[RFP] POBA seeks two global fixed-income managers for $350 mn mandate

South Korea's Public Officials Benefit Association (POBA) plans to allocate a combined $350 million to two global fixed-income investment companies, in what would be its biggest mandate awarded for the strategy in recent years.

The $12 billion retirement fund for local government employees will receive proposals via Hanwha Asset Management by 2 pm, August 28 (Seoul local time), according to its request for proposals issued on August 19. Hanwha was chosen as the underwriter of the mandate.

This year, POBA targets a 4.1% return on investment after achieving a return of 8.5% a year earlier. Its assets under management are expected to increase by $1 billion to 15.6 trillion won ($13.1 billion) by the end of the year.

Fixed income is likely to take 10.3% of POBA's investment portfolio by year’s end, little changed from last year’s 10.6%. The share of alternatives is projected to rise to 58.7% from 54.6% in 2019, according to its 2020 asset allocation plan.

Write to Sang-eun Lucia Lee at selee@hankyung.com