Kiwoom Asset Management & Neuberger Berman Launch New US Small and Mid-Cap Equity Investment Fund

[Asia Economy Reporter Yoonju Hwang] Kiwoom Asset Management has launched a US Small Cap fund in collaboration with global asset manager Neuberger Berman. This move comes from the judgment that the returns of small and mid-cap stocks, which consistently generate profits based on a solid financial foundation, are more stable as the US tightening policy begins in earnest.

Kiwoom Asset Management announced on the 11th that it has launched the 'Kiwoom Neuberger Berman US Small Cap Securities Private Investment Trust (H/UH) [Equity - Fund of Funds]'.

The newly launched fund invests indirectly in Neuberger Berman's ‘Neuberger Berman US Small Cap Fund’. It seeks alpha returns by investing in small and mid-sized companies in the US with solid financial performance and positive business outlooks.

Before the US interest rate hikes began, the market was driven by liquidity, focusing mainly on large-cap and growth stocks with high future value despite current performance shortcomings. However, as liquidity is now being withdrawn, investments are being made based on solid performance on a stock-by-stock basis.

Kiwoom Asset Management focused on the US, which has the strongest fundamentals globally, because small and mid-cap stocks tend to have relatively high volatility, and collaborated with Neuberger Berman, a local asset manager with excellent management capabilities.

The underlying fund selects and invests in small and mid-cap stocks listed on the US stock market that have above-average business quality, sustainable growth potential, and attractive valuations.

The planned portfolio includes ▲Pool Corporation (a supplier of swimming pool products) ▲West Pharmaceutical Services (medical packaging and medical components) ▲Bio-Techne Corporation (manufacturer of biotechnology reagents and instruments) ▲Fox Factory Holding Corp (manufacturer of automotive and truck parts) ▲Manhattan Associates (supply chain management software), among others.

The portfolio will be constructed mainly with stocks that have low debt ratios and high profitability (ROA) to pursue lower volatility and beta compared to the Russell 2000, a representative US small and mid-cap index.

The fund is currently available for sale through Shin Young Securities, and plans to gradually expand sales channels according to investor demand.

This content was produced with the assistance of AI translation services.