Seoul-based Samsung Asset Management (SAM) has embarked on achieving its goal of becoming one of the top three homegrown asset management firms in Asia by 2020. To this end, the company, whose AUM is $166 billion, has partnered with Capital Group, whose AUM is $1.4 trillion. The two companies seek to create active investment strategies for both retail and institutional investors in Korea.
Under the announced partnership, Capital Group will help the Korea’s top manager to enhance its active investment capabilities and assist in developing asset allocation products and retirement solutions. The partnership aims to familiarize SAM with “Capital-style active management” and provide management insights on various areas like client management and business management.
Capital Group’s chairman, Timothy Armour, said that the bigger plan of the collaboration is to co-design and deliver investment solutions that will meet retirement, savings and insurance-related needs of investors in Korea. SAM’s CEO Sung-hoon Koo asserted that the partnership would give his company a platform to improve its active equity investment capability as well as develop long-term strategies for asset allocation products.
Commenting on revenue distribution between the two partners, Samsung spokesman and Capital’s head of global media relations, Tom Joyce, said they are yet to work on the economics of the partnership. He pointed out that it was too early to tell the pricing and structure of the economics.
The partnership will see Samsung Asset Management Company select and use products and services of Capital Group across its numerous distribution channels. When asked whether it was Capital Group’s first time involvement in such partnership, Tom explained the mutual interest to learn about Capital’s system and investing strategies, as well as how SAM promotes and supplies products to the Korean market.
According to eVestment, a data provider, Capital Group registered approximately $275 million in AUM, which is run on behalf of Korean investors.
About Timothy Armour
Timothy Armour is the CEO of Capital Group as well as the chairman and principal executive officer of Capital Research and Management Company, an affiliation of Capital Group. Armour also chairs the company’s committee. He has a deep background in equity portfolio management considering that he has spent over three decades working in the same area under Capital Group.
Timothy Armour started his career as a participant in the Capital’s Associates Program. Later, he worked as an equity investment analyst. Tim was in charge of global telecommunications and United States’ service companies. He is an alumnus of the Middlebury College where he graduated with a bachelor’s degree in economics.