Asset Firms Eye Korea

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Asset Firms Eye Korea


A number of the world's major asset management firms are making inroads into Korea's investment trust market. Some have local partners, while others are setting up independent operations.

On Wednesday, UBS Asset Management of Switzerland and Korea Investment Trust Management Co. announced a business alliance.

In addition, UBS Asset Management has an option to buy a stake in the Seoul-based trust firm, which was nationalized last year.

"UBS Asset Management intended to purchase a controlling interest in Korea Investment Trust and take over management," said Chung Sam-ki, an official at the trust company. "However, it hasn't yet reached an agreement with the government."

Under the new partnership, to be signed Monday, UBS will assign a global investment officer to Korea Investment Trust to provide expertise on asset management, research and new products. The two companies will also cooperate in marketing, and Korea Investment Trust will tap UBS's global network to sell its products overseas and vice versa. Both companies will jointly develop new investment products for the Korean market.

"This alliance provides a strong basis for the expansion of our asset management activities in one of the most important markets in the Asia-Pacific region," UBS Asset Management Chief Executive John Fraser said in a statement.

In January, Prudential said that it would invest $90 million in CJ Investment Trust & Securities Co. on March 14. The U.S. insurance group also has the option of investing an additional $400 million within 36 months. If it does, it would become the largest stockholder of CJ Investment Trust.

Franklin Templeton Investments has already set up a wholly-owned investment trust firm after ending its alliance with Good Morning Securities Co., while Allianz AG of Germany will Friday launch Hana-Allianz Investment Trust Co., a joint venture with Hana Bank.

Schroders was awarded a preliminary fund management license from the Financial Supervisory Commission in January and is waiting for a permit to set up an investment trust firm. ING and Kommerzbank AG have also joined to enter the Korean market, and Fidelity, Mercury and ABN AMRO are all considering an entry here.



by Chung Jeh-won / Kim Hyun-chul

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