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>Broader ownership, lower exposure: Three-quarters of active GEM funds hold at least one GCC stock, close to a record, but average exposure has fallen to 2.12%.</li>
<li>Saudi gains as the UAE retreats: Recent fund rotation has favoured Saudi Arabia, while UAE banks and property stocks account for many of the largest reductions.</li>
<li>Still underweight: Despite rising participation, the average fund remains 2.55% underweight the GCC, and just 9.2% of managers hold more than the benchmark.</li>
</ul>


Broader ownership, lower exposure: Three-quarters of active GEM funds hold at least one GCC stock, close to a record, but average exposure has fallen to 2.12%.
Saudi gains as the UAE retreats: Recent fund rotation has favoured Saudi Arabia, while UAE banks and property stocks account for many of the largest reductions.
Still underweight: Despite rising participation, the average fund remains 2.55% underweight the GCC, and just 9.2% of managers hold more than the benchmark.


<ul>
<li>MENA underweights narrow to five-year lows, but nearly a quarter of EM funds remain uninvested.</li>
<li>Saudi and UAE dominate flows, with Emaar and Al Rajhi emerging as regional anchor holdings.</li>
<li>Ownership is broadening, yet conviction remains concentrated, leaving structural upside in positioning.</li>
</ul>


MENA underweights narrow to five-year lows, but nearly a quarter of EM funds remain uninvested.
Saudi and UAE dominate flows, with Emaar and Al Rajhi emerging as regional anchor holdings.
Ownership is broadening, yet conviction remains concentrated, leaving structural upside in positioning.


MENA’s Next Phase: Structural Adoption and the Rise of Regional Anchors

<ul>
<li>MENA remains a structural underweight, absent in nearly 25% of EM funds, though participation has climbed to a decade high with 75.9% of EM funds now holding positions.</li>
<li>UAE has overtaken Saudi as the largest allocation, supported by inflows into Real Estate and Financials; Saudi remains underweight, while Qatar and Kuwait attract little investor interest.</li>
<li>Emaar, Al Rajhi, Aldar, and Saudi National Bank anchor MENA exposure, with second-tier growth from ADCB, Emirates NBD, and UAE Energy sectors.</li>
</ul>


MENA remains a structural underweight, absent in nearly 25% of EM funds, though participation has climbed to a decade high with 75.9% of EM funds now holding positions.
UAE has overtaken Saudi as the largest allocation, supported by inflows into Real Estate and Financials; Saudi remains underweight, while Qatar and Kuwait attract little investor interest.
Emaar, Al Rajhi, Aldar, and Saudi National Bank anchor MENA exposure, with second-tier growth from ADCB, Emirates NBD, and UAE Energy sectors.


MENA: From Structural Underweight to Selective Rebuild

<ul>
<li>Exposure levels and ownership reaches record highs for active GEM funds in GCC countries, yet 30% of funds remain without exposure.</li>
<li>Saudi Arabia and the United Arab Emirates dominate the ownership picture, with both at record high investment levels, driven by the Financials and Real Estate sectors</li>
<li>Al Rajhi Bank is the most widely held stock, with a top tier including Emaar Properties and Aldar Properties surging to record levels of investment in 2024.</li>
</ul>


Exposure levels and ownership reaches record highs for active GEM funds in GCC countries, yet 30% of funds remain without exposure.
Saudi Arabia and the United Arab Emirates dominate the ownership picture, with both at record high investment levels, driven by the Financials and Real Estate sectors
Al Rajhi Bank is the most widely held stock, with a top tier including Emaar Properties and Aldar Properties surging to record levels of investment in 2024.


EM Fund Positioning: GCC a Key Focus for EM Investors in 2025

<ul>
<li>EMEA Momentum: EMEA is experiencing positive momentum across multiple countries, with record investments in the MENA region, strong momentum in Greece, Turkey reversing long-term declines, and Poland nearing new ownership highs.</li>
<li>Asian Stall: Significant underweight in India suggests caution among investors, China weights remain depressed, Indonesia maintains a strong consensus overweight.  Select ASEAN nations show signs of potential comeback.</li>
<li>LATAM Overweights: Investor sentiment in LATAM remains bullish, with Brazil and Mexico seeing most funds positioned overweight. Argentina hits new highs in fund ownership driven by strong conviction in MercadoLibre.</li>
</ul>


EMEA Momentum: EMEA is experiencing positive momentum across multiple countries, with record investments in the MENA region, strong momentum in Greece, Turkey reversing long-term declines, and Poland nearing new ownership highs.
Asian Stall: Significant underweight in India suggests caution among investors, China weights remain depressed, Indonesia maintains a strong consensus overweight.  Select ASEAN nations show signs of potential comeback.
LATAM Overweights: Investor sentiment in LATAM remains bullish, with Brazil and Mexico seeing most funds positioned overweight. Argentina hits new highs in fund ownership driven by strong conviction in MercadoLibre.


Active GEM Funds: Top-Down Country Positioning Latest

Saudi Arabia

Al Rajhi Bank provides banking services. The Bank offers services such as credit cards, insurance, car finance, loans, online and phone banking, and current accounts. Al Rajhi Bank serves customers in Saudi Arabia.

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Al Rajhi Bank (RJHI AB)

GCC Positioning: Rotation, Not Retreat

Three-quarters of GEM funds own GCC stocks, yet average exposure is near a five-year low. Our latest report finds managers rotating towards Saudi...

Steven Holden

MENA’s Next Phase: Structural Adoption and the Rise of Regional Anchors

Active EM managers are increasing exposure to MENA, yet the region remains structurally underallocated. Clear regional anchors are emerging as...

Steven Holden

MENA: From Structural Underweight to Selective Rebuild

MENA stays structurally underweight but participation is rising, led by UAE and Saudi. Real Estate and Financials drive inflows, with Emaar, Al...

Steven Holden

EM Fund Positioning: GCC a Key Focus for EM Investors in 2025

Record high exposure and ownership levels for active GEM funds in GCC countries, led by Saudi Arabia and the UAE. The region promises to be a key...

Steven Holden

Active GEM Funds: Top-Down Country Positioning Latest

In this Top-Down Country report, we analyse regional and country allocations among the 355 equity funds in our analysis. Highlights from the report:

Steven Holden

Price Gauge

52-week Range

Market Cap (USDm)

P/E

Dividend (Yield)

GCC Positioning: Rotation, Not Retreat

Three-quarters of GEM funds own GCC stocks, yet average exposure is near a five-year low. Our latest report finds managers rotating towards Saudi...

Steven Holden

MENA’s Next Phase: Structural Adoption and the Rise of Regional Anchors

Active EM managers are increasing exposure to MENA, yet the region remains structurally underallocated. Clear regional anchors are emerging as...

Steven Holden

MENA: From Structural Underweight to Selective Rebuild

MENA stays structurally underweight but participation is rising, led by UAE and Saudi. Real Estate and Financials drive inflows, with Emaar, Al...

Steven Holden

EM Fund Positioning: GCC a Key Focus for EM Investors in 2025

​Record high exposure and ownership levels for active GEM funds in GCC countries, led by Saudi Arabia and the UAE. The region promises to be a key...

Steven Holden

Active GEM Funds: Top-Down Country Positioning Latest

In this Top-Down Country report, we analyse regional and country allocations among the 355 equity funds in our analysis. Highlights from the report:

Steven Holden

Record high exposure and ownership levels for active GEM funds in GCC countries, led by Saudi Arabia and the UAE. The region promises to be a key...