Hi Investment & Securities, Trust and Wrap Managed Assets Grow Sixfold in Two Years

Published 10 Nov.2020 09:56(KST)

[Asia Economy Reporter Park Ji-hwan] Hi Investment & Securities has successfully diversified its revenue structure by growing its trust and wrap (wrap) managed assets more than sixfold in the past two years.

Hi Investment & Securities announced on the 10th that as a result of focusing on trust and wrap sales, the trust and wrap managed assets, which were around 1.8 trillion KRW at the end of 2018, have exceeded 10 trillion KRW as of early November this year.

In particular, the wrap account custody, which was only about 30 billion KRW at the end of 2018, showed a rapid growth of more than 110 times to 3.3 trillion KRW as of early November 2020.

So far, Hi Investment & Securities has strengthened its operational capabilities by establishing the Customer Asset Management Headquarters directly under the CEO to enhance its ability to supply customized products, placing the trust and wrap management department under it, reorganizing its structure, and reinforcing external personnel. In addition, through regular collaboration between the management and sales organizations, it has focused on supplying various customized products suitable for market conditions and customer needs to individual and corporate clients.

The representative products of Hi Investment & Securities' Customer Asset Management Headquarters include trust and wrap products investing in high-quality bonds and commercial papers (CP) for pension funds and general corporate clients. In particular, the rental-type real estate fund trust and dollar-cost averaging exchange-traded fund (ETF) wrap sold to individual customers are recording excellent annual management returns of around 4% and 8%, respectively.

Wi Sang-sik, head of Hi Investment & Securities' Customer Asset Management Headquarters, said, "Despite difficult market conditions such as prolonged low interest rates, COVID-19, and the private equity fund incident, this is the result of efforts in organization, personnel, and product sectors based on DGB Financial Group's core value of 'customer service.'"