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>Rotation is underway in the EM Financial sector, with selling in Brazil Financials funding rotation in to Greece, UAE and Argentinian financials.</li>
<li>Brazil Financials remain an overweight for the majority of EM funds, but conviction is falling, with selling in key names Banco Bradesco and Banco BTG Pactual.</li>
<li>Itau Unibanco Holding remains the flagship holding, owned by 43.7% of funds, though remains well below its 2010 ownership peak.</li>
</ul>


Rotation is underway in the EM Financial sector, with selling in Brazil Financials funding rotation in to Greece, UAE and Argentinian financials.
Brazil Financials remain an overweight for the majority of EM funds, but conviction is falling, with selling in key names Banco Bradesco and Banco BTG Pactual.
Itau Unibanco Holding remains the flagship holding, owned by 43.7% of funds, though remains well below its 2010 ownership peak.


Brazil Financials: Losing Ground Amid Global Financials Rotation

Global Healthcare Analyst

Tina Banerjee

Equity Capital Markets

National Stock Exchange of India / Equity Capital Markets

National Stock Exchange of India (NSE IN)

<ul>
<li>National Stock Exchange is launching India IPO to raise nearly INR 12.6B. They operate a vertically integrated stock exchange offering integrated platform for trading, clearing, listing, and other services.</li>
<li>In Q1FY27, NSE revenue increased by 9.5% to INR 52.5B, driven by increase in transaction charges. Net profit rose 11% to INR 31.2B with net margin down 150bps to 59.4%.</li>
<li>Though, the valuation seems slightly pricey, the intrinsic growth opportunity that comes from the breadth of their offerings, operational scale and profitability, makes this offering a good long-term bet.</li>
</ul>


National Stock Exchange is launching India IPO to raise nearly INR 12.6B. They operate a vertically integrated stock exchange offering integrated platform for trading, clearing, listing, and other services.
In Q1FY27, NSE revenue increased by 9.5% to INR 52.5B, driven by increase in transaction charges. Net profit rose 11% to INR 31.2B with net margin down 150bps to 59.4%.
Though, the valuation seems slightly pricey, the intrinsic growth opportunity that comes from the breadth of their offerings, operational scale and profitability, makes this offering a good long-term bet.


National Stock Exchange IPO: Option To Cash Me If You Can, On The Bourses

<ul>
<li>Banorte, Wal-Mart de Mexico and B3 SA suffer closures from active Emerging Market funds.</li>
<li>All three suffer some of the larger declines in fund positioning across the LATAM region over the last 6-months.</li>
<li>Despite these closures, Banorte, Wal-Mart de Mexico and B3 SA remain among the top 15 most widely owned stocks in LATAM.</li>
</ul>


Banorte, Wal-Mart de Mexico and B3 SA suffer closures from active Emerging Market funds.
All three suffer some of the larger declines in fund positioning across the LATAM region over the last 6-months.
Despite these closures, Banorte, Wal-Mart de Mexico and B3 SA remain among the top 15 most widely owned stocks in LATAM.


LATAM Reversal: Banorte, Wal-Mart and B3 SA.

<ul>
<li>LATAM allocations hit 10-year highs in active Global equity funds.</li>
<li>Notable increases in allocations include Ninety One Global Value (up 7.5%) and Ranmore Global Equity (up 6.7%), with smaller contributions from Lazard, Delaware, and JOHCM</li>
<li>MercadoLibre is the driving force behind the moves higher, and remains the conviction holding in the region.</li>
</ul>


LATAM allocations hit 10-year highs in active Global equity funds.
Notable increases in allocations include Ninety One Global Value (up 7.5%) and Ranmore Global Equity (up 6.7%), with smaller contributions from Lazard, Delaware, and JOHCM
MercadoLibre is the driving force behind the moves higher, and remains the conviction holding in the region.


LATAM Momentum:  Global Funds Raise Exposure

Financials & FinTech research, Galliano’s Financials Research

Victor Galliano

Financials & FinTech research

Financials & FinTech, EM & Developed Markets

Galliano’s Financials Research

Galliano's Financials Research provides fundamental research in Emerging Markets financials, including FinTech, as well as financials in select Developed Markets.

The investment style applied is generally value oriented, although Growth At Reasonable Price (GARP) strategies can also be used where appropriate. 

Our investment research approach aim is often contrarian, looking to capitalise on overly sceptical or optimistic consensus views. In terms of valuation techniques, the focus is on PBV ratio to ROE, PE multiples and dividend yield, as well as the application of PEG ratios and, where appropriate, Sum of the Parts (SOTP) valuations.

Thematic (Sector/Industry)

<ul>
<li>Exchanges, especially in developed markets, continue to seek revenue streams outside of the traditional trading and transaction-based fees which has led to a mini-boom in exchange-driven M&amp;A targeting diversification</li>
<li>We use data and IT revenues as a proxy for “stickier” potentially recurring revenues in four DM and three EM exchanges, concluding that DM exchanges are under more diversification pressure</li>
<li>We identify three buy opportunities in exchanges; we like Hong Kong Exchange, Deutsche Borse and we add Nasdaq, whilst we are negative on Coinbase which remains the exchange to avoid</li>
</ul>


Exchanges, especially in developed markets, continue to seek revenue streams outside of the traditional trading and transaction-based fees which has led to a mini-boom in exchange-driven M&amp;A targeting diversification
We use data and IT revenues as a proxy for “stickier” potentially recurring revenues in four DM and three EM exchanges, concluding that DM exchanges are under more diversification pressure
We identify three buy opportunities in exchanges; we like Hong Kong Exchange, Deutsche Borse and we add Nasdaq, whilst we are negative on Coinbase which remains the exchange to avoid


Global Exchanges – Pace of Revenue Diversification Differs Between DM and EM Exchanges

Brazil

B3 S.A. – Brasil, Bolsa, Balcão is a prominent financial market infrastructure company that provides trading services in an exchange and over-the-counter (OTC) environment. It organizes markets for securities, commodities, and futures, and offers post-trade services including settlement, clearing, deposit, and registration. The company also provides technological solutions and data analytics services. B3 is headquartered in São Paulo, Brazil, and was founded on August 23, 1890.

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B3 (B3SA3 BR)

Brazil Financials: Losing Ground Amid Global Financials Rotation

Rotation in EM financial sector sees selling in Brazil funding rotation into Greece, UAE, and Argentina financials, with Itau Unibanco Holding as...

Steven Holden

National Stock Exchange IPO: Option To Cash Me If You Can, On The Bourses

National Stock Exchange is launching India IPO to raise nearly INR 12.6B. Though, the valuation seems slightly pricey, the intrinsic growth...

Tina Banerjee

LATAM Reversal: Banorte, Wal-Mart and B3 SA.

Banorte, Wal-Mart de Mexico and B3 SA suffer closures from active Emerging Market funds as strong positioning momentum finally reverses.

Steven Holden

LATAM Momentum: Global Funds Raise Exposure

LATAM allocations hit 10-year highs in active Global equity funds. . MercadoLibre the driving force behind the moves higher, and remains the...

Steven Holden

Global Exchanges – Pace of Revenue Diversification Differs Between DM and EM Exchanges

We select, as our buys, Nasdaq for its focused diversification strategy, Deutsche Boerse for its relative value versus peers and HKEX for its GARP...

Victor Galliano

Price Gauge

52-week Range

Market Cap (USDm)

P/E

Dividend (Yield)

Brazil Financials: Losing Ground Amid Global Financials Rotation

​Rotation in EM financial sector sees selling in Brazil funding rotation into Greece, UAE, and Argentina financials, with Itau Unibanco Holding as...

Steven Holden

National Stock Exchange IPO: Option To Cash Me If You Can, On The Bourses

National Stock Exchange is launching India IPO to raise nearly INR 12.6B. Though, the valuation seems slightly pricey, the intrinsic growth...

Tina Banerjee

LATAM Reversal: Banorte, Wal-Mart and B3 SA.

Banorte, Wal-Mart de Mexico and B3 SA suffer closures from active Emerging Market funds as strong positioning momentum finally reverses.

Steven Holden

LATAM Momentum: Global Funds Raise Exposure

LATAM allocations hit 10-year highs in active Global equity funds. . MercadoLibre the driving force behind the moves higher, and remains the...

Steven Holden

Global Exchanges – Pace of Revenue Diversification Differs Between DM and EM Exchanges

We select, as our buys, Nasdaq for its focused diversification strategy, Deutsche Boerse for its relative value versus peers and HKEX for its GARP...

Victor Galliano

Rotation in EM financial sector sees selling in Brazil funding rotation into Greece, UAE, and Argentina financials, with Itau Unibanco Holding as...