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

Cross Asset Strategy

<ul>
<li>Global Ex-USA funds have almost eliminated a decade-long Japan underweight, lifting average exposure to 13.64%, just 0.22% below benchmark.</li>
<li>Japan has seen strong rotation in 2026, with an estimated $3.8bn of net inflows and broadening ownership across Industrials, Financials and Materials.</li>
<li>Stock selection is shifting towards semiconductors and industrial technology, led by Kioxia, Advantest and Sumitomo Electric, while established holdings including Nintendo and Sony lose ground.</li>
</ul>


Global Ex-USA funds have almost eliminated a decade-long Japan underweight, lifting average exposure to 13.64%, just 0.22% below benchmark.
Japan has seen strong rotation in 2026, with an estimated $3.8bn of net inflows and broadening ownership across Industrials, Financials and Materials.
Stock selection is shifting towards semiconductors and industrial technology, led by Kioxia, Advantest and Sumitomo Electric, while established holdings including Nintendo and Sony lose ground.


Japanese Equity Specialist, Ortus Advisors

Andrew Jackson

Japanese Equity Specialist

Ortus Advisors

Thematic (Sector/Industry)

<ul>
<li>Mizuho was out overnight with bullish commentary on the segment and it raised both Advantest Corp  and Shin Etsu Chemical to buy, so this may help mellow the negative sentiment.</li>
<li>Japan AI related had a big fall yesterday but may stabilise soon with many stocks back down around their 200-day levels with intact growth outlooks and earnings done.</li>
<li>Sumi Forestry could see a squeeze after US homebuilders KB Home, DR Horton and Lennar rallied on the Treasury's bond-buying intervention.</li>
</ul>


Mizuho was out overnight with bullish commentary on the segment and it raised both Advantest Corp  and Shin Etsu Chemical to buy, so this may help mellow the negative sentiment.
Japan AI related had a big fall yesterday but may stabilise soon with many stocks back down around their 200-day levels with intact growth outlooks and earnings done.
Sumi Forestry could see a squeeze after US homebuilders KB Home, DR Horton and Lennar rallied on the Treasury's bond-buying intervention.


Japan Morning Connection: Advantest, Shin Etsu Upgraded to Buy Amid Negative AI Sentiment

<ul>
<li>Kioxia likely to see another strong day after Sandisk was +13.7% after announcing positive long-term guidance.</li>
<li>SPE may face pressure after AMAT's guidance beat failed to impress despite topping estimates.</li>
<li>Liberware and Terradrone may gain a competitive edge after new US tariffs target Chinese drone makers at up to 100%.</li>
</ul>


Kioxia likely to see another strong day after Sandisk was +13.7% after announcing positive long-term guidance.
SPE may face pressure after AMAT's guidance beat failed to impress despite topping estimates.
Liberware and Terradrone may gain a competitive edge after new US tariffs target Chinese drone makers at up to 100%.


Japan Morning Connection: Liberware and Terradrone Stand to Gain as US Targets Chinese Drone Makers

<ul>
<li>A huge rebound for risk-on and AI overnight which was sparked by the blow out numbers by Microsoft.</li>
<li>Tokyo Electron numbers on the close yesterday beat after it revised up its 1H guidance.</li>
<li>SPE could see support after Citadel's $10bn Situational Awareness purchase.</li>
</ul>


A huge rebound for risk-on and AI overnight which was sparked by the blow out numbers by Microsoft.
Tokyo Electron numbers on the close yesterday beat after it revised up its 1H guidance.
SPE could see support after Citadel's $10bn Situational Awareness purchase.


Japan Morning Connection: AI Set to Squeeze Hard After Strong Earnings Follow Leveraged Unwind

<ul>
<li>Advantest, Micronics and Teraprobe set for a better start after Teradyne posted a blowout 2Q beat and strong 3Q guidance.</li>
<li>Lasertec and TEL may lag as KLA's inline guidance and dipped FCF point to a split between testers and WFE makers to start today.</li>
<li>SK Hynix numbers missed incredibly high expectations this morning making it likely to be a wobbly session again for Kioxia</li>
</ul>


Advantest, Micronics and Teraprobe set for a better start after Teradyne posted a blowout 2Q beat and strong 3Q guidance.
Lasertec and TEL may lag as KLA's inline guidance and dipped FCF point to a split between testers and WFE makers to start today.
SK Hynix numbers missed incredibly high expectations this morning making it likely to be a wobbly session again for Kioxia


Japan Morning Connection: Testers Could Rally Against the Grain After Teradyne's Blowout Numbers

Japan

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.

Price Gauge
52-week Range	0.00 - 0.00
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Tokyo Electron (8035 JP)

Japan: Underweight No More?

Global Ex-USA funds have almost eliminated their decade-long Japan underweight, as rising allocations and strong inflows drive rotation towards...

Steven Holden

Japan Morning Connection: Advantest, Shin Etsu Upgraded to Buy Amid Negative AI Sentiment

Japan AI related had a big fall yesterday but may stabilise soon with many stocks back down around their 200-day levels with intact growth outlooks...

Andrew Jackson

Japan Morning Connection: Liberware and Terradrone Stand to Gain as US Targets Chinese Drone Makers

Liberware and Terradrone may gain a competitive edge after new US tariffs target Chinese drone makers at up to 100% while SPE may face pressure...

Andrew Jackson

Japan Morning Connection: AI Set to Squeeze Hard After Strong Earnings Follow Leveraged Unwind

AI set to squeeze hard after solid earnings from Microsoft and Lam Research, with Lam Research +18% for its best day since 1999.

Andrew Jackson

Japan Morning Connection: Testers Could Rally Against the Grain After Teradyne's Blowout Numbers

Teradyne's beat sets a positive tone for tester names while KLA's guidance causes concern for WFE makers. SK Hynix's disappointing numbers may...

Andrew Jackson

Price Gauge

52-week Range

Market Cap (USDm)

P/E

Dividend (Yield)

Japan: Underweight No More?

Global Ex-USA funds have almost eliminated their decade-long Japan underweight, as rising allocations and strong inflows drive rotation towards...

Steven Holden

Japan Morning Connection: Advantest, Shin Etsu Upgraded to Buy Amid Negative AI Sentiment

Japan AI related had a big fall yesterday but may stabilise soon with many stocks back down around their 200-day levels with intact growth outlooks...

Andrew Jackson

Japan Morning Connection: Liberware and Terradrone Stand to Gain as US Targets Chinese Drone Makers

Liberware and Terradrone may gain a competitive edge after new US tariffs target Chinese drone makers at up to 100% while SPE may face pressure...

Andrew Jackson

Japan Morning Connection: AI Set to Squeeze Hard After Strong Earnings Follow Leveraged Unwind

AI set to squeeze hard after solid earnings from Microsoft and Lam Research, with Lam Research +18% for its best day since 1999.

Andrew Jackson

Japan Morning Connection: Testers Could Rally Against the Grain After Teradyne's Blowout Numbers

​Teradyne's beat sets a positive tone for tester names while KLA's guidance causes concern for WFE makers. SK Hynix's disappointing numbers may...

Andrew Jackson

Teradyne's beat sets a positive tone for tester names while KLA's guidance causes concern for WFE makers. SK Hynix's disappointing numbers may...