Samsung Asset Management Launches 'Samsung Global M&A Fund'

Published 12 Oct.2021 09:19(KST)

[Asia Economy Reporter Minji Lee] Samsung Asset Management announced on the 12th that it will exclusively sell the 'Samsung Global M&A Fund' at KB Kookmin Bank, which proactively invests in companies expected to achieve long-term growth through active mergers and acquisitions (M&A).

The Samsung Global M&A Fund identifies and invests in companies securing future growth engines through M&A amid rapidly changing economic conditions. Under a historic low-interest-rate environment and abundant liquidity, the global M&A market is booming. The scale of M&A transactions up to the second quarter of 2021 approaches about 75% of the total transaction volume in 2020. As more companies aggressively diversify their earnings using capital, the Samsung Global M&A Fund focuses on investing in companies expected to achieve long-term growth through active M&A.

This fund structures its portfolio by dividing M&A target companies into three types: business integration type, conglomerate type, and business discovery type. The business integration type expects accelerated growth through synergy effects from business integration within the same industry; the conglomerate type pursues business expansion by acquiring excellent companies across various industries; and the business discovery type expands future growth foundations by early discovery of innovative promising companies. Eligible investment stocks include LVMH, Walt Disney, Pfizer, Berkshire Hathaway, and FAMGA (Facebook, Apple, Microsoft, Google, Amazon).

A Samsung Asset Management official stated, "In the rapidly changing modern business environment, the most efficient means for companies to secure new growth engines is M&A," adding, "This is an attractive product that allows diversified investment in global companies expected to achieve greater growth by actively responding to changing environments through M&A."