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

Cross Asset Strategy

<ul>
<li>Communication Services allocations among active China managers are at their lowest levels on record. Average weights have drifted below 10% for the first time since 2013.</li>
<li>Tencent was the driver of the declining sector weight, yet managers are keeping the faith.  Asian managers cut exposure to Bilibili and China Mobile yet increased NetEase and Baidu.</li>
<li>Versus the MSCI China index, active managers are underweight -6.69% on average, the largest among sector peers and offset by overweights in Industrials and Consumer Staples</li>
</ul>


Communication Services allocations among active China managers are at their lowest levels on record. Average weights have drifted below 10% for the first time since 2013.
Tencent was the driver of the declining sector weight, yet managers are keeping the faith.  Asian managers cut exposure to Bilibili and China Mobile yet increased NetEase and Baidu.
Versus the MSCI China index, active managers are underweight -6.69% on average, the largest among sector peers and offset by overweights in Industrials and Consumer Staples


China Communication Services: Lowest Exposure on Record

<ul>
<li>Global managers are at their lowest ever allocation in Asian equities.  From a peak of over 17% in 2018, average exposure has fallen to just 12.94%.</li>
<li>Declines were led by China &amp; HK Consumer Discretionary and Communication Services, whilst investors also scaled back exposure to Japan Communication Services, Industrials, Health Care and Consumer Staples</li>
<li>Among Global investors, overweight the benchmark in Asia is by far the non-consensus trade.</li>
</ul>


Global managers are at their lowest ever allocation in Asian equities.  From a peak of over 17% in 2018, average exposure has fallen to just 12.94%.
Declines were led by China &amp; HK Consumer Discretionary and Communication Services, whilst investors also scaled back exposure to Japan Communication Services, Industrials, Health Care and Consumer Staples
Among Global investors, overweight the benchmark in Asia is by far the non-consensus trade.


Asia biased macro & technical analysis, Untying The Gordian Knot

Untying The Gordian Knot

Asia biased macro & technical analysis

A differentiated process with a primary focus on Asia. Technical Analysis as core and Macro drivers that could bring the view to fruition & changes that could make the idea fall apart. The objective is to be the best in class, hence corner shop.

Technical Analysis

<ul><li>The Hang Seng index constituents have moved away from just local Hong Kong shares to being dominated by China H and China-centric shares</li><li>Focusing on these constituents adds much value, especially with shifting liquidity away from US-listed ADS to HKEX listed shares.</li><li>It brings together a more diverse investor base ranging from local Hong Kong, mainland China and the rest of the world.</li></ul>

The Hang Seng index constituents have moved away from just local Hong Kong shares to being dominated by China H and China-centric sharesFocusing on these constituents adds much value, especially with shifting liquidity away from US-listed ADS to HKEX listed shares.It brings together a more diverse investor base ranging from local Hong Kong, mainland China and the rest of the world.

Thematic (Sector/Industry)

<ul>
<li>Global funds are reallocating away from Asia's key sectors, with Asia Communication Services stocks at the heart of the move.</li>
<li>Overweights have been cut, driven by closing out of Tencent, China Mobile, NetEase and Nintendo holdings.</li>
<li>Tencent remains the most widely held stock, but after that there is little consensus or conviction within the sector.</li>
</ul>


Global funds are reallocating away from Asia's key sectors, with Asia Communication Services stocks at the heart of the move.
Overweights have been cut, driven by closing out of Tencent, China Mobile, NetEase and Nintendo holdings.
Tencent remains the most widely held stock, but after that there is little consensus or conviction within the sector.


<ul>
<li>China allocations fall to a 2-year low, driven by widespread closures in <a href="https://www.smartkarma.com/entities/alibaba-group-holding-ltd" target="_blank" data-smartkarma-citation="entities:787:1" rel="noopener">Alibaba Group (BABA US)</a> New Oriental Education (EDU US), China Mobile (941 HK) and CNOOC Ltd.</li>
<li>Active GEM Managers head in to 2022 with Consumer Discretionary and Communication Services the key China sector exposures, though Industrial stocks stand out the main overweight.</li>
<li>On a stock level, the most widely held company is Tencent, held by 81% of the managers in our analysis and taking the crown from Alibaba Group in 2021. </li>
</ul>


China allocations fall to a 2-year low, driven by widespread closures in Alibaba Group (BABA US) New Oriental Education (EDU US), China Mobile (941 HK) and CNOOC Ltd.
Active GEM Managers head in to 2022 with Consumer Discretionary and Communication Services the key China sector exposures, though Industrial stocks stand out the main overweight.
On a stock level, the most widely held company is Tencent, held by 81% of the managers in our analysis and taking the crown from Alibaba Group in 2021. 


China:  EM Active Fund Positioning Update.  BABA Drives Allocations Lower

Hong Kong

China Mobile is a Chinese state-owned telecommunications company that provides mobile voice, data, and multimedia services through its extensive nationwide network across mainland China and Hong Kong. It also offers fixed-line broadband, enterprise solutions, and cloud services, leveraging advanced 4G and 5G technologies. The company was incorporated in Hong Kong on September 3, 1997, and is headquartered in Beijing, China.

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China Mobile (941 HK)

China Communication Services: Lowest Exposure on Record

Communication Services allocations among active China managers are at their lowest levels on record. This analysis looks at the funds and the...

Steven Holden

Asia: Global Investors Lose Faith

Global managers are at their lowest ever allocation in Asian equities. From a peak of over 17% in 2018, average exposure has fallen to just 12.94%.

Steven Holden

Hang Seng Index Constituents

The Hang Seng index constituents have moved away from just local Hong Kong shares to being dominated by China H and China-centric shares

Untying The Gordian Knot

Asia Comm Services: Sentiment Shift

Global funds are reallocating away from Asia's key sectors, with Asia Communication Services stocks at the heart of the move.

Steven Holden

China: EM Active Fund Positioning Update. BABA Drives Allocations Lower

China allocations fall to 2-year low, driven by widespread closures in Alibaba Group, New Oriental Education, China Mobile and CNOOC Ltd.

Steven Holden

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52-week Range

Market Cap (USDm)

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Dividend (Yield)