Korea Investment & Securities to sell Goldman Sachs funds

Korea Investment & Securities Co. said on Tuesday it is set to sell funds operated by Goldman Sachs Asset Management LP in South Korea, offering locals various global financial products amid a craze for overseas investments in Asia’s fourth-largest economy.

The brokerage unit of Korea Investment Holdings Co. on Monday signed a memorandum of understanding for the fund sales with the asset manager of Goldman Sachs.

They also agreed to cooperate in various businesses such as fund sourcing for Goldman Sachs Asset Management, market updates and data sharing, and knowledge exchange among employees of the two companies, according to Korea Investment & Securities.

“This collaboration with Goldman Sachs marks the beginning of Korea Investment & Securities setting a new global standard for K-finance in the global financial market,” said Kim Sung-hwan, chief executive of the South Korean securities firm.

”We will continue to proactively introduce world-class innovative financial products to support client asset growth and become the No. 1 investment company in Asia, the most globalized in Korea.”

Ronald Lee, co-head of the client solutions group in Asia Pacific for Goldman Sachs Asset Management, said the collaboration is expected to combine Korea Investment & Securities’ expertise and strong sales network with Goldman Sachs Asset Management’s global presence, proven investment capabilities and risk management framework.

Goldman Sachs Asset Management has $3.1 trillion in assets under supervision as of the end of the first quarter.

INCREASING GLOBAL PRODUCTS

Korea Investment & Securities said its cumulative balance of global financial products for individual investors more than doubled to 11.5 trillion won ($8.3 billion) as of the end of the first quarter since Kim took office in late 2023. The balance accounted for 16% of its total balance of 73 trillion won in its personal financial products.

That came as Korea Investment & Securities actively joined hands with major global financial firms.

The brokerage formed a strategic partnership with Carlyle Group to offer collateralized loan obligation (CLO) products in South Korea and develop credit-based products while working with Anchorage Capital to expand the structured credit business.

Korea Investment & Securities set up SF Credit Partners, a joint venture in New York with US independent investment bank Stifel Financial Corp., for acquisition financing and private equity loan businesses.

The securities firm aims to build up investment experience and increase product offerings to domestic investors through various global partnerships.

Write to Sung-Mi Shim at smshim@hankyung.com
 
Jongwoo Cheon edited this article.