Shinhan Investment and Securities Co. won the 2017 Maekyung Gold Securities Award for having the largest number of products in the mid-level earnings range and for its outstanding performance ratings for employees based on customer profits.
The company’s private banking sector 70,000-plus customers recorded an average return ratio of 5.6 percent last year, far above the KOSPI and Kosdaq indices. The gains were made possible by Shinhan’s mid-level earning products and risk.
One of the most popular products among them has been the Shinhan Future Design Wrap, which pursues mid-level returns through rebalancing. The product has many risk factors removed so that it can earn mid-level earnings in profits through rebalancing for customers.
Making the product outstanding has been its global management and manpower systems. The Small Committee for Future Planning Wrap and the Commodity Strategy Committee are the key management facilities for its operation as they conduct market surveys and discuss strategies.
As a result, the Wrap posted an earnings ratio of 11.4 percent as of the end of October last year. EMA, an expert managed account, has been another outstanding service the company provided to its customers, which grew rapidly last year major customer interest. Early last year, the balance of the service amounted to only 5.7 billion won, but it reached around 500 billion won just nine months later.
A Shinhan EMA account is capable of holding deposits of various kinds of financial products, including shares, funds, ELS, DLS and raps, among others, as an integrated account should be. The holders of those accounts can have consultations on investments from EMA managers one-on-one as they can have deposits of overseas assets, including derivatives and OTC bonds.
The Lazards ELS, with its high safety features, has been counted among Shinhan I&S’s most loyal products as it pays off its profits to investors more regularly.
In just two months since its introduction, some 140 billion won was sold, and last year alone, sales reached 900 billion won. Its popularity rose still higher with the decision to pay off investments two times a year, introducing what amounted to the Super Lazards ELS for the first time in the securities industry.
President Kang Dae-sok said the 5.6 percent return rate is for all the asset management products offered by Shinhan I&S, including financial products, which is very significant as it was achieved while the return rates were very low in general throughout the financial market.
This year, too, the CEO said Shinhan I&S will not spare any efforts to support the private banking sector to earn high profits through their professionalism and the development of new profitable products.
NH Investment and Securities Co.’s proprietary trading department proved to be lucrative, contributing to 21 percent of the brokerage house’s total operating profit of 314 billion won ($274 million) last year.
It turned out a 33 percent return on its investment, profiting 66 billion won ($57.6 million) upon running a capital of 200 billion won. Its average return reached 19 percent over the recent five years. A mix of hedging activities on various instruments helped to boost profit. The division has become confident enough to release private equity and hedge funds to manage assets of sister companies and customers.
The NHIS has been ahead among its peer group, recruiting 20 fund managers in December and 10 others for support to form a hedge fund division. Its board last month endorsed its entry into the hedge fund market. The brokerage house is ready to launch its first product structured on multi-strategy fund that it had run for the last five years, on a scale of 300 billion won in June after it applies for registration later this month.
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