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

China A-Shares represent the 6th largest country holding among active EM investors, if taken as a separate allocation from their non A-Share peers.  Average holding weights of 4.74% puts them sandwiched between Russia and Brazil, and inline with the benchmark iShares MSCI Emerging Markets ETF weight.Industrials and Consumer Discretionary are the most widely held sectors, as well as being the largest allocations and biggest overweights in active EM portfolios.  Financials are the key underweight holding.The most widely held stocks are <a href="https://www.smartkarma.com/entities/kweichow-moutai-co-ltd-a" target="_blank" data-smartkarma-citation="entities:1553:1" rel="noopener">Kweichow Moutai (600519 CH)</a> and <a href="https://www.smartkarma.com/entities/midea-group-co-ltd-a" target="_blank" data-smartkarma-citation="entities:16185:1" rel="noopener">Midea Group Co Ltd A (000333 CH)</a>, both held by 23% of the funds in our analysis.  There is a reasonable gap to the 2nd tier, with <a href="https://www.smartkarma.com/entities/gree-electric-appliances-inc-of-zhuhai" target="_blank" data-smartkarma-citation="entities:7622:1" rel="noopener">Gree Electric Appliances (000651 CH)</a>, <a href="https://www.smartkarma.com/entities/sany-heavy-industry-co-ltd" target="_blank" data-smartkarma-citation="entities:20183:1" rel="noopener">Sany Heavy Industry (600031 CH)</a> and <a href="https://www.smartkarma.com/entities/contemporary-amperex-techn-a" target="_blank" data-smartkarma-citation="entities:24404:1" rel="noopener">CATL (A) (300750 CH)</a> held by 14% of funds at much lower average weights.Over the last 6-months, <a href="https://www.smartkarma.com/entities/sungrow-power-supply-co-ltd" target="_blank" data-smartkarma-citation="entities:4255:1" rel="noopener">Sungrow Power Supply (300274 CH)</a> saw the largest increase in the percentage of EM Funds invested (+6.3%), followed by <a href="https://www.smartkarma.com/entities/contemporary-amperex-techn-a" target="_blank" data-smartkarma-citation="entities:24404:1" rel="noopener">CATL (A) (300750 CH)</a> and <a href="https://www.smartkarma.com/entities/longi-green-energy-technology-co-ltd" target="_blank" data-smartkarma-citation="entities:12703:1" rel="noopener">LONGi Green Energy Technology (601012 CH)</a>.

China A-Shares represent the 6th largest country holding among active EM investors, if taken as a separate allocation from their non A-Share peers.  Average holding weights of 4.74% puts them sandwiched between Russia and Brazil, and inline with the benchmark iShares MSCI Emerging Markets ETF weight.Industrials and Consumer Discretionary are the most widely held sectors, as well as being the largest allocations and biggest overweights in active EM portfolios.  Financials are the key underweight holding.The most widely held stocks are Kweichow Moutai (600519 CH) and Midea Group Co Ltd A (000333 CH), both held by 23% of the funds in our analysis.  There is a reasonable gap to the 2nd tier, with Gree Electric Appliances (000651 CH), Sany Heavy Industry (600031 CH) and CATL (A) (300750 CH) held by 14% of funds at much lower average weights.Over the last 6-months, Sungrow Power Supply (300274 CH) saw the largest increase in the percentage of EM Funds invested (+6.3%), followed by CATL (A) (300750 CH) and LONGi Green Energy Technology (601012 CH).

Zhejiang Weixing New Bldg Mtls (002372 CH)

Shanxi Xinghuacun Fen Wine Factory Co (600809 CH)

37 Interactive Entertainment N (002555 CH)

LONGi Green Energy Technology (601012 CH)

Shenzhen Inovance Technology Co., (300124 CH)

Contemporary Amperex Technology (CATL) (300750 CH)

Postal Savings Bank of China C (601658 CH)

Yihai Kerry Arawana Holdings C (300999 CH)

China A-Shares - EM Fund Ownership Guide