[RFP] Korea fund for small firm owners solicits bids for $88 mn equity mandates
Jul 26, 2016 (Gmt+09:00)
1
Min read
Most Read
LG Chem to sell water filter business to Glenwood PE for $692 million
Kyobo Life poised to buy Japan’s SBI Group-owned savings bank
KT&G eyes overseas M&A after rejecting activist fund's offer
StockX in merger talks with Naver’s online reseller Kream
Mirae Asset to be named Korea Post’s core real estate fund operator
The Yellow Umbrella Mutual Aid is looking for stock management firms to invest a total of about 100 billion won ($88 million) and pick up to four fund houses for the mandates, the South Korean savings fund for small-sized business owners said on July 26.
It posted the notice of a request for proposal on the website of the Korea Financial Investment Association. The deadline for the proposal is set for Thursday, August 5 at 5 p.m. (Korean time). It will select the management firms later in August.
The $4 billion savings fund will select one or two management firms for advanced market-focused stock portfolios which will be composed of ETFs tracking stock indices of developed countries. Additionally, it will choose one or two firms for industry-focused stock investments composed of ETFs tracking sector indices. Those portfolios will be required to employ a static investment strategy: equal weighting and monthly rebalancing of asset allocations in portfolios.
The entrustment period will be less than one year, but renewable on a yearly basis.
A qualified candidate for the mandates should have the outstanding balance of ETFs worth more than 5 billion won included in funds under management at the end of June 2016, for a management period of longer than six months. They also should be able to form a private investment fund and have a presence in South Korea.
In an interview with the Korea Economic Daily last month, its CIO Hwang Youn-ha said that the fund will refrain from aggressive investment before its AUM reaches 10 trillion won ($9 billion): instead, it will favor safe assets such as mezzanine loans and exchange-traded funds, and focus on developed markets to secure stable, albeit low, returns from overseas equities portfolios.
It posted the notice of a request for proposal on the website of the Korea Financial Investment Association. The deadline for the proposal is set for Thursday, August 5 at 5 p.m. (Korean time). It will select the management firms later in August.
The $4 billion savings fund will select one or two management firms for advanced market-focused stock portfolios which will be composed of ETFs tracking stock indices of developed countries. Additionally, it will choose one or two firms for industry-focused stock investments composed of ETFs tracking sector indices. Those portfolios will be required to employ a static investment strategy: equal weighting and monthly rebalancing of asset allocations in portfolios.
The entrustment period will be less than one year, but renewable on a yearly basis.
A qualified candidate for the mandates should have the outstanding balance of ETFs worth more than 5 billion won included in funds under management at the end of June 2016, for a management period of longer than six months. They also should be able to form a private investment fund and have a presence in South Korea.
In an interview with the Korea Economic Daily last month, its CIO Hwang Youn-ha said that the fund will refrain from aggressive investment before its AUM reaches 10 trillion won ($9 billion): instead, it will favor safe assets such as mezzanine loans and exchange-traded funds, and focus on developed markets to secure stable, albeit low, returns from overseas equities portfolios.
Yeonhee Kim edited this article
More to Read
-
Real estateMirae Asset to be named Korea Post’s core real estate fund operatorApr 29, 2025 (Gmt+09:00)
-
Asset managementMirae Asset bets on China as Korean investors’ US focus draws concernApr 27, 2025 (Gmt+09:00)
-
Alternative investmentsMeritz backs half of ex-manager’s $210 mn hedge fundApr 23, 2025 (Gmt+09:00)
-
Real estateRitz-Carlton to return to Seoul, tapped by IGIS Asset for landmark projectApr 22, 2025 (Gmt+09:00)
-
Real estateS.Korean gaming giant Netmarble eyes headquarters building saleApr 18, 2025 (Gmt+09:00)
Comment 0
LOG IN