[Market Insight] The Secret of Asset Management Ace: "Managing Client Assets with a Long-Term Perspective"

2024 'Master PB' Selection
Long-term Investment Products Tailored to Ultra-High-Net-Worth Client Preferences
Utilizing Mezzanine, Unlisted Stocks, Long-Short Funds, and More

Kim Namsu, Head of the PB Team at Samsung Securities SNI Pangyo Financial Center, is being interviewed on the 11th at the Samsung Securities headquarters in Gangnam. Photo by Samsung Securities

"When I first became a Private Banker (PB), I was very interested in selecting products for long-term investment. The products I invested in 7 to 8 years ago seem to be gradually showing results recently."

Kim Namsu, team leader of the PB team at Samsung Securities SNI Pangyo Financial Center, gave this answer as the secret to his recent performance in an interview with Asia Economy held at Samsung Securities headquarters in Gangnam on the 11th. He is a PB from the headquarters' investment consulting team and was selected as a 'Master PB' in 2024. Master PBs are Samsung Securities' 'asset management aces.' They have also achieved top-tier performance over the past two years. He modestly waved off compliments, saying, "There are many PBs in the company who have worked for a very long time and are truly remarkable."

SNI is a specialized service for ultra-high-net-worth individuals introduced by Samsung Securities in 2010. Customers tend to prefer stable and long-term returns rather than short-term trading strategies. Kim himself said he is not the type to quickly respond to market volatility.

He said, "The representative products for long-term investment include mezzanine, unlisted stocks, and long-short style funds," adding, "Since Samsung Securities has a large retail customer base, we can source many high-quality deals from reputable venture capital (VC) firms. Because the investment scale is in the hundreds of billions of won, there is indeed fierce competition among in-house PBs to secure good products."

Long-term investment begets long-term investment. He said, "There is a 5-year maturity blind fund recently established, and those who invested in a similar fund 5 years ago reinvested again," adding, "Some products do not allow early redemption, but since the performance was good, investors trust and invest again." In fact, a fund product established in June 2018 recorded a total return of 130% after 5 years of waiting. After deducting performance fees and taxes, the net return reached 105%.

Kim Namsu, Head of the PB Team at Samsung Securities SNI Pangyo Financial Center, is being interviewed on the 11th at the Samsung Securities headquarters in Gangnam. Photo by Samsung Securities

"Good Products Before Tax Savings" ... "Always Keep an Eye on U.S. Stocks"

Kim actively utilizes tax-saving strategies through investment in unlisted stocks. If unlisted stocks held become listed and are then sold on the market, the capital gains tax burden on trading profits disappears. Bond products are also essential assets from a tax-saving perspective. He emphasized, "However, if there is a moment to choose between tax savings and good products, I believe selecting good product groups first and then considering tax savings should be the priority."

He also mentioned that exchange-traded funds (ETFs), which allow investment in various domestic and international assets and thematic products, are good supplementary tools. For example, when wanting to invest in AI semiconductors, it is better to approach through ETFs rather than investing in individual companies. An ETF related to obesity, which is gaining attention overseas, is a good example. With rising commodity prices and strong steel demand in India, he is also paying attention to related commodity ETFs.

In the global market, he placed the U.S. at the top. Although the U.S. stock market is approaching the 40,000 mark, the profit levels are rising together, so it is not considered an excessively overvalued zone. The Dow Jones Industrial Average was hovering around 38,000 as of the close on the 11th, up 14.3% compared to a year ago. He said, "The U.S. is actively buying back and retiring its own shares and is very focused on shareholder returns, so from an investor's perspective, it naturally takes priority," adding, "Even if it is somewhat expensive, it has investment appeal. There may be price or timing adjustments, but it is important to keep an eye on it."

On the other hand, he has little interest in the Chinese market. First, it is a place that high-net-worth individuals avoid. SNI clients prefer comfortable management over short-term high returns when managing funds. However, he said that the Chinese government's active economic stimulus measures and improvements in economic indicators such as the Purchasing Managers' Index (PMI) are positive. Nevertheless, he added that he views the U.S. and Korea more positively than China.