Jefferies’ Global Head of Equity Strategy, Christopher Wood, has announced a major change in his Asia ex-Japan thematic portfolio. He reduced India’s weight by 1% and increased China’s exposure by 2%. This move aims to maintain China’s overweight position after changes in neutral weightings.
Why Did Jefferies Change Portfolio Weights?
Christopher Wood explained the change was based on recent performance and market outlook. India’s portfolio underperformed recently, dropping 7.4% in the September quarter compared to the MSCI India Index’s 6.6% decline. Meanwhile, China’s portfolio delivered strong gains of 23.1% last quarter and 42% in the first nine months of 2025.
Portfolio Performance Overview
- India Portfolio: Since July 2021 inception, up 81.6%, outperforming MSCI India Index’s 41.9%.
- China Portfolio: Strong growth with a 23.1% jump last quarter and a 42% gain year-to-date.
- Asia ex-Japan Portfolio: Rose 8% last quarter but fell short of the MSCI benchmark’s 11.1% gain due to high India exposure.
Current Portfolio Allocation
India currently makes up 40% of Jefferies’ Asia ex-Japan portfolio, while China accounts for 33%. This adjustment shifts more balance toward China, given its recent strong performance.
Other Portfolio Changes
Christopher Wood also revealed plans to remove Nvidia from the global portfolio citing valuation concerns. It will be replaced with Gek Terna, a Greek infrastructure company.
Impact on Investors
This change reflects Jefferies’ strategic approach to Asia markets, focusing on shifting opportunities. Investors may expect China’s strong performance to influence returns positively, while India’s reduced weight aligns with recent underperformance.
Key Takeaways
- India weight reduced by 1%, China increased by 2%.
- China portfolio shows stronger recent gains than India.
- Nvidia removed due to valuation concerns; replaced with Gek Terna.
Be First to Comment