Chart: Korea Post hunts for managers across 11 mandates

It has been a busy year for Korea Post as it keeps adding to its requests for external managers to handle its various investments.

Requests for proposals (RFPs) have been issued 11 times so far this year, most recently on September 6 with a W400 billion ($300 million approximately) fund mandate that focuses on buyout and growth strategies for both of Korea Post’s units: insurance and savings.

In August, Korea Post , a government agency affiliated with the Ministry of Science and ICT (Information and Communication Technology), was looking for a manager for a W100 billion ($75 million) domestic private market fund mandate for its savings unit.

The fund will be structured as a blind fund, focusing on companies that provide acquisition financing. The fund is required to be established within six months of the manager selection. The fund will mature in eight years, with a four-year investment period.

So far, its mandates have involved exchange-traded funds (ETFs), bonds, equities, real estate, infrastructure and other alternative assets.

The Korean asset owner has about W150 trillion ($113 billion) of assets under management.

ALTERNATIVES MANDATES

Korea Post is based in Sejong, south of Seoul near the major city of Daejeon, and outsources its investment portfolio management.

The asset owner does not always disclose the selected winners of its RFPs.

However, it did so for the mandate issued in July, when it was on the hunt for two asset managers for a $400 million overseas infrastructure mandate, focusing on secondary investments in developed countries.

French asset management firm Ardian and British private equity firm Pantheon were announced as preferred bidders for the mandate.

Other alternative investments mandates include a W500 billion domestic real estate debt fund investment mandate, awarded to Hana Alternative Asset Management, and a $200 million overseas real estate mandate focusing on developed countries, including North America, Europe and Australia, both in April.

US firms Pretium Partners and Greystar were shortlisted as preferred bidders for the mandate.

Another mandate for a $200 million overseas value-added real estate strategy announced in March was later awarded to US investment managers Rockpoint and Blue Owl Capital.

PUBLIC MARKET MANDATES

Korea Post has also sent out RFPs for public market mandates.

In June, Korea Post was on the lookout for a manager with at least three years of experience managing environmental, social and governance (ESG) funds for a new domestic equity mandate focusing on social responsibility.

Local firm Korea Investment Value Asset Management was named the winner of the mandate.

A global treasury bond exchange-traded fund mandate launched in February was awarded to local firms Samsung Asset Management and Mirae Asset Global Investments.

In January, the year’s first RFP,  was awarded to two undisclosed managers for a global equity exchange-traded fund of unspecified value for its savings unit.

Another request for a consulting firm to provide investment advisory and administration services for its insurance unit’s foreign equity investments, launched in January, was eventually awarded to an undisclosed winner for a four-year term.