Asset Allocation & Fund Positioning, Copley Fund Research

Steven Holden

Asset Allocation & Fund Positioning

Copley Fund Research

Copley Fund Research provide research and data on asset allocation among Global and Emerging Market equity funds.  The analysis details absolute and relative positioning across countries, sectors and industries together with highly granular data on single stock and single fund allocations.  The data is updated monthly with time series going back to January 2011.

Global Research - Analysis of 165 prominent Global equity funds, combined AUM $335bn
GEM Research - Analysis of 127 prominent global EM equity funds, combined AUM $250bn

Asset Allocation - Global and GEM Equity

Cross Asset Strategy

<ul>
<li>We screen for Global companies at the extreme ends of their positioning or momentum ranges among active Global equity funds.</li>
<li>Low Positioning coupled with Negative Momentum:  Intel Corporation and Nippon Telegraph and Telephone Corporation.</li>
<li>High Positioning coupled with High Momentum:  Amphenol Corporation and Iberdrola SA </li>
</ul>


We screen for Global companies at the extreme ends of their positioning or momentum ranges among active Global equity funds.
Low Positioning coupled with Negative Momentum:  Intel Corporation and Nippon Telegraph and Telephone Corporation.
High Positioning coupled with High Momentum:  Amphenol Corporation and Iberdrola SA 


<ul>
<li>Screening for stocks at the extreme ends of their positioning or momentum ranges among active Asia Ex-Japan equity funds.</li>
<li>High Positioning, Positive Momentum: KE Holdings Ltd, Shriram Finance Limited     </li>
<li>Low Positioning, Negative Momentum: Baidu Inc, BOC Hong Kong Limited    </li>
</ul>


Screening for stocks at the extreme ends of their positioning or momentum ranges among active Asia Ex-Japan equity funds.
High Positioning, Positive Momentum: KE Holdings Ltd, Shriram Finance Limited     
Low Positioning, Negative Momentum: Baidu Inc, BOC Hong Kong Limited    


<ul>
<li>As interest in the Emerging Markets Ex-China space grows, we have sourced data on 30 actively managed strategies that provide filings for us to analyse.</li>
<li>Combined AUM has gradually increased among all strategies to $1.67bn.  Remains a long behind the $17.6bn AUM of the iShares MSCI EM Ex-China ETF</li>
<li>Developed markets and Argentina O/W.  India, Saudi Arabia, and Taiwan U/W.  TSMC universally owned, SK Hynix and Samsung prominent.  POSCO unloved.</li>
</ul>


As interest in the Emerging Markets Ex-China space grows, we have sourced data on 30 actively managed strategies that provide filings for us to analyse.
Combined AUM has gradually increased among all strategies to $1.67bn.  Remains a long behind the $17.6bn AUM of the iShares MSCI EM Ex-China ETF
Developed markets and Argentina O/W.  India, Saudi Arabia, and Taiwan U/W.  TSMC universally owned, SK Hynix and Samsung prominent.  POSCO unloved.


EM Ex-China: First Look at Active Positioning

<ul>
<li>Active EM Funds delivered an average return of +6.85% in Q3, underperforming the iShares MSCI Emerging Markets ETF by 0.83%, with 38.8% of funds beating the index.</li>
<li>Morgan Stanley Developing Opportunity and Aikya Emerging Markets topped the performance charts for the quarter.</li>
<li>Underweights in Alibaba Group Holding and Meituan, and overweights in SK Hynix and cash holdings hurt performance.</li>
</ul>


Active EM Funds delivered an average return of +6.85% in Q3, underperforming the iShares MSCI Emerging Markets ETF by 0.83%, with 38.8% of funds beating the index.
Morgan Stanley Developing Opportunity and Aikya Emerging Markets topped the performance charts for the quarter.
Underweights in Alibaba Group Holding and Meituan, and overweights in SK Hynix and cash holdings hurt performance.


<ul>
<li>China &amp; HK allocations among Global funds have hit new lows, with 25.5% of funds avoiding the region entirely and a record 79.6% underweight versus the benchmark.</li>
<li>In the six months leading up to recent stimulus measures, another 5.4% of funds fully exited their China &amp; HK exposure.</li>
<li>Tencent and Alibaba are well below their 2020 highs, while AIA Group ownership moved lower and China Construction Bank continues its long-term decline</li>
</ul>


China &amp; HK allocations among Global funds have hit new lows, with 25.5% of funds avoiding the region entirely and a record 79.6% underweight versus the benchmark.
In the six months leading up to recent stimulus measures, another 5.4% of funds fully exited their China &amp; HK exposure.
Tencent and Alibaba are well below their 2020 highs, while AIA Group ownership moved lower and China Construction Bank continues its long-term decline


China:  Record Bearish Positioning Ahead of Stimulus

Asia Fund Positioning
Asset Allocation and Fund Positioning

Global Funds: Extreme Stocks

In this report, we utilize our Global fund holdings database to screen for stocks at the extreme ends of their positioning or momentum ranges.

Steven Holden

Asia Ex-Japan: Extreme Stocks

Screening for stocks at the extreme ends of their positioning or momentum ranges among active Asia Ex-Japan equity funds.

Steven Holden

EM Ex-China: First Look at Active Positioning

India becomes key underweight among active Emerging Market Ex-China funds. Argentina, Mexico and Developed Markets strategic overweights.

Steven Holden

GEM Funds Underperform in Q3.

GEM Funds Underperform in Q3: Underweights in Alibaba Group Holding and Meituan, and overweights in SK Hynix and cash holdings hurt performance.

Steven Holden

China: Record Bearish Positioning Ahead of Stimulus

China & HK allocations among Global funds have hit new lows, with 25.5% of funds avoiding the region entirely and a record 79.6% underweight versus...

Steven Holden