Shinhan Asset Management Launches 'Shinhan Nuver Government US Value Stock Fund'

2023, Value Stocks-Friendly Macro Environment
US Undervalued Value Stock Investment Funds Attract Attention

[Asia Economy Reporter Kwangho Lee] Shinhan Asset Management launched the ‘Shinhan Neuberger Berman US Value Equity Fund’ on the 17th through Samsung Securities, investing in undervalued US value stocks.

The Shinhan Neuberger Berman US Value Equity Fund invests in the ‘Neuberger Berman US Large Cap Value Fund (USD)’ managed by a US-based comprehensive asset management company with 85 years of history and assets under management of 500 trillion KRW. The fund is managed by a dedicated team specializing in US value stock investments, with an average of 31 years of experience.

In 2022, considered the worst year due to simultaneous downturns in stock and bond markets, the Neuberger Berman fund recorded a performance of -1.98% year-to-date as of the end of December. This significantly outperformed the S&P 500, the representative US index, which was -18.63%, and the fund’s benchmark, the Russell 1000 Value Index, which was -9.92%, during the same period. In terms of long-term performance, the fund has achieved an average annual return of 13.33% over the past three years, nearly double that of its benchmark. Additionally, it received the highest 5-star rating from global fund rating agencies such as Morningstar for the 3-, 5-, and 10-year periods.

This fund offers an optimal investment alternative in the era of value stocks that shine during economic recovery after crises by investing in value stocks that perform well during inflationary periods. As of December 2022, the US recorded a 6.5% Consumer Price Index (CPI), and this high inflation rate is expected to continue into 2023.

The higher the inflation rate, the stronger value stocks with solid financial conditions and robust corporate earnings perform compared to growth stocks. In fact, looking at the S&P 500 Value/Growth Index, value stocks have surpassed growth stocks since the second half of 2020, when interest rate hikes were first signaled, and currently show a significant gap.

Park Jung-ho, head of the Fund Solutions Team at Shinhan Asset Management, said, “A favorable macro environment has been created for focusing on value stocks, and the valuation appeal of value stocks compared to growth stocks remains strong, making this the best timing to invest in value stocks. Since its inception in 2006, the Neuberger Berman US Value Equity Fund has consistently outperformed the US large-cap value category and has ranked within the top 2 percent over periods longer than three years, maintaining outstanding performance.”

The Shinhan Neuberger Berman US Value Equity Fund is launched as a currency-hedged type. The annual total expense ratio is 0.850% based on the fee-exempt online type (C-e).