Samsung Securities announced on October 14 that it has reached 200 family office clients and 55 trillion won in client assets as of September.
The family office service targets ultra-high-net-worth individuals with financial assets exceeding 1 trillion won. The client base is expanding to include traditional business owners, exit owners who have secured large liquidity through sales, emerging business owners, and ultra-high-net-worth individuals.
Notably, the number of exit owners has tripled compared to three years ago, establishing them as a key client group. Recently, there has also been an increase in individual clients with over 1 trillion won in financial assets, separate from corporate equity.
A Samsung Securities official stated, "Traditional owners with asset holdings centered on corporate equity, emerging owners who have accumulated assets during business growth, and exit owners who have secured large liquidity from business sales have different asset allocation methods, investment purposes, and succession plans. We have achieved this success by continuously developing our investment management system to adapt to these changes in our client base."
A prime example is the 'investment management asset management' model, where private banking and headquarters investment management experts collaborate to manage clients. This model provides clients with large assets or temporary liquidity from business sales with a systematic investment management process at the level of institutional investors.
Samsung Securities also operates a dedicated advisory organization called 'Committee,' composed of in-house experts for each family. Through regular annual meetings and ad-hoc consultations, they assess clients' asset status and key challenges, offering customized solutions in areas such as investment, taxation, and succession.
Another feature is the external delegated asset management (OCIO) service, which has an institutional investor-level management system. This service provides core asset management solutions tailored to each family, with the OCIO management scale exceeding 900 billion won as of the end of June. Recently, they have been offering customized OCIO solutions that reflect clients' investment purposes and family characteristics by leveraging the operational infrastructure of Samsung's financial affiliates.
Samsung Securities analyzed that there are distinct portfolio differences among its family office clients. Exit owners actively utilize global assets and alternative investments, while traditional owners maintain a relatively balanced portfolio of stocks, bonds, alternative investments, and liquidity. Emerging owners exhibit a dual asset management structure, distinguishing between personal and corporate asset management purposes. Given the diverse needs of ultra-high-net-worth individuals, the company emphasizes the necessity of applying asset management strategies based on the asset formation process and goals.
Yoo Jeong-hwa, Executive Director of Samsung Securities' Family Office Division, stated, "Our strength lies in having accumulated solutions over time to address the different concerns and needs of clients with financial assets exceeding 1 trillion won. We aim to evolve into a family office that not only manages 55 trillion won in client assets but also collaborates on important family decisions and future planning, designing wealth that spans generations."
* This article has been translated by AI.
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