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>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

External broker reports(aggregated public sources), International Securities

International Securities

External broker reports(aggregated public sources)

International Securities’ equity research analysis and advisory have been a vital source of market intelligence for our distinguished clients over the years. The equity research team’s main objective is to cover listed equities and to provide thoughtful, insightful, differentiated and timely research that can help clients make informed decisions. Content available is external broker reports authored by a third party outside the Smartkarma network and has been aggregated by an online aggregator through publicly available sources and is displayed by Smartkarma in this format for user's convenience and general informational purposes only. Content does not constitute investment or financial advice and Smartkarma makes no representation or warranty regarding its accuracy or contents. Original third party author retains all copyright and other proprietary rights in the content. Access or use of third party links not controlled by Smartkarma are at the user's own risk.

Thematic (Sector/Industry)

<ul><li>MSCI UAE standard index expected to see an overall inflow of USD303.2mn.</li><li>Emar Development added to the MSCI UAE standard index taking the total number of UAE constituents to 13 in EM standard index </li><li>All existing Standard Index constituents are expected to witness slight inflows in proportion of their weight in the Index. </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.

MSCI UAE standard index expected to see an overall inflow of USD303.2mn.Emar Development added to the MSCI UAE standard index taking the total number of UAE constituents to 13 in EM standard index All existing Standard Index constituents are expected to witness slight inflows in proportion of their weight in the Index. 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.

<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

Index Rebalance

<ul>
<li>We expect Salik and EmaarDev to be added into M. UAE Standard Index in Feb -25 review; DEWA is a price contingent candidate for M. inclusion.</li>
<li>NMDCENR and ADNH are expected to be added in M. UAE small cap index</li>
<li>We share our preview for M. Feb-25 index review. M. review is scheduled on 11 February 2025 with effective date of 3 March 2025.</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.


We expect Salik and EmaarDev to be added into M. UAE Standard Index in Feb -25 review; DEWA is a price contingent candidate for M. inclusion.
NMDCENR and ADNH are expected to be added in M. UAE small cap index
We share our preview for M. Feb-25 index review. M. review is scheduled on 11 February 2025 with effective date of 3 March 2025.

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.

<ul>
<li>Real Estate exposure among active Emerging Market funds is rebounding after a decade-long bear market from 2012-2022.</li>
<li>Average weights are at their highest levels in 10 years. Despite this recovery, Real Estate remains a "non-essential" sector, with 23% of funds avoiding exposure entirely.</li>
<li>Country-Level trends highlight a rotation from China into the U.A.E, driven by record-high fund ownership in names like <a href="https://www.smartkarma.com/entities/emaar-properties-pjsc-004c637d-b17a-4c9b-849b-0c89d3b1f6b4" target="_blank" data-smartkarma-citation="entities:25955:1" rel="noopener">Emaar Properties Pjsc (EMAAR UH)</a> and <a href="https://www.smartkarma.com/entities/aldar-properties-pjsc" target="_blank" data-smartkarma-citation="entities:27654:1" rel="noopener">Aldar Properties PJSC (ALDAR UH)</a>
</li>
</ul>


Real Estate exposure among active Emerging Market funds is rebounding after a decade-long bear market from 2012-2022.
Average weights are at their highest levels in 10 years. Despite this recovery, Real Estate remains a "non-essential" sector, with 23% of funds avoiding exposure entirely.
Country-Level trends highlight a rotation from China into the U.A.E, driven by record-high fund ownership in names like Emaar Properties Pjsc (EMAAR UH) and Aldar Properties PJSC (ALDAR UH)



Real Estate:  Recovery Among Active GEM Funds

United Arab Emirates

Emaar Properties PJSC operates as a real estate development company. The Company is involved in property investment, development, shopping malls, retail centers, hospitality, and property management services.  Emaar Properties has business throughout the Middle East, and is headquartered out of Dubai, United Arab Emirates.

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Emaar Properties Pjsc (EMAAR UH)

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

MSCI EM Feb-2025 Index Review

Emar Development added to the MSCI UAE standard index taking the total number of UAE constituents to 13 in EM standard index

International Securities

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

M. EM Feb-2025 Index Preview

We expect Salik and EmaarDev to be added into M. UAE Standard Index in Feb -25 review; DEWA is a price contingent candidate for M. inclusion.

International Securities

Real Estate: Recovery Among Active GEM Funds

Real Estate exposure among active Emerging Market funds is rebounding after a decade-long bear market from 2012-2022, with the U.A.E leading the...

Steven Holden

Price Gauge

52-week Range

Market Cap (USDm)

P/E

Dividend (Yield)

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

MSCI EM Feb-2025 Index Review

Emar Development added to the MSCI UAE standard index taking the total number of UAE constituents to 13 in EM standard index

International Securities

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

M. EM Feb-2025 Index Preview

We expect Salik and EmaarDev to be added into M. UAE Standard Index in Feb -25 review; DEWA is a price contingent candidate for M. inclusion.

International Securities

Real Estate: Recovery Among Active GEM Funds

Real Estate exposure among active Emerging Market funds is rebounding after a decade-long bear market from 2012-2022, with the U.A.E leading the...

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...