SEOUL, July 22 (Korea Bizwire) — South Korea’s asset management firms have seen an influx of money this year as their indirect investment vehicles enjoy popularity amid the low interest rate environment, data showed Wednesday.
The combined assets under management by local firms reached 812.87 trillion won (US$704.1 billion) as of Friday, up 18.9 percent from the end of 2014, according to the Korea Financial Investment Association.
Asset management companies issue and sell funds that invest in equities, fixed income and market-related indexes on various platforms and provide investment consulting services for institutional clients.
Samsung Asset Management, the financial arm of Samsung Group, added 69.85 trillion won to have 193.5 trillion won under management, with a lump sum of new fund coming from Samsung Life Insurance, an insurance unit under Samsung.
It was expected to post 21.9 billion won in net profit in the first half of this year, with strong fund sales on the back of a stock market rally, according to guidance reports.
Mirae Asset Financial Group‘s net asset value grew at the fastest clip, with its assets under management jumping 18 percent to 49.12 trillion won over the past six months.
Mirae Asset was expected to have logged a net profit of 30 billion won in the January-June period, marking growth from a year ago, when excepting for 26 billion won in real estate sales booked on its balance sheet.