President Kim Ki-bum of KDB Daewoo Securities Co.

KDB Daewoo Securities Co. announc-ed on April 2 that it will soon launch a new securities product called, “Installment Savings Fund-type RP” with half of the fund to be invested in RP projected to earn around 4 percent per year.

Any individual customer can invest in the fund-type RP with half of the subscribed fund to go to the RP for around 4 percent in earnings annually, while the rest of the fund will be for installment savings. The customers can choose among the five fund products with the subscription fee set at 20,000 won minimum and 1 million won maximum.

President Kim Ki-bum of KDB Daewoo Securities Co. said the special installment savings RP pays interest rates higher by from 0.5 percent to 1 percent compared to savings deposit interest rates paid by commercial banks. The financial product is for young people who recently began to work for the first time.  

Under a slogan for the special product, “If you go there, you will get a special benefit,” the company has been waging a sales campaign for the installment RP fund-type product, which offers a high return for investors compared to the risks involved.  

The product is available at Daewoo Securities branches throughout the country.

In the meantime, Daewoo Securities said it has concluded an agreement for prime brokerage with Ardon Maroon Asia Fund Management, which is headquartered in Hong Kong. The Fund last year posted 18 percent earnings. 

With the signing of the prime brokerage agreement, Daewoo Securities will handle such brokerage services as securities loans, the sale of under-the-counter derivative products, the provision of credit, service management, and more in a total service package to help the hedge fund’s management strategies, the company said.

Daewoo Securities set up the PBS unit in 2009 and the unit has been involved in various PBS businesses such as exchange deals, derivative products, FX, overseas products, bonds, repos, and more, handling a diverse securities product and service line up, and gaining a strong reputation with the number of overseas hedge funds that signed PBS agreements with the company. 

The signing of the PBS agreement with Ardon Maroon Asia Fund is hoped to be an opportunity for Daewoo Securities to offer specialized services to overseas hedge funds, thus becoming a base to catapult it to the status of global hedge fund providing PBS to foreign hedge funds, thus building its name as a reputable PBS operator.

President Kim Ki-bum said Daewoo Securities PBS agreement with Ardon Maroon Fund is the first such signing by a Korean securities firm with a foreign hedge fund and Daewoo Securities will have more opportunities to expand its global operation by signing PBS agreements with more foreign hedge funds.

In the meantime, Daewoo Securities hosted an academy on overseas futures with the Daewoo Securities Research Center, giving lectures on May’s overseas futures and prospects on currency futures and ideas on investment. 

Officials of the securities firm said the company has been holding the academy on the last Thursday of each month on diverse subjects related to overseas futures and anyone who is interested in overseas futures trading is welcome to participate in the sessions. Professional trader of overseas futures Kang Hyun-soo will take care of lectures.