Ucits limit caps TSMC risk, not AI exposure

To offset their underweight positions in Taiwanese chipmaker TSMC, emerging market funds have largely turned to Korean memory chipmakers and smaller Taiwanese technology companies. Ucits funds are allowed to invest no more than 10 percent of their assets in a single stock. Last week’s sell-off demonstrated that while this restriction limits concentration risk, it does not reduce investment funds’ dependence on the AI trend.