[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
S.Korea's LS Materials set to boost earnings ahead of IPO process
![close](/images/ico/eyes/close.png)
![open](/images/ico/eyes/open.png)
Galaxy Ring, new foldables set to steal the show at Samsung Unpacked Paris
![close](/images/ico/eyes/close.png)
![open](/images/ico/eyes/open.png)
POSCO gears up for carbon-free steelmaking with hydrogen
![close](/images/ico/eyes/close.png)
![open](/images/ico/eyes/open.png)
SK Inc. in talks to sell Pharmteco’s US CDMO plant to Novo Nordisk
![close](/images/ico/eyes/close.png)
![open](/images/ico/eyes/open.png)
South Korea sets sights on fostering EDA tech to win HBM chip war
![close](/images/ico/eyes/close.png)
![open](/images/ico/eyes/open.png)
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
-
-
Pension fundsKorea’s military fund taps ex-president of Woori Financial as CIO
Jun 28, 2024 (Gmt+09:00)
-
-
Pension fundsKorea's NPS CIO talks with GPIF, GIC execs on asset allocation
Jun 24, 2024 (Gmt+09:00)
-
Foreign exchangeKorea FX authorities, NPS raise currency swap limit to $50 bn
Jun 21, 2024 (Gmt+09:00)
Comment 0
LOG IN