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

Global Emerging Market funds made a strong start to 2019, with just over two-thirds of funds outperforming the benchmark, generating an average alpha above the <a href="https://www.smartkarma.com/entities/438" target="_blank" data-smartkarma-citation="entities:438:1">IShares MSCI Emerging Markets Indx (ETF) (EEM US)</a> of 1.3%.In this report, we look at the performance of 180 global emerging market strategies over the first quarter of 2019 and analyse the countries, sectors and stocks that helped generate that outperformance.  We also take a look at the longer-dated outperformance of active GEM funds.

Global Emerging Market funds made a strong start to 2019, with just over two-thirds of funds outperforming the benchmark, generating an average alpha above the IShares MSCI Emerging Markets Indx (ETF) (EEM US) of 1.3%.In this report, we look at the performance of 180 global emerging market strategies over the first quarter of 2019 and analyse the countries, sectors and stocks that helped generate that outperformance.  We also take a look at the longer-dated outperformance of active GEM funds.

GEM Active Funds:  Big Q1 Outperformance

Copley Fund Research analyse the holdings of long-only Global Emerging Market equity funds. All of the Funds in this analysis are actively managed and the majority benchmark the MSCI Emerging Markets Index. The current fund sample spans 180 funds with a combined AUM of $350bn.In this report, we analyse China A-Share holdings. We gather the latest published filings for all funds and aggregate together as of 02/28/2019. We show the most recent snapshot in positioning, time series data going back to 2011 and recent allocation shifts by the managers in our analysis.Relative benchmark positioning is measured against the I-Shares MSCI Emerging Markets ETF (EEM) - proportionally adjusted to remove any cash holdings. We will refer to this as 'the benchmark' throughout the analysis.

Copley Fund Research analyse the holdings of long-only Global Emerging Market equity funds. All of the Funds in this analysis are actively managed and the majority benchmark the MSCI Emerging Markets Index. The current fund sample spans 180 funds with a combined AUM of $350bn.In this report, we analyse China A-Share holdings. We gather the latest published filings for all funds and aggregate together as of 02/28/2019. We show the most recent snapshot in positioning, time series data going back to 2011 and recent allocation shifts by the managers in our analysis.Relative benchmark positioning is measured against the I-Shares MSCI Emerging Markets ETF (EEM) - proportionally adjusted to remove any cash holdings. We will refer to this as 'the benchmark' throughout the analysis.

Founder, Riedel Research

David Riedel

Founder

Independent equity research on GEM Markets

Riedel Research

Riedel provides equity research and analysis to leading financial organizations. By becoming members of a region (Asia, Latin America, Emerging Europe or Global), organizations have access to an integrated set of services including:

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Thematic (Sector/Industry)

<ul>
<li>Trump Should Play Winning Hand in South China Sea - Return Major Military Presence to Subic Bay</li>
<li>Returning a major US military presence to Subic Bay and Clark Air Force Base in the Philippines would be a strong signal to Beijing that the US takes their alliances and position in Asia strongly.</li>
<li>The Trump administration has been distracted by concerns over trade and has not maintained a sensible eye on other US interests around the world. </li>
<li>Playing this important ‘Trump card’ in SE Asia would be a powerful signal that the US considers China’s actions in the South China Sea to be illegitimate. This would also send a strong positive signal to US allies in SE and North East Asia (Japan and Korea) that the US is committed to open navigation in this important waterway.</li>
</ul>


Trump Should Play Winning Hand in South China Sea - Return Major Military Presence to Subic Bay
Returning a major US military presence to Subic Bay and Clark Air Force Base in the Philippines would be a strong signal to Beijing that the US takes their alliances and position in Asia strongly.
The Trump administration has been distracted by concerns over trade and has not maintained a sensible eye on other US interests around the world. 
Playing this important ‘Trump card’ in SE Asia would be a powerful signal that the US considers China’s actions in the South China Sea to be illegitimate. This would also send a strong positive signal to US allies in SE and North East Asia (Japan and Korea) that the US is committed to open navigation in this important waterway.


US Should Play Trump Card on South China Sea Disputes - Redeploy to Subic Bay

<ul>
<li>Volatility set to rise as Thailand, Indonesia and India all Face ElectionsRussia: Michael Calvey, a US citizen and one of Russia's most prominent foreign investors, has been detained.</li>
<li>Indonesia: Incumbent President and his challenger from the military are trying to outdo each other in spending largesse targeting rural poor ahead of the May election.</li>
<li>South Africa: Recent inflation readings have been the lowest in a long time on lower fuel expenses. Expected to stay low.</li>
</ul>


Volatility set to rise as Thailand, Indonesia and India all Face ElectionsRussia: Michael Calvey, a US citizen and one of Russia's most prominent foreign investors, has been detained.
Indonesia: Incumbent President and his challenger from the military are trying to outdo each other in spending largesse targeting rural poor ahead of the May election.
South Africa: Recent inflation readings have been the lowest in a long time on lower fuel expenses. Expected to stay low.


RRG Global Macro Weekly - Election Volatility Expected in India, Indonesia and Thailand

<ul>
<li>US-China trade negotiations are focusing on the easy parts to avoid truly difficult discussions on thornier structural issues. </li>
<li>Beijing is trying to buy their way to a compromise by taking out their checkbook and promising to buy more US products. </li>
<li>A truly comprehensive trade pact will be difficult, perhaps even impossible, to reach. That’s because many of the problems Washington wants resolved in China will require more than a few regulatory tweaks. </li>
<li>The bureaucratic harassment, theft of intellectual property, and overt favoritism toward local firms that make doing business in China difficult for American chief executives are caused by the very way the Chinese economy works.</li>
<li>Changing these procedures means changing China’s basic economic system. Beijing’s leaders cannot possibly achieve such an overhaul in the short term—assuming they even want to.</li>
</ul><a href="https://www.cnbc.com/video/2019/01/23/us-china-trade-endgame-is-unclear-says-expert.html" target="_blank">CNBC Interview of David Riedel on US-China Trade</a>


US-China trade negotiations are focusing on the easy parts to avoid truly difficult discussions on thornier structural issues. 
Beijing is trying to buy their way to a compromise by taking out their checkbook and promising to buy more US products. 
A truly comprehensive trade pact will be difficult, perhaps even impossible, to reach. That’s because many of the problems Washington wants resolved in China will require more than a few regulatory tweaks. 
The bureaucratic harassment, theft of intellectual property, and overt favoritism toward local firms that make doing business in China difficult for American chief executives are caused by the very way the Chinese economy works.
Changing these procedures means changing China’s basic economic system. Beijing’s leaders cannot possibly achieve such an overhaul in the short term—assuming they even want to.
CNBC Interview of David Riedel on US-China Trade

China Strategy of Promising to Buy Stuff Just Might Work on Trump as He Looks for an Easy “victory”

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)

GEM Active Funds: Big Q1 Outperformance

Global Emerging Market funds made a strong start to 2019, with just over two-thirds of funds outperforming the benchmark, generating an average...

Steven Holden

US Should Play Trump Card on South China Sea Disputes - Redeploy to Subic Bay

Trump Should Play Winning Hand in South China Sea - Return Major Military Presence to Subic Bay Returning a major US military presence to Subic...

David Riedel

RRG Global Macro Weekly - Election Volatility Expected in India, Indonesia and Thailand

Volatility set to rise as Thailand, Indonesia and India all Face ElectionsRussia: Michael Calvey, a US citizen and one of Russia's most prominent...

David Riedel

China Strategy of Promising to Buy Stuff Just Might Work on Trump as He Looks for an Easy “victory”

US-China trade negotiations are focusing on the easy parts to avoid truly difficult discussions on thornier structural issues. Beijing is trying...

David Riedel

GEM Active Funds: Big Q1 Outperformance

Global Emerging Market funds made a strong start to 2019, with just over two-thirds of funds outperforming the benchmark, generating an average...

Steven Holden

The China A-Share Revolution

Copley Fund Research analyse the holdings of long-only Global Emerging Market equity funds. All of the Funds in this analysis are actively managed...

Steven Holden

US Should Play Trump Card on South China Sea Disputes - Redeploy to Subic Bay

Trump Should Play Winning Hand in South China Sea - Return Major Military Presence to Subic Bay Returning a major US military presence to Subic...

David Riedel

RRG Global Macro Weekly - Election Volatility Expected in India, Indonesia and Thailand

Volatility set to rise as Thailand, Indonesia and India all Face ElectionsRussia: Michael Calvey, a US citizen and one of Russia's most prominent...

David Riedel

China Strategy of Promising to Buy Stuff Just Might Work on Trump as He Looks for an Easy “victory”

US-China trade negotiations are focusing on the easy parts to avoid truly difficult discussions on thornier structural issues. Beijing is trying...

David Riedel