Securing Long-term Stable Profits

KIS provides consulting on investments in bonds in emerging markets

Korea Investment and Securities Co. (KIS) traces its beginnings back to Korea Investment Trust Co. in 1974 and boasts extensive and long experience managing financial assets. KIS President and CEO Ryu Sang-ho said, “The retirement fund market, too, belongs to the integrated asset management area in the end.”
The firm manages individual and corporate retirement funds and focuses on providing comprehensive services in order to make long-term profits. Under these guidelines, the company has been recommending investments in retirement funds, such as bond-type funds that can make stable profits or “smart” funds, to its customers.
Customers can choose any type of fund depending on the profit payment periods ranging from monthly to yearly. Korea Investment Life Plan Monthly Payment-type Securities Fund, which the company has been recommending to its customers, has various profit payment periods including monthly, quarterly, bi-annually and annually and customers can select the payment period they want.
The company invests about 40 percent of its available funds in securities and hedges against losses through continuously buying small lots of shares or through put options. For example, the company buys securities when prices fall or stay stagnant and sell them when they are up, pocketing the difference.
Dongyang Monthly Payment-type Shares for Public Sales IC is the product that pays profits on a monthly basis and it aims at stable earnings in its management by investing from 20 to 40 percent of the fund in securities and around 50 percent in safe assets including bonds.
Ten percent of the fund is publicly traded to seek profits higher than bank interest rates on deposits.
Deputy Director Hwang Kyu-yong of the Asset Consulting Dept. of KIS, said the monthly payment funds provides cash flow to its investors on a regular basis allowing them to reinvest these profits or to use the cash. The fund also provides investors with chances to avoid risks in the stock market, which changes constantly, by spreading the risks around.
For those who want to manage their retirement funds safely for long-term growth with profits, they can consider the Korea Value 10-Year Retirement Plan Conversion Securities, which is a fund that invests in shares with long-term growth potential.
Another long-term investment fund is the Korea Gold Plan Retirement Fund Transfer Securities, which allows investors to switch their investment up to four times to other similar funds in a year. Other similar funds include the Navigator Retirement Fund Securities, Samsung Group Retirement Securities, the China Retirement Fund Transfer Securities and the Global Emerging Retirement Fund Transfer Securities.
Other funds that can be as good as retirement funds to secure earnings to fund life after retirement are also available such as the Templeton Global Securities Fund, which invests in bonds in various countries. The fund looks at the currencies, interest rates, and the sovereign credit ratings of countries to invest in their bonds.
KIS plans to invest in bonds in emerging market countries that are expected to see a strengthening of their currencies as a result of a heavy inflow of foreign funds. The Allianz Pimco Global Bond is also an attractive product for investors looking for stable long-term income. Pimco is an affiliate of the Allianz Group and is the largest investor in bonds in the world. The company invests in both mid to long-term bonds by studying the interest rate trends in the world for three to five years.
KIS was re-formed in June 2005 when the company was merged with Dongwon Securities. The previously-named Korea Investment & Securities Co., Ltd. (KITC) was Korea’s leading distributor of investment trust products, mainly those of its wholly owned subsidiary, while Dongwon Securities was one of Korea’s main securities brokerages. Both of these companies previously played important roles in the development of the Korean capital market and the Korean economy. KITC was a major institutional investor specializing in asset management and sales of Korean funds, while Dongwon Securities was a specialist in securities brokerage, investment banking and derivatives trading. nw

President Ryu Sang-ho of Korea Investment and Securities Co.shakes hands after signing an MOU on cooperation with President Ignatius Girend Roheru of Indonesia Bond Pricing Agency.