KB Securities: Redefining Asset Management Amid Market Shifts

In a strategic move that marks its commitment to long-term growth, KB Securities has announced a concentrated effort in establishing an asset management system rooted deeply in customer trust. This approach heralds not only a shift in how financial services are marketed but also signals a commitment to customer-centric product offerings.

Bolstering the Asset Management Arsenal

Central to KB Securities’ strategy this year has been the expansion of private equity funds and wrap accounts. By doing so, they have reinforced their capability to supply customized products, demonstrating agility in tailoring assets that resonate with both market conditions and consumer investment tendencies. Sales of securities-type private equity funds, for instance, impressively rose by 101% year-on-year, reaching 804 billion won by the end of October.

Lab Accounts on the Rise

The growth trajectory continued in the lab account sector, which saw a 131% year-on-year increase in stock-type sales, totaling 771.3 billion won. Meanwhile, investment-type lab profits soared by 82% over the same period. This consistent growth has contributed to a 30% increase in KB Securities’ assets under wealth management (WM) operations as compared to the previous year.

Shifting Paradigms in Sales Strategy

Transitioning from short-term sales methods to an advisory-centric profit structure has proven crucial. An official from KB Securities noted the pivotal shift to customer-tailored portfolio proposals and the nurturing of long-term asset growth strategies. Such achievements are attributed to a strengthened sales infrastructure focusing on professional manpower and seamless collaboration between managers and clients.

The Vital Role of Investment Consultants

Investment consultants (ICs) emerge as the linchpin in this realignment. They provide expert advice, deftly navigating through customers’ varying inclinations in a rapidly evolving market. Engaging in over 200 joint sales and seminars this year, particularly for PB experts, demonstrates the firm’s commitment to enhancing field-oriented asset management capabilities.

A Transparent Fee-Based Approach

Adopting a Fee-Based asset management strategy aligns customer asset growth with the firm’s profitability. This move has garnered positive reviews as it ties the company’s success to long-term client performance, mitigating short-termist operational practices that often lead to conflicts of interest.

“As stated in 매일경제,” said Park Min-bae, head of KB Securities’ product strategy group, “Our Fee-Based WM growth strategy underscores our ambition for sustainable shared growth with customers, enriching their asset growth journey through potent asset management capabilities.”

In an era where financial markets are punctuated by volatility, KB Securities’ emphasis on long-term growth and customer-centric strategies reflect a mature understanding of evolving client needs and market demands.