Janus Henderson Japan Opportunities Fund on Tokyo Electron Limited
Thesis
Tokyo Electron was another AI-related holding that detracted from returns during the quarter. Janus Henderson nonetheless retains conviction in its semiconductor-related holdings because the global AI investment cycle appears structurally resilient. Japanese semiconductor equipment is a key part of the broad AI hardware value chain, which the manager sees as offering diversification across products and businesses. The fund also acknowledges cyclicality and remains disciplined on valuations.
“We remain constructive on the semiconductor theme and continue to maintain a meaningful allocation.”
Key risks
- Semiconductor capital spending and industry cyclicality
- Declines in AI-related stocks following earlier strong returns
- Inflation, tighter Bank of Japan policy and rising bond yields