Shareholder Engagement to make
better corporate governance and capital allocation
Shareholder Engagement to make
better corporate governance and capital allocation
Longterm Investment for Everyone
Shareholder Engagement to make better corporate governance and capital allocation
The Korean stock market might not be significant for global investors in terms of its market capitalization and overall growth potential, but if you look at the uniqueness of a Korean stock market including its extremely cheap valuation and rapidly changing market condition, it can be a good option for diversifying portfolio to enrich Alpha in asset allocation.
Many investors are concerned about corporate governance in Korea. The poor governance and ineffective capital allocation are hindering long-term investment and overall performance.
Life Asset Management is addressing corporate governance and capital allocation problems to reveal the potential of Korean listed companies.
We are using engagement strategy. This strategy is a form of activism, but it’s not confrontational. We aim to collaborate with major shareholders. By assisting them in solving their issues and finding common ground between investors and shareholders, we lead them to more capital market-friendly behaviors.
Ultimately, our goal is to realign conflict of interest between shareholders, enhancing the overall enterprise value of the company and solving the main issues of Korean discounts.
Types of
Engagement Upside
- Optimizes financial advise for major shareholders-different from CPA, consultants, bankers.
- Sounding board on new growth business strategy vs capital market structures.
Types of
Engagement Upside
- Focus on “10 year-old child prodigies” instead of “17 year-old bad teenager” : less interest in labor-intensive, high execution risk “turnarounds”.
- Ideas to improve corporate governance once alignment of interest problems resolved,
Better Risk/Return Vs.
Conventional Activists
- Minimal execution risk as does not rely on “sticks”.
- Conventional activists target “bad teenagers” vs LIFE’s “child prodigies” with multi-year structural changes.
Better Risk/Return Vs.
Conventional Activists
- Atypical LIFE’s team.
- Target core 15-20 names and top5 names represent half of AUM
- Korea’s public markets trading at huge discount compared to PE.
Types of
Engagement Upside
- Optimizes financial advise for major shareholders-different from CPA, consultants, bankers.
- Sounding board on new growth business strategy vs capital market structures.
Types of
Engagement Upside
- Focus on “10 year-old child prodigies” instead of “17 year-old bad teenager” : less interest in labor-intensive, high execution risk “turnarounds”.
- Ideas to improve corporate governance once alignment of interest problems resolved,
Better Risk/Return Vs.
Conventional Activists
- Minimal execution risk as does not rely on “sticks”.
- Conventional activists target “bad teenagers” vs LIFE’s “child prodigies” with multi-year structural changes.
Better Risk/Return Vs.
Conventional Activists
- Atypical LIFE’s team.
- Target core 15-20 names and top5 names represent half of AUM;
- Korea’s public markets trading at huge discount compared to PE.
“Given the governance structure of Korean listed companies, characterized by dominant major shareholders holding absolute control, traditional forms of shareholder activism face significant obstacles in Korea. Our Engagement strategy, aimed at addressing the challenges encountered by major shareholders and management while fostering an increase in corporate value, stands as the sole practical method for leveraging investment opportunities in the undervalued segments of the Korean market.”
“”
Darren KangChief Investment Officer
(c) 2021 LIFE Asset Management, Inc. 주식회사 라이프자산운용
