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

Equity Bottom-Up

<ul>
<li>Ownership levels in Magnit are depressed. Today's average weights and funds held % are at multi-year lows.</li>
<li>Recent sentiment looks positive when compared to other EM stocks, though this is partly a function of low ownership rather then any large scale buying.</li>
<li>Although lightly owned at present, it is a well known stock having being owned by 151 of the 224 in our analysis.</li>
<li>Max ever combined AUM from the funds in our analysis is ~20x the current level, most funds are at their lowest ever levels of ownership.</li>
<li>Prices are highly correlated to EM fund ownership.  Higher ownership levels are likely to drive prices higher.</li>
<li>Given Magnit's strong performance in 2020 relative to broader EM and other favoured Russian stocks, it could be appearing back on the radar of active EM managers. If it does, expect performance to follow.</li>
</ul>


Ownership levels in Magnit are depressed. Today's average weights and funds held % are at multi-year lows.
Recent sentiment looks positive when compared to other EM stocks, though this is partly a function of low ownership rather then any large scale buying.
Although lightly owned at present, it is a well known stock having being owned by 151 of the 224 in our analysis.
Max ever combined AUM from the funds in our analysis is ~20x the current level, most funds are at their lowest ever levels of ownership.
Prices are highly correlated to EM fund ownership.  Higher ownership levels are likely to drive prices higher.
Given Magnit's strong performance in 2020 relative to broader EM and other favoured Russian stocks, it could be appearing back on the radar of active EM managers. If it does, expect performance to follow.


Cross Asset Strategy

<p>In this report, we highlight how Russia has taken over from India as the largest overweight country holding among global emerging market fund managers.  Although still a key country position, India has witnessed a certain degree of investor flight after the election euphoria of 2014/15, with <a href="https://www.smartkarma.com/entities/768" target="_blank" data-smartkarma-citation="entities:768:1">Axis Bank Ltd (AXSB IN)</a>, <a href="https://www.smartkarma.com/entities/216" target="_blank" data-smartkarma-citation="entities:216:1">Tata Motors Ltd (TTMT IN)</a> and <a href="https://www.smartkarma.com/entities/17910" target="_blank" data-smartkarma-citation="entities:17910:1">Lupin Ltd (LPC IN)</a> coming under pressure.  Opposing this is a renewed interest in Russia, with fund managers willing to allocate significantly more than the benchmark MSCI EM Index.  Key stocks have been <a href="https://www.smartkarma.com/entities/24142" target="_blank" data-smartkarma-citation="entities:24142:1">Sberbank of Russia PJSC (SBER LI)</a> and <a href="https://www.smartkarma.com/entities/25278" target="_blank" data-smartkarma-citation="entities:25278:1">X5 Retail Group NV (FIVE LI)</a></p>

In this report, we highlight how Russia has taken over from India as the largest overweight country holding among global emerging market fund managers.  Although still a key country position, India has witnessed a certain degree of investor flight after the election euphoria of 2014/15, with Axis Bank Ltd (AXSB IN), Tata Motors Ltd (TTMT IN) and Lupin Ltd (LPC IN) coming under pressure.  Opposing this is a renewed interest in Russia, with fund managers willing to allocate significantly more than the benchmark MSCI EM Index.  Key stocks have been Sberbank of Russia PJSC (SBER LI) and X5 Retail Group NV (FIVE LI)

Russia Replaces India as Top EM Overweight

Russia

Magnit PJSC retails food. The Company operates a chain of discount supermarkets.

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Magnit PJSC (MGNT LI)

Magnit PJSC : Mind the Gap.

Ownership levels in Magnit are depressed. Today's average weights and funds held % are at multi-year lows. Recent sentiment looks positive when...

Steven Holden

Russia Replaces India as Top EM Overweight

In this report, we highlight how Russia has taken over from India as the largest overweight country holding among global emerging market fund...

Steven Holden

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52-week Range

Market Cap (USDm)

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