“Most Korean investors put their money in domestic stocks and bonds. In view of investment diversification, they need to divide up their portfolio in investment assets overseas like the United States, China, and some European countries.”
“Fidelity Asset Management will try to offer various investment products including a yuan-denominated bond fund next year. Given the current trend toward increasing the cap on retirement fund investment’s risky assets, we will try to kick off retirement pension and individual pension business in earnest next year.”
“In terms of manufacturing sector prowess in such areas as shipbuilding, automobile, electronics, and mobile handsets, Korea is highly competitive. But the Korean economy has weaknesses vis-à-vis other Asian economies such as Taiwan and Hong Kong in terms of a high household debt ratio and a narrow base of export destinations.”
—Michael Reed, CEO, Fidelity Asset Management
Fidelity plans to put its business focus on individual retirement funds. (image: Kobiz Media / Korea Bizwire)
SEOUL, Dec. 3 (Korea Bizwire) — Fidelity Asset Management, the Korean unit of Fidelity Worldwide Investment, celebrated its tenth anniversary since moving into the country. In commemoration of the occasion, the company held a press conference on December 2 at Conrad Hotel in Seoul’s Yoido and its CEO Michael Reed discussed issues related to the Korean stock market and the overall economy.
He said foreign investors are likely to increase their share of investment in Korea given the current trend for large institutional investors including pension funds in raising their position in stocks. “The same trend is under way in other stock markets elsewhere,” he said.
He added, “It is a better investment strategy for individuals to diversify their investment for after-retirement nest eggs. Investment in overseas stocks is not the all-or-nothing question but a must-fulfill condition in view of investment diversification.”
Fidelity plans to put its business focus on individual retirement funds. “The institutional settings for retirement pension funds are fast maturing including the rising share of retirement funds in risky assets such as stocks. It is likely 2015 will be the first year in Korea for financial service providers like Fidelity to kick off retirement pension and individual pension business in earnest.”
Fidelity set foot in Korea in 2000 by opening a local office. It won an asset management license in December 2004 from the Financial Services Commission and has begun full operations since then.
By M. H. Lee (mhlee@koreabizwire.com)
