As Nvidia has soared to become the third largest company in the world by market capitalisation, the performance of Taiwan Semiconductor Manufacturing Company (TSMC) by comparison has garnered less attention.
The world’s largest producer of advanced processors saw its share price hit an all-time high recently following Nvidia’s stellar earnings. Analysts estimate that Nvidia is now the second biggest customer of TSMC.
TSMC currently manufactures 3-nanometer chips and plans to start 2-nanometer mass production in 2025, supporting the view of many analysts that the recent rally has further to run.
Against this background, FSA highlights the five best performing actively managed funds available for distribution in Hong Kong and Singapore which have at least a 5% allocation to Nvidia.*
GQG Partners Emerging Markets Equity UCITS fund
The GCQ Partners Emerging Markets Equity UCITS fund has seen a 41.07% rally over the past year alone. Its exposure to Nvidia makes up almost the entirety of its exposure to Taiwan, which at 5.2% is significantly below the index. The $2.3bn fund has benefited from its significant overweight to India, which has been one of the best performing stock markets.
Manulife Taiwan Equity fund
The Manulife Taiwan Equity Fund unsurprisingly given its geographic focus has a much larger weighting to TSMC at 9.36%, its second largest holding after Alchip Technologies. Information technology also unsurprisingly dominates the fund, accounting for 85.88% of the fund overall.
Thornburg Global Growth Equity fund
This unconstrained global equity fund has no limitation on the capitalisation size of the companies in which it invests, the industry focus of companies invested in nor on its ability to invest in securities issued from any country. It has seen a sharp outperformance versus its benchmark from the end of October onwards when expectations around interest rates dramatically changed prompting share prices to rally.
AB Emerging Markets Low Volatility Equity Portfolio
This unconstrained emerging markets strategy takes a bottom-up approach to stock picking and has a large weighting towards TSMC at 6.89%, its largest individual holding. It has a large weighting towards information technology with Samsung Electronics its second-largest holding.
Fiera Capital Magna EM Income and Growth fund
This emerging markets growth fund has benefited in particular from its large holdings in Indian stocks including IREDA and ShiramFinance as well as HD Hyundai Electric in Korea. It also saw a sharp outperformance versus the benchmark beginning in early December.
*Returns are measured in US dollar terms. The data only includes funds available to Singapore and/or Hong Kong investors based on the sub-segment classified by FE fundinfo. This is not an exhaustive list of all strategies.
