KTCU partners with Man on hedge-fund investments

The UK hedge-fund manager will advise the Korean Teachers’ Credit Union on its alternatives allocation.

The Korean Teachers’ Credit Union (KTCU) has signed an agreement -- the first of its type for the institution -- that authorises London-based hedge-fund group Man Investments to provide it with investment advice.

The Korean institution is looking to expand its alternative investment allocation and has sought help from global hedge-fund managers for that purpose. The goal is to enhance performance, diversify its assets and manage risk.

KTCU will invest in hedge funds and funds of hedge funds under the partnership using Man’s advice, although no concrete deal terms are available publicly. The agreement is not mutually exclusive, and comes on the heels of an advisory partnership that KTCU has set up with Fidelity and Goldman Sachs Asset Management.

“Man Investments will share its global investments expertise and experience very actively,” says Giselle Lee, head of sales for Hong Kong and Korea. She adds that there has been a big increase for such expertise among large institutional investors like KTCU lately.

There looks set to be more of these types of deals both for global providers of alternative-investment products (including private-equity funds) and large Korean institutional investors, such as Korea Investment Corporation and the National Pension Service. That's not to mention other big institutions, including sovereign wealth funds.

As of June 30, KTCU has more than 610,000 members and manages $14.5 billion, while Man Investments has $38.5 billion in assets under management.

In March, Man Investments reached an agreement with Samsung Securities to distribute its alternative-investment products to qualified Korean investors on a private-placement basis. Since then, Man has looked at the possibility of registering its products with the Financial Supervisory Service, when regulations allow.

¬ Haymarket Media Limited. All rights reserved.