Asia-Pac Japan
Portfolio

The Asia-Pac/Japan Portfolio delivered +3.5% (AUD) and +3.3% (USD) in May 2026, generating a positive absolute return in a strong regional risk-on month. The portfolio lagged the benchmark as performance was led by concentrated benchmark-heavy Asian technology, Taiwan AI supply-chain exposure and broader flows into Japan, Korea and Taiwan. We view the outcome as constructive: the strategy participated positively while maintaining a selective exposure framework.

The month reinforced the portfolio’s core thesis around Asia’s role in the global AI infrastructure build-out. Taiwan and Japan remained central to investor focus across semiconductors, AI servers, optical connectivity, automation and power electronics. The portfolio benefited from exposure to Japan semiconductor equipment and infrastructure enablers, while continuing to avoid chasing the most crowded parts of the regional technology index.

Medium-term performance remains attractive despite May’s relative underperformance. The portfolio retained positive active returns over six months, one year and calendar year to date, including +7.49% over six months, +5.52% over one year and +6.4% CYTD in AUD terms. This demonstrates continued progress across the strategy’s preferred AI infrastructure and electrification themes.

We remain constructive on the region, but selective. Rising data-centre power demand, semiconductor capital expenditure, optical infrastructure, grid investment and EV-related demand continue to provide a strong opportunity set. At the same time, currency, China policy, Japan rates and geopolitical risks require disciplined portfolio construction, valuation awareness and active risk management.

Performance Summary — AUD Returns to 31 May 2026

Top 5 positions by average weight. Click any row to expand the investment thesis and Atlas conviction level. Data as at 31 May 2026.

The Emit Capital Atlas Trading System (ECATS) is Emit Capital’s proprietary decision-support framework for portfolio monitoring, risk assessment and tactical positioning. It monitors four independent signal families — momentum, macro regime, volatility structure and AI infrastructure narrative strength — to help determine whether portfolio risk should be increased, maintained, narrowed or hedged.

Interactive breakdown of the Asia-Pac/Japan Portfolio by sector and market capitalisation as at May 2026.