P500 -2.8%, Nasdaq -4.0% &amp; MSCI-ACWI-ETF -2.3%, all in US$ terms.</li>
</ul>


We again write about one stock each from the large, mid and small cap portfolios, briefly giving the reasons behind their inclusion.
The three companies we write about this week are Mastercard (MA US) , Vertex Pharmaceuticals (VRTX US) and Pearson Plc (PSON LN) 
For the four weeks ended 16 Dec the combined innovation portfolio was -1.1%, versus DJIA -2.4%, S&amp;P500 -2.8%, Nasdaq -4.0% &amp; MSCI-ACWI-ETF -2.3%, all in US$ terms.


Taiwan

ASE Technology Holding Co., Ltd. offers assembly and testing services. The Company provides outsourced assembly, semiconductor testing, semiconductor packaging, and other related services. ASE Technology Holding operates in Taiwan.

MediaTek Inc. is a fabless semiconductor company for wireless communications and digital multimedia solutions. The company provides SOC system solutions for wireless communications, high-definition TV, optical storage, DVD and Blu-ray products.

United Microelectronics Corporation designs, manufactures, and markets integrated circuits (ICs) and related electronic products.  The Company's main products are consumer electronic ICs, memory ICs, personal computer peripheral ICs, and communication ICs.

Nanya Technology Corp. manufactures and markets dynamic random access memories (DRAMs).  The Company sells its products in Taiwan and exports worldwide.

Realtek Semiconductor Corp. designs, tests, and distributes integrated circuits which are used in consumer electronics, computer systems and peripherals, and communication network hardware.  The Company also provides technical counseling and systems software services.

Global Unichip Corporation designs and produces a wide variety of silicon chips.

Novatek Microelectronics Corporation designs, manufactures, and markets integrated circuits (ICs).  The Company's products are used in telecommunication, computer peripherals, and LCD (liquid crystal display) drivers.

Vanguard International Semiconductor Corporation offers integrated circuit foundry services.  The Company manufactures 0.18um logic, mixed-signal, analog, high voltage, low power, CMOS RF, flash, embedded memory, and bipolar CMOS DMOS semiconductors.

Globalwafers Co., Ltd. specializes in silicon wafer manufacturing and also provides solar wafers and crystal rods. The Company possesses a complete production line from ingot growth, slicing, etching, diffusion, polishing to epitaxy. Their products include Epi wafers, polished wafers, etched wafers, ultra thin wafers and deep diffusion wafers.

Tokyo Electron Limited manufactures and sells industrial electronics products, such as semiconductor manufacturing machines, computer system, and electronic components.  The Company products are sold in US, Taiwan, and others as well as in Japan.

Applied Materials, Inc. develops, manufactures, markets, and services semiconductor wafer fabrication equipment and related spare parts for the worldwide semiconductor industry.  The Company's customers include semiconductor wafer and integrated circuit manufacturers, flat panel liquid crystal displays, solar photovoltaic cells and modules and other electronic devices manufacturers.

QUALCOMM, Inc . manufactures digital wireless communications equipment.  The Company licenses its code division multiple access (CDMA) and orthogonal frequency division multiplexing access intellectual property to other companies, and produces CDMA-based integrated circuits; and produces equipment and software used to track workers and assets; and software for wireless content enablement.

Broadcom Inc. designs, develops, and supplies semiconductor and infrastructure software solutions. The Company offers storage adapters, controllers, networking processors, motion control encoders, and optical sensors, as well as infrastructure and security software to modernize, optimize, and secure the most complex hybrid environments. Broadcom serves customers worldwide.

KLA-Tencor Corporation manufactures yield management and process monitoring systems for the semiconductor industry.  The Company's systems are used to analyze product and process quality at critical steps in the manufacture of circuits and provide feedback so that fabrication problems can be identified. KLA-Tencor operates sales, service, and application centers worldwide.

Lam Research Corporation manufactures, markets, and services semiconductor processing equipment used in the making of integrated circuits.  The Company's products are used to deposit special films on a silicon wafer and etch away portions of various films to create a circuit design.  Lam sells its products around the world.

Monolithic Power Systems Inc specializes in high-performance, integrated power solutions. The Company provides small, highly energy efficient, easy-to-use power solutions for systems found in industrial applications, telecom infrastructures, cloud computing, automotive, and consumer applications.

ON Semiconductor Corporation supplies analog, standard logic, and discrete semiconductors for data and power management. The Company's products include integrated circuits, and analog ICs. ON also offers discrete semiconductors in a variety of surface mount and standard packages.

Skyworks Solutions, Inc., a wireless semiconductor company, designs and manufactures radio frequency and complete semiconductor system solutions for mobile communications applications.  The Company provides front-end modules, radio frequency subsystems, and system solutions to wireless handset and infrastructure customers worldwide.

Microchip Technology Incorporated designs, manufactures, and markets microcontrollers, related mixed-signal and memory products, and application development systems for high-volume embedded control applications. The Company also designs, develops, and markets linear/mixed-signal, power management, and thermal management products.

Taiwan Semiconductor Manufacturing Company, Ltd. manufactures and markets integrated circuits. The Company provides the following services: wafer manufacturing, wafer probing, assembly and testing, mask production, and design services. TSMC's ICs are used in computer, communication, consumer electronics, automotive, and industrial equipment industries.

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Taiwan Semiconductor (TSMC) (2330 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 Tech Weekly: Samsung Will Keep Expanding Capacity, China Chip Restrictions Tighten Further

China chip restrictions get more severe -- Now Arm is not selling its most advanced chip architectures to Chinese firms.

Vincent Fernando, CFA

The Innovations Portfolios - Week Five

For the five weeks ended 23 Dec the combined innovation portfolio was -1.4%, versus DJIA -1.6%, S&P500 -3.0%, Nasdaq -5.8% & MSCI-ACWI-ETF -2.2%,...

Pyari Menon

Taiwan Tech Weekly: Micron Earnings Miss Implies Margin Downside, Hon Hai Moving 30% Apple Business

Micron released its latest results, missing expectations and implying more near-term pain for the memory chip space. Also -- U.S. chip restrictions...

Vincent Fernando, CFA

The Innovations Portfolios - Week Four

For four weeks ended 16 Dec the combined innovation portfolio was -1.1%, versus DJIA -2.4%, S&P500 -2.8%, Nasdaq -4.0% & MSCI-ACWI-ETF -2.3%, all...

Pyari Menon

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