Money turns to U.S. value stocks as Shinhan Neuberger Berman fund's net assets top 100 billion won

[Financial News] As the valuation gap between U.S. growth and value stocks narrows, value funds investing in undervalued large-cap stocks are growing in size.
Shinhan Asset Management announced on the 13th that net assets of the “Shinhan Neuberger Berman U.S. Value Stock Fund (H)” had surpassed 100 billion won.
The product is a fund of funds that invests in U.S.-based asset manager Neuberger Berman’s “US Large Cap Value” fund. It uses a strategy of analyzing companies’ profitability, financial structure and cash flow, among other factors, to select undervalued, high-quality U.S. large-cap stocks.
The underlying fund diversifies its investments across 50 to 65 stocks in major sectors such as financials, health care, materials, industrials, information technology (IT) and energy. Major holdings include Amazon.com, Inc., ExxonMobil, Southern Copper, Microsoft and JPMorgan Chase. Its portfolio is currently focused on materials, health care and energy, among other sectors.
Performance has also remained strong. As of the 8th, the managed fund had returned 15.86% year to date and 22.48% over the past year.
Kim Seong-hun, head of Global Equity Investment at Shinhan Asset Management, said, “We believe the macroeconomic environment is currently favorable to U.S. value stocks, and that their investment appeal will remain high. With the valuation gap between growth and value stocks having narrowed to a historically low level, we expect value stocks to deliver relatively solid performance going forward as their undervaluation is resolved.”
Shinhan Asset Management also plans to launch a currency-unhedged product to give investors more choice. The product is currently available through NH Investment & Securities, Mirae Asset Securities, Samsung Securities, Eugene Investment & Securities, Shinhan Bank, KB Kookmin Bank, Industrial Bank of Korea and Busan Bank. 

[email protected] Bae Han-geul Reporter