- Samsung Securities

Transcription

SAMSUNG SECURITIES REPORT 2015
POSITIVE
CHANGE
ABOUT SAMSUNG SECURITIES
Change for Clients’ Trust
Letter from the CEO
Management Team
Company Profile
Company Brand
Business Overview
Samsung POP ROBO
01
04
07
08
10
12
18
Financial Highlights
19
SUSTAINABLE MANAGEMENT
Our Stakeholders
Materiality Test Process
Corporate Responsibility
Customer Satisfaction
Information Security
Talent Management Social Contribution
Environmental Management
Governance & Leadership
Company Governance
Risk Management
Ethical Management
24
25
28
30
32
36
39
42
44
48
FINANCIAL PERFORMANCE
Overview54
Business Performance
55
Financial Information
59
APPENDIX
Third Party Assurance Statement
GRI G4 Content Index
Corporate Information
72
74
78
Reporting purpose
Reporting scope
Samsung Securities publishes this report on an annual basis to disclose information on
The report covers business activities at our business premises, including the company’s
its financial performance, business strategies, and sustainability management activities
headquarters, domestic branches, and overseas subsidiaries. Some social data, and
with all its stakeholders, including shareholders and clients.
all environmental data, does not include performance results from our overseas
subsidiaries due to difficulties in collecting the necessary data.
Reporting period
The reporting period covers our financial performance and sustainability management
Reporting principles and assurance
progress for the calendar year 2015, ending December 31, 2015. For some data
The report was compiled pursuant to the Global Reporting Initiative G4 Guidelines
requiring trend analysis, data from the past three years is provided. For certain
released in May 2013 and the GRI Financial Services Sector Supplement (FSSS). The
qualitative data, the period extends into the first half of 2016.
content was assured independently by a third-party entity. Details regarding the GRI
guidelines and the assurance statement are provided in the index from page 72 and
page 74, respectively.
Samsung Securities in 2010 was the first Korean
Samsung Securities is a signatory to the
financial company to be listed in the financial
Carbon Disclosure Project (CDP) and
services category of the Dow Jones Sustainability
encourages other listed companies on the
Index (DJSI) World, and has remained on the list
KRX to participate as well.
in each of the six years since.
CLIENT
TRUST
Samsung Securities practices a style of client-oriented management
which reflects the company’s belief that client trust is the most critical asset to any successful business.
CLIENT
VA L U E
With the understanding that client trust is the most important value at our company,
everyone at Samsung Securities makes a concerted effort to materialize this belief on a daily basis.
C h a n g e f o r C l i e n t s ’ Tr u s t
Samsung Securities has declared its commitment to client-centric management practices and has been translating this
into action for years. Put another way, this means that client value forms the overarching guideline in all our decisionmaking for products, services and management systems. While ensuring stable client yields through systematic riskmanagement practices that are rooted in a globally diversified investment policy, we peg employee evaluation and
compensation criteria to the rate of client earnings and constantly monitor our client-protection practices as part of our
product sales process.
Customized wealth
management plans
Launched a client-oriented wealth management
service called POP* UMA**, which allows for
diversified investment portfolios
* POP: Platform of Private banking service
Fastidious new product
development review process
Prompt and systematic
responses
Reinforcing the new-product approval process
Promptly informing clients via SMS
with testing procedures carried out from the
product-planning and -development stages to
take firm control of high-risk products
regarding unexpected issues that may
affect the products and stocks they hold in
domestic and overseas markets
** UMA: Unified Managed Account
Enhanced customer
satisfaction
Stronger protection of
financial consumer rights
Strengthening the prior-screening process
A Client Protection Center under the direct
for promotional materials and product
control of the CEO, with a newly appointed
Chief Client Officer (CCO)
presentations, while also adding a consumer
protection page to the company’s website to
protect consumer rights
Samsung Securities is building a virtuous circle in which enhanced client value brings
about greater happiness and prosperity.
03
Samsung Securities is
growing as a prominent
wealth manager by
establishing client-oriented
management practices and
by achieving sustainable
growth based firmly on
clients' trust.
04
Client-oriented Management / Letter from the CEO / Management Team
Company Profile / Company Brand / Business Overview / Samsung POP ROBO / Financial Highlights
Letter from the CEO
In the first half of 2015, quantitative easing in some advanced economies and soaring Chinese stock
indexes, coupled with growing expectations of a Korean economic recovery, drove up the price of
stocks in Korea. Towards the end of the year, however, investment conditions faced a new threat
from emerging problems in the world’s financial markets, such as US rate hikes and the slowing
growth of the Chinese economy.
Even amid this challenging business environment, Samsung Securities strove towards realizing its
annual business goals. As a result, its consolidated net revenue reached KRW 995.9 billion, with
profits attributable to controlling interest hitting KRW 275 billion—the highest figure for the company
since 2007. Meanwhile, our assets under management (AUM) expanded to reach an industry-high
KRW 174 trillion, while fee-generating assets—the barometer of operational stability—also swelled
to achieve significant performance in terms of setting long-term, stable business fundamentals.
At the same time, Samsung Securities appointed a Chief Information Security Officer (CISO) as
an independent information security employee with controlling authority in a bid to step up the
company’s efforts towards customer information protection and secure financial transactions in a
stable risk management system.
All the while, we have remained steadfast in our social contribution initiatives. Our signature
program, the Youth Economics & Securities Academy, marked its 10th anniversary in 2015, while the
Samsung Securities Volunteer Corps is also active in various programs in which our volunteer group
leaders select key tasks that can best serve local needs in collaboration with related governmental and
non-governmental organizations. Throughout 2015, we also offered cultural and artistic programs for
underprivileged youths from low-income families, multicultural families, and North Korean defectors,
and even donated homemade kimchi to the needy. As a result, Samsung Securities was recognized
as the Korean securities firm having made the greatest social contributions in 2015. Moreover, as part
of our efforts to protect the environment, we continue practicing company-wide green-management
practices while reducing our energy use.
In recognition of these exemplary sustainability management efforts, Samsung Securities in 2015
became the first Korean financial company to be listed on the DJSI World for a sixth consecutive year.
At the dawn of 2016, competition in Korea’s capital markets was intensifying. The emergence of
mega-sized securities firms and synergies from financial holding companies poses a threat to our
operations, not only in terms of size but also with respect to quality.
DJSI
Listed For Six Straight Years
Samsung Securities is the only Korean financial company
to feature on the Dow Jones Sustainability Index (DJSI)
World for a sixth year running in 2015.
05
Despite this, everyone at Samsung Securities is doing our utmost to help complete a virtuous cycle of
business fundamentals based on client-oriented management in order to return our clients’ trust with
the highest possible stakeholder value. In so doing, we aim to become the most prominent wealth
manager in Korea, while remaining respected and trusted by clients.
To that end, Samsung Securities realigned its products and channel networks in the past year to
offer optimal products and customized consulting services to mass individual clients as well as highnet-worth clients. In particular, our global research was reinforced, facilitating our ability to respond
swiftly to client needs. We will continue expanding our research and product networking capabilities
with leading international investors to further solidify our position as a competitive wealth manager
in the global market.
Moreover, we have completed the development of computer systems and platforms that will bring
our industry-leading asset management competencies to the cyber realm through online and mobile
platforms. In addition, we are ready to take the lead in emerging FinTech markets.
While living up to our core value of integrity, we are constantly striving to generate shared social
value as we comply with business ethics on a continuing basis, solidifying our position as the leader
in sustainability management practices in Korea’s financial sector. Not only does Samsung Securities’
sound corporate culture allow for top industry talent to reach their full potential, but its systematic
risk-management protects client and shareholder value. At the same time, the company is faithfully
fulfilling its responsibilities and duties to society, thereby contributing to a better world of sharing and
caring for co-prosperity.
In 2016, all Samsung Securities employees are determined to strengthen the organization’s efficiency
and promptness to meet our stakeholders’ high expectations, while enhancing corporate value and
laying the groundwork for long-term, sustainable growth through a stable business platform firmly
based on firm-client trust.
We hope to maintain your unwavering trust and encouragement in our efforts toward achieving a
virtuous circle of client-oriented management.
Thank you.
President & Chief Executive Officer
06
Management Team
Jeon Young Muk Senior Executive Vice President
Head of Management Support Division
Lee Sang Dae Executive Vice President
Head of CPC Strategic Division
Sa Jae Hun Senior Vice President
Head of Wealth Management Division
Park Bernard Senior Vice President
Head of Wholesale Division
Shin Weon Jung Senior Vice President
Head of Investment Banking Division
07
Company Profile
Samsung Securities is consolidating its dominance as Korea’s leading securities firm
by preempting customer needs and rapid changes in today’s financial environment.
Key Financial Indicators
2015 Awards and Accolades
Total Assets (Unit: KRW trillion)
Customer Satisfaction
FY2015
31.0
•No. 1 in the Korea Productivity Center’s (KPC) National Customer
Satisfaction Index (NCSI) survey for a 10th year in a row
•No. 1 in the Korea Management Association Consulting’s (KMAC) Korean
Customer Satisfaction Index (KCSI) survey’s securities category for a 10th
straight year
•No. 1 in the Korea Standards Association’s Korea Standard Service Quality
Index (KS-SQI) survey for an 8th year running
•No. 1 in KMA Consulting’s Korean Net Promoter Score (KNPS) survey’s
securities category for a 9th consecutive year
FY2014
25.8
Brand Power
•No. 1 in the securities sector at the US-based branding consulting firm
Interbrand’s Best Korea Brands 2015
Clients’ Assets Under Management (Unit: KRW trillion)
FY2015
174.0
•No. 1 in KPC’s National Brand Competitiveness Index (NBCI) survey’s
securities category for a 12th straight year
•No. 1 in KMA Consulting’s Korea Brand Power Index (K-BPI) Golden Brand
survey’s securities category (Samsung Securities POP service)
•Grand Prize in the securities category at the Maeil Business Daily’s Mobile
Brand Awards (mPOP)
Research and IB
FY2014
•Winner of the M&A Financial Advisory and Best Deal Prize at Yonhap
Infomax’s 5th annual Financial Awards
136.5
•Best M&A Arranger at the 13th annual Money Today Korea IB Awards
Sustainable Management
Net Revenue (Unit: KRW billion)
FY2015
953.7
•Listed in the Financial Services Sector of the DJSI World for a 6th straight
year, a first for any Korean financial company
•Listed in the Financial Services Sector of the DJSI Asia Pacific for a 6th
consecutive year
•One of DJSI Korea’s industry group leaders in the Financial Services Sector
for a 7th year running
Wealth Management
FY2014
725.1
08
•Best fund sales agency in the securities category at the Korea Economic
Daily’s 2015 Hankyung Funds Awards
•Top Excellence Prize at Maeil Business Daily’s Financial Product Awards (POP
UMA)
Milestones
•Ranked atop the securities sector of Korea’s three major customer
1982~
1982
satisfaction indexes (KS-SQI, KCSI and NCSI)
•Swept all 9 categories in the 2006 Asiamoney Brokers Poll, the
•Promoters’ Conference (establishment of Hanil Investment &
largest Asia-focused equity poll
Finance)
•Inaugural general meeting, registration of incorporation,
contribution of KRW 20 billion in paid-in capital
1988
•Initial public offering on the Korea Exchange
1991
•Renamed Kookje Securities, initiated brokerage services, and
2007
•Korea’s first securities firm to underwrite the total value of the
nation’s treasury inflation protected securities (TIPS)
•Named Korea’s “Best Private Bank” by Asiamoney
2008
•Korea’s first securities firm to initiate an optional commissionbased service
•Established a strategic alliance for M&As with Rothschild, one of
opened sales branches - one at the headquarters and one in
Apgujeong
the world’s largest independent financial advisory groups
1992
•Incorporated into the Samsung Group
•Renamed Samsung Securities
2009
•Announced new brand management under the brand slogan
“Create with you”
•Launched the advanced wealth management brand “POP”
•Listed on the DJSI Korea
1996
•Established Samsung Securities Europe in London, UK
1998
•Established Samsung Securities America in New York City
•First Korean securities firm to sell mutual funds
•Relocated the headquarters to Samsung Main Building in
•Launched the nation’s largest financial services call center
2010~
1999
2000~
2000
Taepyeong-ro, Seoul
2010
•Launched SNI, a premium brand for UHNW clients
•Korea’s first financial company to be listed on the DJSI World
2011
•Signed an MOU with China Asset Management
•Announced the launch of the Samsung Securities CS Innovation
•Acquired by and then merged with Samsung Investment Trust &
Securities
2001
•Established Samsung Securities Asia in Hong Kong
•Named “Best Equity House” by Euromoney for a 3rd straight year
2002
•Singled out as the “Best Local Investment Bank in Korea” by
Campaign (Empathy 36.5)
•Obtained Business Continuity Management (BCM) certification
2012
•Relocated the headquarters to Jongro Tower, Seoul
2003
2004
2013
•Announced the Samsung Securities Value Statement
•Launched a next-generation IT system that matched other leading
global financial corporations
•Commenced trading as a member firm on the London Stock
Exchange
•Released Samsung wrap accounts
•Began offering post-retirement wealth management services at all
branches
FinanceAsia
•Opened a representative office in Shanghai
2014
•Adopted a client-oriented best picks product portfolio
•Established a strategic alliance with two independent research
institutes, Lombard Street Research in UK and BCA Research in
•Initiated the Samsung Cash Management Account (SMA) service
•Hosted the 1st annual Samsung Global Investors Conference
Canada
•Introduced the POP UMA Performance-based Remuneration
•Official announcement of the Samsung Securities Way (client-
product, which charges commission in proportion to the yield on a
oriented, ethical, professional and teamwork-focused)
client’s investments
2005
•Launched the PB service brand Fn Honors Club
•Signed a contract with Nomura Securities to receive retirement
pension plan consulting services
•Entered into a strategic alliance with China’s CITIC Securities
2006
•Named Korea’s “Best Research House” by Institutional Investor, a
US-based global financial magazine
2015
•Proclamation of the Client Protection Charter
•Signed an MOU with Woori Bank
•Partnership with CITIC promoted to “strategic partnership”
(detailed business partnership plans articulated)
•POP UMA sales exceeded the KRW 2 trillion mark
•Listed on the DJSI World for a 6th consecutive year
09
Company Brand
In 2016, Samsung Securities announced its new brand identity, underscoring its commitment to
returning client trust with more-novel and -discernable client value than ever before.
This actualizes our determination to translate Samsung Securities’ client-oriented management
practices pledge into action so as to grow alongside clients by returning their trust with tangible results.
Samsung Securities’ New Brand Identity
Brand Slogan
As a sign of our commitment to live up to the trust clients have in us through higher value as a result
of unparalleled market insights and advanced financial solutions, the new brand slogan conveys our
pledge to client-oriented management and our promise to put clients' trust before anything else.
Graphic Motive: The Value Triangle
The value triangle symbolizes the dynamics of how we generate returns on investment for
clients in today’s constantly changing financial markets by making full use of our stable and
systematic financial investment systems.
Design Concept
Structural
Insightful
Prosperity
The three elements of our new design concept symbolize our sound Structural system, which has
built on our knowhow from years of experience in the business, and our Insightful analysis of
investment trends that are made ahead of changing market environments so we can return our
clients’ trust and ensure Prosperity both for them and the company.
10
Samsung Securities’ Financial Brand Names
New Financial Product Brands
A unified managed account (UMA) is a professionally
managed private investment account that is rebalanced
on a regular basis and can encompass every investment
vehicle (e.g. mutual funds, stocks, ELS and ETFs) for an
investor’s portfolio in a single account.
An Exchange Traded Note (ETN) brand that guarantees
a return on investment aimed specifically at underlying
indexes by drawing on Samsung Securities’ wealth
management knowhow and secure investment system.
An optimized wealth management service brand that taps
into an extensive analysis of market data and algorithms
to recommend and subsequently rebalance investment
portfolios that cater to investor preferences and goals.
An online wealth management service platform brand
that provides one-stop wealth management, from
investment planning and portfolio structuring to followup services and aftercare, making wealth management
easy and convenient for everyone.
Specialized Service Brands
A premium service brand specialized for ultra-high-networth (UHNW) clients
Samsung Securities’ premium membership brand for VIP
clients
Samsung Securities’ social contribution brand
Differentiated cultural performance benefits reserved for
VIP clients of Samsung Securities
Samsung Securities’ college volunteer corps
Brand Awards & Recognitions
K-BPI (Korea Brand Power Index) / Korea Management Association (KMA)
No. 1 in the securities firm category for 2016 (K-BPI Golden Brand winner for an 18th straight year)
In 2015, we were named the top company in the securities firm category in KMA Consulting’s
Korea Brand Power Index (K-BPI) Golden Brand survey for an 18th year running. K-BPI is Korea’s
leading index charting domestic industrial brand competitiveness.
NBCI (National Brand Competitiveness Index) / Korea Productivity Center (KPC)
No. 1 in the securities firm category in 2015 (for a 12th consecutive year)
The NBCI quantifies brand competitiveness on a scale of 100 points by judging a company’s
brand recognition and how its brand image is built on corporate marketing activities as well as
relationship-building. In 2015, Samsung Securities retained its No. 1 position, marking a 12th year
at the top.
Best Korea Brands / Interbrand
No. 1 in the securities firm category according to Interbrand’s Best Korea Brands 2016
Interbrand, a US-based brand consultancy, ranks the world’s top brands on an annual basis, and
this year Samsung Securities was named one of the 50 Best Korea Brands for 2016. At 35th, it is
the highest ranking for any Korean securities firm ever, with the company posting a brand value of
KRW 556 billion, an industry high.
Korea 100 Brands (BrandStock Top Index) / Brand Stock
No. 1 in the securities firm category for 2015 (for a 12th straight year)
The BrandStock Top Index (BSTI) is a brand value ratings model calculated both by brand index
(70%) from Brand Stock’s mock trading, and periodic consumer surveys index (30%). Of the 1,000
leading brands from 230 industries evaluated for brand value, Samsung Securities was the only
securities firm to crack the top 100, finishing in 61st place.
11
We are constantly increasing the trust clients have in us
and their overall satisfaction, ensuring a stable return
on investments for everyone through top global wealth
management consulting and a customer relationship
management service that is tailored to each client’s
investment tendencies and goals.
12
Business Overview
WEALTH MANAGEMENT
Individualized Wealth Management
Solutions
Retirement Planning Services for a
Financially Secure Retirement
Korea’s top-tier customer relations management
(CRM) system facilitates the systematic
management of investment risks and returns
for clients. Additionally, our POP UMA - a
unified managed account (UMA) that is optimal
for diversified investment portfolios and can
encompass mutual funds, stocks, ELS, ETF and
global investments - has significantly improved
client convenience with differentiated, professional
wealth management services.
For clients seeking a more financially secure
retirement, our retirement planning service takes
into account an individual’s current financial
position and future cash flow to optimize the
most appropriate pension solutions according to
their needs. Retail clients are provided with highly
diversified investment alternatives and pension
benefits solutions, while wholesale clients are
given the choice of numerous optimized corporate
pension plans.
Premium Services for UHNW Clients
Improved Convenience with Online
Services
Our highly professional team of experts in taxation,
real estate, law, and investment strategy-building
provides premium services to retail and wholesale
clients, offering comprehensive taxation advisory
services related to donations, inheritances,
transfers, and global taxation on financial income.
We also provide extensive wealth management
services that include guidance on and responsive
measures to overseas taxation / regulations, real
estate market analysis, and strategy-building.
Our online and mobile channels offer various
platforms that enable efficient and convenient
trading of stocks and other financial vehicles.
For instance, POP DTS is a special program for
professional day traders, while mPOP Wealth
Management is ideal for mobile trading. Our
professional wealth management consultants
support clients’ self-trading through an online
wealth management consulting center that can be
accessed by phone or by a messenger platform.
OUR FINANCIAL SERVICES
Client-oriented POP wealth
management services
Premium SNI services for
HNW clients
Comprehensive retirement
wealth management services
based on proven retirement
planning strategies
Easy and efficient online
services
13
By making full use of our advanced research
system and abilities, we provide our domestic and
overseas institutional investors with a variety of
optimal investment vehicles, including equities,
fixed income and derivatives.
14
Business Overview
SALES & TRADING
Fast and Accurate Equities Brokerage
Samsung Securities’ trading team is made up of
Korea’s best and brightest traders. Through close
collaboration with local subsidiaries in financial
hubs around the world, the team provides domestic
investors with a wealth of investment information
on KRX-listed stocks, brokering optimal trades on a
real-time basis. Also, our extensive proprietary trade
execution programs, including Corporate Access,
Best Efforts Execution and Systematic Trading,
support domestic and international institutional
investors in making timely and accurate informed
decisions.
investors achieve stable returns on their investments
by supplying mutual funds, over-the-counter (OTC)
derivatives, and alternative investment vehicles that
invest in countries around the world.
Principal Investments
Samsung Securities carries out principal investments
in stocks, bonds and fixed-income, currencies and
commodities (FICC) only after carrying out an
exhaustive analysis of markets.
What is more, we are expanding the scope of
investment targets from traditional equity / fixedincome products to alternative investment vehicles,
such as commodities and properties.
Various Equity-Linked Products
Our optimal trading platform covers both
brokerage services for equity-linked products, such
as index-linked or equity-linked future options,
Equity-Linked Warrants (ELW) and Exchange-Traded
Funds (ETF), as well as a Direct Market Access (DMA)
system. Furthermore, we carry out numerous types
of arbitrage support services and perform the role
of ETF market maker. This allows us to create the
ideal investment environment to support clientoriented investment strategies.
FICC Products (Fixed-income,
Currencies and Commodities)
We offer derivatives linked to fixed-income
products, whether denominated in Korean won or
one of a wide range of other foreign currencies,
for domestic and overseas institutional investors. In
addition, we help pensions and other institutional
Product-linked Trading
We are able to mobilize industry-leading product
structuring and trading capabilities to provide
optimal financial solutions that suit the different
needs of our retail and institutional investors.
•Stable supply of ELS, ELB, ETN and other equitylinked derivatives to individual / institutional clients
•Strategic operation of repurchase agreements (REPO)
denominated in Korean won and foreign currencies
that pay a predetermined fixed dividend
•Foreign exchange (FX) services for clients’ offshore
investments
•FICC-linked derivatives (DLS / DLB) that are tied to
credit, currencies, commodities and other products
as underlying assets according to the different needs
of the retail or institutional investor
•S ourcing and supplying diminutive fixed-income
products as a stable alternative investment option
15
While offering a wide array of investment
banking services that are tailored to today’s
rapidly changing business environment,
we constantly strive to produce optimal
solutions and services.
16
Business Overview
INVESTMENT BANKING
Corporate & Investment Banking Services
Our industry-leading corporate and investment banking services range from rights offerings and IPOs,
issuances of Convertible Bonds (CBs), Bonds with Warrants (BWs), Exchangeable Bonds (EBs) and other
equity-linked bonds to the underwriting of fixed-income securities, an M&A advisory service, acquisition
financing and corporate lending. At the same time, we also provide clients with alternative investment
vehicles, such as asset-backed securities and real estate & commodity funds.
Equities
•IPOs
•Rights offerings
•Block sale
•Equity-linked bonds
- Convertible Bonds (CBs)
- Bonds with Warrants (BWs)
- Exchangeable Bonds (EBs)
Fixed-income
Securities
M&A
Structured
Finance
•Underwriting
debentures /
financial bonds
•Global bonds
•Commercial
Paper (CP)
•Asset-Backed
Short-Term
Bonds (ABSTB)
•Acquisitions /
Liquidations
•Mergers / Spinoffs
•Takeover defense
•Holdingcompany
creation
•Tender offer
Investment
Banking
•Asset-Backed Securities •Acquisition financing
•Principal investments
(ABS) issuance /
•Corporate lending
underwriting
•Property funds
- Real estate funds /
REITs
- Oil funds
- Ship funds
- Infrastructure funds
•Real estate project
financing
•Securitization advisory
service
League Tables
Samsung Securities’ globally competitive workforce assures top credentials in cross-border deals, helping us
earn top ranking on the Bloomberg Korea M&A League Table in 2014. Since then, this has been backed up
by a number of successful investment banking initiatives, such as our serving as the lead manager for the
IPOs of myriad top companies in financial markets worldwide.
Investment Banking Service Awards
2014
st
•1 place on Bloomberg’s Korea M&A League Table
•1st place in the underwriting sector for thebell, Maeil
Business Daily and Korea Economic Daily‘s Domestic IPO
League Table
•M&A Advisory Award at the Korea Economic Daily‘s 6th
annual Korea IB Awards
•Korea’s Best M&A Lead Manager at Money Today‘s 12th
•Best Deal Award and M&A Finance Award at Yonhap
Infomax’s 4th annual Financial Awards
2015
•Korea’s Best M&A Lead Manager at Money Today’s 13th
•M&A Finance Award at Yonhap Infomax’s 5th annual
Financial Awards
17
Samsung Securities offers a novel service called Samsung POP Robo, an algorithm-based
investment platform that takes an advanced statistical approach based on the company’s unique
analytical technique. Samsung has formally petitioned for grant of a patent for POP Robo.
The expected benefit of this service is that it makes investing simpler and less expensive,
increasing ordinary clients’ access to customized financial advisory services that in the past
were reserved for HNW clients.
Robo-Advisor Service
Robo-Advisor refers to an automated algorithmbased investment platform that utilizes advanced
statistical techniques to manage and advise clients
on their investment portfolios.
Robo-Advisor service flowchart
Asset allocation
Portfolio-building
Equities, ETFs / ETNs, futures / options …
Wrap
account
privately
placed
fund
Investments (trading)
After two years of rigorous R&D efforts, a dedicated
team consisting of the industry’s best and brightest
has successfully developed POP Robo, an original
technique for a robo-advisor platform.
The core technique of the POP Robo-Advisor
platform is currently in the process of being
patented. It also marks Korea’s first technology
that tests the returns on investments in a virtual
trading system against a virtual market development
scenario based on trends over the past 10 years as
well as real-world market conditions, including, for
example, the 2008 global financial crisis and the
European sovereign debt crisis.
To further enhance the credibility of its investment
abilities, the Investment Results Verification System
scrutinizes investment strategies and performance
results from the Robo-Advisor Platform by market
situation before selling the verified portfolios.
Samsung’s POP Robo-Advisor is the only platform
developed by any Korean financial institution that
creates an assortment of investment portfolios and
a number of investment vehicles, such as equities,
ETFs, ETNs, and options, with the entire investment
process - from rebalancing to trading - managed
entirely by an algorithm-based robotic system.
18
Making Investments Easier and Less
Expensive
Samsung Securities’ POP Robo-Advisor enables the
automated management of investment portfolios,
which previously only a handful of affluent investors
could do offline through private bankers’ customized
financial advisory services. Although the onlinebased subscription to the wrap account service
of this program is currently regulated, we expect
authorities to deregulate this in the near future. As
a result, we plan on establishing online-based POP
Robo-Advisor services soon to enhance our product’s
accessibility.
Samsung’s POP Robo creates investment portfolios
optimized to each client’s investment tendencies
based on information individuals provide. POP Robo
then fine-tunes and rebalances daily fluctuating
market data to realize maximum profits against risks
on all portfolios. Samsung Securities’ IT and financial
experts regularly monitor and adjust every client’s
investment funds so that the Robo-Advisor service
can meet target investment yields.
Robo-Advisor’s Investment Principles
With the early development stage now completed,
Samsung’s Robo-Advisor Wrap Account product
offers investment portfolios consisting of ETFs and
ETNs that are linked to global underlying assets, such
as global indices, crude oil, commodities and foreign
exchange, as well as domestically listed equities.
While diversifying investment portfolios that have
been heavily concentrated on domestic assets and
responding to the economic cycle of each nation
and asset type, the Robo-Advisor Service aims for
long-term, stable profit growth through constant
investment hedging and rebalancing.
In the long run, we will add more algorithms and
system infrastructure to build more systematic
investment portfolios with any number of investment
assets available on the market, as well as ETFs that
are listed on stock markets around the world.
Financial Highlights
(Unit: KRW billion)
Consolidated
Account
FY2015
Separated
FY2014
Change (%)
FY2015
FY2014
Change (%)
Balance Sheet Summary
Total assets
30,994.4
25,774.7
+20.3%
29,922.7
25,037.3
+19.5%
Total liabilities
27,470.6
22,347.9
+22.9%
26,418.9
21,605.5
+22.3%
Total equity
3,523.8
3,426.8
+2.8%
3,503.8
3,431.8
+2.1%
(controlling interests)
3,523.8
3,426.8
+2.8%
-
-
-
Earnings summary
995.9
768.5
+29.6%
953.7
725.1
+31.5%
Brokerage commissions
407.1
290.5
+40.1%
378.4
265.6
+42.5%
Sales commissions on financial products
284.1
236.2
+20.3%
284.8
236.7
+20.4%
Underwriting and advisory commissions
32.7
28.8
+13.5%
32.7
28.8
+13.5%
268.6
212.6
+26.3%
252.7
190.3
+32.8%
+7.8%
Net revenue
Trading and interest income
24.1
20.0
+20.4%
37.5
34.8
-20.7
-19.7
+5.2%
-32.4
-31.0
+4.5%
619.2
601.5
+2.9%
582.6
564.7
+3.2%
334.8
332.3
+0.8%
315.3
312.8
+0.8%
41.6
44.1
-5.7%
39.7
41.9
-5.2%
SG&A expenses
242.8
225.1
+7.8%
227.5
209.9
+8.4%
Operating income
376.7
167.0
+125.6%
371.2
160.5
+131.3%
-116.7%
Other income
Commission expenses
Operating expenses
Personnel expenses
Amortization and depreciation expenses
Non-operating income
-11.8
-4.3
+172.5%
-27.4
164.1
Pre-tax income
364.9
162.7
+124.3%
343.8
324.5
+5.9%
89.8
36.7
+145.0%
86.2
81.0
+6.4%
Net profit
275.0
236.6
+16.2%
257.6
243.5
+5.8%
(controlling interests)
275.0
229.5
+19.9%
-
-
-
7.9%
6.8%
+1.1%p
7.4%
7.3%
+0.1%p
-0.2%p
Income tax expenses
Financial Ratios & Common Share Data
Return on equity
(ROE, attributable to controlling interests)
Return on assets (ROA)
1.0%
1.0%
+0.0%p
0.9%
1.1%
Earnings per share (EPS, KRW)
3,821
3,090
+23.7%
3,578
3,280
+9.1%
Dividends per share (DPS, KRW)
1,000
650
+53.8%
1,000
650
+53.8%
Economic value created in FY 2015 (separate)
(Unit: KRW billion)
(24.3)
Non-operating profit
(excluding donations)
953.7
Net revenue
187.5
4.9
39.7
3.1
Insurers
(insurance
premiums)
Amortization
and depreciation
expenses
Local communities /
NGOs
319.4
Employees
(wages / severance
benefits, fringe benefits,
training expenses)
15.8
86.2
Media
Government
(corporate taxes)
(donations)
(advertisement & PR
expenses)
43.4
95.3
27.5
36.5
Other operating
expenses
Business
partners
Landlords
Interagency
(rental expenses)
(public imposts)
(miscellaneous
expenses)
Retained earnings
257.6
Net profit
70.1
Shareholders
19

- Samsung Securities

Transcription

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