Investment Rating - The report does not explicitly provide an investment rating for the Korean ETF market Core Insights - The Korean ETF market is the fourth largest in the Asia-Pacific region, with a total size of approximately $219.3 billion as of December 31, 2025, accounting for 1.11% of the global ETF market [8][10] - The market features a high proportion of actively managed ETFs, which is a distinctive characteristic, with active products making up about 15% of the total [22][27] - Major players in the market include Samsung Asset Management and Mirae Asset, which together hold approximately 70% of the market share [40] Summary by Sections Market Overview - The Korean ETF market began in 2002 and has seen continuous growth, with a significant increase in the share of money market ETFs since 2020 [8][10] - As of 2025, the asset composition includes 62% in equities, 17% in money market instruments, and 13% in fixed income [10][11] Product Characteristics - The top 10 ETFs primarily track major indices such as KOSPI 200, S&P 500, and NASDAQ 100, with a notable presence of cash management ETFs [50][51] - Recent high-performing products include leveraged ETFs focused on U.S. tech stocks and the semiconductor sector, with annual returns reaching 150%-300% [57] Investment Opportunities - Investors can access Korean ETFs through domestic and Hong Kong markets, with notable products including the Huatai-PB CSI Korea Exchange Semiconductor ETF and various leveraged products [3][47] - The report highlights the potential for diversification and capturing growth in Korea's unique industries through these investment vehicles [3][47] Competitive Landscape - Samsung Asset Management and Mirae Asset are the leading firms, with Samsung focusing on comprehensive product innovation and Mirae Asset expanding its global footprint [40][45] - The competitive concentration is high, with the top three firms holding 76% of the market share [40] Future Trends - The report anticipates continued growth in the Korean ETF market, particularly in sectors like technology and semiconductors, driven by strong market performance and investor interest [58]

Core Insights - The chairman and CEO of Neuberger Berman, George H. Walker, emphasizes the firm's ongoing high allocation to China, indicating that significant foreign investment in China will take time to materialize [1][9] - Walker notes the importance of diversification and maintaining investments in a complex macroeconomic environment, suggesting that global economic growth may be below expectations [1][11] Company Overview - Neuberger Berman, founded in 1939, manages assets totaling $558 billion, approximately 3.97 trillion RMB, and operates in 26 countries and 39 cities [2] - The firm has a strong presence in both public and private markets, with $358 billion in public market assets and $150 billion in private market assets as of the end of 2024 [2] Investment Strategy - Walker highlights the growing trend of active management firms entering the ETF space, with Neuberger Berman's active ETF business growing to approximately $2.5 billion [5] - The firm focuses on providing unique value in areas where it can compete effectively, particularly in active ETFs, which are expected to grow significantly [4][6] Market Trends - The demand for transparency and tax efficiency is driving the growth of active ETFs, with U.S. investors increasingly favoring these products over traditional mutual funds [5][6] - Active ETFs are currently experiencing growth rates that exceed those of passive ETFs, indicating their potential in the market [6] Risk Management - Walker stresses the importance of proactive decision-making to navigate potential crises, drawing from experiences during the 2008 financial crisis [3] - The firm aims to align its compensation structure with client interests, ensuring that deferred compensation is tied to client performance rather than company stock prices [7] Global Perspective - Neuberger Berman has maintained an overweight position in Chinese assets, reflecting a positive outlook despite the need for time before significant foreign investment increases [9] - The firm acknowledges the challenges posed by high valuations in U.S. tech stocks, suggesting that the focus should be on investment strategies rather than outright investment decisions [10]

Core Viewpoint - The chairman and CEO of Neuberger Berman, George H. Walker, emphasizes the firm's ongoing high allocation to China, suggesting that significant increases in foreign investment in China will take time [2][16]. Group 1: Company Overview - Neuberger Berman, founded in 1939, manages assets totaling $558 billion, approximately 3.97 trillion RMB, and operates in 26 countries and 39 cities [3]. - The firm has a strong presence in both public and private markets, with $358 billion in public market assets and $150 billion in private market assets as of the end of 2024 [3]. - Neuberger Berman leads in the Qualified Domestic Limited Partner (QDLP) business in mainland China [3]. Group 2: Investment Strategy and Market Outlook - Walker believes that the global economic growth may fall below expectations, and investors should focus on maintaining diversified portfolios [2]. - The rise of global ETFs is noted, with active management firms increasingly entering this space, which is expected to continue [8]. - The firm has seen its active ETF business grow from a small base to approximately $2.5 billion, driven by new client inflows [9]. Group 3: Active vs. Passive Management - Active ETFs are experiencing growth at a rate that surpasses passive ETFs, indicating significant potential for active management products [11]. - The firm acknowledges that while the popularity of passive investment may increase if the market remains concentrated in a few stocks, active management will thrive in a diversified market [11]. Group 4: Client Concerns and Risk Management - Chinese clients are particularly focused on risk control capabilities and the volatility of their portfolios [15]. - Walker highlights the importance of maintaining discipline in investment strategies, especially during market downturns, to avoid the pitfalls of market timing [19].