Korea Post’s insurance unit is inviting bids from domestic and foreign asset managers for a US equity mandate worth US$100 million.
Korea Post will select two managers, and a third as a back-up in case the appointed managers “fail to deliver satisfactory performance”, the government postal agency says in a request for proposal issued on July 17.
The mandate is benchmarked against the S&P 500 Net Total Return Index.
The two managers who are chosen will be given a quota of up to $50 million each.
Eligible applicants must have at least $500 million of total assets under management, and oversee an average of at least $300 million US equity mandates for the last three years.
The appointed managers must set up a managed account with Korea Investment Management Co, the foreign equity investment adviser of Korea Post’s insurance unit.
Korea Investment Management will be responsible for tasks such as portfolio advisory and fund administrative work for the mandate.
Applications are open until July 30, and evaluation and due diligence are scheduled to be carried out from July 31 to September 18.
Korea Post had around $106 billion of total assets at the end of 2019.