NETEASE INC

The rotation is dominated by two EM-allocated flagship holders. UBS AM — the US sub-advisory arm of$1.2 trillion UBS Asset Management — reduced from 8.1M shares (worth$904M) to8.06M shares ($678M after marking), an$217M value decline that stems from both a share reduction (-68,000 shares) and the mark-to-market effect of a stock in modest decline through Q1. Ninety One UK — the London-based emerging-markets quality franchise — went from$703.7M at 6.3M shares to$540.2M at6.3M shares (flat share count, value-down on mark-to-market). Neither reduction is a complete exit, and neither tells us anything specific about NetEase's fundamentals, but together they represent$380M of pressure on the register's top two weights from a cohort of managers whose portfolios have been systematically rotating away from Chinese consumer and technology names throughout 2025-2026 on regulatory and tariff uncertainty.

Harding Loevner, a long-tenured NetEase holder and an EM-quality manager, was the third meaningful reduction — down from $260.1M to$179.7M, cutting 150,000 shares. Greenwoods Asset Management (Hong Kong) reduced by$85M. Man Group reduced$33M. Arrowstreet — a Boston-based quant manager with heavy EM exposure — was the most aggressive reducer, cutting from$121.9M to $67.9M, a$54.9M haircut and the largest share reduction in the file (−610,000 shares). Capital World Investors was the most dramatic single move in the file: down from $1.5B to$605.8M, cutting$1.47B in value and roughly 967,000 shares in what looks like a full-style rotation out of Chinese internet. Individual reductions are normal in large-cap EM technology; the simultaneous clustering of six to eight top-holder reductions across a register this concentrated is not.