Global Asset Management involves creating and monitoring a set of investments for long-term wealth. All this is done based on what your tolerance for risk will be as well as your financial investments. What sets this type of financial endeavor apart, however, is that instead of striving for monetary growth through domestic stocks, you will be able to diversify your investment on an international level.

In other words, Global Asset Management is wealth management on a global scale. It seems like a straightforward notion, yes. However, there are so many nuances that set this apart from asset management on a domestic level. If trade-offs and stock buying internationally are a part of your wealth portfolio goals, then keep on reading below. Here, we share some of the basic things about global asset management as well as introduce you to the company that can assist you in this venture.

Read more about what does a wealth manager do.

The Nitty and Gritty of Global Asset Management

To begin, you need to enlist the assistance of portfolio managers. Not just any portfolio managers at that – you need professional licensed ones who are experienced in the science and art of building and managing portfolios globally. All of this is done with the ultimate goal of maximizing the return of your investments, at the appropriate level of risk that you can tolerate.

Passive vs Active Global Asset Management

As with domestic asset management, you and your portfolio managers can choose to either passively or aggressively earn from your assets. How do these two management styles differ? We explain the difference to you in the section below – keep on reading.

Passive management works with you buying and forgetting about your investment. It doesn’t matter how many funds you want to invest in when it comes to passive management. You can simply create your portfolio, optimize it to the best that you can, and just leave it to accumulate profit over a set period of time.

On the other hand, there is what one calls active management. This involves actively buying and selling of assets, as well as consistently trying to beat the performance for your best gain. Depending on your global asset manager – and with your approval, of course, either quantitative or qualitative models can be employed.

Global Asset Management Company

While also used as a general term for buying and selling stocks on a global level, Global Asset Management is also a respected authority in the very industry that it belongs to. Global Asset is the foremost company in, well, global asset management. They work closely with their clients to build a diversified and secure portfolio for the ultimate goal of financial freedom and security.

Global Asset Management: Key Points and Goals

Global Asset Management operates on three major pillars: security, tradition, and integrity. These work synergistically with the elements involved in global portfolio management.

Asset Allocation

Money, stocks, bonds – these are all considered as assets. Alternatively, real estate properties and commodities may also be considered as such. The goal of global asset managers is to successfully allocate these assets by providing balance and protection against risk. All this is to ultimately reach the goal of capturing gains and opening new opportunities for profit.

Diversification

Diversification is the very superstructure that global asset management stands on. It understands the need for creating several baskets of investment so that you, the client, will be able to have a more secure and broad spectrum of exposure in the market.

More than anything, diversification mitigates risk, and amplifies rewards. Global Asset Management understands that markets are volatile and one sector can outperform another at any given time.

Of course, your portfolio can be diverse domestically. However, geographical and economical divesification has proven to be more profitable and with lesser risks.

How to Start a Global Investment Portfolio

Opening an account and starting to explore opportunities in the global investment market is easy with Global Asset Management. Take a look at the steps that you can take to get started on your investments.

Step 1: Find an investment advisor

The first thing that you need to do is to find a reliable investment advisor. Over at Global Asset Management, you will be paired with an experienced and able advisor who will walk with you in every step of the way. This advisor cum portfolio manager will assist you and provide you with all the information that you need so that you can work together in building your assets.

Step 2: Create and build your portfolio

After discussing your appetite for risk as well as your financial goals with your portfolio manager, he or she will then set out to create a blueprint for the diversification for your assets.

Step 3: Monitoring

By now you and your manager should have already invested in several market baskets. The thing to do now is to rest easy in knowing that your manager is closely monitoring the market and will be the first one to advice you to buy or sell assets as opportunities present themselves.

Follow my blog with Bloglovin

Global asset management is the diversification of your investments on a global scale. This is achieved by implementing a series of strategies for the purpose of varying and increasing your assets. In short, it is basically wealth management on a global landscape. Precisely because of its scale, investments and policies are more diverse and can be carried into international markets instead of purely domestic ones.

Getting into the global asset management industry means rolling with the big players–expanding the possibility of returns, maximizing growth, and creating investment plans that anticipates all the risks of worldwide coverage.

The Basics of the Global Asset Management Industry

For one to succeed in this specific branch of financial services, you need to be able to maximize your gains while minimizing risks. More than this, you need to be able to understand the complexities of diversification of investments beyond different markets–but rather, beyond international borders.

Do you need more details about this industry? We’ve rounded up some basic facts that might help you decide if you have an appetite for global asset management or not.

1. Global asset management is a good choice for investors with a low appetite for risk
   By now you might already have your own preferences, objectives, and appetite for investment. It should be noted then that global asset management is, surprisingly enough, better suited for individuals who are on the lookout for expanding their portfolio without much risk to their assets.
   You might be thinking, how is a global and widespread portfolio a much lesser risk?
   Here’s the thing: diversifying your investments is always a good practice in this trade. So, if you have stocks in, say the US and South Korea, you’ll be able to pull up your net investments if one of these markets crash. One might be compromised, but unless the cause of the decline is a matter of international emergency, there’s little chance that both markets will decline at the same time.
   Summary: global asset management spreads out your investment stocks across different borders so that you won’t risk putting all your eggs in one basket–or in this case, country.
2. You’ll learn more about the nuances of other countries’ stock market climate
   Without a doubt, some currencies hold more value than others. What’s exciting about exploring a global scale portfolio is that you and your fund manager will be able to choose the currencies of the stocks that you want to purchase.
   Buying a multi-currency portfolio means that there will be lesser chances of complete and total portfolio failure.
3. You can learn how to ride the tide of market cycles
   In trading, markets go through cycles of appreciating and depreciating. As your portfolio manager works with you to choose the best country at a specific time to invest your resources in, let this be a time for you to gain a much deeper understanding of how the markets work. Over time, you’ll soon be able to notice trends and patterns yourself–even watching out for the performance of your assets in other nations.
4. You will need to shell out a bit more to invest in a global market portfolio
   So far, we’ve discussed how relatively safe and conservative global investing is–but it does come with a price. Buying and selling of international stocks require skills and can be downright expensive. You need to consider stamp duties, exchange fees, taxes, and other things. However, for those who are looking to cast a wider security net, this might be well worth its price.
5. The political risk for international investments may be higher
   There are very little drawbacks to investing in a global asset portfolio, but you do need to consider the stability of the government on the countries that you want to invest in. Admittedly, there are some governments that do require you to give them a portion of your securities in the stock exchange. The good news is that this can easily be avoided if you be wise in choosing the countries that you want to buy stocks from. When in doubt, your portfolio manager will, of course, give you educated and experienced advice.

Global Asset Management

Considering off-shore investments and expanding your portfolio across different nations? It always pays to seek the expertise of wealth managers. Global Asset Management is, as it is aptly named, a team of innovative and pro wealth managers who have committed their careers to helping investors with their international stock endeavors. More than anyone in the industry, they have built the company from their consistent methodology on investing in diverse markets.

The team over at Global Asset Management has established a singular goal for their clients: to ensure long-term wealth with respect to your tolerances and goals. They are not just committed to your success, but to your heirs and their heirs too. This is a company that can help you transcend multi-generational success.

This famous movie is named for a Chinese idiom. ‘Tiger’ and ‘Dragon’ both refer to individuals with powerful hidden talents. It reminds us not to underestimate anyone. Being located in Seoul, South Korea Global Asset Management has a ring-side seat to the economic miracle of the Asians Tigers. Chinese economic growth has been regarded as a Dragon, but the government is known to exaggerate statistics. Their reported growth rate is part mirage and part scam. The four Asian Tigers, on the other hand, are transparent democracies. Having gone from struggling third world countries to leading industrial nations in mere decades, they have a lot to teach us.

Recommended articles:

• Safe Haven Investments
• Preferred Stock – A Comparison with Common Stock and Bonds
• What Does Asset Allocation Mean?

The Four Asian Tigers

This auspicious list includes South Korea, Singapore, Taiwan and Hong Kong. These high growth economies maintained high economic growth rates since the 1960s. They accomplished their success through expanding exports and rapid industrialization. Collectively, they are respected as leading nations both from their ability to lift their people up and to establishing responsible governments and rules of law.

All four countries accomplished powerful economic growth, especially during the period of the 1950s to the 1990s. They are established members of the league of industrialized nations. Singapore and Hong Kong are global financial centers. Taiwan and South Korea are essential manufacturing hubs. The world depends on them for IT, electronic and automobile components.

The Secret to their Success

The Four Asian tigers share three common values: high levels of education, high savings rates and a focus on exports. Their collective economies have also proven resilient, withstanding the 1997 Asian financial crisis and the 2008 global credit crunch. Their societies are open and welcoming to foreigners, bringing both expertise and investment which further growth. Global Asset Management, based in Seoul, Korea is a prime beneficiary of the talents and welcoming nature of the region.

South Korea

Officially named The Republic of Korea, it is the only one of the four Tigers that is a member of the G20. In the 1950s, the country’s per capital GDP was similar to third world countries in Africa and Asia. By 2019, South Korea reported a GDP of US$2 trillion, a growth rate of 3.1% and a per capita GDP in excess of US$39,000. In addition to the aforementioned values, the country achieved this incredible growth through building its export based targeted to meet growing global demand, strategic credit allocations and import restrictions. The thriving democracy encourages companies like GAM to establish themselves locally.

Taiwan

In 2019, Taiwan achieved a GDP of US$1.2 trillion and a per capita GDP of $50,293. The country has a contentious relationship with the People’s Republic of China. Due to Chinese pressure, Taiwan is not a recognized member of the United Nations. Nevertheless, the country is thriving. ‘Made in Taiwan’ has transformed from being a joke to a stamp of reliability. It is a reliable manufacturer and exporter; Taiwan boasts one of the strongest economies in the region. Its population of 24 million have a reputation for being well educated and hard working.

Hong Kong

Midnight July 1, 1997 the British transferred sovereignty over Hong Kong to the Government of China. As of now, Hong Kong is a special administrative region of China. In theory Hong Kong remains self-governing in all areas except defense until 2047. Prior to the tensions with the Chinese government and resulting protests, the economy was strong. Statistics for 2019 measured a GDP of U.S.$454.9 billion and 3.8% growth. The tensions have resulted in some capital flight but it is still considered a free economic zone.

Singapore

The Republic of Singapore is a sovereign city-state. The island, with a population of a mere 5.6 million, has a growth rate of 3.6% and a GDP of US$527 billion. The country is considered a friendly-dictatorship and has one of the lowest rates of corruption in the world. Singapore has a strong legal framework, well-protected property rights and a transparent regulatory environment. Along with its favorable taxation rates, its private and commercial sectors enjoy fiscal security making it a regional leader in finance and other areas.

The Asian Tigers all enjoy prominent status in the Asia-Pacific region. China dominates the neighborhood economically. It remains to be seen what impact the coronavirus and Chinese-American trade tensions will have. Singapore, for example, is benefiting from Hong Kong’s relationship with China. South Korea is engaged in its own trade issues with Japan. Taiwan is emerging as a direct beneficiary of the U.S.-Chinese trade war. The four countries have matured from developing nations to first world countries. Their past meteoric growth will also mature to the steady rates consistent with first world countries.

For more information, please contact https://www.global-asset-mgmt.com/contact-us. GAM investment advisors welcome all investment related inquiries.

Most periods of chaos and uncertainty are short-lived. Properly diversified portfolios will weather most storms. However, everyone has a different tolerance for volatility and some clients feel better moving a portion of their wealth into safe haven assets during periods of uncertainty.

What Defines a Safe Haven?

Safe havens are like ports in a storm. They are investments that hold value when financial markets are turbulent. Certain defensive investments will even rise during market downturns and periods of uncertainty. Different safe haven assets will perform differently in response to various situations. As always, it’s best to speak to your Global Asset Management investment advisor before making rash decisions in a panic.

How Do Safe Havens Protect Me?

Safe haven investments perform different purposes. One is protecting the value of one’s wealth. Another is to ensure one has portable stores of wealth. Threats to the value of wealth can come from hyperinflation, market corrections, economic downturns and geopolitical instability. One person’s definition of a safe haven may be something they can touch or carry. Another’s may be the anonymity of digital currencies. While there is no one-size-fits-all, there are established and traditional safe haven assets.

Alternative Investments Scam Alert

Alternative assets refer to most investments beyond the traditional classifications of stocks, bonds, cash, gold and T-bills. Hard assets – things you can touch or carry – sound appealing in times of uncertainty. Panicky investors can be easy prey for fraud and scams. Art, precious gems and vintage wines can all be sound investments if you know what you are buying and dealing with a reputable expert. If not, buyer beware.

Read our post: Stock Market Sectors

Gold

Gold is the classic safe haven investment. It’s a physical commodity with a universally acknowledged value. Unlike paper currency, governments can’t magically create gold which is why it’s a hedge against inflation. Within limits, it is a portable store of wealth, and untraceable. Physical bullion is the foremost protection against uncertainty. Large-cap gold stocks can also play a role, since they rise in value during periods of uncertainty, along with the price of their main product. Gold stocks are a great choice for long-term investing. Over time they earn more than bullion.

Cash and Near-Cash

Over the long-term, cash is a poor investment. It generates no returns and its value is eroded by inflation. Over the short-term, its value is less vulnerable to financial shocks or market corrections. Near-cash refers to money-market assets that mature quickly and can be converted to cash easily. These include government treasure bills, guaranteed investment certificates and money-market funds. U.S. T-bills are actually safer than large amounts of cash. In the event of a complete financial collapse, they are fully guaranteed by the government. Banks and investment firms have insurance to protect investors, but only up to a limited amount.

Recommended read: 7 Tips To Become A Better Investor

Currencies: USD, Yen and the Swiss Franc

The forex market is massive and volatile. Liquid capital flies around the globe, flitting between safety and extra yield. When markets are stable, money flows to the Australian dollar and the New Zealand dollar, which provide additional return without significant currency risk. During times of uncertainty, money flows to the U.S. Dollar, the Japanese Yen and the Swiss Franc.

The Swiss franc is a classic safe-haven currency. Switzerland is neutral, stable, and independent, as well as home to a large and sound financial system. Their status as a tax haven means there is enormous liquidity within their banking system.

Japan is a stable country with a large economy and ample liquidity. It consistently maintains current account surpluses, a stable economy and a liquid capital market. Money does leave the country in search of higher yields during periods of stability, and it rushes back when times are uncertain. For example, the sterling-yen is a forex favorite whenever Brexit issues rock markets.

The United States is the world’s largest economy, and the U.S. dollar is the world’s reserve currency. During volatile and uncertain periods, cash flows into U.S. dollars, and to some extent now, the Euro.

In some corners of the globe, cryptocurrencies are joining the ranks of safe havens. The gold standard in the digital world is the Bitcoin. South Korea was one of the first widespread early adopters of cryptocurrency use. Countries with the highest level of use now are Turkey, Brazil, Columbia, Argentina and South Africa. Expect this trend to continue in countries with currency restrictions and rampant inflation.

Bottom Line

At Global Asset Management, safe haven investments are considered one of several risk management tools. If your country of residence is stable, the most effective way to lower risk is adequate diversification of quality investments.

It is basically wealth management that is set on an international background, expanding growth and maximizing the possibilities of returns at the varying appetite for risks.

Recommended Articles:

• Global Asset Management: South Korea Overview
• The Importance of Wealth Management
• Wealth Manager Explained

The Basics of Global Asset Management

A specific branch of the financial services industry, global portfolio management pools is simply the art of taking charge of investment accounts so that investors can increase their assets and achieve their investment objective over time.

Here are some basic facts about this specific field of wealth management:

Global portfolio management is perfect for those who have a lower appetite for risk

Each investor has their own objective and appetite for risk. Global portfolio management offers the perfect middle ground for those who want to expand their portfolio without too much risk.

Let us illustrate the benefit of global portfolio management by giving an example. Say you have stocks in the US market and stocks in an international portfolio. If the economy in the US declines, your net investment might be compromised. However, there’s a possibility that your international portfolio might work out better, thus pulling up your net investment.

This is what global portfolio management does–it spreads out your investment stocks so that there are lesser risks for you.

You’ll get more exposure to other currencies

One’s currency may hold more value than others, and you and your portfolio manager can explore this best with an international portfolio. This specific type of wealth management purchases stocks in different currencies.

Now we’re guessing that you might be a little confused as to how this will benefit you. Allow us to provide you with another example to illustrate multi-currency buying through an international portfolio.

You’ll be able to make the most out of market cycles

Trends and patterns emerge over time in different nations. Say your portfolio manager might suggest that the currency in the US and the stocks are undervalued. This means that they will then look for other avenues to invest your money in, likely in other developing countries where you can get the most out of your assets.

There are bigger transaction costs involved in a global portfolio management

Buying and selling international stocks is not going to come at a price. Alongside a wider security net, you still need to take into account the various international stocks that will still be deducted from your net earnings.

With so many stamp duties, taxes, and exchange fees that you and your investment portfolio manager have to consider, it’s wise to take this into account when you decide to dip your toes into the international stock market.

Methods of Global Portfolio Management

Now let’s move on to the different modes that make up global portfolio management. We’ve differentiated these two management methods for you below–keep on reading.

Portfolio Equity

Portfolio equity includes group investments of assets that are transacted in equity. This does not take into account other direct investments and stocks performed in international markets.

Portfolio Bonds

On the other hand, portfolio bonds include group investments that are transacted in bonds. These are often long-term and are perfect for those who have a higher appetite for risks.

Global Mutual Funds

This refers to the management of mutual funds at an international level. This is not particular to any foreign country, rather your grouped assets will be diversified among different countries. This transacts predominantly with securities that are issued in an international field.

Closed-end Country Funds

If you prefer a more conservative way of investing in another economy, then a closed-end country fund might suit your appetite. It is not as diversified as your other options and it invests in international securities, giving you space to indirectly invest money.

Disadvantages of Global Portfolio Management

While generally considered safe and conservative, there are certain drawbacks attached to global portfolio management that you need to be aware of.

Currency might not work in your favor

The exchange rate is something that is beyond your control and that of your portfolio manager. For something so volatile, this largely dictates the value of your foreign portfolio. However, the good thing is that these fluctuate rather often, and might just work in your favor.

The government can get involved

The government in some countries has a say in the security prices. They could possibly take a chunk of the share of securities that are in stock exchanges.

The political risk is higher

The political and economic stability of various nations needs to be taken into consideration as well. Although a political coup is unlikely, it is still possible and this will affect the stock market for sure.

We are, Global Asset Management South Korea

Why Should You Invest in South Korea?

The country is also one of the most technologically advanced in the world, employing the fastest broadband speeds anywhere across the planet. South Korean has also used its technological capabilities to build a strong digital economy in government, education, commerce as well as entertainment.

And because of the many tax benefits provided by the Korean government, more than 50% of the world’s Global Fortune 500 companies have invested in this country.

Added to that, South Korea has also established a massive Free Trade Agreement (FTA) that have connected the country to the United States, the European Union and ASEAN.

Another area that is fast showing massive business potential is the Korean Wave. All things Korean are becoming hugely popular across all the corners of the globe, be it fashion, music, film, food, cosmetics and even culture.

So, if you are looking at growing your investment portfolio, this is a good place to do so.

How Can I Invest in South Korean Stocks?

There are many ways in which you can invest in South Korean stocks.

Find the Right Platform

You can find the right global asset management platform that gives you access to Korean stocks, and it doesn’t necessarily need to be a South Korean platform. There are a large number of platforms that provide you with the opportunity to invest in this country.

If you are not a very experienced investor, then it is best to use the services of an asset management firm that has the experience and the platform to do the investing for you.

Of course, you need to keep asking questions and stay informed on what they are doing with your money, and grow your own knowledge base.

Broad Market Index

An easy and low-cost way to invest in South Korean stocks is the broad market index, using ETFs (exchange traded funds). You get instant diversification using just one security traded on the American stock exchanges.

There are three different ways through which you can invest in Korean stocks using ETFs.

Using Indices on South Korean Stocks

The best index that is tracked by 5 different ETFs is the MSCI Korea Index, where the TER (total expense ratio) of the ETFs ranges from 0.45% to 0.74% per annum.

The best South Korea indices today are:

• iShares MSCI Korea UCITS ETF (Acc)
• iShares MSCI Korea (Dist.)
• HSBC MSCI Korea UCITS ETF USD.

The cheapest South Korean ETFs are:

• Lyxor MSCI Korea UCITS ETF (Acc)
• iShares MSCI Korea UCITS ETF (Acc.)
• HSBC MSCI Korea UCITS ETF USD.

Using the Asia-Pacific Indices

South Korean indices are not the only way to invest in ETFs for Korean companies. There are 4 Asia-Pacific indices that you can invest in for Korean stocks. These 4 indices are tracked by 11 different ETFs.

The 4 indices are:

1. The MSCI AC Asia Pacific Ex-Japan: This index tracks stock markets in developed as well as emerging economies of the Asia-Pacific region, but not Japan.
2. The MSCI AC Asia Ex-Japan: This index tracks stocks in developed and emerging economies in Asia, but not Japan.
3. The MSCI AC Far East Ex-Japan: The index tracks stocks in markets of the East Asian region, but not Japan.
4. The MSCI Emerging Markets Asia: This index tracks stocks of large as well as mid-cap companies in emerging markets in Asia.

Using the Emerging Markets Indices

There are two different emerging markets indices that you can use to make investments in South Korean stocks. These two indices are tracked by 14 different ETFs, so you can a pretty good range of choices. The two indices are:

• MSCI Emerging Markets: This index tracks all emerging markets across the world.
• S&P SMIT 40: This index tracks the 40 leading companies of 4 emerging markets – Turkey, Mexico, Indonesia and South Korea.

American Depository Receipts (ADRs)

Another way to develop your wealth management portfolio is by investing in ADRs. This way, you can purchase South Korean stocks on a United States stock exchange.

The downside to investing via ADRs is that they are not as liquid as regular American stocks, so you should be careful when trading with them. Some of the most popular ADRs are SK Telecom Co., Ltd., LG Display Co. Ltd., and KB Financial Group Inc.

A Word of Caution

There is only one word of caution here. When you invest in South Korea stocks, you need to be aware of the geopolitical risks of the region. The country is located in one of the most militarized regions on the globe, i.e., South Korea is neighbors with North Korea.

Eventually, you might come to need assistance. However, to be frank, there isn’t much support offered in the online community that is tailor-fitted to your needs.

This is where the wealth management process comes in handy.

The importance and scope of wealth management

Simply put, this is a service that banks on investment advisories. You, the client, will be paired with an advisor who will take on a wealth manager role. During this consultative process, your goals, capabilities, and risk personality will be assessed to find the best path of investment for you.

The need of wealth management has become more potent in today’s economic climate. With industries rising and falling on a regular basis, it is important to align yourself with someone who can give you financial and legal advice when it comes to managing your assets.

Of course, your investments aren’t the only ones covered in the consultations with your wealth manager. Aspects such as estate planning, accounting, retirement plans, etc. are also practices that will be included.

The benefits of wealth management

Now that we have a pretty good understanding of wealth management, it’s time to explore its benefits.

1. It will help you strategize a financial plan

With the services of a wealth management company in Korea, you’ll be able to handle all of your assets properly. Of course, you know your needs and goals best, so the task of a wealth manager is to make sure that the flow of your investments aligns with those goals.

What wealth management does is make sure that your investments are pooled to be lucrative and safe.

2. It will help you sort your priorities

Wealth management is all about implementing a proper structure in your financial wellness. To do this, it initially takes into account all of your goals and plans. By doing so, it forces you to dig deep and ask yourself questions such as, “What do I want to get out of my estate? How can I implement a thorough tax planning tactic? How much money do I want to receive after retirement? What’s my risk-taking personality when it comes to making investments?”

Asking yourself these (as facilitated by your wealth manager) will be done for the purpose of discovering your financial goals.

3. It will help you feel more secure with your money

Financial stresses are all too real in today’s luxury-conscious lifestyle. Your financial advisor will help you address all these and more. Being experts in the field, they will help put your mind at ease even during the roughest financial conditions.

Armed with theories, real-life experience, and a timeline that is tailored to your needs, a financial advisor is a perfect ally for all financial considerations.

4. It will help you come up with a retirement plan

Even the most workaholic among us look forward to a day when we’d simply live off the money we’ve previously worked for. With retirement as a big consideration in most people’s wealth timeline, it is no wonder that wealth management addresses this concern at the get-go. After all, it’s become increasingly difficult to live off on pension alone with our standard of lifestyle.

With your money under the strict monitoring of a wealth manager, you should be able to live off the fruits of your investments much earlier than you expected it to be.

5. It will help you set the pace and risk-level for your investments

If tailored services are what you are looking for, then you won’t go wrong with employing the assistance of wealth managers. Unlike most financial services, there is no cookie-cutter option when it comes to wealth management. Each client gets to enjoy a personalized level of counseling and dedication. If at any time, you will have questions regarding an investment or need legal advice about the division of assets, you can easily approach your wealth manager to sort things out.

6. It will help you secure your family’s future

With the correct wealth management portfolio, you will no longer have to worry about your family’s future. With proper investment schemes in place, you can rest assured that your family will be well taken cared of–even long after you have expired.

7. It will help you lead a healthier relationship with money

Despite having someone constantly looking after your financial well-being, having a wealth management fund will encourage an even healthier relationship between you and money. For most people, being closely monitored and seeing significant growth in investment are enough motivation to make better money decisions, after all.

At Global Asset Management Seoul Korea, work closely with clients to assure their financial security. We understand that for many, investment decisions can seem intimidating and complex. Our mission is to simplify the process and put you at ease. We do this by putting matters of financial management into clear, easily understood language and using straight forward investment portfolios. We further simplify matters by ensuring costs and fees are completely transparent.

With a trade as uncertain as the stock market, it has become even more important to understand all the tried-and-tested methods that can help you succeed in it. After all, it is rare for someone to accidentally stumble upon success in the realm of investments. Luck does not factor in when it comes to the endeavor of investments. It is with consistent practice and a solid premise that you can succeed.

Of course, this is not to dissuade you from the benefits of investing. There is much profit to be had in following countless of stock market cycles. As long as you are willing to put in the hard work and time to understand the patterns, you can stack the deck in your favor easily.

So, are you someone who’s thinking of becoming an investor for a living? If you are, then you’re going to find this article about ways on how to be a successful investor.

Check out our article on Investing in South Korea

Tip #1: It’s important that you set your long-term goals

One of the first things you need to learn about how to become an investor from scratch is to know your goal. Ask yourself why you want to start investing first. And then, ask yourself how much you’re willing to invest and how long you can go without being in need of that money.

Knowing your purpose and your financial capacity to fulfill said purpose is useful in helping you calculate just how much you can invest. Plus, it will help you figure out your appetite for risks.

Tip #2: Be realistic–understand the possibility of losses

If you want to learn how to be a good investor in stock market, then one thing you have to embrace is the idea of losing money. As we said, the stock market is extremely volatile grounds for increasing and losing your money. When you start investing, you have to be prepared to count your losses too. This includes accepting the fact that stock that has declined will not rebound anymore.

Of course, many will argue that expecting to lose money is a mentality that signals failure. However, it is still important to know when you should be cutting your losses and admit defeat.

Tip #3: Never accept anything as valid–especially in the stock market

Stock market tips abound the internet and the whole stock market community. But the important thing to remember is not to be swept away with these stock tips. It is critical for you to develop your own investment personality, and to stick to your own analyses of the charts.

Sure, there really are some tips that are good leads, but the opposite is often true.

Read more about Growth vs. Value Investing.

Tip #4: Stop worrying over short-term movements

Want to know what to study to become an investor? There are plenty of training modules and materials that can outline investment portfolios and bonds for you. However, one important non-technical skill to learn is how to keep your cool when your investments plummet.

Understand that you should be looking at the bigger picture for a long-term goal. Actually, short-term movements and fluctuations and quite common. Learn to keep your cool when these happen and you’ll be able to see the big-picture trajectory that it is meant to traverse.

Tip #5: Find a strategy that works for you– and be loyal to it

Once you have figured out what your goals are, then it’s time to discover what your investment philosophy is. It is the precept that will dictate most of your investing decisions–the foundation of your investment journey.

After all, indecisiveness is a trait that never landed anyone anywhere in the investment field. So whether you’re handling stocks or learning how to become an investor in a business, it’s important to determine and follow certain strategies that you know you can rely on.

Tip #6: Mind your taxes, but don’t let it run your business

Of course, taxes are a major consideration in investing. You need to figure out tax implications and other relevant uses for it. But the important thing to remember when dealing with this is that it should only take secondary seat in your business. Your concern should be to grow your money securely. Whatever comes after should take the backseat–your taxes including.

Tip #7: Be ready to take risks so don’t get too comfortable

We’ve been asked by clients time and time again how to become an investor with little money. Our answer will always be the same–take risks. One of the biggest mistakes you can make is to start getting too comfortable with your money. Learn that that biggest earnings come from the greatest risks. And while we don’t encourage you to invest in the most volatile bond available, sitting at the edge of your seat can sometimes be good for you.

Check out more on our Global Asset Management South Korea blog.

According to World Bank data, South Korea ranked 24th for overall GDP last year. GDP, of course, is a measure of a country’s economic strength. Their GDP grew from $901.9 billion in 2009 to $1.72 trillion in 2018, an increase of almost 91%. It’s projected to reach $1.99 trillion by 2024. In terms of where the economy stands per person, GDP/capital has grown from $19,138 in 2009 to $33,320 in 2018. The country ranks 30th globally in per capita income.

Why South Korea?

Inflation has remained low following rate cuts by the Bank of Korea in Seoul. Ongoing low rates will have a simulative effect, which is bullish for South Korean stocks. Low interest rates will lead to a weakening of the South Korean won against the U.S. dollar, Euro and other major currencies. This makes their exports more competitive in the global marketplace, further boosting their economy.

Global Asset Management analysts are optimistic about a trade resolution between China and the United States. Investors share our opinion, and this optimism is providing strength to Asian markets, including the KOSPI. The index is trading higher from gains in technology, industrial and financial sectors.

Investor Trade-Offs

The Korean economy has been attractive for international investors for some time. It boasts a combination of rapid growth rates and stability. As with everything, there are trade-offs. Individual investors should always weigh risks against rewards.

Benefits:

• Stable, developed economy: member of G20 and OECD (Organization for Economic Cooperation and Development). Considered an advanced nation.
• Per capita income surpassed $30,000 for the first time last year to reach $31,349 (2018), according to The Korea Times.

Risks:

• Geopolitical: next door to North Korea. While relations between the two countries are improving, North Korea is highly militarized and considered unstable.
• Export Reliant: South Korea is taking the correct steps toward responsible growth but they are heavily reliant on exports, making them vulnerable to global economic contractions.

South Korean ETFs

ETFs are exchange traded funds. They are closed-end mutual funds that trade on the stock exchange. They’re an excellent vehicle for global investments since they offer diversification and professional money-management. ETFs are also more liquid and have lower management fees than closed-end specialty mutual funds. South Korean ETFs include shares of South Korean companies, securities listed in the KOSPI (the Korea Composite Stock Price Index) and possibly South Korean debt instruments (government and/or corporate fixed income products).

The most popular South Korean ETF is the iShares MSCI South Korea Index Fund (NYSE: EWY). The $4.3 billion fund trades on the New York Stock Exchange. Its average daily trading volume is 3,026,785, making it the largest and most liquid of the Korean ETFs. It has a 0.59% management fee. The fund tracks the MSCI Korea 25/20 Index, which is a weighted average of large- and mid-cap stocks trading on the Korea Exchange. It is top-heavy with ten holdings making up half the assets under management. Samsung Electronics accounts for 20%. Other dominant positions include shares in POSCO, Hyundai and LG Chemical.

Other South Korean ETFs:

• Franklin FTSE South Korea ETF (NYSE: FLKR)
• First Trust South Korea AlphaDEX Fund (NASDAQ: FKO)
• HSBC MSCI Korea UCITS ETF (LSE: HKOR)

South Korea ADRs

ADRs are American Depository Receipts. They represent ownership in shares of foreign companies. ADRs are not as liquid as other stocks trading on the major exchanges. Examples include:

• LG Display Co., Ltd. (NYSE: LPL)
• SK Telecom Co., Ltd. (NYSE: SKM)
• KB Financial Group Inc. (NYSE: KB)

Final Words

• Investor interest in South Korea is increasing due to steady economic growth, and membership in both the G20 and the OECD
• The best way for investors to participate in South Korea is through ADRs and ETFs, both of which trade on U.S., London and European stock exchanges
• Overall, South Korea has many investment-related benefits. However, potential investors must consider the geopolitical and other risks in relation to their overall investment goals and temperament.

Global Asset Management is a private investment firm located in Seoul, South Korea. Individual investment recommendations should be discussed with a GAM investment advisor, to ensure suitability.

Check out more on our Global Asset Management South Korea blog.

These days, you hear a lot of the phrase “asset management” especially in meetings that involve private companies, as well as business-related articles. You even hear this particular term being uttered by financial advisors when consulting with their private clients.

Don’t be confused nor should you be intimidated by the term. In reality, wealth management is very forthright. To the person who is rich and affluent, wealth management is merely the technique of finding ways to manage or even augment his or her financial standing. And then, from the view of the wealth manager, wealth management is the capability of an individual or a team to provide a wide range of services to a well off client in a consultative manner.

Basically, it is a consultative service that makes use of other financial-related skills to tackle and properly address the wishes of wealth clients. It is an advisory service wherein a wealth manager talks to the client about his specific wants and needs, and then, crafts a custom-made strategy that makes use of the right financial services to properly address the client’s concerns.

A wealth manager, wherefore, is a kind of financial guru that uses the entire gamut of financial services available to him or her — which may include but is not limited to investment counsel, estate development, accounting and even planning for retirement — to properly manage a client’s resources for an agreed-upon fee.

This kind of management service varies from one country to the other — it would be wholly different in Seoul, Korea compared to Manila in the Philippines.

Understanding the Job of a Wealth Manager Better

For all intents and purposes, a wealth manager is someone who does more — way more — than just dole out sound investment management advice. Simply put, a wealth manager takes care of a client’s financial standing. The basic concept of a wealth manager is compared to taking bits and pieces of information or advice from a number of different financial experts, affluent clients would be better off just getting all that from just one individual. A wealth manager is often given the task of coordinating the services that are essential to managing the client’s resources in a way he or she sees fit.

While the fundamental concept of a wealth manager is someone who is versatile enough to deliver services from any financial field, there are those that actually elect to become experts in a particular one. This is primarily based on the knowledge, proficiency, and experience of the wealth manager or the main business that the wealth manager functions and exists in.

In particular situations, a wealth manager may have to organize information from different financial gurus as well as those coming from the client’s personal circle like his or her battery of lawyers and accountants to bespoke a campaign to effectively. As a matter of fact, there are even wealth managers that provide banking services or healthy advice regarding philanthropic endeavors.

A wealth manager may work under the umbrella of a scaled-down business or a much larger one that deals with matters concerning the financial realm. A wealth manager may be known by a number of different titles such as a financial consultant or financial adviser. There are event times that a wealth manager is called as an investment management manager. Depending on the client’s specific needs, he or she may be provided with services from a singularly focused wealth manager or may have access to a cache of different team members.

All that being said, it is not a given that financial advisors would be particularly great or successful at being wealth managers. There are a lot of financial advisors that are experiencing success at running or managing resources that are not especially inclined to diving headfirst into the profession of being a wealth manager.

It also must be noted that employing the services of a wealth manager is not for each and every affluent individual. Rather, it is especially useful and apt for wealthy people that have a wide range of needs that need tending to.

So basically, to sum it all up: the term wealth manager or wealth management is often seen or heard in this day and age. It’s not an intricate or complex business term. Rather, it is a consultative process that aims to manage, develop and spread the resources of affluent individuals in a manner that suits their specific wants and needs.

Looking for an asset management company? Give us a call.