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>Industrials and Consumer Staples Remain Top Overweights, Though Sentiment Fragile for Both.</li>
<li>Energy sector shows signs of a turnaround from long-term decline, whilst Financials remain unloved by China investors.</li>
<li>Real Estate allocations have hit record lows, with average holdings at just 2.93%, while Consumer Discretionary sector approaches all-time highs.</li>
</ul>


Industrials and Consumer Staples Remain Top Overweights, Though Sentiment Fragile for Both.
Energy sector shows signs of a turnaround from long-term decline, whilst Financials remain unloved by China investors.
Real Estate allocations have hit record lows, with average holdings at just 2.93%, while Consumer Discretionary sector approaches all-time highs.


Pan-Asia Catalysts/Events, Quiddity Advisors

Travis Lundy

Pan-Asia Catalysts/Events

Quiddity Advisors

Event-Driven

<ul>
<li>Gross SOUTHBOUND volumes back above US$13bn a day this past 4-day week. Net buying back below US$500mm/day.</li>
<li>Among the top buys as a percentage of volume, FINANCIALS, ENERGY, TELECOMS stand out, dramatically. Among top sells, it is INFO TECH again. 8 weeks in a row negative.</li>
<li>The data tables below update on a daily basis in the <a href="https://www.smartkarma.com/tools" target="_blank" rel="noopener">Tools</a> section of Smartkarma. The <a href="https://www.smartkarma.com/tools/quiddity/south-flow-monitor" target="_blank" rel="noopener">SOUTHBOUND Flow Monitor</a> and <a href="https://www.smartkarma.com/tools/quiddity/ah-shares-monitor" target="_blank" rel="noopener">AH Monitor</a> are both there free for SK readers.</li>
</ul>


Gross SOUTHBOUND volumes back above US$13bn a day this past 4-day week. Net buying back below US$500mm/day.
Among the top buys as a percentage of volume, FINANCIALS, ENERGY, TELECOMS stand out, dramatically. Among top sells, it is INFO TECH again. 8 weeks in a row negative.
The data tables below update on a daily basis in the Tools section of Smartkarma. The SOUTHBOUND Flow Monitor and AH Monitor are both there free for SK readers.


HK Connect SOUTHBOUND Flows (To 6 June 2025); Volumes Up, Tech Down, ENERGY Bought Big

Asia Pac ECM and Index Rebal, Shenton Research

Ke Yan, CFA, FRM

Asia Pac ECM and Index Rebal

Asia Pac IPO & Placement Research, China Biotech

Shenton Research

Shenton Research is an independent Asia Pacific equity specialist. Our quantitative research covers index rebalancing flows, alongside exchange data analytics accross Asia Pacific. On the equity capital markets side, we focus on Asia Pacific ECM, especially biotech and TMT. Our lead analyst is frequently cited by international media.

Index Rebalance

<ul>
<li>We screen the Mainland Securities ahead of the HSCEI review result, due on 20 Nov 2026 after market close.</li>
<li>One ADD and one DELETE are screened as high-conviction calls this cycle.</li>
<li>We also include one mid-conviction ADD and one low-conviction DELETE.</li>
</ul>


We screen the Mainland Securities ahead of the HSCEI review result, due on 20 Nov 2026 after market close.
One ADD and one DELETE are screened as high-conviction calls this cycle.
We also include one mid-conviction ADD and one low-conviction DELETE.


External broker reports(aggregated public sources), CMB International

CMB International

External broker reports(aggregated public sources)

Incorporated in Hong Kong, supported by the mainland and targeting in global market, CMB International Capital Corporation Limited (“CMBI”) is an integrated financial institution providing comprehensive and professional services. As a wholly-owned subsidiary of China Merchants Bank ("CMB"), by leveraging on the Group’s synergy and coordination in domestic and overseas markets, as well as CMB’s strong resources and outstanding social reputation, CMBI and its subsidiaries have been actively implementing diversified business strategies and set up an overall layout of main business segments including Corporate Finance, Asset Management, Wealth Management, Global Markets and Structured Finance, etc. Adhering to the philosophy of “being clients oriented and increasing our own values by the way of creating value for clients”, CMBI endeavors to provide quality and integrated financial services to institutional, corporate and individual customers both domestic and overseas including Hong Kong IPO sponsorship and underwriting, share placement and rights issue for listed companies, financial advisors, bonds issuance services, asset management, direct investment, wealth management, equity sales and trading, etc.

Equity Bottom-Up

PICC Property & Casualty / Equity Bottom-Up

<ul><li>PICC P&amp;C reported 1Q26 results, with net profit down 23.7% YoY to RMB8.63bn, slightly below market estimates; while the combined ratio (COR) was down 0.3pct YoY to 94.2%, better-than-expected, thanks to continued improvements in both auto and non-auto COR.</li><li>The decline of net profit was due to investment headwinds, which caused the insurer’s total investment income to drop 38.4% YoY to RMB4.6bn, and total investment yield fell to 0.7% (unannualized, vs. 1Q25: 1.2%).</li><li>Underwriting profit and net investment results accounted for 70.7%/46.5% of pre-tax income in 1Q26, vs. 49.2%/56.2% in 1Q25. </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.

PICC P&amp;C reported 1Q26 results, with net profit down 23.7% YoY to RMB8.63bn, slightly below market estimates; while the combined ratio (COR) was down 0.3pct YoY to 94.2%, better-than-expected, thanks to continued improvements in both auto and non-auto COR.The decline of net profit was due to investment headwinds, which caused the insurer’s total investment income to drop 38.4% YoY to RMB4.6bn, and total investment yield fell to 0.7% (unannualized, vs. 1Q25: 1.2%).Underwriting profit and net investment results accounted for 70.7%/46.5% of pre-tax income in 1Q26, vs. 49.2%/56.2% in 1Q25. 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.

PICC P&C (2328 HK) - Underwriting Resilience Persists Despite Investment Headwinds

<ul><li>PICC P&amp;C reported FY25 results, with net profit rising 25.5% YoY to RMB40.4bn, slightly below our estimate of RMB41.3bn (link), as 2H net profit growth eased to 16.3% YoY (1H25: +32.3%).</li><li>UW profit surged 1.19x YoY to RMB12.5bn thanks to significantly reduced UW losses in 2H on top of a high base.</li><li>CoR was 97.5% as of year-end, improving 1.3pct YoY, with auto/non-auto CoR at 95.3%/100.8%, down 1.5pct/1.0pct YoY, meeting/missing mgmt. guidance of &lt;96%/&lt;100%. </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.

PICC P&amp;C reported FY25 results, with net profit rising 25.5% YoY to RMB40.4bn, slightly below our estimate of RMB41.3bn (link), as 2H net profit growth eased to 16.3% YoY (1H25: +32.3%).UW profit surged 1.19x YoY to RMB12.5bn thanks to significantly reduced UW losses in 2H on top of a high base.CoR was 97.5% as of year-end, improving 1.3pct YoY, with auto/non-auto CoR at 95.3%/100.8%, down 1.5pct/1.0pct YoY, meeting/missing mgmt. guidance of &lt;96%/&lt;100%. 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.

PICC P&C (2328 HK) - Non-Auto CoR Sees Headroom for Improvement

China

PICC Property & Casualty is the largest non-life insurance company in mainland China, providing a broad range of property and casualty insurance products. Its offerings include motor vehicle, commercial property, cargo, liability, accidental injury and health, agriculture, credit, surety, and homeowners insurance. The company also offers reinsurance and insurance agency services. It is headquartered in Beijing, China, and was incorporated in 2003.

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PICC Property & Casualty (2328 HK)

China Macro: Sector Positioning Update

Sector positioning among active China Funds. Industrials and Consumer Staples Remain Top Overweights, Energy shows signs of a turnaround, whilst...

Steven Holden

HK Connect SOUTHBOUND Flows (To 6 June 2025); Volumes Up, Tech Down, ENERGY Bought Big

SOUTHBOUND bought another HK$14bn+ last week in the four-day week. ENERGY was big again, as was CONSUMER DISC though some of the latter was index...

Travis Lundy

HSCEI Dec 2026 Index Rebalance Forecast

We expect Shenzhou to be deleted below rank 60 and Hua Hong Grace to fill its seat, while a mid-conviction WuXi Bio ADD would also see ZTO deleted.

Ke Yan, CFA, FRM

PICC P&C (2328 HK) - Underwriting Resilience Persists Despite Investment Headwinds

PICC P&C reported 1Q26 results, with net profit down 23.7% YoY to RMB8.63bn, slightly below market estimates; while the combined ratio (COR) was...

CMB International

PICC P&C (2328 HK) - Non-Auto CoR Sees Headroom for Improvement

PICC P&C reported FY25 results, with net profit rising 25.5% YoY to RMB40.4bn, slightly below our estimate of RMB41.3bn (link), as 2H net profit...

CMB International

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