Korea Post’s $30 billion insurance bureau is seeking global single hedge fund managers to pitch for two mandates of up to $40 million each. It continues Korea Post’s global diversification drive.
The first of the strategies is equity long-short. This can be long-biased, variable or equity market neutral, but must have had average notional net exposure below 40% for the past six years.
The second is event-driven (multi-strategy), with average gross exposure to each asset class (equity/fixed income) of more than 20% for the past six years.
The size will be $20 million to $40 million for each mandate, which can either be shared or managed by a single firm. The total funding from the bureau is $80 million.
Hedge fund managers currently invested by Korea’s postal insurance bureau are not eligible to apply. Applicants in this process must have more than $2 billion in assets under management, have been established for at least six years and have a demonstrable track record of at least six years.
The fund strategy they put forward must also have more than $1 billion in assets.
This mandate announcement was made on April 30 by Korea Investment Management (KIM), the sole adviser on overseas alternative investment for Korea Post’s insurance bureau.
The selection process has been outlined as follows: RFP notice on April 30; RFP submission by 5pm on May 16 (Korea time); first evaluation on May 23 (quantitative screening); second evaluation (presentation and Q&A) on June 9.
This will be followed by an on-site due diligence process and final selection notice.
For RFP submissions, interested parties should contact both Korea Post and KIM.
All enquiries should be directed to Yang and Cho at KIM. Its postal address is Global Investment Strategy (GIS) Management Department, Korea Investment Management Company, 16th Floor, 88 Uisadang~daero, Yeoungdeungpo~gu, Seoul, Korea 150~745.
Korea Post has two financial service bureaus: postal savings and the postal insurance bureau, both under the management of the Ministry of Science, ICT & Future Planning. Postal savings manages around $65 billion and insurance $30 billion.
Last October Korea Post’s savings bureau issued a global real estate mandate in a drive to add exposure to US and European assets, as reported.