NH Amundi Asset Management "Pilseung Korea Fund 1-Year Return 56%"

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[Asia Economy Reporter Minji Lee] The ‘Pilsung Korea Fund,’ which invested in 소재·부품·장비 (SoBuJang, materials, parts, and equipment) companies, recorded a high return of 56% over one year.

Baek Young-hoon, CEO of NH-Amundi Asset Management

According to NH-Amundi Asset Management’s ‘Pilsung Korea 1st Anniversary Performance Report’ on the 10th, the fund achieved a 56% return over one year, more than twice the KOSPI’s increase rate (22%). Despite the impact of COVID-19, investor interest in mid- to long-term growth themes increased, leading to a significant rise in the stock prices of SoBuJang companies.

The Pilsung Korea Fund is an equity fund that invests in Korean companies in the SoBuJang sector, which has faced difficulties due to Japan’s trade restrictions, focusing on those that have expanded market share and global competitiveness through localization. NH-Amundi Asset Management, which manages the fund, stated, “Companies related to semiconductor materials and parts, eco-friendly parts, and IT materials, parts, and equipment showed favorable performance,” adding, “Some companies among the investment targets achieved a corporate value increase of over 300%.”

As of the end of last month, the Pilsung Korea Fund invested in a total of 68 stocks. Among the investment targets, 36 were SoBuJang companies, accounting for 41% of the total. The top 10 companies with the highest investment proportions included Samsung Electronics (22%), S&S Tech (4.56%), Naver (4.49%), LG Chem (4.08%), SK Hynix (3.85%), Kakao (3.34%), Sang-A Frontec (3.24%), Dongjin Semichem (2.62%), Samsung SDI (2.52%), and Duksan Neolux (2.34%).

The company explained, “The SoBuJang sector consists mostly of small- and mid-cap stocks, so its market capitalization share in the domestic stock market is less than 10%,” adding, “Considering this, the investment proportion in this sector is relatively high compared to other products.”

NH-Amundi Asset Management plans to maintain the current proportion of the semiconductor and secondary battery value chains, which are expected to grow in the mid to long term, while expanding interest in companies related to the Green New Deal policy. Promising investment targets include SoBuJang companies related to hydrogen vehicles, wind power, and solar energy.

Baeyoung Hoon, CEO of NH-Amundi Asset Management, said, “We invested in 39 domestic SoBuJang stocks over one year, contributing to the enhancement of corporate value and delivering high returns to investors,” adding, “The funds raised so far will be used to support research for the development of the domestic SoBuJang industry.” He emphasized, “The ESG (environmental, social responsibility, governance) products to be introduced in the future are directly linked to Korea’s sustainable survival and future, so we will strive to establish them as flagship funds.”