HDFC Bank Tops Global EM Fund Portfolios

71% of active EM funds hold India's biggest lender

- SAMIE MODAK

HDFC Bank has cemented its position as the most critical emerging-market (EM) bank in global portfolios, according to analyst Steven Holden of Copley Fund Research, who publishes on Smartkarma.

India's most valuable lender is now held by 71 percent of all actively managed EM funds—the highest representation in Holden's 17-year dataset. In the past six months alone, 13 new funds have initiated positions, while only one has exited, underscoring its enduring appeal to global money managers.

"HDFC Bank has been a long-standing overweight among active EM managers, though the strength of that overweight has declined since its inclusion in the MSCI Emerging Markets (EMs) Index. Still, just over half of the managers in our analysis remain overweight the stock relative to the benchmark," Holden said.