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

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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>2019 was an excellent year for GEM active managers, the 4th best in the last 17 years.</li>
<li>Aggressive Growth funds came out on top, Value funds suffered.</li>
<li>Underweights in Saudi Arabia and Malaysia, together with overweights in Russia paid off.  India overweights dragged on relative returns.</li>
<li>Overweights in <a href="https://www.smartkarma.com/entities/aia-group-ltd" target="_blank" data-smartkarma-citation="entities:14895:1" rel="noopener">AIA Group Ltd (1299 HK)</a> , <a href="https://www.smartkarma.com/entities/sberbank-of-russia-pjsc-cde59529-fb78-4659-85d0-127942b44ba7" target="_blank" data-smartkarma-citation="entities:27581:1" rel="noopener">Sberbank of Russia PJSC (SBER RM)</a> and <a href="https://www.smartkarma.com/entities/kweichow-moutai-co-ltd-a" target="_blank" data-smartkarma-citation="entities:1553:1" rel="noopener">Kweichow Moutai (600519 CH)</a> helped generate outperformance.</li>
<li>Underweights in <a href="https://www.smartkarma.com/entities/alibaba-group-holding-ltd" target="_blank" data-smartkarma-citation="entities:787:1" rel="noopener">Alibaba Group Holding (BABA US)</a> and <a href="https://www.smartkarma.com/entities/gazprom-pjsc-6a7231a9-d5e4-4da4-bf21-aa1b9d50fbf8" target="_blank" data-smartkarma-citation="entities:27578:1" rel="noopener">Gazprom PJSC (GAZP RM)</a> hurt EM active investors in 2019.</li>
<li>Funds start the year with the largest underweight in <a href="https://www.smartkarma.com/entities/alibaba-group-holding-ltd" target="_blank" data-smartkarma-citation="entities:787:1" rel="noopener">Alibaba Group Holding (BABA US)</a> on record.</li>
</ul>


2019 was an excellent year for GEM active managers, the 4th best in the last 17 years.
Aggressive Growth funds came out on top, Value funds suffered.
Underweights in Saudi Arabia and Malaysia, together with overweights in Russia paid off.  India overweights dragged on relative returns.
Overweights in AIA Group Ltd (1299 HK) , Sberbank of Russia PJSC (SBER RM) and Kweichow Moutai (600519 CH) helped generate outperformance.
Underweights in Alibaba Group Holding (BABA US) and Gazprom PJSC (GAZP RM) hurt EM active investors in 2019.
Funds start the year with the largest underweight in Alibaba Group Holding (BABA US) on record.


GEM Fund 2019 Performance Review: Active Funds Make Big Gains in 2019