Professional Documents
Culture Documents
14th Fl., Samsung Asset Management 36-1, Yeouido-Dong, Yeongdeungpo-Gu, Seoul, Korea TEL: 82-2-3774-7600 FAX 82-2-3774-7633 www.samsungfund.com
HISTORY
1998~1999 1998. 09 Founded Samsung Life Investment Trust Management Co. (paid-in capital of KRW 30 billion) 1999. 12 Acquired Samsung Investment Trust Management Co. (paid-in capital of KRW 63.2 billion, AUM of KRW 18.9 trillion) 2000~2002 2000. 03 Capital increase with consideration of KRW 30 billion (paid-in capital of KRW 93.2 billion) Changed from Samsung Life Investment Trust Management Co. to Samsung Investment Trust Management Co. 2001. 01 Ranked No. 1 in AUM 2001. 08 AUM reached KRW 20 trillion 2001. 11 Chosen to be lead fund manager of the Investment Pool for Public Funds 2002. 10 KODEX 200 ETF listed on the Korea Exchange (KRX) 2003~2005 2003. 03 AUM reached KRW 40 trillion 2004. 12 AUM reached KRW 60 trillion 2005. 04 Established Asia Bond Fund (ABF); selected to be the Korean manager of ABF 2005. 11 Rechosen as lead manager of the Investment Pool for Public Funds 2006~2007 2006. 01 Brand slogan Stay Ahead created 2006. 06 Sector ETF (automobiles, semiconductors, banks) listed on KRX 2007. 03 AUM reached KRW 74 trillion 2007. 09 KODEX China H ETF listed on KRX 2007. 11 KODEX 200 ETF listed on Tokyo Stock Exchange Samsung Asset Management Ltd. established in Hong Kong 2008 2008. 02 2008. 04 2008. 05
Asset Managements investment expertise, capable staff, systematic risk management, and advanced global marketing have earned it a reputation as a leading asset management company in Asia. Its superior products and services continue to prove it Koreas leading
KODEX Japan ETF listed on KRX Samsung Asset Management Pte., Ltd. established in Singapore AUM reached KRW 85 trillion KODEX ETFs (Samsung Group stocks, securities, shipbuilding) listed on KRX
2009 2009. 07 2009. 09 2009. 10 2009. 11 2010 2010. 02 2010. 04 2010. 10 2010. 11 2010. 12 2011 2011. 02 2011. 03 2011. 05
KODEX Treasury Bond ETF listed on KRX KODEX Inverse ETF listed on KRX Selected to be the Korean manager of Nomura Asset Managements Asia Fund KODEX ETFs (energy & chemicals, steel, construction) listed on KRX Reappointed as lead manager of the Investment Pool for Public Funds
asset management company by delivering successful investments and affording an affluent life for its customers. In the quest towards a new vision to become a TopClass Asset Management Company in Asia by 2015, the steadfast trust of its customers, at home and abroad, drives it forward. Samsung Asset Management will keep one step ahead of its competitors in the global market.
KODEX Leverage ETF listed on KRX Changed company name from Samsung Investment Trust Management Co. to Samsung Asset Management Co. KODEX gold futures ETF listed on KRX Selected to be the Korean manager of the Japans Nikko Fund Selected to be a manager of the Korea Investment Corporation (KIC)
Signed an MOU for a joint venture with Xiangcai Securities of China Selected to be the Korean manager of the China Investment Corporation (CIC) Onshore Fund House in Korea by Asian Investor magazine
CONTENTS
2011. 3
2010. 3 104,410 70,153 34,257 304 3,280 31,282 9,549 21,732 148,594 80,331 228,925 41,510 11,133 52,643 176,282
2009. 3 98,269 61,068 37,201 554 3,930 33,825 10,327 23,498 294,357 71,084 365,441 177,834 12,947 190,781 174,660
FY 2010 Financial Highlights History Profile Vision 2015 CEOs Message Board of Directors Highlights Review of Operation Equity Investment Division Long-term Equity Investment Division Strategy Management Division Fixed Income Investment Division ETF Investment Division Quantitative Investment Division Global Investment Division Overseas Branch Offices Public & Pension Funds Investment Division Real Estate Investment Division Retirement Pension Compliance Customer Satisfaction Social Contribution Financial Statements Independent Auditors Report Internal Accounting Control System Review Report Statements of Financial Position Statements of Income Statements of Appropriations of Retained Earnings Statements of Cash Flows Organization Financial Network
111,544 74,390 37,154 1,045 2,463 35,736 9,659 26,077 215,132 82,249 297,381 100,682 13,080 113,762 183,619
01 02 04 06 08
Non-Operating Income Non-Operating Expenses Ordinary Income Income Tax Expense Net Income Total Cash and Bank Deposits Other Assets
16 17 18 19 20 21 22 23 24 25 26 27 28 30
Total Assets Depository Liabilities Other Liabilities Total Liabilities Total Shareholders Equity
Total Assets
(Unit: KRW billion)
Net Income
(Unit: KRW million)
34 35 36 37 38 39 40 41
2009.3 2010.3 2011.3 2009.3 2010.3 2011.3 2009.3 2010.3 2011.3 365 229 109.5 297 94.6 26,077 101.0 23,498 21,732
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VISION
VISION 2015
business operations, from fund management and product development to marketing activities. Its stable, steady investment performance will solidify its asset management
leadership in the Korean market. At the same time, the company will continue to build up the Hong Kong and Singapore branch offices competencies with an aim to position itself as a leading global asset management company.
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CEOs MESSAGE
CEOs Message
I would like to deliver my heartfelt gratitude for your unwavering trust and support for Samsung Asset Management. In 2010, Korea successfully recovered from the global financial crisis on the strength of a 6% economic growth rate buoyed by robust exports, the most successful rebound among the OECD countries. The better-than-expected earnings by Korean companies propped up the Korean stock market, which closed the year surpassing a monumental 2,000 point mark. The funds market, however, suffered contraction prompted by the riseaverse investor sentiment in the aftermath of the financial crisis. As a result, the industrys assets under management (AUM) size declined by KRW 17 trillion, from KRW 332 trillion in December of 2009 to KRW 315 trillion in December of 2010. The total amount in equity funds shrank 20% during 2010, from KRW 126 trillion in 2009 down to KRW 101 trillion. As a consequence, the entire industry suffered from diminishing AUM and profits over the year. Undaunted by adverse circumstances and in pursuit of new markets, Samsung Asset Management engaged in active product development and marketing activities. Accordingly, operating income grew by KRW 7.1 billion (USD 6.4 million) on the previous year, to KRW 111.5 billion (USD 100.7 million). Net income posted a 20% year-onyear growth to reach KRW 26.1 billion (USD 23.6 million), proving the companys sound revenue structure and market strength. In addition to these considerable financial achievements, we were named the Korean Asset Manager of the Year by the investment
In order to realize its mid-term goal despite this unfavorable market environment, Samsung Asset Management geared its management policy for 2011 to preparing mid- to long-term growth platforms through enhanced equity fund profitability. In line with this goal, we set the following strategies: First, Samsung Asset Management will mobilize resources company-wide to reinforce its competitiveness in the equity funds business. We will focus on keeping the investment performance of all investment divisions within the top 30% of its industry peers, while raising our equity fund market share. Second, we will reinforce our overseas operations. As we step up marketing campaigns aimed at prominent global clients, such as sovereign wealth funds and public funds, we will focus on reinforcing the infrastructure of our overseas branch offices by recruiting and retaining local talent. Third, we plan to mount differentiated marketing activities on the distribution channels. By increasing the number of specialty products, customized to the needs of each distribution channel, we will boost mutual cooperation thereby increasing the overall AUM. Finally, we will further enhance management efficiency. By reining in unnecessary spending, we will focus on improving profitability. Based on these strategies, every employee at Samsung Asset Management will make a concerted effort to realize the shared goal of becoming an unmatched leader in the Asian asset management market. I humbly ask for your continued support and encouragement as we endeavor towards that goal. Thank you. President & CEO
We will make a concerted effort to become a Top-Class Asian Asset Management Company by 2015.
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magazine Asian Investor, reaffirming our unmatched brand capabilities, as Koreas leading asset management company. Although the global economy has recovered, there are still lingering market uncertainties due to the financial instability in the European economies, sluggish real estate markets, and growing concern over a possible rise in interest rates. In 2011, these uncertainties are projected to affect the funds market. The competition in the financial market is predicted to intensify with asset management agencies jumping in with an alternative product, advisory wrap accounts.
Suk Kim
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BOARD OF DIRECTORS
Board of Directors
Samsung Asset Management will plan and move ahead to satisfy diverse customer needs, fulfilling the trust and expectations of its customers
Jae-Woo Choi Auditor Seong-Bae Kim Vice President Head of Marketing Kyu-Son Han Executive Managing Director Chief Financial Officer Young-Wuk Choi Executive Managing Director Head of Real Estate Investment
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Towards Challenging Asias Top 3 on the Strengths of the Samsung Financial Group
In 2011, Samsung Asset Management opens a new chapter in its history. By the end of August, the company will move into the Samsung Groups office building in Taepyungno, the heart of Seouls economic and financial center. With the relocation, the company will be able to take advantage of the synergies within the Samsungs financial network. Sharing the same building with other financial subsidiaries of the group such as Samsung Life Insurance, Samsung Securities, and Samsung Fire & Marine Insurance, as well as Samsung Card, the company expects to create more business opportunities. This move along with new determination and new look will be a stepping stone for the company to take a big leap forward to becoming Asias Top 3 asset management company by 2020.
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REVIEW OF OPERATION
Equity Investment Division Long-Term Equity Investment Division Strategy Management Division Fixed Income Investment Division 16 17 18 19 20 21 22 23 24 25 26 27 28 30
Samsung Asset Management carried out a reorganization in March 2011. The integration of the equity, ETF, Quant and Strategy teams in the investment division into the Equity Investment Division further strengthened the companys competencies in both asset management and global operations. The new organization is expected to realize stable rates of return, with improved portfolio management and cross-selling competencies. As one of the leading global asset management companies, Samsung Asset Management will always remain ahead of the competition in customer value creation and investment performance.
ETF Investment Division Quantitative Investment Division Global Investment Division Overseas Branch Offices Public & Pension Funds Investment Division Real Estate Investment Division Retirement Pension Compliance Customer Satisfaction Social Contributions
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Systematic investment based on in-depth analysis and joint management aims for stable profitability.
The Long-Term Equity Investment Division provides customized long-term investment services to institutional investors. Leveraging its extensive research capabilities and the outstanding personal competences of each researcher, the Division has a long track record of outstanding performance. The fund managers in the Division conduct due diligence on the companies they research, and hold meetings with industrial experts to stay up to date to successfully navigate volatile market trends. Through active research, they look for signs of change ahead of the market, in order to develop original investment ideas. Based on its investment philosophy and know-how, the Division is able to concentrate its resources to realize stable longterm profitability, while distinguishing itself in the growing variable life insurance and retirement pension fund markets.
Investment Expertise
Systematic Investment, Stable Performance
Proven Performance
Extensive experience from managing several institutional investors assets Industry leading short- and long-term performance
Long-time Teamwork
Ten years of team-work in industry/company analysis, model portfolios, and industries of interest
Investment Philosophy
Active Fund Management for Stable, Profitable Return Focus on Growth Potential and Stability as they relate to the market environment and differentiated investment ideas
Embedded Value
Difference
Market Value
(Share Price)
Team Process
PMs
Individual Initiative
CIO
MP Committee, Team approach
Investment Idea
Research Recommended
Analysts
Fundamentalsdriven, Researchdriven, Bottomup oriented, Team approach
Identify companies that promise stable income and growth but still lack market recognition or a share price that fully reflects their potential Discover market inefficiencies
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A customized product line-up and active fund management designed to satisfy the diverse needs of investors.
The Strategy Management Division established an investment system tailored to private equity funds (PEF) and wraps for institutional and high net worth individual (HNWI) clients. Its active portfolio management seeks out stocks with high potential in order to generate a stable rate of return. While actively communicating with the companys Research Center and outside analysts, the Divisions researchers carry out extensive company analysis and due diligence to identify stocks with high growth potential in order to design optimal portfolios for higher performance. The Division strives to develop the best products, catering to the ever-expanding needs of investors, so as to realize stable, long-term performance.
Investment Philosophy
Place priority on the analysis of factors affecting the development of interest rates over interest rate forecasting. Discover the loss factors in the fixed income market to realize profitable rates of return. Extend the scope of the fixed income market. Take a team approach based on specialized duties to realize outstanding performances.
Investment Philosophy
Active portfolio management, identifying stocks with high growth potential, for stable rates of return
Stocks with High Growth Potential
Companies with high growth potential to become market leaders Groups of market-leading companies with potential to increase their market power
Investment Process
Research Portfolio Construction Monitoring Feedback
Star Picks
Non-Star Picks
Star Picks
Provide an economic forecast and interest rate prediction Analyze relative value on yield curve Analyze relative value on sector and credit Develop new products and strategies
Differentiate management style according to the fund characteristics Discretional management Tailor management style to individual clients risk profile
Manage risk scientifically Monitor and review performance Reflect feedback in investment strategy
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Review of Operation
Offering the best product portfolio through optimal operation of Koreas largest ETF
The ETF Investment Division develops and manages exchange-traded funds (ETFs) that track domestic as well as overseas stock and bond indices. Its first product was the Samsung KODEX200, which was listed on the Korea Stock Exchange in 2002. Designed to track index return rates on its underlying assets including banks, semiconductor manufacturers and automobile businesses, the KODEX ETF offers various investment vehicles that allow investors to easily and efficiently build an optimal portfolio to meet their investment needs. The Division was also the first Korean financial institution to lend its financial expertise abroad in September of 2007, when it provided consulting services for the overall management of Thailands first ETF. In November 2007, the Samsung KODEX200, the largest Korean ETF, was listed on the Tokyo Stock Exchange (TSE). In addition, the KODEX Leverage and KODEX Inverse ETFs were listed, a first for the industry, earning the company a reputation as the pioneer of the ETF market.
Milestones
Oct. 2002 Listed KODEX 200 as the first ETF on the Korea Exchange Sep. 2007 Started management consulting for the first Thai ETF, becoming the first Korean company to lend financial expertise abroad Nov. 2007 Listed KODEX 200, the largest Korean ETF, on Tokyo Stock Exchange Jul. 2009 Listed a KODEX Treasury Bond ETF, expanding the range of underlying assets to bonds Sep. 2009 Listed KODEX Inverse on the market, the first ETF in Korea that pays investors the inverse performance of the F-KOSPI 200 Feb. 2010 Listed KODEX Leverage, an ETF with a return that doubles the KOSPI 200 Index Mar. 2011 Listed the commodity investment portfolios such as KODEX Copper Futures and KODEX Bean Futures on the KRX (expanding the investment target for ETF to commodities) Managing KRW 4 trillion (USD 3.6 billion) in 20 ETFs (as of Mar-end 2011)
Division Structure
Consists of three teams: Index Investment, Quantitative Investment, and Structured Products Investment Structured to cover the entire risk-return spectrum, from index funds and active quant to innovative new products Provides a total solution for portfolio design, derivatives utilization, and risk management
The ETF Investment 1 Team develops and manages ETFs that track domestic and overseas stocks and other indices. Having started with an industry-first listing of KODEX 200 to the KRX in October of 2002, the Team now operates a total of 14 ETFs with AUM of KRW 3 trillion (USD 2.7 billion) as of the end of March 2011.
ETF Investment 2
The ETF Investment 2 Team develops and manages the derivatives-based ETFs that invest in exchange-traded derivatives (futures, options, etc.) and over-the-counter (OTC) derivatives (swaps, etc.). It was the first in Korea to list the Leverage ETF and the KODEX Gold Futures ETF on the KRX.
Advanced investment decision-making processes that combine multidisciplinary expertise First to adopt in the industry, now firmly in place
Investment based on the best quantitative research organization in the nation Steady profitable return realized by sophisticated quantitative approach
Division culture that gives higher priority to risk management than rates of return Pre-, mid-, and postinvestment risk monitoring and management
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Reinforcing the management competencies of offshore funds through synergies with overseas branch offices
The Global Investment Division utilizes its accumulated experience in offshore funds management to build up its capabilities in the management of global funds and investment styles. In 2002, the Division was the first in Korea to introduce funds of hedge funds. Serving as the Korean manager for several sovereign funds and theme equity funds, it has led the globalization of the Korean asset management market. For instance, its advanced management capabilities and stability was globally recognized when it was selected as the Korean manager of the Asian fund Nomura Asset Management in 2009 and the Nikko Fund in 2010. In 2011, the Division was also named the Korean manager of the China Investment Corporation (CIC), one of the worlds five largest sovereign funds, cementing its name as a world-class asset management company. The Global Investment Division will collaborate closely with the Hong Kong and Singapore branches to develop and provide new investment vehicles such as the Asia Absolute Return Fund and All Asset Fund through aggressive overseas marketing activities. It is also about to set up a joint venture in China, further expanding its global operations.
Building up global competencies through business expansion into the Asian asset management market
Samsung Asset Management established branches in Hong Kong and Singapore in November 2007 and April 2008, respectively, to secure strategic points in the Asian financial markets. The company is expanding its investments in China and India, which are anticipated to emerge as the growth engines of the global economy for the coming 50 years. After achieving the Qualified Foreign Institutional Investor Status (QFII) from the Chinese authorities, Koreas largest China Mainland A-Stock Fund was launched twice, in February of 2009 and October of 2010. In 2011, Samsung Asset Management entered into an MOU for a joint venture with the Xiancai Securities, in preparation to advance into the worlds largest market. The successful funds that the Division introduced include: the India Fund in August of 2009 and the Asia Leaders Fund, which invests in blue-chip stocks in 10 Asian countries in October of 2009. As of the end of 2010, the Division holds a total AUM of KRW 2 trillion. Meanwhile, the overseas branch offices in Hong Kong and Singapore bolstered their marketing competencies to promote in-bound business (attracting foreign investors to Korean funds) as well as to conduct local-to-local business (managing local investors wealth at the local level). Taking advantage of its outstanding performance over the past three years, it has successfully attracted several global institutional investors including the Korea sovereign funds. Such impressive track records served to make the company one of the leading global asset management companies in Asia.
Major Achievements
Sep. 2009 Selected to be the Korean manager of the Asia Funds for Nomura Asset Management Nov. 2010 Selected to be the Korean manager for Nikko Funds Mar. 2011 Selected to be the Korean manager for China Investment Corporation (CIC)
Milestones
2002 Launched fund of hedge funds and offshore fund of funds, enabling domestic investors to invest in offshore funds 2006 Launched N-Japan Fund, Southeast Asia Fund, and Latin America Fund through local asset management companies (satisfying the domestic needs for direct investment in overseas stocks) 2007 Launched and managed the Global Water Fund and Alternative Energy Fund (enhancing the management capabilities of theme funds related to ecological and energy issues) 2008 Initiated direct management of funds such as China 2.0, China 2.0 Mainland, India 2.0, and GB Southeast Asia through overseas branch offices 2011 Plans to launch the Asia Absolute Return Fund that invests in Korean and Asian stocks, fixed incomes, ETFs, and exchange-traded derivatives and the All Asset Fund that aims at excess return through diversified portfolio management
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Review of Operation
Advanced investment and risk management techniques enhanced the investment returns for pension funds and public funds.
The Public & Pension Funds Investment Division has expertly managed the Investment Pool for Public Funds for stable profitability since 2001. Under the investment philosophy of realizing stable rates of return on the public and pension funds, it has maintained exceptional performance, surpassing the benchmark set for it. Notably, it was chosen as the lead manager of the Investment Pool for Public Funds for the third consecutive year in 2009, proving its stable and efficient investment and management competencies for the past decade. The Division will continue to develop and provide new products tailored to the specific needs of public and pension funds and providing consulting and training services to them as a solution provider. As a fiduciary manager for the stable long-term growth and development of the Investment Pool for Public Funds, it will serve as an investment manager, to realize stable rates of return.
Koreas top real estate experts contribute their specialties to successful real estate investments.
The Real Estate Investment Division boasts the nations best expertise in real estate investment and management. Based on the three core strategies of taking advantageous positions in potential markets, enhancing the value of investment assets and generating stable cash flows, the Division applies multi-faceted efforts to realize a stable stream of profitable return on its clients assets. The Division has real estate experts with extensive expertise in the acquisition, development, leasing, management, and sales of office buildings, residential properties, hospitals, retirement homes, and logistics facilities. In the future, the Division plans to further expand its competencies in the inbound investment (attracting foreign investors to Korean real estate investments) and outbound investments (attracting domestic investors to overseas real estate investments).
Investment Philosophy
Realize stable profitable returns on the public and pension funds through systematic risk management and fund of funds management that reflect the individual needs of clients Reflection of customer needs Risk Management Fund of Funds Investment Principles
Investment Principles
1 2 3 4 5
Avoid short-sighted decision-making swayed by current market conditions, determine the mid- and long-term intrinsic value of a property. Make forward-looking decisions based on scientific analysis of information and market cycles. Set up a resale strategy in consideration of the inherent liquidity risk in real estate.
Seek opinions from professionals in different fields, to develop diverse investment opportunities. Uphold the highest legal and ethical standards to fulfill corporate social responsibility.
Pre-, mid-, and postinvestment comprehensive risk monitoring and management system
Investment Process
The fund of funds that realize stable long-term excess returns by assigning capital to the optimal distribution plan based on the qualitative and quantitative analysis of each asset management company, selected through due diligence
Investment Pool Management Council Lead Manager
Fund A Fund B Fund C Fund D
Investment Process
Define strategy
Management philosophy
Deal Sourcing/Funding
Target real estate analysis
Operating/Exit
Operating strategy per fund
Mid- and long-term strategy Fund Management Agencies Custodian Administrator Evaluator
Qualification assessment
Funding
Performance review
Manager
Nine equity fund management companies, 15 fixed income management companies, six MMF management companies (as of March 2011)
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Retirement Pension
Compliance
Review of Operation
Prepared for the emerging retirement pension market to secure investors retirement
For several years, Samsung Asset Management has been exhaustively preparing to enter the retirement pension fund market, and is ready to grow as the leader of this fast-growing market. With advanced techniques to develop products to secure the retirement life of its clients and designed to allow differentiated customer service, the company will soon hold the reputation as Koreas top asset management company in the retirement pension fund market. In order to diversify the DC-concentrated market structure, the company cooperated with major sales companies to help clients redesign their portfolio, and provide them with wealth management training. As for the corporate clients who chose the DB plan, the company offered to craft their portfolios with structured, low volatility products. Committed to a secure retirement life for its clients through successful management of their pension funds, Samsung Asset Management will continue to develop and provide innovative products and services based on solid client and market research, as well as through sustained client communication.
The industrys best compliance audit organization operates a strict compliance monitoring system.
Client trust and confidence is the basis of the companys business. Operating compliance supervisory system began well before such monitoring became mandatory. In order to encourage a self-regulated corporate culture, the control self-assessment system, to assist employees with regular self-checks of their compliance with legal and the internal control standards was adopted. In addition, systematic monitoring systems to all potential risks associated with each stage from initial planning to the final launch, through to the management of each product are applied. Strict controls and a comprehensive monitoring system also prevent the provision of misleading information to the client. In the process of investing and managing clients asset portfolios, a three-step monitoring system, encompassing the pre-, realtime, and post-investment to prevent violations of bylaws, fiduciary duties or internal guidelines is applied.
Compliance Supervision
Establishing internal control practices
Completing a self-regulated internal control system
Managing legal risks and operational risks Realizing transparent corporate culture
Preview, consultation, and establishment of all work process for efficient management of legal and operational risks Prepare a code of ethics to promote the employees awareness of a transparent corporate culture
Review of compliance issues at each business level and trouble-shooting support, control, and management
Publications
Vol. 1 Prepare a Rosy Retirement Guidelines on preparing for a happy and wealthy retirement life Vol. 3 Demeters Wise Choice Basic principles of economics and financial industry for your kids Vol. 5 Now is the Best Timing for Life Cycle Financial Planning The faster you start, the more affluent your life will become Vol. 2 Wealth Management for Prepared Retirement A to Z guide from fund investment experts Vol. 4 Get Ready for Thirty PostRetirement Years An economists solution for life beginning at 60
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Customer Satisfaction
Review of Operation
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Social Contribution
Review of Operation
Sharing Minds
Samsung Asset Management sponsors children and juvenile charities, and aids farms as its representative social contribution programs. Having entered into sisterhood with orphanages, afterschool programs, and charities for kids, employees tend flower gardens at orphanages, attend charity events, make kimchi for charities, and go on picnics with children. Every June and October, employee families visit farming villages to lend a helping hand with the farming. Other activities include blood drives and charity funding events.
Caring Minds
Employees are encouraged to practice social contribution activities in their daily lives, to weave social contribution into corporate culture. Every employee makes monthly donations to charity funding and volunteers for various social contribution programs. In 2010, the employees collectively spent 3,612 hours in social contribution activities, 18 hours per person. We remain committed to building a better society through various social contribution activities.
(Unit: persons)
96.2%
93.3%
224
149
151
158
62 25
2000
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2001
2002
2003
2004
2005
2006
2007
2008
2009
2010
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FINANCIAL STATEMENTS
Independent Auditors Report Internal Accounting Control System Review Report Statements of Financial Position 35 36 37 34
Samsung Asset Management practices transparent management with integrity, and is committed to enhancing customer value.
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To the Shareholders and Board of Directors of Samsung Asset Management Co., Ltd.:
We have audited the accompanying statements of financial position of Samsung Asset Management Co., Ltd. (the Company) as of March 31, 2011 and 2010, and the related statements of income, appropriations of retained earnings, changes in shareholders equity and cash flows for the years then ended, all expressed in Korean won. These financial statements are the responsibility of the Companys management. Our responsibility is to express an opinion on these financial statements based on our audits. We conducted our audits in accordance with auditing standards generally accepted in the Republic of Korea. Those standards require that we plan and perform the audit to obtain reasonable assurance about whether the financial statements are free of material misstatement. An audit includes examining, on a test basis, evidence supporting the amounts and disclosures in the financial statements. An audit also includes assessing the accounting principles used and significant estimates made by management, as well as evaluating the overall financial statement presentation. We believe that our audits provide a reasonable basis for our opinion. In our opinion, the financial statements referred to above present fairly, in all material respects, the financial position of the Company as of March 31, 2011 and 2010, and the results of its operations, changes in its retained earnings and its shareholders equity, and its cash flows for the years then ended in conformity with accounting principles generally accepted in the Republic of Korea (see Note 2). Accounting principles and auditing standards and their application in practice vary among countries. The accompanying financial statements are not intended to present the financial position, results of operations, changes in shareholders equity and cash flows in accordance with accounting principles and practices generally accepted in countries other than the Republic of Korea. In addition, the procedures and practices utilized in the Republic of Korea to audit such financial statements may differ from those generally accepted and applied in other countries. Accordingly, this report and the accompanying financial statements are for use by those knowledgeable about Korean accounting procedures and auditing standards and their application in practice. Deloitte Anjin LLC
This report is effective as of May 20, 2011, the auditors report date. Certain subsequent events or circumstances may have occurred between the auditors report date and the time the auditors report is read. Such events or circumstances could significantly affect the accompanying financial statements and may result in modifications to the auditors report.
This report is annexed in relation to the audit of the financial statements as of March 31, 2011, and the review of internal accounting control system pursuant to Article 2-3 of the Act on External Audit for Stock Companies of the Republic of Korea.
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STATEMENTS OF INCOME
For the years ended march 31, 2011 and 2010
Translation into U. S. Dollar 2011 2010
Financial Statements
$ 70,551,842 23,265,317 6,825,971 101,097 100,744,227 7,471,549 2,258,288 55,061 57,375,716 26,678 67,187,292 33,556,935 12,961 105,805 205,998 (2,014,072) (210,630) 619,444 (1,280,494) 32,276,441 8,724,019 $ 23,552,422 $ 1.26
$ 67,886,444 19,921,870 6,333,487 159,154 94,300,955 7,932,930 492 1,268,298 19,598 54,128,996 10,041 63,360,355 30,940,600 (8,119) 241,236 (2,765,288) (186,687) 31,170 (2,687,688) 28,252,912 8,624,674 $ 19,628,238 $ 1.05
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2,011
4,226
1,817
3,817
NET INCREASE (DECREASE) IN CASH AND CASH EQUIVALENTS CASH AND CASH EQUIVALENTS, BEGINNING OF YEAR CASH AND CASH EQUIVALENTS, END OF YEAR
4,653
2,011
4,203
1,817
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ORGANIZATION
Board of Directors
FINANCIAL NETWORK Samsung Asset Management promises to live up to the trust and expectations placed on it with worldclass competencies.
Audit Team
Public & Pension Funds Investment Division Investment Pool Planning Investment Pool Management Long-Term Equity Investment Long-Term Equity Investment 1 Long-Term Equity Investment 2
Equity Portfolio Management 3 Strategy Management Quantitative Investment Quantitative Investment Index Investment Structured Products Investment ETF Investment ETF Investment 1 ETF Investment 2 Global Investment Global Investment Management Global Investment Trading & Investment Support
BOD Secretariat
RM Committee
Business Support Risk Management Human Resources Business Administration Fund Accounting Information Strategy
Real Estate Investment Real Estate Investment 1 Real Estate Investment 2 Real Estate Portfolio Management
Marketing Division
Marketing Strategy Marketing Management Product Development Marketing Communication Public Relations Retail Channel Sales 1 Channel Sales 1 Channel Sales 2 Pension Consulting Retail Channel Sales 2 Channel Sales 3 Channel Sales 4 Channel Sales 5 Institutional Sales Fixed Income Investment Division
Fixed Income Investment Fixed Income Portfolio Management 1 Fixed Income Portfolio Management 2 Fixed Income Portfolio Management 3 Fixed Income Portfolio Management 4 LT Fixed Income Investment Fixed Income Strategy Credit Research Long-Term Fixed Income Investment Separate Account
Institutional Sales 1 Institutional Sales 2 Institutional Sales 3 Global Sales Global Sales
Singapore Office
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