352 emerging market Funds, AUM $424bn
Positioning Insights & Investment Trends
In this month's report, we look at positioning in the 3 recent election markets of Mexico, South Africa and India, highlight the largest country/sector underweight in EM, a recovery in Turkish Financials and a drop in South Korean Materials Exposure.
Summary
- Mexico: GEM Funds Wrong-Footed after Election Results. Active GEM managers’ overweight exposure to Mexico ahead of election proved costly, with 69% overweight and Banorte becoming crowded.
- South Africa: Growing Investor Apathy. Investor apathy drives South Africa’s average fund weights down to 2.62%, with 14.2% of funds avoiding investment entirely.
- India: Record Exposure Gives Rise to Caution. Despite record MSCI India highs, valuations keep India as a significant underweight at -2.44% versus the benchmark.
- Turkish Financials: Recovery in Play. Turkish Financials see a 6% increase in funds invested, reversing a 13-year downward trend, but overall exposure remains low.
- South Korean Materials: New Lows After Further Rotation. Average fund weights in South Korean Materials hit new lows, driven by declining POSCO and LG Chem holdings.
- Taiwan Financials: Contrarian’s Dream. Unloved, underweight and underowned. Taiwan Financials are EM’s largest country/sector underweight.
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Mexico
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South Africa
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India
For more analysis, data or information on active investor positioning in your market, please get in touch with me on steven.holden@copleyfundresearch.com
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