INSTITUTIONAL BROKERAGE

 

Clients


SSI promotes engaging new target customer in traditional markets – major financial hubs from US, UK, Singapore, Hong Kong, Thailand, Japan, South Korea in tandem with developing new markets interested in Vietnamese market, and opening investment opportunities in Vietnam for international retail and institutional investors. On one hand, SSI is accelerating implementation of Customer Relationship Management (CRM) system to allocate customer service resources more efficiently, accurately and adequately. On the other hand, we dignify partnerships with international financial institutions and securities companies to cater new markets. Given the Government’s efforts in bringing Vietnam to the rank of emerging market, investment capital injected to the stock market is expected to surge subsequently. This requires service providers to enhance their innovation and specialization. Different customer groups and markets have different investment approaches. SSI responds to this by improving servicing quality, coming up with new solutions to optimize customer servicing, and diversifying product offering to cater all customer types over time.


Also for 2019 client target, Institutional Brokerage will be more aggressive in promoting in-depth cooperation with existing international partners and developing new global partnership for mutual benefits. Relevant partnership policies will be adopted appropriately to balance benefits between SSI and partners.

 

Products


2017 – 2018 saw excellent efficiency in internal collaboration and cross-selling. Collaborative participation in IPO and listing advisory efforts result in outstanding revenues and renown for SSI. In the near future, SSI Institutional Brokerage will prioritize cross-selling products to capture the opportunities of major IPOs and the privatization movement ordered by the Government through the newly established Commission for the Management of State Capital at Enterprises (CMSC). As Vietnam stock market matures, diversified investment portfolio and service quality are the two preconditions to attract and retain customers. SSI currently excels in both of them. 


In addition to share market opportunities, SSI diversifies its product portfolio with ETF, corporate bonds, future contracts and covered warrants. SSI pioneers in coordinating with the State Securities Commission (SSC) and stock exchanges in developing new products or proposing new ideas to support investors and improve markets. Human resources efforts are prioritized to accommodate this strategy in short, medium and long terms.


For traditional products, Institutional Brokerage adopts dedicated policies for relevant customer groups. Product and service policies are modified against any updates in local and international regulations. For example, with the Markets in Financial Instruments Directive (MIFID II) across the European Union effective as of 2018, SSI will offer investment transaction, brokerage, analysis and advisory products to customers regulated by MIFID II.

 

Human resources


Foreign markets differ in properties and requirements; therefore diversifying human resources with senior international executives knowledgeable of local practices is a must to serve efficiently and thoroughly. In 2019, SSI will further recruit international staff to cater European markets and derivative specialists to support futures and covered warrants instruments. Compensation policies were improved significantly in 2018 to attract quality resources to SSI.

 

System


Optimizing trading and ordering system is first priority to maintain system stability and interests of customers. In the next one or two years, SSI will i) refine the existing trading system for both stock and derivatives transactions, ii) develop new order placement channels, and iii) enable faster connectivity with transaction systems of international clients. In addition, Institutional Brokerage will promote low-cost order placement channel DMA and algorithmic trading for relevant customers, and test simple version of program trading system.


Refining CRM system is the must-do task for 2019 to allocate resources and develop new product offerings for relevant customer groups more thoughtfully and efficiently. Set premises for servicing and catering global investor network.


TREASURY 

 

Provide liquidity, seek new capital sources to cut cost and increase long-term earnings for SSI

 

Optimizing our existing advantages from highest total assets in the market has proven SSI’s established position in accessing diversified capital sources from major local and international financial institutions.  SSI emphasizes our responsibility in ensuring capital safety and quality, providing liquidity to both ourselves and our customers. 


In addition to developing traditional credit relationship, SSI will continue seeking local and foreign currency bond issuing opportunities to local and international financial institutions, or individual investors to diversify source of capital and cut cost of borrowing.


Recently, both market and SSI transaction volumes are growing. To mitigate risk and modernize customer servicing procedures, SSI is revamping our internal procedures, regulations and policies in compliance with market practices, legal statutes and our business activities.


Develop new financial instruments to accommodate customers' demand

 

In tandem with developing SSI’s Private Wealth Management, Structured Product department diversifies the financial instrument mix to accommodate customers’ demand. In combination with existing advantages in customer base of stock brokerage and fund certificate, SSI Treasury wishes to offer customers bond and derivative products to serve both investment and hedging purposes. 

 

ASSET MANAGEMENT

 

 

In 2019, SSIAM continues to develop new distribution channel through commercial bank network to engage potential customers from their customer base. Some commercial banks are currently more open with referring their customers to investment products on top of traditional products. These will be the target for SSIAM to approach. We determine that market competitive pressure will be both challenge and motivation to our teams in interacting and coordinating with partners’ sales teams to achieve capital raising objective for 2019 and coming years.


SSIAM analysis indicates that in 2019, asset management will continue to face challenges in raising capital for products with underlying assets being stocks, therefore SSIAM SSIAM will promote open-ended fund certificate on bonds and bond investment porfolio, promote offering ETF certificate to international retail and institutional customers. As Vietnam’s leading domestic Asset Management company with a great partner network, SSIAM will seek investment opportunities in private companies and potential IPO deals with state-owned enterprises and refer them to high-net-worth individual segment to diversify their options.


In addition, while waiting for finalization of legal framework and feasibility of Voluntary Supplementary Pension Fund, SSIAM plans to gradually engage companies and interested partners, and refine business model for this product in preparation for launching when the market is ready. 

 

INVESTMENT BANKING


In 2019, SSI Investment Banking will offer domestic and international bond issuance and debt instruments advisory services to private companies in addition to share issuance advisory - SSI’s innate advantage.


Besides, SSI will continue to serve advisory contracts to both acquiring and acquired parties in merger & acquisition (M&A) deals, including advising deal structure and procedures.

 

PRINCIPLE INVESTMENT


SSI selects a dynamic investment strategy with flexible portfolio adapted to market developments 


In particular, SSI follows value investment approach given our business platform and reasonable valuation; maintaining balance between long-term strategic investments and flexible portfolio. Investment criteria are also adapted to new economic developments: bilateral and multilateral free trade agreements (FTA), Vietnam’s potential benefits from US - China trade war, etc. Focus on sustainable sectors, e.g. retail, manufacturing, telecommunication, aerospace, etc. In addition, SSI will continue to seek opportunities from IPO, state capital divestment or new listing in 2019, and issuance and investment in structured products, e.g. derivatives, covered warrants, etc.


In addition, SSI will divest from mature projects gaining expected profit and non-strategic investments. 


In 2019, building on our advantage over rich equity, SSI Principal Investment is determined to cooperate more with other business units: Investment Banking (underwriting, co-invest), Securities Services (new products), and SSIAM in seeking new investment opportunities.