Review Date: July 6, 2026
Portfolio Overview
The Japan Portfolio is concentrated in four holdings, all listed on the Tokyo Stock Exchange (TSE Prime Market). The portfolio emphasizes Japan’s strength in semiconductor equipment and advanced manufacturing. Current positions include TOWA Corporation, The Japan Steel Works, Disco Corporation, and SCREEN Holdings.
Performance Summary
- TOWA Corporation (TOWCF): +8.62% since pick (June 7, 2026). Benefiting from strong demand for semiconductor packaging equipment.
- The Japan Steel Works (JPSWY): +5.76% since pick (June 15, 2026). Gains driven by industrial machinery and energy sector demand.
- Disco Corporation (DSCSY): -4.52% since pick (June 22, 2026). Pullback amid broader semiconductor sector volatility; fundamentals remain solid.
- SCREEN Holdings (DINRF): 0.00% since pick (July 1, 2026). New position, no material price change yet.
Risk Concentration
The portfolio is heavily weighted toward semiconductor equipment and related manufacturing. This concentration offers upside from Japan’s dominant position in the global chip supply chain but also exposes the portfolio to cyclical semiconductor downturns. No single position exceeds 30% of the portfolio, but thematic overlap is high.
What to Watch
- Semiconductor capital expenditure trends, especially from major chipmakers like TSMC and Samsung.
- Japan’s government subsidies for domestic chip production.
- Currency fluctuations (JPY/USD) impacting export competitiveness.
- Earnings reports from Disco and SCREEN in the coming weeks.
Position Closure Decisions
No positions are recommended for closure at this time. All holdings are within their minimum 180-day holding period and remain aligned with the portfolio’s Japan-focused, semiconductor-oriented thesis. Temporary price declines (e.g., Disco) do not warrant exit.
Outlook
The Japan Portfolio remains well-positioned to benefit from structural demand for advanced semiconductor manufacturing equipment. We maintain a constructive view on the region and the selected holdings.
Risk Disclaimer: This article is for informational purposes only and does not constitute investment advice. Past performance is not indicative of future results. Investing involves risk, including potential loss of principal. The portfolio may be concentrated in specific sectors, which increases volatility. Always conduct your own research before making investment decisions.