Capital group and Samsung Asset Management (SAM), a company based in Seoul have announced their engagement as partners aiming to together develop investment strategies for both retail and institutional investors in Korea. Capital Group is a leading fund management firm administering about $1.4 trillion in the form of assets while Samsung asset management is also a leading manager in Korea managing $166 billion in the form of AUM. Some of their goals include developing retirement solutions as well as asset allocation products and enhancement of SAM’s active investment competence.
According to the agreement, Capital group is supposed to assist Samsung Asset Investment to understand Capital’s aggressive management style and other business areas such as commerce management and client administration. Spokesman of Samsung Asset Investment said that the engagement with Capital group would help them achieve their long awaited goal of joining Asia’s best three home-produced asset management companies by the year 2020.
Samsung Asset Investment CEO, Sung-hoon Koo also believes that the partnership is a significant step for the company. He says that it will lead to the upgrading of their equity investment competence and also help in the implementation of lifecycle asset allocation of product strategies.
Tim Armour who is the chairman of Capital Group says that their ultimate achievement will be the designing of an investment solution that will fulfill retirement, savings as well as insurance related needs of investors across Korea.
SAM’s spokesman and Capital’s head of global relations, Tom Joyce said that the financial details of their engagement are yet to be communicated because it is too early to determine the pricing and the structures. Information such as the distribution of the co-developed products and sharing of the revenues were yet to be worked through as Tom Joyce stated and thus could not be released. As per the news release, the engagement of Samsung Asset Investment and Capital Group will also involve selection and usage of the appropriate products and services from Capital Group over the numerous distribution channels from Samsung.
When Tom Joyce was asked if they have ever had such engagements previously, he avoided a direct answer by saying that the interest of Samsung Asset Investment is to learn more about the systems they apply for investment purposes. He also added that their interest as Capital Group is to study the marketing strategies that Samsung Asset Investment applies to distribute their products to investors across Korea.
According to Evestment, a global investment data provider, Capital Group managed to list about $275 million in AUM administered on behalf of investors in Korea.
Click here to learn more about Tim Armour.