NH-Amundi Asset Management's Global Aerospace Fund Surpasses 200 Billion KRW in Net Assets

NH-Amundi Asset Management announced on June 19 that its Global Aerospace Fund (UH/H) has surpassed 200 billion KRW in total net assets.

According to Shinhan Fund Partners, as of June 17, the Global Aerospace Fund (UH/H) recorded net assets of 211.3 billion KRW. This marks an increase of 50 billion KRW in just one month since it surpassed 150 billion KRW last month.

Despite high volatility in major global stock markets, the fund has delivered solid performance, recording returns of 36.39% year-to-date, 56.92% over one year, and 152.71% over three years as of June 16.

The NH-Amundi Global Aerospace Fund (UH/H) is the first fund in Korea to invest in the global aerospace industry, launched in May 2022. Based on big data from financial data analytics firm FactSet, the fund selects global companies with strong correlations to the aerospace industry. Major holdings include Rheinmetall, Howmet Aerospace, Hanwha Aerospace, and Hyundai Rotem.

Recently, rising geopolitical tensions and rearmament moves by major European countries have been driving the sector. Geopolitical risks such as the prolonged Ukraine-Russia war and heightened tensions between Israel and Iran continue to persist.

In particular, since Donald Trump assumed the U.S. presidency, he has demanded that NATO member states increase their defense spending to 5% of GDP. Additionally, the European Union announced its "European Rearmament Plan" in March, totaling 800 billion euros (approximately 1,258 trillion KRW). As a result, the global defense industry is entering a period of structural growth.

The advent of the "New Space" era, in which the private sector leads the aerospace industry, is also increasing the investment appeal of the aerospace sector. Private companies are challenging the aerospace industry, fueling technological competition in areas such as satellites, 3D printing, and reusable rockets. Bank of America forecasts that the aerospace industry will grow to 1.4 trillion dollars by 2030.

Park Jin-ho, Head of Equity Investment at NH-Amundi Asset Management, stated, "The aerospace and defense industries are continuing their structural growth due to the arrival of the New Space era and the prolonged nature of geopolitical risks," adding, "This is the most noteworthy sector for mid- to long-term investment."