City of London Investment Management: Q3 2026 Portfolio Shifts

City Of London Investment Management Co Ltd has released its portfolio data for the quarter ending September 30, 2026, revealing a strategic shift focused on emerging markets and select regional ETFs, while simultaneously reducing exposure in Technology stocks.

Major Purchases in Q3 2026

This quarter, City Of London Investment Management demonstrated a clear preference for growth in specific sectors and geographies. The investor significantly increased their position in the ABRDN EMERGING MARKETS EX CHINA (AEF) fund, which represents a substantial allocation of 6.38% in the current portfolio. This fund, categorized under Financial Services, experienced a notable increase in shares, specifically a 5.23% change from the previous period.

Furthermore, the investor bolstered their holdings in the KOREA FUND (KF), another Financial Services fund, with a 0.57% increase in shares during the quarter. There was also a significant build-up in the ISHARES MSCI TAIWAN (EWT) ETF, which saw a 1.28% increase in its share count, adding to the existing allocation of 7.26%.

City Of London Investment Management also initiated new positions or significantly increased stakes in several other funds. The ABERDEEN INDIA FUND INC (IFN) (Financial Services) showed a dramatic 134.66% increase in shares, indicating a strong conviction in the Indian market. Similarly, the ISHARES LATIN AMERICA 40 ETF (ILF) experienced a massive 386.27% jump in shares, suggesting a significant tilt towards Latin American assets.

Additionally, the investor notably increased their stake in the ISHARES MSCI INDIA ETF (INDA) by 298.19% in share count, reflecting a targeted approach to India-focused investments. The ISHARES MSCI CHINA ETF (MCHI) also saw a substantial 91.34% increase in shares, adding to its allocation. The MS CHINA A SHARE (XCAFX) increased by 1.92%, further diversifying their Emerging Markets exposure.

Significant Sales and Reductions

Conversely, the portfolio reflects a strategic reduction in certain areas, particularly in Technology stocks. The NVIDIA CORP (NVDA) stock, which currently holds a very small allocation of 0.11%, saw a drastic 98.46% reduction in shares during the quarter, effectively exiting or heavily reducing this position.

The APPLE INC (AAPL) holding, also a Technology stock with a minimal 0.06% allocation, was reduced by 98.85% in shares. This indicates a clear de-emphasis on large-cap US Technology names in this period.

City Of London Investment Management also trimmed positions in other Technology holdings, including the BLACKROCK ENERGY AND RESOURCES (BGR) ETF (which has a 0.41% allocation) and the MS INDIA INVESTMENT (IIF) fund (1.78% allocation), both seeing a 100% reduction in shares held.

On the fund side, the ABRDN EMERGING MARKETS EX CHINA (AEF) allocation remained the same percentage-wise despite a change in shares, suggesting the portfolio weight was maintained through share adjustments. There were also reductions in the TAIWAN FUND (TWN) (-2.0%), the KAYNE ANDERSON ENERGY INFRAS FUND INC (KYN) (-1.4%), and the TEMPLETON DRAGON FUND (TDF) (-0.94%) during the quarter.

Overall Portfolio Strategy

The overall portfolio strategy appears heavily weighted towards Financial Services, which currently accounts for 61.84% of the total value, followed by a substantial allocation to Unknown sectors (38.0%) and a very small Technology portion (0.17%).

The significant reductions in Technology holdings, coupled with the substantial increases in Emerging Markets (including Korea, Taiwan, India, and China) and Latin American ETFs, suggest a deliberate rebalancing towards developing markets and away from high-growth US Technology stocks.

This quarter's activity also confirms the investor's engagement in both large purchases and large sales. The portfolio includes holdings with significant positive changes (large buys) and those with substantial negative changes (large sells), indicating active management and a focus on capitalizing on perceived opportunities while cutting losses or rotating away from certain sectors.

For detailed information on City Of London Investment Management Co Ltd's portfolio holdings and changes, please visit their profile on InsiderSet.