Top-Down Positioning Update

China dominates allocations, India and Taiwan are equal 2nd, while South Korea lags a further 7% behind. Indonesia leads the ASEAN region, emerging as the top overweight country as a record 79.8% of funds are ahead of the benchmark. In contrast, India sees 62% underweight. Vietnam hits new highs in average fund weight (0.97%) and fund participation (34%).

South Korea: Samsung Drives Allocations Lower

Average exposure to South Korea has plummeted to its lowest levels in over 10 years, with overweight positions weakening significantly from their mid-2024 highs. While all Asia ex-Japan funds maintain some South Korean exposure, the spike in overweight positioning that peaked in June 2024 has now dropped back below 50%.