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>Taiwan ADR premiums vs. their local shares have generally rebounded across the board.</li>
<li>TSMC's premium has risen substantially but remains at the lower bound of its historical range.</li>
<li>ChipMOS &amp; UMC ADRs' previous rare discount to Taiwan shares has ended, returning to premiums.</li>
</ul>


Taiwan ADR premiums vs. their local shares have generally rebounded across the board.
TSMC's premium has risen substantially but remains at the lower bound of its historical range.
ChipMOS &amp; UMC ADRs' previous rare discount to Taiwan shares has ended, returning to premiums.


Taiwan Dual-Listings - TSMC Premium Rebounds While UMC, ChipMOS Discounts Disappear

<ul>
<li>Taiwan ADR premiums vs. their local shares have generally decreased across the board.</li>
<li>Is TSMC's high ADR premium a thing of the past?</li>
<li>UMC and ChipMOS ADRs are both trading at historically rare discounts to their Taiwan shares.</li>
</ul>


Taiwan ADR premiums vs. their local shares have generally decreased across the board.
Is TSMC's high ADR premium a thing of the past?
UMC and ChipMOS ADRs are both trading at historically rare discounts to their Taiwan shares.


Taiwan Dual-Listings – TSMC Premium Almost Wiped Out, UMC & ChipMOS ADRs Trading at Discounts

<ul>
<li>TSMC’s ADR premium falls past the lower bound of its 3-year range</li>
<li>All dual-listed Taiwan semiconductor companies have seen a decline in premiums or an increase in discounts.</li>
<li>ChipMOS ADR’s discount to the company’s Taiwan listing widens further.</li>
</ul>


TSMC’s ADR premium falls past the lower bound of its 3-year range
All dual-listed Taiwan semiconductor companies have seen a decline in premiums or an increase in discounts.
ChipMOS ADR’s discount to the company’s Taiwan listing widens further.


Taiwan Dual-Listings – TSMC Premium Continues to Decline, ChipMOS ADR Discount Widens

<ul>
<li>TSMC’s ADR premium has fallen substantially and is at the lower end of its 3-year range</li>
<li>ASE’s ADR premium is in contrast near the upper end of its range</li>
<li>ChipMOS ADRs are now trading at a discount to their Taiwan shares</li>
</ul>


TSMC’s ADR premium has fallen substantially and is at the lower end of its 3-year range
ASE’s ADR premium is in contrast near the upper end of its range
ChipMOS ADRs are now trading at a discount to their Taiwan shares


Taiwan Dual-Listings – TSMC Premium Decline Could Highlight Foreign Vs. Domestic Sentiment Mismatch

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>A recent shift in momentum has pushed Taiwan to the largest country level underweight in the Asia Ex-Japan region</li>
<li>Taiwan Technology stocks have driven allocations lower, in addition to Consumer Discretionary and Staples, Health Care and Financials.</li>
<li>Taiwan Tech remains the key risk.  Sentiment is starting to waver when funds are close to maximum exposure.  Underperformance here will be costly on both an absolute a relative basis</li>
</ul>


A recent shift in momentum has pushed Taiwan to the largest country level underweight in the Asia Ex-Japan region
Taiwan Technology stocks have driven allocations lower, in addition to Consumer Discretionary and Staples, Health Care and Financials.
Taiwan Tech remains the key risk.  Sentiment is starting to waver when funds are close to maximum exposure.  Underperformance here will be costly on both an absolute a relative basis


Taiwan Moves to Top Underweight, Tech Overweight Risk

Taiwan

Chunghwa Telecom Co., Ltd. provides local, domestic, and international long distance services. The Company also offers wireless telecommunication, paging, and Internet services.

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Chunghwa Telecom (2412 TT)

Taiwan Dual-Listings - TSMC Premium Rebounds While UMC, ChipMOS Discounts Disappear

Premiums have rebounded across most of the Taiwan ADRs except for Chunghwa Telecom (CHT). US vs. Taiwan domestic investors' relative sentiment...

Vincent Fernando, CFA

Taiwan Dual-Listings – TSMC Premium Almost Wiped Out, UMC & ChipMOS ADRs Trading at Discounts

Taiwan ADR premiums vs. their local shares have generally decreased across the board. TSMC's past high premium is interestingly linked to the top...

Vincent Fernando, CFA

Taiwan Dual-Listings – TSMC Premium Continues to Decline, ChipMOS ADR Discount Widens

We take a look at Taiwan's dual-listed companies to identify opportunities arising from mismatches between foreign and domestic sentiments.

Vincent Fernando, CFA

Taiwan Dual-Listings – TSMC Premium Decline Could Highlight Foreign Vs. Domestic Sentiment Mismatch

We take a look at Taiwan dual-listings to identify if there are significant mismatches between foreign and domestic sentiments.

Vincent Fernando, CFA

Taiwan Moves to Top Underweight, Tech Overweight Risk

A recent shift in momentum has pushed Taiwan to the largest country level underweight in the Asia Ex-Japan region, with the Technology sector one...

Steven Holden

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