In a significant strategic pivot, global investment bank Jefferies has announced a reallocation of funds within its Asia Pacific ex-Japan portfolio, increasing its stake in India and Taiwan while reducing exposure to China and Indonesia. This move, detailed in a strategy note dated December 28, 2025, reflects the firm's assessment of evolving macroeconomic landscapes and relative growth opportunities across the region.
Details of the Portfolio Rebalancing
Jefferies has explicitly raised the recommended weighting for both India and Taiwan by one percentage point each. This increase is directly funded by trimming the allocations to China and Indonesia. Following this adjustment, India's weighting in the portfolio now stands at 17 per cent, underscoring a heightened confidence in the country's economic trajectory. Taiwan's allocation has also been raised, though the specific new percentage was not disclosed beyond the one-point increase.
The bank cited resilient domestic demand, infrastructure-led growth, and improving corporate balance sheets as key factors driving its bullish stance on India. For Taiwan, the rationale centers on its dominant role in the global technology supply chain, particularly in high-end semiconductor manufacturing, and the sustained capital expenditure by its leading tech firms.
Rationale Behind the Strategic Shift
Jefferies' decision stems from a periodic review that considers macroeconomic developments, central bank policies, and stock-specific factors. The bank pointed to heightened uncertainty surrounding China's economic recovery and policy direction as a primary reason for reducing exposure there. Indonesia also saw a marginal reduction in its portfolio weight.
In contrast, India is viewed as a preferred market within the Asia Pacific region, benefiting from strong structural growth drivers and a positive medium-term earnings outlook. Taiwan's economy continues to be a critical beneficiary of relentless global demand for advanced chips, securing its strategic importance.
Broader Portfolio Changes and Future Outlook
The adjustments were not limited to the Asia Pacific ex-Japan portfolio. Jefferies also implemented changes in its global and international long-only equity portfolios. Notably, the firm removed Bank Central Asia from these portfolios and replaced it with Samsung Electronics. This swap indicates a strategic tilt towards gaining increased exposure to the large-cap technology sector on a global scale.
Jefferies reiterated that these weightings are dynamic and may continue to evolve in response to global economic trends and shifting market conditions. The latest reallocation signals a clear vote of confidence in the growth stories of India and Taiwan, even as it reflects a more cautious stance on other major regional economies.
