Samsung Securities hosted a forum on July 19 to advise nonprofit organizations to take a firm grip of their funds amid low interest rates. The low base rate has recently plunged to 1.25 percent, sounding the alarm for nonprofit organizations that have long depended on bank deposits.

At the forum, experts called for nonprofit organizations to adopt better fund management methods and pitched a new type of portfolio.

The need to shift from short-term bank deposit centered management to bonds that have high ratings and low risk was highlighted by Jung Bum-sig, a team manager of Fixed Income Product Dealing and Sales at Samsung Securities. Citing Japanese nonprofit organizations that have overcome long-term low economic growth, he said that they were able to achieve stability, profitability and liquidity by composing their portfolio of Japanese bonds with relatively risk-free foreign bonds.

“The number of nonprofit organizations reaching out to Samsung Securities for consultation is increasing, especially after the recent interest rate fall in June. Based on analysis of Japan and Korea, Samsung Securities is doing its best to provide the most appropriate advice.” said Samsung Securities senior vice president of Wealth Management Division Sa Jae-hun.

Samsung Securities hosts a forum that includes the participation of recognized experts for nonprofit organizations every quarter.

By Kim Bo-gyung (lisakim425@heraldcorp.com)