The Korea Federation of SMEs or KBIZ has opened tender for a 600 billion won (US$421 million) foreign bond absolute return fund mandate.
Four asset managers will be hired to manage the fund, which will focus on long-short, global macro and credit arbitrage strategies, and target at least 6% annual return, according to the group’s request for proposal issued on October 2.
The fund will not invest in distressed and restructuring loans, collateralised loan obligations, convertible bond arbitrage and senior loans.
Asset managers bidding on the tender must have a minimum three years of experience managing foreign bonds and manage at least 50 billion won of overseas bond assets.
Applications close on October 24 and the winning bidders are expected to be chosen by the end of the year.
KBIZ was established in 1962 to safeguard the rights and interests of around 3.55 million small and medium enterprises.
