President Jeong Young-chae of NH Investment & Securities Co.

NH Investment & Securities Co. (NHIS) has been selling the Fidelity Global Dividend Income Fund, which has been investing in a number of selected business firms around the world based on their dividend payment and large growth potential.

The fund thru its Fidelity Global Research Network does its work on sizing up the potentials of the business firms by analyzing the performance records of 2,500 business firms around the world before picking from 50 to 60 firms with excellent financial statements for investments.

The firms that paid high dividends only for a year or two have been left out with only the firms that paid good dividends continuously with steady growth potentials having been included in the selection.

The annual dividends paid by the fund average 25 percent more than the overseas stock bench mark index or MSCI. The fund investments are made in the business firms in advanced countries such as the U.S., and Japan but many firms in emerging market countries have been part of the fund’s portfolio of investment.

The fund is very sensitive to companies that are alert on market changes and defensive in business strategies, and prefers to invest in those kinds of companies.

The fund, therefore, has been posting stable performance results despite the slowdown in macro-economies around the world due mainly to the U.S.-China trade friction and Brexit, causing uncertainty in the global economies to grow.

An official of NHIS said the companies that are defensive on uncertainty and identifying trends in the world economy record better results than the firms sensitive to the market trends. The fund is the best target for investments as it goes for the differences in the stock price changes for boosting profit as well as looks for splitting its investments among the diverse nations.

NH Investment & Securities Co. said on Dec. 28 that it will invest 390 billion rupia (about $27.2 million) in NH Korindo Securities, its subsidiary in Indonesia, in order to expand its business in the Southeast Asian country. The additional investment by NH Investment & Securities Co. will increase NH Korindo Securities’ equity from about 22 billion won to 52.5 billion won ($47 million).

“NH Korindo is strengthening its position as a local brokerage company. It ranks 10th among securities companies operating in Indonesia, according to Indonesia's economic magazine ‘Investor,’” NH Investment & Securities said. "The funds raised through this round of capital increase will be used to strengthen the affiliate’s investment bank (IB) business and expand its business areas to become a general investment company in Indonesia.”

President Jeong Young-chae envisaged the securities firm would become a “regional player” in Asia’s IB business, by fostering IB opportunities in Asian countries like Vietnam and Indonesia. “The IB business division will play a central role in gaining profit from the outside,” he said.

Jeong also said strengthening the IB sector is a global trend, citing the case that US investment bank Goldman Sachs CEO Lloyd Blankfein earlier in March passed the torch to David Solomin, who served as head of its IB division.

But maintaining NH Investment & Securities as an “all-rounder” platform is also a key to continuity in the firm’s upward trend, Jeong said, so that the platform can strike a balance between divisions for wealth management, FICC – fixed income, currency and commodities - among others.

A model displays an ad for Fidelity Global Dividend Income Fund. (Photos: NHIS)