Business overview

Experience and Excellent Service

Korea Investment & Securities has over 30 years of experience in the asset management industry experience and is one of the leading distributors of fund products in Korea. In particular it distributes fund products of its wholly owned subsidiaries, such as Korea Investment Trust Management Company, along with the products of leading foreign asset management companies such as Fidelity, Merrill Lynch, and Schroder. The total assets under management of products sold is about US$22 billion, including investments from foreign investors of approximately US$1.5 billion.

KIS has particular experience of managing assets for foreign investors with the launch of a total of over 50 domestic investment trust funds exclusively for overseas investors since the first opening of the market in 1981. With a dedicated team of specialists in the regulation and operation of onshore funds, we are able to deal swiftly and efficiently with the demands and requirements of our foreign clients.

We have developed a specialized reporting system for foreign investors in onshore funds in cooperation with the trust administration company, and we also have specialized knowledge of documentation and regulatory and tax issues to ensure the rapid solution of any operational difficulties or problems.

Products & Service

International Business - Onshore Trust Funds

Korea Investment & Securities Co., Ltd. (KIS), through its predecessor companies, has been at the forefront of the internationalization of the Korean securities markets with the launch of a range of funds for investment in the Korean stock and bond markets specifically targeted at foreign investors. Since the establishment in 1981 of the first fund that allowed portfolio investment by foreign investors in Korea, Korea International Trust, we have launched over 50 funds specifically for foreign investors. Korean onshore funds have some advantages over direct investment as they are not subject to the foreign investment limits on Korean stocks, such as telecommunication companies, airlines, broadcasters, etc. and may be exempt from securities transaction taxes.

With the gradual liberalization of the Korean markets, foreign investors may now invest directly in the whole range of domestic Korean funds, as well as in specifically designed funds for foreign investors. Some examples of popular onshore Korean funds managed by Korea Investment Trust Management Company and sold through KIS are shown under Type of Funds Available.

International Business - Overseas Investment Funds

As well as selling Korean funds to overseas investors, we are also a leading company in selling overseas funds to Korean investors. The first funds wholly raised in Korea for investment overseas were set up in 1993. Since that time we have expanded the number and range of overseas investment products available, including sales of funds of overseas management companies. With the enactment of the Indirect Investment Asset Management Business Act in 2004, the scope of overseas investments was expanded and we have launched a series of fund of funds for Korean investors that invest in a variety of overseas funds including hedge funds.

As a pioneer in persuading Korean investors of the advantages of internationally diversified investment, we are now the distributor in Korea for funds managed by Fidelity Investments, Merrill Lynch Investment, Schroders, Deutsche Asset Management, and Alliance Bernstein.

Domestic Business

Korea Investment & Securities Co., Ltd. (KIS) is one of the major distributor of fund products in Korea. In particular it is the main sales agent for funds managed by its affiliated companies, Korea Investment Trust Management Co. (KITMC) and Korea Value Asset Management, which have total assets under management of about US$20 billion. In addition, the company also sells funds managed to by other asset managers, including foreign asset management companies, in order to provide a comprehensive range of products to meet the varied needs of its clients.

In comparison with other Korean securities companies that act as distributors of fund products, KIS has a particular strong sales base among retail investors and retail investors account for just under 60% of sales of asset management products, while institutional and corporate clients account for just over 40%.

The majority of fund products are classified as securities funds, which includes equity, bond, hybrid, and money market funds. Hybrid funds are divided into equity hybrid (between 50% and 60% of assets in equities) and bond hybrid (equities compose less than 50% of assets). The enactment of the Indirect Investment Asset Management Business Act expanded the range of funds that can be established to include real estate funds, derivatives funds, real asset (such as gold) funds, and fund of funds. In particular, KITMC has developed a range of fund of funds that invest in overseas funds, including fund of funds for hedge funds. The use of a fund of funds structure enables domestic retail clients to gain exposure to overseas funds that are not registered for sale in Korea.

Contact point

If you have any further queries about our investment trust products or system, please contact :

Mr. Robert Smith
Email : rsmith@truefriend.com
Tel : 82-2-3276-5694

Mr. Han, Sang-hoon
Email : shhan2@truefriend.com
Tel : 82-2-3276-5691