这一要求对美国投资公司来说难以达成，尤其是在今年美股正处于史上集中度最高的市场中。This year, the U.S. stock market is unprecedentedly concentrated, with nvidia, apple, and other technology stocks contributing to about half of the index's increase. Funds such as Fidelity and Pimco were forced to sell technology stocks in order to comply with regulatory requirements to keep the investment proportion of heavy-weighted stocks in the portfolio below 50%.
The highly concentrated stock market situation has put large US investment funds such as Fidelity and Pimco in a dilemma. According to the latest reports, these funds are forced to sell technology stocks to avoid trouble with the tax authorities.
According to the US Internal Revenue Service's requirements, the total investment proportion of weighted stocks in the investment portfolios of any regulated investment company should not exceed 50%, with investments exceeding 5% considered as weighted stocks. Regulators hope investment institutions diversify and spread their investments.
This requirement is difficult for American investment firms to meet, especially as the US stock market is currently at its highest concentration in history. So far this year, only $NVIDIA (NVDA.US)$Please use your Futubull account to access the feature.$Apple (AAPL.US)$Please use your Futubull account to access the feature.$Meta Platforms (META.US)$N/A.$Microsoft (MSFT.US)$And.$Amazon (AMZN.US)$These five large technology companies contributed to approximately 46% of the increase in the s&p 500 index.
This also means that large fund companies wanting to hold significant positions in technology stocks like Nvidia and Apple are facing regulatory risks of hitting the 50% red line. According to the Financial Times of the UK, on October 24th, Fidelity and Pimco-managed large investment funds were forced to sell stocks to comply with regulations.
As of the end of September, more than 52% of Fidelity's $67 billion blue-chip growth fund's investment portfolio is concentrated in weighted stocks - Nvidia, Apple, Amazon, Microsoft, Alphabet, and Meta. According to Morningstar's data, as of last week, BlackRock's recently launched long-term US stock ETF also has 52% of its assets in stocks with a portfolio weighting of 5%.
Pimco's $63 billion blue-chip growth fund has exceeded this 50% threshold for six out of the past nine months, but it rebalances its portfolio at the end of each quarter to comply with the US Internal Revenue Service's requirements.
Reports indicate that more and more funds in the United States are approaching a 50% limit, making it difficult for them to increase large holdings. For example,$ARK Innovation ETF (ARKK.US)$43% of their assets come from large holdings.
Stephen DD Hamilton, a partner at the Faegre Drinker law firm in the usa, said that restructuring holdings may drag down the performance of the fund.
If you hold a highly concentrated position, the solution may involve selling a large amount of stocks. This is obviously not the most ideal approach.
Jim Tierney, growth portfolio manager at AllianceBernstein, stated:
For active funds, this is indeed a very difficult situation. In most cases, for a company you are very confident in, having a position of 6% or 7% in the investment portfolio is the maximum value most investment managers are willing to accept. Today, this proportion may be considered neutral weight or even below standard, which is unprecedented.
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