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>Philippines ownership falls to record lows among active Asia Ex-Japan managers.</li>
<li>Only 58% of Asia Ex-Japan managers now have exposure, with most holding less than a 3% portfolio weight.</li>
<li>Shrinking benchmark weights and a dwindling active investor base means it is becoming ever easier to avoid Philippines exposure entirely.  </li>
</ul>


Philippines ownership falls to record lows among active Asia Ex-Japan managers.
Only 58% of Asia Ex-Japan managers now have exposure, with most holding less than a 3% portfolio weight.
Shrinking benchmark weights and a dwindling active investor base means it is becoming ever easier to avoid Philippines exposure entirely.  


The Philippines:  Asia Ex-Japan Fund Allocations Hit All-Time Low

Technical Analyst, Vermilion Research

Joe Jasper

Technical Analyst

Technical and Quantitative Research

Vermilion Research

Vermilion’s objective is to deliver timely, actionable, and unique technical research to professional investors through the application of our various technical indicators.

Our research strategists seek to highlight securities which we believe are at major inflection points, based on our various technical and quantitative indicators, and offer asymmetric risk/return profiles. Our unique research methodology, centered on relative strength, enables our strategists to deliver superior investment recommendations.

Our process begins by organizing the universe of actively traded stocks into discrete sectors, then into industry groups. We then apply our technical and quantitative tools to identify developing price trends. Once attractive trends are identified within a selected sector or group, we screen for individual stocks which we believe offer the best risk/reward profile. We provide a historical perspective that often reveals, through our long-term charts, how price patterns often repeat themselves over time.

Technical Analysis

<ul>
<li>The theme we have seen over the past four weeks is an increasing number of indexes reversing 4-10-month downtrends and/or breaking above important resistance levels, with no failed breakouts.</li>
<li>We continue to believe that global equities are going through a bottoming process, but the real test will come during the eventual pullback, which we believe we are now experiencing.</li>
<li>We are watching to see whether these breakout levels and important moving averages (e.g., 50-day MAs) will hold.</li>
</ul>


The theme we have seen over the past four weeks is an increasing number of indexes reversing 4-10-month downtrends and/or breaking above important resistance levels, with no failed breakouts.
We continue to believe that global equities are going through a bottoming process, but the real test will come during the eventual pullback, which we believe we are now experiencing.
We are watching to see whether these breakout levels and important moving averages (e.g., 50-day MAs) will hold.


Japan Among the Latest to Break Out; Buy Ideas in Growth/Cyclicals and Consumer Staples

Head of Research, IPOs & Placements, Aequitas Research

Sumeet Singh

Head of Research, IPOs & Placements

IPOs and Placements coverage across Asia Pacific

Aequitas Research

We cover all listing across the Asia Pacific along with follow-up placements. As of Dec 2020, our team had covered 539 IPOs with a hit rate of 73.5% and 685 placements with a hit rate of 66.8%.

We combine fundamental bottom-up views with our proprietary quantitative framework to provide a holistic coverage across new listings and placements. Our coverage includes pre-IPO notes before the deal is launched, follow-up analysis once the deal is live and post-listing trading analysis as well.

Equity Capital Markets

Creador plans to raise around US$140m via selling 2.4% of MR DIY. The stock has done exceptionally well since listing, which we had covered earlier, links below. In this note, we will run the deal through our ECM framework and talk about updates since the IPO.<ul style="list-style-type: disc;">
<li>
<a href="https://www.smartkarma.com/insights/mr-d-i-y-pre-ipo-largest-home-improvement-retailer-in-malaysia" target="_blank" data-smartkarma-citation="insights:35843" rel="noopener">Mr D.I.Y. Pre-IPO - Largest Home Improvement Retailer in Malaysia</a> </li>
<li>
<a href="https://www.smartkarma.com/insights/mr-d-i-y-pre-ipo-store-walk-through-and-thoughts-on-value-proposition" target="_blank" data-smartkarma-citation="insights:36114" rel="noopener">Mr D.I.Y. Pre-IPO - Store Walk-Through and Thoughts on Value Proposition</a> </li>
<li>
<a href="https://www.smartkarma.com/insights/mr-d-i-y-pre-ipo-small-stores-with-dominant-market-share" target="_blank" data-smartkarma-citation="insights:36402" rel="noopener">Mr D.I.Y. Pre-IPO - Peer Comparison - Small Stores with Dominant Market Share </a> </li>
<li>
<a href="https://www.smartkarma.com/insights/mr-diy-ipo-store-expansion-still-going-strong-undemanding-valuation" target="_blank" data-smartkarma-citation="insights:43929" rel="noopener">MR DIY IPO - Store Expansion Still Going Strong, Undemanding Valuation</a> </li>
<li><a href="https://www.smartkarma.com/insights/mr-diy-ipo-trading-good-demand-still-very-reasonable-valuation" target="_blank" rel="noopener">MR DIY IPO Trading - Good Demand, Still Very Reasonable Valuation</a></li>
</ul>

Creador plans to raise around US$140m via selling 2.4% of MR DIY. The stock has done exceptionally well since listing, which we had covered earlier, links below. In this note, we will run the deal through our ECM framework and talk about updates since the IPO.

Mr D.I.Y. Pre-IPO - Largest Home Improvement Retailer in Malaysia 

Mr D.I.Y. Pre-IPO - Store Walk-Through and Thoughts on Value Proposition 

Mr D.I.Y. Pre-IPO - Peer Comparison - Small Stores with Dominant Market Share  

MR DIY IPO - Store Expansion Still Going Strong, Undemanding Valuation 
MR DIY IPO Trading - Good Demand, Still Very Reasonable Valuation


MR DIY Placement - Has Done Exceptionally Well Since Listing

Pan-Asia Equity Bottom-up, Wickhams Hill

Lloyd Moffatt

Pan-Asia Equity Bottom-up

Equity Bottom-Up

<ul>
<li>mm2 Asia Ltd (MM2 SP), which we flagged in our inaugural issue last week, received an unsolicited bid for their Singapore and Malaysian cinema business. The offer made would imply a share price of about SGD 16.2cents, +140% from today’s close.</li>
<li>We uncover a massive buyback program underway at Alliance Global Group (AGI PM), Emperador (EMP PM) and Megaworld (MEG PM).</li>
<li>The US$1.5bn IPO of Indonesian online flea market Bukalapak (BUKA IJ) is planned for next week. While another Asia focused SPAC files for US listing.</li>
</ul>


mm2 Asia Ltd (MM2 SP), which we flagged in our inaugural issue last week, received an unsolicited bid for their Singapore and Malaysian cinema business. The offer made would imply a share price of about SGD 16.2cents, +140% from today’s close.
We uncover a massive buyback program underway at Alliance Global Group (AGI PM), Emperador (EMP PM) and Megaworld (MEG PM).
The US$1.5bn IPO of Indonesian online flea market Bukalapak (BUKA IJ) is planned for next week. While another Asia focused SPAC files for US listing.


Wickhams Hill Research | Under-The-Radar Issue 2

Pan-Asia Index Rebalances/ Events/ Delta One, Periscope Analytics

Brian Freitas

Pan-Asia Index Rebalances/ Events/ Delta One

Event-Driven

The <a href="https://www.smartkarma.com/entities/philippines-stock-exchange-psei-index" target="_blank" data-smartkarma-citation="entities:22912:1" rel="noopener">Philippines Stock Exchange PSEi Index (PCOMP INDEX)</a> is the main index of the Philippines Stock Exchange (PSE). The index is free float market cap weighted and is made up of the 30 largest and most active common stocks listed at the PSE.The next rebalance will become effective in mid-August and the changes will be announced around 5 trading days prior to implementation.We see <a href="https://www.smartkarma.com/entities/ac-energy-corp" target="_blank" data-smartkarma-citation="entities:23188:1" rel="noopener">AC Energy Corp (ACEN PM)</a> as a likely inclusion in the index. Potential deletions are <a href="https://www.smartkarma.com/entities/emperador-inc" target="_blank" data-smartkarma-citation="entities:3485:1" rel="noopener">Emperador Inc (EMP PM)</a> on liquidity and possibly free float and <a href="https://www.smartkarma.com/entities/dmci-holdings-inc" target="_blank" data-smartkarma-citation="entities:8026:1" rel="noopener">DMCI Holdings (DMC PM)</a> as the lowest ranked index constituent.There are minimal assets tracking the <a href="https://www.smartkarma.com/entities/philippines-stock-exchange-psei-index" target="_blank" data-smartkarma-citation="entities:22912:1" rel="noopener">Philippines Stock Exchange PSEi Index (PCOMP INDEX)</a>. However, there are active funds using the index as a benchmark and some of the funds track the benchmark pretty closely. Historically, the adds have performed well in the period leading up to implementation.

The Philippines Stock Exchange PSEi Index (PCOMP INDEX) is the main index of the Philippines Stock Exchange (PSE). The index is free float market cap weighted and is made up of the 30 largest and most active common stocks listed at the PSE.The next rebalance will become effective in mid-August and the changes will be announced around 5 trading days prior to implementation.We see AC Energy Corp (ACEN PM) as a likely inclusion in the index. Potential deletions are Emperador Inc (EMP PM) on liquidity and possibly free float and DMCI Holdings (DMC PM) as the lowest ranked index constituent.There are minimal assets tracking the Philippines Stock Exchange PSEi Index (PCOMP INDEX). However, there are active funds using the index as a benchmark and some of the funds track the benchmark pretty closely. Historically, the adds have performed well in the period leading up to implementation.

PCOMP Index Rebalance Preview: Inclusion Fairly Certain; Deletion Undecided

Philippines

Wilcon Depot, Inc. supplies home improvement and construction materials. The Company offers building materials, appliances, plumbing and sanitary wares, paints, housewares, hardwares, tools, furniture, electrical, lighting, furnishing, and tiles and flooring products. Wilcon Depot serves customers in Philippines.

Wilcon Depot (WLCON PM)

The Philippines: Asia Ex-Japan Fund Allocations Hit All-Time Low

Shrinking benchmark weights and a dwindling active investor base means it is becoming ever easier for Asia Ex-Japan managers to avoid Philippines...

Steven Holden

Japan Among the Latest to Break Out; Buy Ideas in Growth/Cyclicals and Consumer Staples

Japan is the latest major country to break out, and we are buyers. Japan continues to be considerably further along in the bottoming process...

Vermilion Research

MR DIY Placement - Has Done Exceptionally Well Since Listing

Creador plans to raise around US$140m via selling 2.4% of MR DIY. The stock has done exceptionally well since its listing.

Sumeet Singh

Wickhams Hill Research | Under-The-Radar Issue 2

mm2 Asia Ltd (MM2 SP), which we flagged in our inaugural issue last week, receivedan unsolicited bid for their Singapore and Malaysian cinema business

Lloyd Moffatt

PCOMP Index Rebalance Preview: Inclusion Fairly Certain; Deletion Undecided

We see ACEN being included and EMP being deleted from the PCOMP at the August rebalance. Inclusions have historically performed well while the...

Brian Freitas