Samsung Asset Management Achieves Top 'Excellent' Grade in 2022 Fund Management Evaluation

[Asia Economy Reporter Hwang Yoon-joo] Samsung Asset Management has been recognized for its management capabilities related to the Ministry of Employment and Labor’s Industrial Accident Compensation Insurance and Prevention Fund (Industrial Accident Insurance Fund), in which it participates as a lead manager.

Samsung Asset Management announced on the 26th that it received the highest grade, "Excellent," in the 2022 Ministry of Economy and Finance Fund Management Evaluation.

This is the first time since the Ministry of Employment and Labor began managing the Industrial Accident Insurance Fund in 2002 that the fund management performance has received the highest grade, and it is also the first achievement among major OCIO fund management cases. As of the end of 2021, Samsung Asset Management manages the Industrial Accident Insurance Fund worth 22.3 trillion KRW.

The 2022 Fund Management Evaluation, conducted by the Ministry of Economy and Finance, is divided into six grades: Excellent, Superior, Good, Average, Poor, and Very Poor. By obtaining the highest grade this time, it is expected to secure a superior position in the upcoming re-selection of the lead manager for the third term of the Industrial Accident Insurance Fund scheduled for next year.

Samsung Asset Management explained that through collaboration with the Ministry of Employment and Labor’s asset management team, the fund’s managing entity, they introduced ALM (Asset Liability Management) and established a mid- to long-term asset allocation strategy tailored to the characteristics of social insurance funds, developing it into an optimized ALM model over five years. This was the reason they achieved excellent results (8.94%) in the quantitative evaluation indicator of "3-year mid- to long-term asset management return" in this fund management evaluation.

Cho Sung-seop, Head of the Industrial Accident Fund Business Division, stated, "The Ministry of Employment and Labor and Samsung Asset Management have established a close decision-making system from management philosophy to market response, enabling swift implementation of dynamic asset allocation and style allocation strategies amid unstable market conditions." He added, "Samsung Asset Management’s management of the Industrial Accident Insurance Fund has established itself as a model case of Full OCIO, encompassing all areas from fund financial forecasting to asset allocation strategy, asset management, and performance evaluation."