340 Global Equity Funds, AUM $1tr China: Darkest before the Dawn? Author: Steven Holden Date: February 14th, 2024 Fund Universe: Global Equity China’s Decent Chinese equity ownership among Global equity funds has reached an all-time low. The chart set opposite documents the time series of fund exposure and ownership among global funds in Chinese equities between 2012 and 2024. Chart …
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The Magnificent 7, comprising Microsoft, Apple, Alphabet, Amazon, Meta, NVIDIA and Tesla have hit record high allocations among active Global equity funds this year. Thought of as a standalone allocation, they represent the 2nd largest country weight, but also stand as a sizeable underweight versus the benchmark. Value funds continue to find reasons to sell, with underweights growing in magnitude as key funds close out. Microsoft’s dominates the group, NVIDIA has attracted a new investors this year, whilst Tesla has struggled to gain the same level of trust from active Global investors. Magnificent 7 Ownership Trends Allocations to the ‘Magnificent 7’ group of stocks in global equity funds have reached record highs. As depicted in Chart 1 opposite, both the average active Global fund and the iShares ACWI ETF have seen a marked increase in allocations following a decline through most of 2022. Despite this uptrend, active funds …
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