Asset Allocation & Fund Positioning, Copley Fund Research

Steven Holden

Steven Holden is the CEO and Founder of Copley Fund Research, an independent provider of research on equity fund positioning and performance.  Set up in 2014, Copley focuses on global, global emerging market, US, Asia Ex-Japan and China active equity funds, covering over $4tr in assets across 1300 active managers.  The company provides data and analysis on market trends, manager exposures and active fund performance to an audience of investment managers, pension funds and fund selectors worldwide.  Mr Holden’s 14-year investment banking career started in 2000, where he worked for Morgan Stanley as an equity derivative trader focused on emerging markets in London.  Following this, he spent 4 years at Citibank in London and Hong Kong as an Executive Director in derivative sales, focused again on emerging markets.

Asset Allocation & Fund Positioning

Saudi Arabia:  Takes Underweight Crown from China

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

Multiple Countries / Cross Asset Strategy

<ul>
<li>Active EM Managers underperformed their benchmark by -1.58% in February.</li>
<li>Performance was correlated to fund style and market cap focus, with Value beating Growth and Small/Midcap beating Large/Mega.</li>
<li>Given the net overweight in Russia heading in to the crisis, it was the key driver of the underperformance, but there could be more to come.</li>
</ul>


Active EM Managers underperformed their benchmark by -1.58% in February.
Performance was correlated to fund style and market cap focus, with Value beating Growth and Small/Midcap beating Large/Mega.
Given the net overweight in Russia heading in to the crisis, it was the key driver of the underperformance, but there could be more to come.


Active GEM Funds Performance Update.  Russia O/W Drives Underperformance in February