Rising Chinese salaries and US wage stagnation are causing factory repatriation and a US ‘manufacturing renaissance’, managers and allocators say.
But he adds: "We have had restrained unit labour costs that have been basically flat over 30 years." Herrmann also points to labour market stability and lower transport costs as "all in manufacturers' considerations, making sense to relocate".
The repatriation theme already found expression in portfolios within some of the six US growth strategies run by Herrmann's team.
He says the southern American network of the Kansas City Southern Railway has benefited from North American companies producing goods in Mexico.
Regional banks in newly revived parts of America are mentioned by both Monchau and Herrmann. Texas-based Comerica Bank, with 71% of deposits from manufacturers, is one Herrmann mentions.
But it is not just Asia losing some US producers' factories. The high Canadian dollar, and the potential to halve costs, has encouraged Caterpillar to relocate some production from Canada.
German electronics giant Siemens is consolidating its production in North Carolina by closing its Ontario centre, while Electrolux is looking to close its Quebec plant and move to Memphis.
Herrmann says it is important when managing funds to keep an open mind about where growth can emerge, and sectors once considered value can become growth, and vice versa. "Growth and value are not two opposing sides of one coin," he says.
Both Monchau and Herrmann agree the earnings exposure of US companies to emerging markets remains an important theme.
The latter says more than 40% of revenue for S&P 500 companies comes from outside the US, "and a number of our portfolio holdings have higher numbers than them".
For milk formula producer Mead Johnson Nutrition Co, for example, the figure is 63%, and Hermann said there remained room for growth, as the $20bn market for the formula grew 7% to 8% a year.
"Growth rates in some EM countries are slowing," Herrmann says.
China recently cut its official expectation of GDP expansion to 7.5%, while Brazil has slowed from 7.5% to about 3%.