Vietnam-based asset management firm VinaCapital and Kiwoom Asset Management have reached an agreement under which the South Korean investor will provide select VinaCapital investment products to Korean investors.
As part of the partnership, Kiwoom Asset Management will develop and launch new products to invest in Vietnam-based assets, including a multi-asset fund, an index fund, a real estate fund and a fixed-income/corporate bonds fund.
These products are expected to launch in the second quarter of 2019, VinaCapital said in an email.
In the long run, Kiwoom hopes to provide its investment products to Vietnamese investors.
“The opening of our office in Vietnam in 2018 is part of our entry into the Southeast Asian market. After several months of discussions and shared investment experience, we decided to sign an MOU with VinaCapital to transform our current relationship into a longer-term strategic partnership,” said Seong Hoon Kim, CEO, Kiwoom Asset Management.
The Seoul-based asset management company’s total AUM is currently $40 billion, of which approximately 16 per cent will be overseas investments in 2019, a 100 per cent increase since 2014, it said in a statement.
VinaCapital, which is investing across multiple asset class, manages assets worth $1.8 billion. In addition to private equity, listed equities, real estate and fixed income, the firm has established a $100-million subsidiary to invest in technology startups, the biggest venture capital vehicle in Vietnam to date.
It has formed similar partnerships like the Kiwoom collaboration in the past such as with Shinhan BNP Paribas Asset Management.
“Our mission at VinaCapital is to deliver innovative investment products that will produce superior returns for Vietnamese and international investors. We are excited to extend our expertise to Korea, not only because of Korea’s growing interest in Vietnam, but because of our strategic partnership with Kiwoom. We believe that our deep investment experience in Vietnam, coupled with Kiwoom’s product and distribution innovations, will enable both parties to enjoy shared success in both markets,” said Thai Thuan Nguyen, CEO of VinaCapital Asset Management.