Samsung Asset Management, Gradual Reduction of Online Fund Direct Sales

Online Fund Direct Sales Service R2
Reduced Differentiation Due to ETF Activation and Related Regulatory Changes
Focus on Product Development and Management, Emphasizing Diverse Product Launches

[Asia Economy Reporter Kwangho Lee] Samsung Asset Management announced on the 10th that it will gradually reduce its individual online fund direct sales service ‘R2’.

Starting this month, Samsung Asset Management will suspend new member registration and account opening services, halt online fund new/additional sales services next month, and provide telephone management services to existing investors from May.

Through the telephone management service, existing investors can receive services such as balance/profit rate inquiry, sell orders, transfers, and certificate printing.

The R2 service, launched in December 2019, is an independent sales channel designed to allow smart individual investors to conveniently invest in some of Samsung Asset Management’s funds at low cost without a securities or bank account.

At its introduction, it started with a total of four products including EMP (ETF Managed Portfolio) funds, ELS index funds, and bond funds, and has expanded its product lineup to seven currently.

However, since only the company’s public offering funds must be presented as products to investors, and the ETF (Exchange Traded Fund) market, which can be traded conveniently like stocks without sales commissions, has rapidly grown, the differentiation of the online fund direct sales service offering low-cost, specialized products has significantly diminished.

In fact, as of the end of last year, about 330 investors purchased funds through R2, and the sales balance was around 500 million KRW.

Additionally, although deferred, with the implementation of the financial investment income tax, tax issues on fund profits will arise, and considering the high likelihood that long-term fund investment demand will concentrate on relatively tax-free pension accounts or ISAs, Samsung Asset Management decided to gradually reduce the service.

A Samsung Asset Management official said, “We will focus on the core role of the asset management company, which is product development and management, and strive to provide customers with a more diverse range of ETFs and fund products.”

This content was produced with the assistance of AI translation services.