SAMSUNG Active Asset Management Co Ltd, a subsidiary of Samsung Asset Management Co, held a meeting of its board of directors on March 14 and announced that it will merge with Franklin Templeton Investment Trust Management Co Ltd to establish Samsung Franklin Templeton Asset Management Co Ltd, a joint venture (JV).

Established in January 2017, Samsung Active Asset Management is 100% wholly-owned by Samsung Asset Management and specializes in active equity management in Korea.

Franklin Templeton Investment Trust Management is a general asset management firm established in March 1988 in Korea, with 100% of its shares held by Franklin Templeton Capital Holdings Private Ltd.Franklin Templeton Capital Holdings is a subsidiary of Franklin Resources Inc, a global investment management organization operating as Franklin Templeton Investments.

The new JV will be under joint management, with equal representatives from the two parties. It will focus on large-cap growth and small and mid-cap equity strategies as offered and promoted by Samsung, combined with large-cap value strategies overseen by Franklin Templeton Investments.

Together this will enable a diversified product range of active funds to be available to clients in Korea, according to a recent statement. An additional benefit will be the access to Franklin Templeton’s global active management and research capabilities and additional services including guidance for institutional investors. A full range of global investment products offered by Franklin Templeton Investments is expected to be presented over time to Korean investors.

SungMin Hwang, a representative of Samsung Active Asset Management says: “This merger will maximize the strengths of Samsung Asset Management and Franklin Templeton Investments to provide the best services to Korean investors. We will be able to offer some of the world’s best asset management services in terms of products and strategy.”

Subject to obtaining approval from the financial regulatory bodies, the two parties plan to establish the joint venture in the second half of 2018.