Samsung Life has forged a strategic alliance with New York Life Investments to bolster their respective plans to pursue opportunities in global asset management businesses.
As the first initiative under the partnership, the two companies will launch a US$500 million joint private equity fund, Samsung-U.S. Dynamic Asset Allocation Fund.
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The two companies will put up US$250 million each for the hybrid fund, which is expected to launch at the end of September and set to invest in U.S. equities and debt markets.
As a part of the deal, New York Life Investments will oversee the asset allocation strategies in the US bond market, while Samsung Life Investment America will run the equity portfolio.
The two firms will also seek to expand their alliance further, seeking various new investment opportunities and secure competitiveness in the global asset management market.
Koo Sung-hoon, CIO of Samsung Life, said: "The fund will mostly target Korean institutional and retail clientsand hopefully we can try the international marketplace as well if the fund goes well. Institutional clients are our main target."
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By GlobalDataSamsung Asset Management will be responsible for launching and managing the deal, while the group subsidiaries, including Samsung Securities, will market it to institutions and private investors.
Following the deal, the two companies will jointly explore investment opportunities in the U.S. real estate market and look into joint initiatives in the Greater Asian asset management market, including Korea.
Samsung Life CEO Keun-Hee Park said: "With the alliance with New York Life Investments, Samsung Life will seek advanced investment techniques as well as securing more overseas investment opportunities. This alliance will work as a foundation for Samsung to globalize our asset management business."
Samsung Life has managed US$137 billion in AUM as of end-2012.
