AI-related funds launching in the second half of October plan to include Japanese and Asian manufacturing and supply-chain companies, not only major US corporations, among their investment targets.
The launch of new funds in the second half of October illustrates the expansion of AI investment leadership beyond a one-sided focus on major US technology companies to companies in Japan and Asia. Eastspring Asia Technology Equity Fund, also known as Asia Tech, is an active fund investing in technology companies in Asia, including Japan, and focuses on supply chains for semiconductors, electronic components and server-related equipment supporting the spread of AI. Meanwhile, Tokio Marine Asset Management’s Tokio Marine Physical AI Japan Equity Fund selects and invests in companies related to AI used in the real world in Japan, namely physical AI.
In response to rising demand from the expansion of AI servers and data centers, Asia Tech plans to screen approximately 1,000 stocks down to around 40 to 60. The portfolio will be diversified across Taiwan, South Korea, China and Japan, among others, and will feature company analysis by local research teams. The Physical AI Japan Equity Fund will focus its stock selection on Japanese companies involved in industrial robots and automation, while also evaluating the competitiveness and valuations of their existing businesses.
Reflecting the different strengths of Japan and Asia, the two funds view AI growth opportunities from different perspectives. Japan focuses on how AI can be used to improve productivity at worksites, while Asia draws attention to companies involved in the semiconductor, electronic component and server-related supply chains. Factors affecting investment returns include demand for automation in Japan and the competitiveness of existing businesses, while global semiconductor demand and US-China trade policy are significant influences on Asian companies.
As the next stage of AI investment, the trend toward expanding investment regions beyond the US to Japan and Asia is becoming increasingly pronounced. It has been pointed out that future growth opportunities exist both in companies supporting the spread of the technology and in companies responsible for real-world applications.