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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356 Global Equity Funds, AUM $938bn Global Funds: Stock Radar Investment levels among the thousands of stocks in the investible Global universe differ greatly. Some stocks are widely owned, others largely avoided with ownership levels changing every month. We combine current and historical positioning against shorter-term manager activity to get a handle on where sentiment lies for every stock in …
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358 Global Equity Funds, AUM $914bn Overweight Consensus in UK Stocks A record 70.4% of Global Funds are now positioned overweight the UK. Time-Series & Country Activity The majority of active Global Funds are expecting UK equities to outperform. Relative to the SPDRs ACWI ETF, a record 70.4% of funds are positioned overweight (ch4), with average fund weights +1.94% …
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358 Global Equity Funds, AUM $914bn Record Under-Allocation in Emerging Markets Exploring the Factors Behind a Shift Away from Emerging Market Equities among Active Global Fund Managers. Time-Series & Country Rotation Emerging Market allocations among active Global funds are at depressed levels. From a peak of 10.3% in January 2021, average holding weights fell to a low of 6.4% …
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358 ACTIVE GLOBAL FUNDS, AUM $930BN North American Rotation Active Global investors are at record allocations in North American stocks. Driven higher by rising Health Care, Industrials and Energy exposure, North America continues to take market share from the key regions in Europe and Asia. Yet with Global investors still underweight North America, does this rotation have further to run? …
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