Asset Allocation & Fund Positioning, Copley Fund Research

Steven Holden

Steven Holden is the CEO and Founder of Copley Fund Research, an independent provider of research on equity fund positioning and performance.  Set up in 2014, Copley focuses on global, global emerging market, US, Asia Ex-Japan and China active equity funds, covering over $4tr in assets across 1300 active managers.  The company provides data and analysis on market trends, manager exposures and active fund performance to an audience of investment managers, pension funds and fund selectors worldwide.  Mr Holden’s 14-year investment banking career started in 2000, where he worked for Morgan Stanley as an equity derivative trader focused on emerging markets in London.  Following this, he spent 4 years at Citibank in London and Hong Kong as an Executive Director in derivative sales, focused again on emerging markets.

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

Multiple Countries / Cross Asset Strategy

<p>Actively managed GEM funds had a fantastic first half of 2019.  Year to date absolute returns for the average GEM fund stand at 13.06% compared to 10.24% for the <a href="https://www.smartkarma.com/entities/ishares-msci-emerging-markets-indx-etf" target="_blank" data-smartkarma-citation="entities:438:1" rel="noopener">iShares MSCI Emerging Markets (EEM US).</a>  Moreover, 77% of funds outperformed.</p><p>Outperformance was generated through strong stock selection in China &amp; HK, underweights in South Korea and stock selection in Brazil.  Overweights in <a href="https://www.smartkarma.com/entities/aia-group-ltd" target="_blank" data-smartkarma-citation="entities:14895:1" rel="noopener">AIA Group Ltd (1299 HK), </a><a href="https://www.smartkarma.com/entities/mercadolibre-inc" target="_blank" data-smartkarma-citation="entities:27954:1" rel="noopener">MercadoLibre Inc (MELI US)</a><a href="https://www.smartkarma.com/entities/aia-group-ltd" target="_blank" data-smartkarma-citation="entities:14895:1" rel="noopener"></a>and <a href="https://www.smartkarma.com/entities/sberbank-of-russia-pjsc" target="_blank" data-smartkarma-citation="entities:24142:1" rel="noopener">Sberbank Of Russia Pjsc (SBER LI) </a>generated the most outperformance for managers, on average.</p>

Actively managed GEM funds had a fantastic first half of 2019.  Year to date absolute returns for the average GEM fund stand at 13.06% compared to 10.24% for the iShares MSCI Emerging Markets (EEM US).  Moreover, 77% of funds outperformed.Outperformance was generated through strong stock selection in China &amp; HK, underweights in South Korea and stock selection in Brazil.  Overweights in AIA Group Ltd (1299 HK), MercadoLibre Inc (MELI US)and Sberbank Of Russia Pjsc (SBER LI) generated the most outperformance for managers, on average.

Active GEM Funds Trounce Passive in H1