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

Thematic (Sector/Industry)

Telcos exposure among active Emerging Market funds is in free fall.  Average holding weights among the 241 funds in our analysis stands at 1.70%, the lowest level on record.  In addition, a record low of just 65.1% of funds have any exposure at all to the sector.<a href="https://www.smartkarma.com/entities/china-mobile-ltd" target="_blank" data-smartkarma-citation="entities:27:1" rel="noopener">China Mobile (941 HK)</a> holdings have been slashed after its exclusion from MSCI Emerging Markets Index. <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> has started to see a reversal of its long-term ownership decline.Declines in ownership have been led by high growth investors, with Value and Yield funds remaining stubbornly exposed.  With the outperformance of Value funds this year and the potential rebalance out of Growth stocks, could Telcos be an out of consensus bet worth taking?

Telcos exposure among active Emerging Market funds is in free fall.  Average holding weights among the 241 funds in our analysis stands at 1.70%, the lowest level on record.  In addition, a record low of just 65.1% of funds have any exposure at all to the sector.China Mobile (941 HK) holdings have been slashed after its exclusion from MSCI Emerging Markets Index. MTN Group Ltd (MTN SJ) has started to see a reversal of its long-term ownership decline.Declines in ownership have been led by high growth investors, with Value and Yield funds remaining stubbornly exposed.  With the outperformance of Value funds this year and the potential rebalance out of Growth stocks, could Telcos be an out of consensus bet worth taking?

EM Telcos:  MSCI Exclusions Force Exodus from Sector

Differentiated global TMT & Internet Research

New Street Research Insights

New Street Research

Research is provided by our team of experienced analysts. Our work is idea driven, based on independence of thought, sector expertise, and firmly focused on fundamentals and valuation of telecoms and internet names globally. New Street is headquartered in London with offices in New York, Singapore and Australia. 

New Street Research is an independent, partner-owned, research firm specialising in equity and debt research. Our equity research embraces the following sectors:

Pan European Telecom Services and Cable
US Telecoms, Cable, Satellite and Towers
Global Emerging Market Telecoms
Japan Telecoms
Asian Internet
Pan European Healthcare
US Healthcare
Japanese Healthcare

We also provide debt research on:
Pan European Telecom Services and Cable

Video is becoming a “killer app” in emerging markets and now accounts for over 50% of data volume on many networks. Low median age, limited WiFi/wired infrastructure and lack of historic association of video with fixed lines makes EM consumers ripe to consume video over mobile. The 3G to 4G migration makes it enjoyable (higher speeds). Most EM consumers are on tiered data packages and video is driving usage to levels that require moving through those tiers. Low voice ARPUs mean mobile internet (MI) is now over 50% of revenues in many EMs and increasing, leading to an overall top line improvement. We think growth will continue and for the first time in a decade we are EM wireless growth bulls.<a href="https://www.smartkarma.com/profiles/1917" target="_blank" data-smartkarma-citation="accounts:1917">Chris Hoare</a> and <a href="https://www.smartkarma.com/profiles/1920" target="_blank" data-smartkarma-citation="accounts:1920">Kirk Boodry</a> anticipate a substantial re-rating of EM wireless operators, and upgrade multiple price targets. Top picks include <a href="https://www.smartkarma.com/entities/15028" target="_blank" data-smartkarma-citation="entities:15028:1">XL Axiata Tbk PT (EXCL IJ)</a>, <a href="https://www.smartkarma.com/entities/1016" target="_blank" data-smartkarma-citation="entities:1016:1">China Unicom (762 HK)</a>, <a href="https://www.smartkarma.com/entities/25977" target="_blank" data-smartkarma-citation="entities:25977:1">TIM Brasil (TIMP3 BZ)</a>, and <a href="https://www.smartkarma.com/entities/953" target="_blank" data-smartkarma-citation="entities:953:1">Bharti Airtel (BHARTI IN)</a>. We have also raised our recommendations on <a href="https://www.smartkarma.com/entities/944" target="_blank" data-smartkarma-citation="entities:944:1">Axiata (AXIATA MK)</a> (from Reduce to Buy) and on <a href="https://www.smartkarma.com/entities/947" target="_blank" data-smartkarma-citation="entities:947:1">AIS (ADVANC TB)</a> (from Reduce to Neutral).EM Wireless growth is inflecting, driven by video<figure class="editor-figure mceNonEditable"><img src="https://static-prod.smartkarma.com/images/media/000/035/879/original/em%20wireless%20rev.jpg?1508214198" class="editor-image img-responsive" data-smartkarma-image-id="35879"></figure>

Video is becoming a “killer app” in emerging markets and now accounts for over 50% of data volume on many networks. Low median age, limited WiFi/wired infrastructure and lack of historic association of video with fixed lines makes EM consumers ripe to consume video over mobile. The 3G to 4G migration makes it enjoyable (higher speeds). Most EM consumers are on tiered data packages and video is driving usage to levels that require moving through those tiers. Low voice ARPUs mean mobile internet (MI) is now over 50% of revenues in many EMs and increasing, leading to an overall top line improvement. We think growth will continue and for the first time in a decade we are EM wireless growth bulls.Chris Hoare and Kirk Boodry anticipate a substantial re-rating of EM wireless operators, and upgrade multiple price targets. Top picks include XL Axiata Tbk PT (EXCL IJ), China Unicom (762 HK), TIM Brasil (TIMP3 BZ), and Bharti Airtel (BHARTI IN). We have also raised our recommendations on Axiata (AXIATA MK) (from Reduce to Buy) and on AIS (ADVANC TB) (from Reduce to Neutral).EM Wireless growth is inflecting, driven by video

EM Telcos: Video Growth Drives an EM Wireless Growth Inflection.

Brazil

Telefonica Brasil, S.A. is a telecommunications company which provides services for fixed and mobile telephony, data transmission and VAS, pay TV, among others. The Company is part of the Telefonica Group, a communication conglomerate with presence in multiple countries.

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

Telefonica Brasil (VIVT4 BZ)

EM Telcos: MSCI Exclusions Force Exodus from Sector

Telcos exposure among active Emerging Market funds is in free fall. Average holding weights stand at 1.70% and a record low of just 65.1% of funds...

Steven Holden

EM Telcos: Video Growth Drives an EM Wireless Growth Inflection.

Video is becoming a “killer app” in emerging markets and now accounts for over 50% of data volume on many networks. Low median age, limited...

New Street Research

Price Gauge

52-week Range

Market Cap (USDm)

P/E

Dividend (Yield)