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

Quantitative Analysis

<p>EM Energy allocations are at record lows.  A big exodus in the first half of 2020 pushed allocations to their lowest levels since our records start in 2008.   The aggressive scaling back of positioning had a dramatic effect on prices, with the MSCI EM Energy sector suffering one of the worst 12 month periods of underperformance in nearly 2 decades.  But the ownership picture is beginning to stabilize.  </p><p>On a stock level, <a href="https://www.smartkarma.com/entities/lukoil-pjsc-2bfe0130-461e-4ff3-af12-93bec12e6325" target="_blank" data-smartkarma-citation="entities:27148:1" rel="noopener">LUKOIL (LKOH RM)</a> appears to be the GOAT, with its backing of almost half of the funds in our analysis, well spread across the style spectrum in addition to being a net overweight.  <a href="https://www.smartkarma.com/entities/reliance-industries-ltd" target="_blank" data-smartkarma-citation="entities:198:1" rel="noopener"> Reliance Industries (RIL IN)</a> is also a high conviction stock, held by fewer funds than Lukoil but in greater size.  It also represents a significant underweight to many EM investors.  The most depressed stock of the larger holdings is <a href="https://www.smartkarma.com/entities/cnooc-ltd" target="_blank" data-smartkarma-citation="entities:175:1" rel="noopener">CNOOC Ltd (883 HK)</a> , once held by over 60% of the funds in our analysis, now by just 24%.</p><p><em>Analysis taken from our EM research, covering the collective allocations of 242 Global Emerging Market active funds, with combined AUM of $460bn</em></p>

EM Energy allocations are at record lows.  A big exodus in the first half of 2020 pushed allocations to their lowest levels since our records start in 2008.   The aggressive scaling back of positioning had a dramatic effect on prices, with the MSCI EM Energy sector suffering one of the worst 12 month periods of underperformance in nearly 2 decades.  But the ownership picture is beginning to stabilize.  On a stock level, LUKOIL (LKOH RM) appears to be the GOAT, with its backing of almost half of the funds in our analysis, well spread across the style spectrum in addition to being a net overweight.   Reliance Industries (RIL IN) is also a high conviction stock, held by fewer funds than Lukoil but in greater size.  It also represents a significant underweight to many EM investors.  The most depressed stock of the larger holdings is CNOOC Ltd (883 HK) , once held by over 60% of the funds in our analysis, now by just 24%.Analysis taken from our EM research, covering the collective allocations of 242 Global Emerging Market active funds, with combined AUM of $460bn

EM Energy: Big Underperformance - Positioning at Record Lows, but Stabilizing.

Global Emerging Market Equities, Propitious Research

Wium Malan, CFA

Global Emerging Market Equities

Thematic (Sector/Industry)

<p>This insight provides a summary of the key news developments impacting the largest countries and constituents of the Global Emerging Markets equity indices. </p><p><strong><em>Companies mentioned this week:</em></strong></p><p><a href="https://www.smartkarma.com/entities/mediatek-inc" target="_blank" data-smartkarma-citation="entities:772:1" rel="noopener">Mediatek Inc (2454 TT)</a>, <a href="https://www.smartkarma.com/entities/hyundai-motor-co" target="_blank" data-smartkarma-citation="entities:155:1" rel="noopener">Hyundai Motor Co (005380 KS)</a>, <a href="https://www.smartkarma.com/entities/kia-motors-corp" target="_blank" data-smartkarma-citation="entities:156:1" rel="noopener">Kia Motors Corp (000270 KS)</a>, <a href="https://www.smartkarma.com/entities/bytedance-technology" target="_blank" data-smartkarma-citation="entities:27936:1" rel="noopener">ByteDance (1460967D CH)</a>, <a href="https://www.smartkarma.com/entities/mtn-group-ltd" target="_blank" data-smartkarma-citation="entities:24897:1" rel="noopener">MTN Group Ltd (MTN SJ)</a>, <a href="https://www.smartkarma.com/entities/reliance-industries-ltd" target="_blank" data-smartkarma-citation="entities:198:1" rel="noopener">Reliance Industries (RIL IN)</a>, <a href="https://www.smartkarma.com/entities/vale-sa-7721577f-6c6a-4536-a829-92551c2bcd7f" target="_blank" data-smartkarma-citation="entities:27725:1" rel="noopener">Vale SA (VALE3 BZ)</a>, <a href="https://www.smartkarma.com/entities/petroleo-brasileiro-sa-1cc9bae4-1206-4157-b187-d2f98d7b3b2b" target="_blank" data-smartkarma-citation="entities:27684:1" rel="noopener">Petroleo Brasileiro SA (PETR4 BZ)</a> </p>

This insight provides a summary of the key news developments impacting the largest countries and constituents of the Global Emerging Markets equity indices. Companies mentioned this week:Mediatek Inc (2454 TT), Hyundai Motor Co (005380 KS), Kia Motors Corp (000270 KS), ByteDance (1460967D CH), MTN Group Ltd (MTN SJ), Reliance Industries (RIL IN), Vale SA (VALE3 BZ), Petroleo Brasileiro SA (PETR4 BZ) 

Global Emerging Markets Weekly: 5 February 2021

Head of Research, IPOs & Placements, Aequitas Research

Sumeet Singh

Head of Research, IPOs & Placements

IPOs and Placements coverage across Asia Pacific

Aequitas Research

We cover all listing across the Asia Pacific along with follow-up placements. As of Dec 2020, our team had covered 539 IPOs with a hit rate of 73.5% and 685 placements with a hit rate of 66.8%.

We combine fundamental bottom-up views with our proprietary quantitative framework to provide a holistic coverage across new listings and placements. Our coverage includes pre-IPO notes before the deal is launched, follow-up analysis once the deal is live and post-listing trading analysis as well.

Equity Capital Markets

Home First Finance / Equity Capital Markets

<div>
<p>Home First Finance (HFF), an affordable housing finance company targeting first time home buyers in low and middle-income groups, raised around US$160m in its India IPO. It is backed by True North, GIC and Bessemer and has recently obtained an investment from Warburg Pincus as well.</p>
</div>
<div>
<p>I have covered various aspects of the deal in my earlier notes,  <a href="https://www.smartkarma.com/insights/home-first-finance-pre-ipo-riding-on-affordable-housing" target="_blank" rel="noopener">Home First Finance Pre-IPO - Riding on affordable housing</a>,  <a href="https://www.smartkarma.com/insights/home-first-finance-pre-ipo-earnings-not-showing-the-covid-strain-but-other-metrics-are" target="_blank" rel="noopener">Home First Finance Pre-IPO - Earnings not showing the COVID strain but other metrics are</a> and <a href="https://www.smartkarma.com/insights/home-first-finance-ipo-it-s-not-really-cheap-banking-on-momentum" target="_blank" rel="noopener">Home First Finance IPO - It’s Not Really Cheap, Banking on Momentum</a>.</p>
<p>In this note, I'll talk about deal updates and provide a table with implied valuations at different share price levels.</p>
</div>


Home First Finance (HFF), an affordable housing finance company targeting first time home buyers in low and middle-income groups, raised around US$160m in its India IPO. It is backed by True North, GIC and Bessemer and has recently obtained an investment from Warburg Pincus as well.


I have covered various aspects of the deal in my earlier notes,  Home First Finance Pre-IPO - Riding on affordable housing,  Home First Finance Pre-IPO - Earnings not showing the COVID strain but other metrics are and Home First Finance IPO - It’s Not Really Cheap, Banking on Momentum.
In this note, I'll talk about deal updates and provide a table with implied valuations at different share price levels.


Home First Finance IPO Trading - Hot Space but Limited Discount

<div>
<p>Indigo Paints (IP) raised around US$160m in its India IPO and will start trading tomorrow. It is engaged in the business of manufacturing paints in India. It was the fifth largest company in the Indian decorative paint industry, in terms of revenue from operations in FY20 and was the fastest growing among the top five paint companies.</p>
</div>
<div>
<p>I've covered the background and company performance in my previous insight, <a href="https://www.smartkarma.com/insights/indigo-paints-ipo-growing-fast-but-future-growth-won-t-come-as-easy" target="_blank" rel="noopener">Indigo Paints IPO - Growing Fast but Future Growth Won’t Come as Easy</a> and <a href="https://www.smartkarma.com/insights/indigo-paints-ipo-not-leaving-a-whole-lot-on-the-table" target="_blank" rel="noopener">Indigo Paints IPO - Not Leaving a Whole Lot on the Table</a>.</p>
</div>
<div>
<p>In this insight, I'll talk about deal updates and provide a table with implied valuations at different share price levels.</p>
</div>


Indigo Paints (IP) raised around US$160m in its India IPO and will start trading tomorrow. It is engaged in the business of manufacturing paints in India. It was the fifth largest company in the Indian decorative paint industry, in terms of revenue from operations in FY20 and was the fastest growing among the top five paint companies.


I've covered the background and company performance in my previous insight, Indigo Paints IPO - Growing Fast but Future Growth Won’t Come as Easy and Indigo Paints IPO - Not Leaving a Whole Lot on the Table.


In this insight, I'll talk about deal updates and provide a table with implied valuations at different share price levels.


Indigo Paints IPO Trading - Already the Most Expensive Amongst Peers

Brookfield India Real Estate Trust / Equity Capital Markets

<p><a href="https://www.smartkarma.com/entities/brookfield-india-real-estate-trust" target="_blank" data-smartkarma-citation="entities:31036:1" rel="noopener">Brookfield India Real Estate Trust (BIREIT IN)</a> (BREIT from hereon) aims to raise around US$500m in its India IPO. </p><p>Its initial portfolio consists of four large campus-format office parks located in Mumbai, Gurugram, Noida and Kolkata. The initial portfolio was 87% occupied and had a weighted average lease expiry (WALE) of 7.1 years, as of Sep 2020. </p><p>The portfolio has recorded steady net operating income (NOI) growth in the past of 6.46% and 7.64% in FY19 and FY20, respectively. Future growth as well appears promising with NOI for the initial portfolio expected to grow by 20% over FY20-23. However, BREIT hasn’t provided a whole lot of details about the past performance of its assets, which leaves some doubts about their past performance and future potential.</p><p>I’ve covered various aspects of the deal in my earlier notes, <a href="https://www.smartkarma.com/insights/brookfields-india-real-estate-trust-pre-ipo-the-positives-provides-different-geographic-exposure" target="_blank" rel="noopener">Brookfields India Real Estate Trust Pre-IPO - The Positives- Provides Different Geographic Exposure </a>,  <a href="https://www.smartkarma.com/insights/brookfields-india-real-estate-trust-pre-ipo-the-negatives-asset-details-leave-questions-unanswered" target="_blank" rel="noopener">Brookfields India Real Estate Trust Pre-IPO- The Negatives- Asset Details Leave Questions Unanswered </a>and <a href="https://www.smartkarma.com/insights/brookfields-india-real-estate-trust-pre-ipo-gurgaon-site-visit-takeaways" target="_blank" rel="noopener">Brookfields India Real Estate Trust Pre-IPO- Gurgaon Site Visit Takeaways</a></p><p>In this note, I’ll talk about the recent updates and valuations.</p>

Brookfield India Real Estate Trust (BIREIT IN) (BREIT from hereon) aims to raise around US$500m in its India IPO. Its initial portfolio consists of four large campus-format office parks located in Mumbai, Gurugram, Noida and Kolkata. The initial portfolio was 87% occupied and had a weighted average lease expiry (WALE) of 7.1 years, as of Sep 2020. The portfolio has recorded steady net operating income (NOI) growth in the past of 6.46% and 7.64% in FY19 and FY20, respectively. Future growth as well appears promising with NOI for the initial portfolio expected to grow by 20% over FY20-23. However, BREIT hasn’t provided a whole lot of details about the past performance of its assets, which leaves some doubts about their past performance and future potential.I’ve covered various aspects of the deal in my earlier notes, Brookfields India Real Estate Trust Pre-IPO - The Positives- Provides Different Geographic Exposure ,  Brookfields India Real Estate Trust Pre-IPO- The Negatives- Asset Details Leave Questions Unanswered and Brookfields India Real Estate Trust Pre-IPO- Gurgaon Site Visit TakeawaysIn this note, I’ll talk about the recent updates and valuations.

Brookfields India Real Estate Trust IPO - Not Very Convincing but the Yield Looks Tempting

India

Reliance Industries Ltd. manufactures petrochemicals, synthetic fibers, fiber intermediates, textiles, blended yarn and polyester staple fiber. The Company also owns a petroleum refinery cum petrochemicals complex in Jamnagar, India that produces a wide range of products such as gasoline, superior kerosene oil and liquefied petroleum gas.

Price Gauge
52-week Range	0.00 - 0.00
Market Cap (USDm)	0.00
P/E	0.00
Dividend (Yield)	0.00

Reliance Industries (RIL IN)

EM Energy: Big Underperformance - Positioning at Record Lows, but Stabilizing.

EM Energy exodus drives worst performance of EM Energy sector in over 15 years. EM active funds are now at their lowest ever exposure to EM Energy...

Steven Holden

Global Emerging Markets Weekly: 5 February 2021

This insight provides a summary of the key news developments impacting the largest countries and constituents of the Global Emerging Markets equity...

Wium Malan, CFA

Home First Finance IPO Trading - Hot Space but Limited Discount

Home First Finance, an affordable housing finance company targeting first time home buyers in low and middle-income groups, raised around US$160m...

Sumeet Singh

Indigo Paints IPO Trading - Already the Most Expensive Amongst Peers

Indigo Paints (IP) raised around US$160m in its India IPO and will start trading tomorrow. It was the 5th largest in the Indian decorative paint...

Sumeet Singh

Brookfields India Real Estate Trust IPO - Not Very Convincing but the Yield Looks Tempting

Brookfield India Real Estate Trust aims to raise around US$500m in its India IPO. Its initial portfolio consists of four office parks located in...

Sumeet Singh

Price Gauge

52-week Range

Market Cap (USDm)

P/E

Dividend (Yield)