Korean mutual aid association Sema has issued a request for proposals for a multi-million-dollar global fund of hedge funds mandate to be finalised before the end of this year, AsianInvestor can confirm.
The Scientists and Engineers Mutual Aid Association (Sema) made the announcement on Monday this week, outlining the criteria for applicants and the selection process. Managers have exactly a week from today to submit an application.
The size of the new mandate is expected to be around $30 million, with Sema having already allocated $80 million to global hedge fund strategies earlier this year.
Sema has set itself ambitious expansion targets, with a stated goal of near-doubling its assets under management to $4 billion by 2017. At the end of last year the firm had $2.4 billion in AUM. It reported an annual return of 5.3% for 2014.
The association stipulated that RFP applicants must have a customised fund of hedge fund business as at June 30 this year with more than $7 billion in AUM, comprising co-mingled and advisory mandates as well as separately managed accounts. Those offering only co-mingled funds will not be considered.
FoHF managers’ primary strategies should be multi-strategy and equity long-short, with an investor base accounting for more than 20% of company AUM. Eligible managers should also have a 10-year track record, meaning firms must have been established before July 2005.
Sema outlined a clear timetable for the selection process. Submissions from global FoHF firms should be received no later than 5pm (Korea time) on October 21. Sema will conduct an initial evaluation on applications and candidates from October 22 to 26; a second evaluation will follow on presentation of materials to include a Q&A session between October 29 to November 2. Final due diligence will be completed by December 6.
For this mandate, Korea Investment Management (Kim) is acting as sole adviser. For submissions and enquiries, interested parties should contact both [email protected] and [email protected]. All enquiries must be made by e-mail only.
Established in 2003 under the Korea Scientists and Engineers Mutual-Aid Association Act, Sema is a centre that provides pension and welfare services to local scientists and engineers.
By 2017 it aims to have more than 60,000 members, which includes staff of scientific and technical research institutions whether supported by the state or privately, as well as professional engineers and employees of engineers’ societies and scientific or technical non-profit institutions.