Pan-Asia Index Rebalances/ Events/ Delta One, Periscope Analytics

Brian Freitas

Pan-Asia Index Rebalances/ Events/ Delta One

Periscope Analytics

Periscope Analytics focuses on event-driven trades across Asia Pacific and provides comprehensive, timely and systematic coverage of index changes to major Asia Pacific indices in a structured manner.

The analysis includes forecasted inclusions and exclusions to all major Asian indices that have significant amount of tracking assets, including estimates of passive buy/sell flow on the stocks. The service also provides commentary and impact of market consultations, ground rule changes, and other events (IPOs, spin-offs, M&A) that could lead to index changes and passive flow.

Periscope Analytics works with multi-strategy hedge funds, proprietary trading firms, stat arb trading groups and long-only investors that invest and trade in the Asia Pacific region with the data being used to trade index rebalances, avoid pre-positioning and passive flow, and to time entry into and exit from stocks.

Event-Driven Trades Across Asia Pacific

Index Rebalance

<ul>
<li>There could be 2 changes for the Yuanta/P-Shares Taiwan Top 50 ETF in September - one is high probability and the other is right at the cusp.</li>
<li>
<a href="https://www.smartkarma.com/entities/king-slide-works-co-ltd" target="_blank" data-smartkarma-citation="entities:7130:1" rel="noopener">King Slide Works (2059 TT)</a> is being added to a global index this month, so the ETF inclusion will come hot on the heels of that.</li>
<li>The impact on the stocks is pretty big with passive trackers needing to buy between 1.3-5.5x ADV in the adds and sell between 3.4-6.4x ADV in the deletes.</li>
</ul>


There could be 2 changes for the Yuanta/P-Shares Taiwan Top 50 ETF in September - one is high probability and the other is right at the cusp.

King Slide Works (2059 TT) is being added to a global index this month, so the ETF inclusion will come hot on the heels of that.
The impact on the stocks is pretty big with passive trackers needing to buy between 1.3-5.5x ADV in the adds and sell between 3.4-6.4x ADV in the deletes.


Taiwan Top 50 ETF Rebalance Preview: Another Inclusion for King Slide

Chief Executive Officer, Emmer Capital Partners Limited

Manishi Raychaudhuri

Chief Executive Officer

Emmer Capital Partners Limited

Emmer Capital Partners is an Asia Pacific focused financial advisory firm engaging in strategic financial asset allocation advice, bespoke thematic research and advising early-stage companies and connecting them to investors. Emmer Capital provides macro-economic and multi-asset investment strategy inputs to institutions, family offices, private wealth managers, private equity, and corporate boards directly and through independent research platforms. Emmer Capital also advises a wide range of startup companies on fund raising and business strategy. Emmer Capital's active engagement with the print and electronic media reaches a broad spectrum of investors across the globe.

Cross Asset Strategy

<ul>
<li>Amid the uncertainty surrounding the trade negotiations, Asian economies will have to provide fiscal and monetary boost to their domestic economies. They can't rely on exports to sustain their growth.</li>
<li>Asian economies shall likely provide more monetary stimuli than fiscal. Rapidly declining inflation affords their central banks larger wiggle room. China, Korea India, Indonesia, Philippines have room to cut rates.</li>
<li>Fiscal stimulus is more contentious. China and Indonesia have articulated targets of expanding fiscal deficit and public debt. Korea's low public debt and low bond yield affords some fiscal room. </li>
</ul>


Amid the uncertainty surrounding the trade negotiations, Asian economies will have to provide fiscal and monetary boost to their domestic economies. They can't rely on exports to sustain their growth.
Asian economies shall likely provide more monetary stimuli than fiscal. Rapidly declining inflation affords their central banks larger wiggle room. China, Korea India, Indonesia, Philippines have room to cut rates.
Fiscal stimulus is more contentious. China and Indonesia have articulated targets of expanding fiscal deficit and public debt. Korea's low public debt and low bond yield affords some fiscal room. 


Asian Equities: More Policy Stimuli Coming. Watch Out for China, Korea, India and ASEAN Pockets

Technology / Semiconductor / Internet Research

Nicolas Baratte

Equity Bottom-Up

<ul>
<li>AI Accelerators (Nvidia and AMD GPU, hyperscalers’ chips) receive a lot of attention. AI rack assemblers, the companies that turn GPU into systems are equally interesting – and concentrated.</li>
<li>They are mostly Taiwanese firms: Hon Hai, Quanta, Wistron, Wiwynn and module makers like Accton. Growth of the top suppliers is impressive, stocks aren’t expensive.</li>
<li>2 different markets: hyperscalers customized racks, and Nvidia standard products. It is possible that standard racks that go into AI data centers or “AI factory” will outgrow hyperscalers’ spending.</li>
</ul>


AI Accelerators (Nvidia and AMD GPU, hyperscalers’ chips) receive a lot of attention. AI rack assemblers, the companies that turn GPU into systems are equally interesting – and concentrated.
They are mostly Taiwanese firms: Hon Hai, Quanta, Wistron, Wiwynn and module makers like Accton. Growth of the top suppliers is impressive, stocks aren’t expensive.
2 different markets: hyperscalers customized racks, and Nvidia standard products. It is possible that standard racks that go into AI data centers or “AI factory” will outgrow hyperscalers’ spending.


AI Servers: The Big System Designers / Assemblers in Taiwan

Managing Director, Zero One, Zero One

Vincent Fernando, CFA

Managing Director, Zero One

Zero One

Founded in 2015, Zero One produces independent investment research and provides corporate finance advisory services with a focus on both listed and private technology companies. Founder Vincent Fernando has over 20 years of experience in US and Asia capital markets.

Independent Investment Research

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

TSMC (Taiwan Semiconductor Manufacturing) - ADR

<ul>
<li>US Eyes New AI Chip Restrictions on Malaysia and Thailand</li>
<li>Chip and AI Boom Driving Taiwan's Offshore Wind Expansion -- Local Stocks to Watch</li>
<li>China Set to Become World’s Largest Semiconductor Foundry Hub by 2030 -- But One Needs to Consider Leading Edge Capacity vs. Mature Capacity</li>
</ul>


US Eyes New AI Chip Restrictions on Malaysia and Thailand
Chip and AI Boom Driving Taiwan's Offshore Wind Expansion -- Local Stocks to Watch
China Set to Become World’s Largest Semiconductor Foundry Hub by 2030 -- But One Needs to Consider Leading Edge Capacity vs. Mature Capacity


Taiwan Tech Weekly: US Targets Malaysia & Thailand; Wind Power Fuels Taiwan's AI Infrastructure Push

<ul>
<li>ASML has been underperforming for 18 months. Recent downgrades are a delayed recognition of reality. ASML’s management goals for 2030 (10% revenue growth Cagr) are ok (plausible) </li>
<li>But growth is slowing fast in 2H25-1H26. Growth should re-accelerate in 2H26 as the impact of China and  Mature node lower spending, multiple delays (Intel, Samsung) is fading away. </li>
<li>The stock is getting cheaper, but lacks catalysts for another 2-3 quarters. Trading at 25x forward PEx, that’s reasonable given the firm’s intrinsic qualities.</li>
</ul>


ASML has been underperforming for 18 months. Recent downgrades are a delayed recognition of reality. ASML’s management goals for 2030 (10% revenue growth Cagr) are ok (plausible) 
But growth is slowing fast in 2H25-1H26. Growth should re-accelerate in 2H26 as the impact of China and  Mature node lower spending, multiple delays (Intel, Samsung) is fading away. 
The stock is getting cheaper, but lacks catalysts for another 2-3 quarters. Trading at 25x forward PEx, that’s reasonable given the firm’s intrinsic qualities.


ASML Downgrades, Semi Production Equipment Demand

Taiwan

Taiwan Semiconductor Manufacturing Company Ltd. manufactures integrated circuits based on its proprietary designs.  The Company offers a comprehensive set of integrated circuit fabrication processes to manufacture CMOS logic, mixed-mode, volatile and non-volatile memory and BiCMOS chips.  Taiwan Semiconductor is an affiliate of Philips Electronics N.V.

TSMC (Taiwan Semiconductor Manufacturing) - ADR (TSM US)

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TSMC (Taiwan Semiconductor Manufacturing) - ADR (TSM US)

Taiwan Top 50 ETF Rebalance Preview: Another Inclusion for King Slide

There could be 2 changes for the Yuanta/P-Shares Taiwan Top 50 ETF in Sep. King Slide Works is also an add to a global index this month. Passives...

Brian Freitas

Asian Equities: More Policy Stimuli Coming. Watch Out for China, Korea, India and ASEAN Pockets

CPI & core inflation are nosediving in APAC barring Japan, indicating weak consumption demand. The latest is India's CPI at 1.55%. Policy stimulus ...

Manishi Raychaudhuri

AI Servers: The Big System Designers / Assemblers in Taiwan

Taiwanese AI rack assemblers are gaining attention for turning GPUs into systems, showing impressive growth in the AI server rack market. Stocks...

Nicolas Baratte

Taiwan Tech Weekly: US Targets Malaysia & Thailand; Wind Power Fuels Taiwan's AI Infrastructure Push

US considering new AI chip restrictions on Malaysia and Thailand, Taiwan's offshore wind expansion driven by chip and AI boom, Intel should invest...

Vincent Fernando, CFA

ASML Downgrades, Semi Production Equipment Demand

ASML's underperformance is a delayed reality check, but management's 2030 goals are plausible. Growth is slowing but will re-accelerate in 2H26....

Nicolas Baratte

Price Gauge

52-week Range

Market Cap (USDm)

P/E

Dividend (Yield)

Taiwan Top 50 ETF Rebalance Preview: Another Inclusion for King Slide

There could be 2 changes for the Yuanta/P-Shares Taiwan Top 50 ETF in Sep. King Slide Works is also an add to a global index this month. Passives...

Brian Freitas

Asian Equities: More Policy Stimuli Coming. Watch Out for China, Korea, India and ASEAN Pockets

CPI & core inflation are nosediving in APAC barring Japan, indicating weak consumption demand. The latest is India's CPI at 1.55%. Policy stimulus ...

Manishi Raychaudhuri

AI Servers: The Big System Designers / Assemblers in Taiwan

​Taiwanese AI rack assemblers are gaining attention for turning GPUs into systems, showing impressive growth in the AI server rack market. Stocks...

Nicolas Baratte

Taiwan Tech Weekly: US Targets Malaysia & Thailand; Wind Power Fuels Taiwan's AI Infrastructure Push

​US considering new AI chip restrictions on Malaysia and Thailand, Taiwan's offshore wind expansion driven by chip and AI boom, Intel should invest...

Vincent Fernando, CFA

ASML Downgrades, Semi Production Equipment Demand

​ASML's underperformance is a delayed reality check, but management's 2030 goals are plausible. Growth is slowing but will re-accelerate in 2H26....

Nicolas Baratte

Taiwanese AI rack assemblers are gaining attention for turning GPUs into systems, showing impressive growth in the AI server rack market. Stocks...

US considering new AI chip restrictions on Malaysia and Thailand, Taiwan's offshore wind expansion driven by chip and AI boom, Intel should invest...

ASML's underperformance is a delayed reality check, but management's 2030 goals are plausible. Growth is slowing but will re-accelerate in 2H26....