Robeco Asset Management: "Reduce US Bias and Diversify into Asia.. Ideal Time for Diversified Investment"

[Financial News] The second half of this year is the right time to reduce excessive exposure to the US market and diversify investments into the Asian market. The main reasons are the rising attractiveness of Asian stock valuations, including Korea's policy of expanding shareholder returns. It has already been observed that global fund managers and other investors are reducing their exposure to US asset classes.
Joshua Crabb, Asia-Pacific Equity Management Director at Robeco Asset Management, held a press conference on the '2025 Second Half Global Stock Market Outlook' at the FKI Tower of the Korea Economic Association in Yeouido, Seoul on the 17th, and said, "Significant investment opportunities have recently opened up in Asia," and "It is time to reconsider the existing US-centric portfolio."
The US stock market is said to be overvalued compared to historical averages despite a slowdown in profit momentum. Nevertheless, over the past 10 years, the proportion of US stocks held by investors has doubled from 9% to 18%. Crabb emphasized, "Most developed and emerging market stocks are neutral or undervalued, but the US continues to be exceptionally overvalued," and "However, with growing concerns about US economic growth, it is necessary to redistribute into cash for downside risk management."
On the other hand, he presented an analysis that there are differentiated investment opportunities by country in the Asian region. In particular, in the case of Korea, he predicted that corporate value-up programs and amendments to the Commercial Act would lead to an expansion of shareholder returns. Crabb said, "The new government is expanding the fiduciary duty of corporate directors to include both the company and shareholders, and is promoting separate taxation of dividend income and inclusion in the MSCI Developed Markets Index," adding, "Through so-called 'Value-Up 2.0', it is expected to achieve similar results through a similar path to Japan." He also provided specific views on investment opportunities in the Korean market through additional Q&A. Crabb explained, "The Korean market has greater opportunities in specific areas such as power grids, nuclear power supply chains, and defense industries," and "These sectors have competitive global companies and have benefited from industrial growth and supply chain diversification." He added, "Shipbuilding is also seen as promising in the long term."
Crabb also focused on the Chinese market. He explained that the 12-month forward return on equity (ROE) of the MSCI China Index has passed its bottom. He said, "China is showing a turnaround rebound for the first time through internal corporate restructuring and strengthening shareholder returns after 13 consecutive quarters of negative earnings outlook adjustments," and "Despite sluggish domestic demand, China's pet industry and the 'LaBubu' collectible blind box toy market have grown rapidly into mainstream categories over the past 10 years."
Meanwhile, Robeco Asset Management, a Netherlands-based global asset management company, manages assets (AUM) worth $237 billion in 13 countries worldwide.

elikim@fnnews.com Kim Mi-hee, reporter