Скачать или смотреть Underweight Emerging Markets? You're Not Alone!

This week, we’re analyzing Emerging Market allocations among Global equity funds. In this brief video, I’ll walk you through 3 key charts from our latest analysis. Here’s the quick summary:

• The average EM allocation sits at the lower end of its 10-year range at 7.05%. While this level has remained relatively stable since 2022, the net underweight has improved from the lows of -4.5% to -3.3% today.

• China has been the primary driver behind the long-term decline in EM exposure, with average weights more than halving since late 2020. In contrast, Taiwan's weight has been steadily increasing, reaching a peak of 1.76% today. Country rotation within EM is a key theme in our analysis.

• From a style perspective, Emerging Markets have shifted from a Growth to a Value play. Value managers now allocate an average of 9.5% to EM, compared to 5.9% for Growth funds. However, all style groups remain underweight, leaving the majority of managers vulnerable to EM outperformance.

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