Korea's flagship state retirement fund has chosen the two asset managers to run a fund-of-hedge-funds mandate of up to $1 billion, which is expected to rise to $2 billion over time.
The Singaporean bank expects demand for hedge strategies to rise this year as investors seek alpha in volatile markets.
Firms with over $1 billion in hedge fund assets accounted for most of last year's AUM growth, while the population of smaller players shrank, according to eVestment.
Franklin Templeton’s alternative arm, K2 Advisors, says funds of hedge funds (FoHFs) offer a complementary option alongside traditional fixed income holdings and can provide a liquid alternative exposure for institutional investors.
The second half of 2013 saw fund-of-hedge-fund assets grow 20% in Asia, while in Europe they suffered a 7% outflow, according to eVestment. Asia hedge fund AUM also grew faster than elsewhere.
The Public Officials Benefit Association is seeking a global fund-of-hedge-funds manager to run a customised portfolio.
Funds of hedge funds focused solely on Asia Pacific are ahead of global peers through October. Data also shows the performance gap between FoHFs and hedge funds is shrinking.
Global macro strategies are still preferred to equity hedge, says fund house GAM, which is turning to newer launches for customised institutional portfolios.
IBK Securities will be the first Korean securities company to co-brand a hedge-fund platform with a foreign alternative-investment firm.
Samsung Securities will distribute hedge funds and funds of hedge funds for Man Investments and may advise on using such products in its wrap accounts.
The fund of hedge funds manager is improving risk management transparency as it continues to build its Asia business, says Antonio Mu±oz-Su±T, head of EIM USA.
The venerable Swiss firm thinks investors should be worrying less about counterparty issues and re-focusing on high performance.