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>Investment levels in BYD Company Limited H Shares have reached record highs among active Emerging Market funds.</li>
<li>On a fund level, between 10/31/2022 and 04/30/2023, 22 funds opened new positions in BYD, led by Vontobel MTX Sustainable (+2.4%) and Putnam Emerging Markets (+1.95%).</li>
<li>BYD has risen up the ranks to become the most widely held and largest weight in the autos sector, surpassing Kia Corp and Mahindra &amp; Mahindra over the last 2-years.</li>
</ul>


Investment levels in BYD Company Limited H Shares have reached record highs among active Emerging Market funds.
On a fund level, between 10/31/2022 and 04/30/2023, 22 funds opened new positions in BYD, led by Vontobel MTX Sustainable (+2.4%) and Putnam Emerging Markets (+1.95%).
BYD has risen up the ranks to become the most widely held and largest weight in the autos sector, surpassing Kia Corp and Mahindra &amp; Mahindra over the last 2-years.


BYD Company: Moves to Top Auto Holding in EM

External broker reports(aggregated public sources), HDFC Securities

HDFC Securities

External broker reports(aggregated public sources)

HDFC securities is the best online trading platform for stocks, IPOs, mutual fund in India. 

Content available is external broker reports authored by a third party outside the Smartkarma network and has been aggregated by an online aggregator through publicly available sources and is displayed by Smartkarma in this format for user's convenience and general informational purposes only. Content does not constitute investment or financial advice and Smartkarma makes no representation or warranty regarding its accuracy or contents. Original third party author retains all copyright and other proprietary rights in the content. Access or use of third party links not controlled by Smartkarma are at the user's own risk.

Thematic (Sector/Industry)

<ul><li>Mahindra &amp; Mahindra: M&amp;M Q4 adjusted PAT at INR 19.3bn came in above our estimate of INR 16.2bn due to higher-than-expected revenue and lower tax rate, even as its operational performance was in line with our estimates</li><li>M&amp;M’s performance highlights for FY23 are: (1) No1 in SUVs revenue market share at 19.1% (+370bps YoY) (2) market leader in LCVs (&lt;3.5T) with 520bps improvement to 45.5% (3) FES market share up 120bps YoY to 41.2% (4) market leader in EV 3Ws with 67.6% share</li><li>Also, it is commendable that M&amp;M has already achieved most of the targets it earmarked a couple of years back, including improvement in auto margins, EPS CAGR, RoE at 18% (stands at 19.9% for FY23), calibrated asset allocation, etc</li></ul>Content is external broker report sourced from online content aggregator through publicly available sources and is displayed below for general informational purposes only. Refer full disclaimer below.

Mahindra &amp; Mahindra: M&amp;M Q4 adjusted PAT at INR 19.3bn came in above our estimate of INR 16.2bn due to higher-than-expected revenue and lower tax rate, even as its operational performance was in line with our estimatesM&amp;M’s performance highlights for FY23 are: (1) No1 in SUVs revenue market share at 19.1% (+370bps YoY) (2) market leader in LCVs (&lt;3.5T) with 520bps improvement to 45.5% (3) FES market share up 120bps YoY to 41.2% (4) market leader in EV 3Ws with 67.6% shareAlso, it is commendable that M&amp;M has already achieved most of the targets it earmarked a couple of years back, including improvement in auto margins, EPS CAGR, RoE at 18% (stands at 19.9% for FY23), calibrated asset allocation, etcContent is external broker report sourced from online content aggregator through publicly available sources and is displayed below for general informational purposes only. Refer full disclaimer below.

HSIE Results Daily: Mahindra & Mahindra, Infoedge, Sundaram Finance

External broker reports(aggregated public sources), Axis Direct

Axis Direct

Axis Direct is the flagship brand under Axis Securities Limited, a subsidiary of Axis Bank in India. 

Content available is external broker reports authored by a third party outside the Smartkarma network and has been aggregated by an online aggregator through publicly available sources and is displayed by Smartkarma in this format for user's convenience and general informational purposes only. Content does not constitute investment or financial advice and Smartkarma makes no representation or warranty regarding its accuracy or contents. Original third party author retains all copyright and other proprietary rights in the content. Access or use of third party links not controlled by Smartkarma are at the user's own risk.

<ul><li>The Domestic PV industry sales grew by ~6% YoY (flat MoM) to fulfill the order backlogs, especially in the SUV segment as the production constraints eased.</li><li>Domestic CV sales stood robust, up 12% YoY and 27% MoM led by strong infra push, higher replacement demand, and advanced buying in anticipation of price hikes post Apr’23 (on OBD Phase II norms).</li><li>Domestic 2W Wholesales grew by ~20% YoY/MoM (exl. HMSI and Bajaj) on the low base of the last year and post the weak Jan- Feb’23 dispatches.</li></ul>Content is external broker report sourced from online content aggregator through publicly available sources and is displayed below for general informational purposes only. Refer full disclaimer below.

The Domestic PV industry sales grew by ~6% YoY (flat MoM) to fulfill the order backlogs, especially in the SUV segment as the production constraints eased.Domestic CV sales stood robust, up 12% YoY and 27% MoM led by strong infra push, higher replacement demand, and advanced buying in anticipation of price hikes post Apr’23 (on OBD Phase II norms).Domestic 2W Wholesales grew by ~20% YoY/MoM (exl. HMSI and Bajaj) on the low base of the last year and post the weak Jan- Feb’23 dispatches.Content is external broker report sourced from online content aggregator through publicly available sources and is displayed below for general informational purposes only. Refer full disclaimer below.

Automotive Industry - Mar’23 Wholesale Dispatches Continue to Grow YoY

Consumer Analyst / Channel Surveillance Specialist, Trudence Capital Advisors

Pranav Bhavsar

Consumer Analyst / Channel Surveillance Specialist

Trudence Capital Advisors

Trudence Capital Advisors Private Limited is a SEBI-registered Research Analyst, holding SEBI registration number INH000015747. Our firm is dedicated to providing independent and unbiased research on Indian mid to large-cap companies. Trudence Capital is known for its counter-consensus views, with a focus on forensic research and on-ground primary investigations. Our research approach is thorough, involving detailed analysis of accounting practices and governance, alongside extensive channel checks.

Independent & Unbiased Research

<ul>
<li>Commercial vehicle industry in India facing challenges due to increasing discounting trend, implementation of new regulations, and economic slowdown.</li>
<li>Possibility of <a href="https://www.smartkarma.com/entities/tata-motors-ltd" target="_blank" data-smartkarma-citation="entities:216:1" rel="noopener">Tata Motors Ltd (TTMT IN)</a> regaining lost market share at the cost of <a href="https://www.smartkarma.com/entities/ashok-leyland-ltd" target="_blank" data-smartkarma-citation="entities:20104:1" rel="noopener">Ashok Leyland (AL IN)</a>, but industry highly competitive.</li>
<li>Finance Ministry warns of El Niño conditions, leading to weaker monsoon in India, dampening auto sales.</li>
</ul>


Commercial vehicle industry in India facing challenges due to increasing discounting trend, implementation of new regulations, and economic slowdown.
Possibility of Tata Motors Ltd (TTMT IN) regaining lost market share at the cost of Ashok Leyland (AL IN), but industry highly competitive.
Finance Ministry warns of El Niño conditions, leading to weaker monsoon in India, dampening auto sales.


India Channel Insight #50 | Commercial Vehicles - Discounts & Market Share

<ul>
<li>
<a href="https://www.smartkarma.com/entities/mahindra-mahindra-ltd" target="_blank" data-smartkarma-citation="entities:16441:1" rel="noopener">Mahindra &amp; Mahindra (MM IN)</a> is facing challenges in the highly competitive SUV segment in India.</li>
<li>Model-Wise data indicates declining sales volumes for some of its models such as Scorpio, XUV300, and XUV700.</li>
<li>The strategy of focusing on the higher end of the SUV market may lead to confusion and loss of market share. </li>
</ul>



Mahindra &amp; Mahindra (MM IN) is facing challenges in the highly competitive SUV segment in India.
Model-Wise data indicates declining sales volumes for some of its models such as Scorpio, XUV300, and XUV700.
The strategy of focusing on the higher end of the SUV market may lead to confusion and loss of market share. 


Mahindra & Mahindra (MM IN) | Cracks Widening

India

Mahindra & Mahindra Ltd. manufactures automobiles, farm equipment and automotive components. The Company's automobile products include light, medium and heavy commercial vehicles, jeep type vehicles and passenger cars. Mahindra & Mahindra also manufactures agricultural tractors, agricultural implements, internal combustion engines, industrial petrol engines, spare parts and machine tools.

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Mahindra & Mahindra (MM IN)

BYD Company: Moves to Top Auto Holding in EM

After years of being an avoided stock, GEM active managers are ramping up allocations to BYD. Recent fund rotation has pushed exposure to its...

Steven Holden

HSIE Results Daily: Mahindra & Mahindra, Infoedge, Sundaram Finance

M&M Q4 adjusted PAT at INR 19.3bn came in above our estimate of INR 16.2bn due to higher-than-expected revenue and lower tax rate

HDFC Securities

Automotive Industry - Mar’23 Wholesale Dispatches Continue to Grow YoY

The Domestic PV industry sales grew by ~6% YoY (flat MoM) to fulfill the order backlogs, especially in the SUV segment as the production...

Axis Direct