Samsung Life and New York Life Investments Wednesday announced a strategic alliance aimed at bolstering their respective plans to pursue global asset management businesses.
The first phase of the alliance calls for the launch of the “Samsung-U.S. Dynamic Asset Allocation Fund,” with an initial investment of US$250 million from each firm, around the end of September, according to a Samsung Life news release.
The alliance will next pursue additional targets for joint investment, including cooperation for investments in the U.S. real estate market, “supported by New York Life Investments' expertise,” the release said.
Over the longer term, the firms will look to facilitate their respective ambitions to pursue global asset management businesses, including joint initiatives “in greater Asian asset management markets,” capitalizing on Samsung Life's capabilities, and New York Life Investments' “expertise in global investing,” according to the news release.
In the release, Keun-Hee Park, Samsung Life's CEO, said the alliance will be the “foundation” of his firm's efforts “to globalize our asset management business.” Likewise, the news release noted that New York Life Investments “has been seeking to establish business in Asian countries, including Korea,” and will rely on Samsung's “brand” in Asia to pursue that goal.
John Kim, the CEO of New York Life Investments, was in Seoul Wednesday for the announcement of the strategic alliance. Mr. Kim couldn't be reached immediately for comment.
Separately, Jacqueline Meere, a New York-based spokeswoman for New York Life Investments, confirmed that her firm has hired Chong-Soo Lee in Seoul, in part to support New York Life Investments' alliance with Samsung.
Mr. Lee will service existing and prospective New York Life Investments' clients in Korea, she said.
Mr. Lee joins New York Life Investments from Deutsche Asset Wealth Management in Korea.
Deutsche spokesman Stuart Haslam couldn't immediately be reached for comment.
Likewise Chong-Soo Lee couldn't immediately be reached for comment.
On the topic of the Samsung-U.S. Dynamic Asset Allocation Fund, which will be the alliance's first phase, the Samsung Life news release said New York Life Investments will oversee the fund's asset allocation, as well as its bond investments in the U.S. market, while Samsung Life Investment America will oversee the fund's investments in U.S. equities.
Samsung Asset Management “will be in charge of launching and managing the deal, while the group's subsidiaries, including Samsung Securities, will be responsible for sales targeting institutions and private investors,” according to the release.