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Korea Exchange seeks two managers for 150 billion won mandates

Korea Exchange
By Hui Ching-hoo   
December 2, 2020

South Korea’s stock exchange is inviting foreign and domestic asset managers to bid on two mandates worth a combined 150 billion won (US$135.5 million).

One is for a 90 billion won multi-asset investment strategy, and the other is a 60 billion won absolute return strategy with a targeted return of 2.5% per annum, Korea Exchange says in its request for proposal. It will appoint one manager for each mandate.

The multi-asset strategy will allocate 65% total assets to domestic and foreign bonds and 35% to equity assets, according to the RFP published on the website of the Korea Financial Investment Association on December 1.

Applicants for this mandate must have at least 700 billion won of assets in equity investment. The document doesn’t specify asset requirements for the absolute return mandate.

Both managers will be appointed for one-year terms, with a one-year extension.

Applications are open until December 10. Evaluation and manager selection are scheduled to be carried out between December 11 and December 23.

There were more than 1,400 companies listed on the Korea Exchange as of December 2019, with total market capitalisation of 1,476 trillion won.