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.


Derivatives and Quantitative Strategist

Gaudenz Schneider

Equity Derivatives

<ul>
<li>
Be inspired by sophisticated, live, multi-leg options strategies on <a href="https://www.smartkarma.com/entities/ping-an-insurance-grp-co-of-china-ltd" target="_blank" data-smartkarma-citation="entities:12880:1" rel="noopener">Ping An Insurance (2318 HK)</a>, executed over the period from 6 to 12 June on the Hong Kong exchange.</li>
<li>
Highlights: Many strategies creatively utilize weekly expiries, sometimes employing options with as little as one or two days to maturity to generate upfront yield or financing.</li>
<li>
Why read: Detailed examples and break-down of complex option strategies provide actionable insights that could inspire similar strategies,</li>
</ul>



Be inspired by sophisticated, live, multi-leg options strategies on Ping An Insurance (2318 HK), executed over the period from 6 to 12 June on the Hong Kong exchange.

Highlights: Many strategies creatively utilize weekly expiries, sometimes employing options with as little as one or two days to maturity to generate upfront yield or financing.

Why read: Detailed examples and break-down of complex option strategies provide actionable insights that could inspire similar strategies,


Ping An (2318 HK): Strategic Insights and Top Option Trades

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

<ul><li>China Life reported mixed 1Q26 results, with net profit down 32.3% YoY to RMB19.5bn, below our estimate of RMB20.4bn, mainly due to fair value losses from TPL equities amid equity market turbulence.</li><li>Net asset value modestly grew 0.5% from year-start to RMB598.3bn, supported by higher retained earnings.</li><li>NBV surged 75.5% YoY in 1Q26, significantly beating market and our estimates, reflecting continued progress in shifting underwriting toward longer-duration and regular-paid products. </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.

China Life reported mixed 1Q26 results, with net profit down 32.3% YoY to RMB19.5bn, below our estimate of RMB20.4bn, mainly due to fair value losses from TPL equities amid equity market turbulence.Net asset value modestly grew 0.5% from year-start to RMB598.3bn, supported by higher retained earnings.NBV surged 75.5% YoY in 1Q26, significantly beating market and our estimates, reflecting continued progress in shifting underwriting toward longer-duration and regular-paid products. 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.

China Life (2628 HK) - NBV Surge a Strong Beat, Outweighing 1Q Net Profit Dip

Thematic (Sector/Industry)

<ul><li>The NFRA reported 2Q26 insurance fund investments.</li><li>Total insurance funds topped RMB40.8tn, up 3.5% QoQ/12.7% YoY, sustaining a streak of double-digit rise for 12 consecutive quarters, at a pace in line with the growth of the industry’s total assets (+11.8% YoY).</li><li>The industry’s total assets/net assets grew 6.2%/11.1% from yearstart or 3.3%/7.7% QoQ, with the net asset growth staying more robust mainly driven by the uptrend in fair value of bonds and equities in our view, i.e. China’s 10yr govt. bond yield was down 8.1bps in 2Q26 (vs -3.9bps in 1Q26) with the CSI 300 index up 12% in 2Q26 (vs. -3.9% in 1Q26). </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.

The NFRA reported 2Q26 insurance fund investments.Total insurance funds topped RMB40.8tn, up 3.5% QoQ/12.7% YoY, sustaining a streak of double-digit rise for 12 consecutive quarters, at a pace in line with the growth of the industry’s total assets (+11.8% YoY).The industry’s total assets/net assets grew 6.2%/11.1% from yearstart or 3.3%/7.7% QoQ, with the net asset growth staying more robust mainly driven by the uptrend in fair value of bonds and equities in our view, i.e. China’s 10yr govt. bond yield was down 8.1bps in 2Q26 (vs -3.9bps in 1Q26) with the CSI 300 index up 12% in 2Q26 (vs. -3.9% in 1Q26). 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.

China Insurance - 2Q26 Insurance Funds: Total Scale Hit RMB40tn...

<ul><li>China Life reported a strong set of 3Q earnings, with 3Q25 net profit almost doubled on top of a high base in 3Q24 to RMB 126.9bn, marking a rise of 92% YoY and lifting the 9M25 result up by 61% YoY to RMB 167.8bn, close to the mid-point of profit alert.</li><li>The surge outpaced listed peers and was propelled by both insurance service results (benefiting from a rising yield, i.e. CNGB10YR up 22.7bps in 3Q25) and investment results (thanks to the strong rally in A/H shares, i.e. CSI 300/HSI +18%/+16%).</li><li>We mentioned in our last note that the dip in 2Q caused by increasing losses on onerous contracts which adversely impacted insurance service expense (ISE) is likely to be short-term, and in 3Q, as we see spot interest rate rebound, the insurer’s ISE largely dropped by 79% YoY to RMB 7.5bn (vs. 3Q24: RMB 36.2bn), accelerating the growth of insurance service results by 2.1x YoY to RMB 47bn, a quarterly high. </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.

China Life reported a strong set of 3Q earnings, with 3Q25 net profit almost doubled on top of a high base in 3Q24 to RMB 126.9bn, marking a rise of 92% YoY and lifting the 9M25 result up by 61% YoY to RMB 167.8bn, close to the mid-point of profit alert.The surge outpaced listed peers and was propelled by both insurance service results (benefiting from a rising yield, i.e. CNGB10YR up 22.7bps in 3Q25) and investment results (thanks to the strong rally in A/H shares, i.e. CSI 300/HSI +18%/+16%).We mentioned in our last note that the dip in 2Q caused by increasing losses on onerous contracts which adversely impacted insurance service expense (ISE) is likely to be short-term, and in 3Q, as we see spot interest rate rebound, the insurer’s ISE largely dropped by 79% YoY to RMB 7.5bn (vs. 3Q24: RMB 36.2bn), accelerating the growth of insurance service results by 2.1x YoY to RMB 47bn, a quarterly high. 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.

China Life (2628 HK) - 3Q Net Earnings Almost Doubled on a High Base

China

China Life Insurance Company Ltd. offers a wide range of life, accident, and health insurance products and services.

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China Life Insurance (601628 CH)

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

Ping An (2318 HK): Strategic Insights and Top Option Trades

Noteworthy options strategies executed on the Hong Kong exchange, utilizing weekly expiries and short-term options for upfront yield or financing....

Gaudenz Schneider

China Life (2628 HK) - NBV Surge a Strong Beat, Outweighing 1Q Net Profit Dip

NBV surged 75.5% YoY in 1Q26, significantly beating market and our estimates, reflecting continued progress in shifting underwriting toward longer...

CMB International

China Insurance - 2Q26 Insurance Funds: Total Scale Hit RMB40tn...

Total insurance funds topped RMB40.8tn, up 3.5% QoQ/12.7% YoY, sustaining a streak of double-digit rise for 12 consecutive quarters...

CMB International

China Life (2628 HK) - 3Q Net Earnings Almost Doubled on a High Base

China Life reported a strong set of 3Q earnings, with 3Q25 net profit almost doubled on top of a high base in 3Q24 to RMB 126.9bn, marking a rise...

CMB International

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