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>Allocations in China &amp; HK Banks are at depressed levels. The percentage of funds with exposure has fallen from a high of 78% in 2011 to just 58.2% today.</li>
<li>More funds have exposure to Mexico, Brazil and Indonesian Banks.  Versus benchmark, China Banks are the 2nd largest Bank country underweight.</li>
<li>For the major stocks in the sector, we see a picture of low positioning and declining sentiment.  </li>
</ul>


Allocations in China &amp; HK Banks are at depressed levels. The percentage of funds with exposure has fallen from a high of 78% in 2011 to just 58.2% today.
More funds have exposure to Mexico, Brazil and Indonesian Banks.  Versus benchmark, China Banks are the 2nd largest Bank country underweight.
For the major stocks in the sector, we see a picture of low positioning and declining sentiment.  


Pan-Asia Tactical Market Calls (Quant-Driven), MRM Research

Nico Rosti

Pan-Asia Tactical Market Calls (Quant-Driven)

MRM Research

Quantitative Research

Equity Derivatives

<ul>
<li>We present a WEEKLY tactical global macro recap/analysis for several markets and stocks we track, grouped by sector.</li>
<li>We apply our quantitative models to each instrument's trend, to determine which stocks/markets are just starting a trend, are in the middle of it, or are about to end it.</li>
<li>
<a href="https://www.smartkarma.com/entities/amazon-com-inc" target="_blank" data-smartkarma-citation="entities:409:1" rel="noopener">Amazon</a>,  <a href="https://www.smartkarma.com/entities/spdr-gold-shares" target="_blank" data-smartkarma-citation="entities:8632:1" rel="noopener">GLD</a> and <a href="https://www.smartkarma.com/entities/s-p-asx-200" target="_blank" data-smartkarma-citation="entities:22901:1" rel="noopener">ASX 200</a> are quite overbought. <a href="https://www.smartkarma.com/entities/samsung-electronics-co-ltd" target="_blank" data-smartkarma-citation="entities:191:1" rel="noopener">Samsung Electronics</a> , <a href="https://www.smartkarma.com/entities/bank-of-china-limited-class-h" target="_blank" data-smartkarma-citation="entities:656:1" rel="noopener">Bank of China (3988 HK)</a> and <a href="https://www.smartkarma.com/entities/united-states-oil-fund-lp" target="_blank" data-smartkarma-citation="entities:174:1" rel="noopener">United States Oil Fund LP (USO US)</a> are oversold.</li>
</ul>


We present a WEEKLY tactical global macro recap/analysis for several markets and stocks we track, grouped by sector.
We apply our quantitative models to each instrument's trend, to determine which stocks/markets are just starting a trend, are in the middle of it, or are about to end it.

Amazon,  GLD and ASX 200 are quite overbought. Samsung Electronics , Bank of China (3988 HK) and United States Oil Fund LP (USO US) are oversold.


WEEKLY Tactical Recap: SK Hynix, CATL, Samsung Electronics, Nikkei 225, GLD, TSLA, Etc.

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.

Quantitative Analysis

<ul>
<li>We analyzed the latest HK SFC report for aggregate short position as of Jul 31st.</li>
<li>Top short increases and decreases were tabulated for one week and four week period.</li>
<li>We highlight short changes in CCB, Tencent, Alibaba, China Mobile, Yofc, Smic, Zijin Gold Intl.</li>
</ul>


We analyzed the latest HK SFC report for aggregate short position as of Jul 31st.
Top short increases and decreases were tabulated for one week and four week period.
We highlight short changes in CCB, Tencent, Alibaba, China Mobile, Yofc, Smic, Zijin Gold Intl.


HK Short Interest Weekly: CCB, Tencent, Alibaba, China Mobile, Yofc, Smic, Zijin Gold Intl

Founder of Antler Capital

Stanley Tsai, CFA

Thematic (Sector/Industry)

<ul>
<li>We welcome the regulators' formalization of financial asset classifications. This will gradually remove regulatory arbitrage and pave the way for further bank reintermediation.</li>
<li>The new rules will likely have limited impacts on bond holdings that have active secondary markets, but illiquid debt investment plans will come under more intense regulatory and auditor scrutiny.</li>
<li>We see an impact of 10-15bp on the listed banks' reported NPL ratios. That said, a handful of banks may be at risk of capital shortages if the environment worsens. </li>
</ul>


We welcome the regulators' formalization of financial asset classifications. This will gradually remove regulatory arbitrage and pave the way for further bank reintermediation.
The new rules will likely have limited impacts on bond holdings that have active secondary markets, but illiquid debt investment plans will come under more intense regulatory and auditor scrutiny.
We see an impact of 10-15bp on the listed banks' reported NPL ratios. That said, a handful of banks may be at risk of capital shortages if the environment worsens. 


Chinese Banks: New Asset Classification Rules | You Can Run but You Can't Hide

<ul>
<li>The Jan. PMI readings corroborate what investors had already known over the break. But it is noteworthy that SMEs appear much less upbeat than large corporations.  </li>
<li>SMEs account for 60% of GDP and an even higher proportion of job creation. Policy support has been keeping many of them afloat throughout the pandemic. </li>
<li>As the deadline on the PBOC's SME support program is fast approaching, small regional banks may bear the brunt of the impact on the financial system.</li>
</ul>


The Jan. PMI readings corroborate what investors had already known over the break. But it is noteworthy that SMEs appear much less upbeat than large corporations.  
SMEs account for 60% of GDP and an even higher proportion of job creation. Policy support has been keeping many of them afloat throughout the pandemic. 
As the deadline on the PBOC's SME support program is fast approaching, small regional banks may bear the brunt of the impact on the financial system.


China's Micro Loan Market: Key Takeaways from the Jan PMI

China

Bank of China Limited provides banking services. The Company offers deposits, loans, foreign currency transaction, fund settlement, and other services. Bank of China provides its services to individuals, enterprises, and other clients.

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Bank of China (601988 CH)

China & HK Banks: Optimism Fading

EM Funds show declining appetite for China & HK Banks exposure as positioning slumps to all-time lows. Mexico, India and Indonesia remain favoured...

Steven Holden

WEEKLY Tactical Recap: SK Hynix, CATL, Samsung Electronics, Nikkei 225, GLD, TSLA, Etc.

Weekly Global Macro Tactical Recap: our models tracks trends across asset classes to highlight overbought/oversold market conditions.

Nico Rosti

HK Short Interest Weekly: CCB, Tencent, Alibaba, China Mobile, Yofc, Smic, Zijin Gold Intl

We analyzed the latest HK SFC report for aggregate short position as of Jul 31st and highlight short interest changes in CCB, Tencent, Alibaba,...

Ke Yan, CFA, FRM

Chinese Banks: New Asset Classification Rules | You Can Run but You Can't Hide

New asset classification rules have officially been announced. We see this as a long-term positive for the sector as regulators continue to bring...

Stanley Tsai, CFA

China's Micro Loan Market: Key Takeaways from the Jan PMI

For the most part, the Jan PMI gauges were in line with investor expectations, although the more pessimistic SME sector may be a cause for concern...

Stanley Tsai, CFA

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52-week Range

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