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

Quantitative Analysis

<div><p>In this report, we screen for the largest overweight Country/Sectors across Global EM by analysing the allocations of long-only active Emerging Market funds.</p></div><div>
<p>In part 3 of the series, we focus on the Taiwan Information Technology sector:</p>
<ul>
<li>Taiwan Tech allocations are at their peak, both in terms of absolute fund weights, relative weights, investment breadth and AUM.</li>
<li>The largest overweight stock position is <a href="https://www.smartkarma.com/entities/taiwan-semiconductor-manufacturing-company" target="_blank" data-smartkarma-citation="entities:11230:1" rel="noopener">TSMC (2330 TT)</a> , with an average weight of 6.1%, representing a 0.21% overweight vs benchmark.</li>
<li>The largest underweights are <a href="https://www.smartkarma.com/entities/hon-hai-precision-industry-co-ltd" target="_blank" data-smartkarma-citation="entities:745:1" rel="noopener">Hon Hai Precision Industry (2317 TT) </a> and <a href="https://www.smartkarma.com/entities/yageo-corporation" target="_blank" data-smartkarma-citation="entities:13212:1" rel="noopener">Yageo Corporation (2327 TT)</a>
</li>
<li>Profit taking evident in H2 among some managers as Taiwan Tech contributes to outperformance among active managers in 2020.</li>
<li>Foundation of Taiwan Tech investment appears strong, with both Value, Growth and Income funds well exposed.</li>
</ul>
</div><div><p><em>Our Emerging Market fund universe consists of 242 Global Emerging Market active long-only funds, with combined AUM of $450bn.</em></p></div>

In this report, we screen for the largest overweight Country/Sectors across Global EM by analysing the allocations of long-only active Emerging Market funds.
In part 3 of the series, we focus on the Taiwan Information Technology sector:

Taiwan Tech allocations are at their peak, both in terms of absolute fund weights, relative weights, investment breadth and AUM.
The largest overweight stock position is TSMC (2330 TT) , with an average weight of 6.1%, representing a 0.21% overweight vs benchmark.
The largest underweights are Hon Hai Precision Industry (2317 TT)  and Yageo Corporation (2327 TT)

Profit taking evident in H2 among some managers as Taiwan Tech contributes to outperformance among active managers in 2020.
Foundation of Taiwan Tech investment appears strong, with both Value, Growth and Income funds well exposed.

Our Emerging Market fund universe consists of 242 Global Emerging Market active long-only funds, with combined AUM of $450bn.

Emerging Market Overweights Series.  Part 3:  Taiwan Tech

<div><p>In this report, we screen for the largest overweight Country/Sectors across Global EM by analysing the allocations of long-only active Emerging Market funds.</p></div><div>
<div><p>In part two of the series, we focus on the Argentinian Consumer Discretionary sector.  We look at current allocations and how they have spiked over the last 12-months, the managers who have been ramping up allocations and how <a href="https://www.smartkarma.com/entities/mercadolibre-inc" target="_blank" data-smartkarma-citation="entities:27954:1" rel="noopener">MercadoLibre Inc (MELI US)</a> has become a dominant out-of-benchmark holding for EM active investors.</p></div>
<div><p><em>Our Emerging Market fund universe consists of 242 Global Emerging Market active long-only funds, with combined AUM of $450bn.</em></p></div>
</div>

In this report, we screen for the largest overweight Country/Sectors across Global EM by analysing the allocations of long-only active Emerging Market funds.
In part two of the series, we focus on the Argentinian Consumer Discretionary sector.  We look at current allocations and how they have spiked over the last 12-months, the managers who have been ramping up allocations and how MercadoLibre Inc (MELI US) has become a dominant out-of-benchmark holding for EM active investors.
Our Emerging Market fund universe consists of 242 Global Emerging Market active long-only funds, with combined AUM of $450bn.


Emerging Market Overweights Series.  Part 2:  Argentinian Consumer Discretionary

<p>In this report, we screen for the largest overweight Country/Sectors across Global EM by analysing the allocations of long-only active Emerging Market funds.</p><p>In part one of the series, we focus on Indian Financials.  We look at where current allocations sit versus history, drill down to find the most widely held stocks in the sector, the key overweight and the key underweight holdings. </p><p>We find that despite it being the largest overweight holding, Indian Financials exposure is far from excessive, both versus its own history and versus peers.  Furthermore, recent activity points to an increase in exposure among managers.</p><p><em>Our Emerging Market fund universe consists of 242 Global Emerging Market active long-only funds, with combined AUM of $450bn. </em></p>

In this report, we screen for the largest overweight Country/Sectors across Global EM by analysing the allocations of long-only active Emerging Market funds.In part one of the series, we focus on Indian Financials.  We look at where current allocations sit versus history, drill down to find the most widely held stocks in the sector, the key overweight and the key underweight holdings. We find that despite it being the largest overweight holding, Indian Financials exposure is far from excessive, both versus its own history and versus peers.  Furthermore, recent activity points to an increase in exposure among managers.Our Emerging Market fund universe consists of 242 Global Emerging Market active long-only funds, with combined AUM of $450bn. 

Emerging Market Overweights Series.  Part 1:  Indian Financials

Equity Bottom-Up

<ul>
<li>EM fund ownership in POSCO sits towards the lower end of the 12-year range.  Having suffered something of a 2-year ownership bear market from mid 2018 onwards, activity started to reverse from May of this year.</li>
<li>Previous investors are buying back in to POSCO, though ownership levels remain well off the previous highs.</li>
<li>As the fundamentals start to match up for a growing number of managers, rising ownership has the ability to drive prices higher from here</li>
</ul>


EM fund ownership in POSCO sits towards the lower end of the 12-year range.  Having suffered something of a 2-year ownership bear market from mid 2018 onwards, activity started to reverse from May of this year.
Previous investors are buying back in to POSCO, though ownership levels remain well off the previous highs.
As the fundamentals start to match up for a growing number of managers, rising ownership has the ability to drive prices higher from here


Smartkarma Research Team, Smartkarma

Smartkarma Research

Smartkarma Research Team

Smartkarma

Smartkarma unites the fragmented investment industry, connecting institutional investors, independent research providers, and corporates within a single network.

Research Reinvented

Technical Analysis

iShares MSCI Emerging Markets / Technical Analysis

<p>For our next Smartkarma Webinar, Insight Provider <a href="https://www.smartkarma.com/profiles/thomas-schroeder" target="_blank" data-smartkarma-citation="accounts:381" rel="noopener">Thomas Schroeder</a> will provide an updated view on his technical outlook for Asian markets. </p>
<h3>The webinar was hosted on Wednesday, 25/November/2020, 5.00pm SGT/HKT.</h3>
<p>Watch the session here:</p>
<p><iframe src="https://www.youtube.com/embed/DqFzaPstH6M" width="560" height="315" frameborder="0" allow="accelerometer; autoplay; clipboard-write; encrypted-media; gyroscope; picture-in-picture" allowfullscreen="allowfullscreen"></iframe></p>
<p>Or subscribe to listen on the go:</p>
<p><iframe src="https://open.spotify.com/embed-podcast/episode/5EuHF2JHhdas8SaXyo81Oi" width="100%" height="232" frameborder="0" allowtransparency="true" allow="encrypted-media"></iframe></p>
<p>Thomas Schroeder started using charts and trading in the FX markets in 1989 and entered the equities arena in 1992 with Deutsche Bank as a fundamental analyst, but found himself relying more on inter-market cycles and charts. In 1994, he became the Asian head of Technical Research for UBS Securities in Hong Kong and in 1997 he was charged with heading the Global Technical Research team for SG Securities. In July of 2003, Chart Partners Group Limited was formed, providing clients with timely and accurate progressive trading strategies in a truly global context.</p>

For our next Smartkarma Webinar, Insight Provider Thomas Schroeder will provide an updated view on his technical outlook for Asian markets. 
The webinar was hosted on Wednesday, 25/November/2020, 5.00pm SGT/HKT.
Watch the session here:

Or subscribe to listen on the go:

Thomas Schroeder started using charts and trading in the FX markets in 1989 and entered the equities arena in 1992 with Deutsche Bank as a fundamental analyst, but found himself relying more on inter-market cycles and charts. In 1994, he became the Asian head of Technical Research for UBS Securities in Hong Kong and in 1997 he was charged with heading the Global Technical Research team for SG Securities. In July of 2003, Chart Partners Group Limited was formed, providing clients with timely and accurate progressive trading strategies in a truly global context.

Smartkarma Webinar | Asian Markets Technical Outlook - An Update

United States

iShares MSCI Emerging Markets ETF is an exchange-traded fund incorporated in the USA. The ETF tracks the performance of the MSCI TR Emerging Markets Index. The ETF holds emerging market stocks that can predominantly be classified as large and mid-cap. It weights the holdings using a market capitalization methodology and rebalances quarterly.

iShares MSCI Emerging Markets (EEM US)

Emerging Market Overweights Series. Part 3: Taiwan Tech

Taiwan Technology stocks have seen allocations skyrocket in active EM portfolios. We analyse the drivers behind the move, the key conviction...

Steven Holden

Emerging Market Overweights Series. Part 2: Argentinian Consumer Discretionary

In part two of our EM Overweight series, we focus on the Argentinian Consumer Discretionary sector. We analyse the holding picture in detail,...

Steven Holden

Emerging Market Overweights Series. Part 1: Indian Financials

Emerging Market Overweights Series. Part 1: Indian Financials. Analysing the make-up of the overweight in Indian Financial stocks.

Steven Holden

POSCO: Sentiment Turnaround

EM fund ownership in POSCO is at the lower end of the 12-year range. As the fundamentals start to match up for a growing number of managers,...

Steven Holden

Smartkarma Webinar | Asian Markets Technical Outlook - An Update

Join us on 25 November, 5PM SGT/HKT for an updated view by Insight Provider Thomas Schroeder on his technical outlook for Asian markets.

Smartkarma Research