[RFP] Korea’s GEPS seeks $170 mn fund of funds managers of global stocks, bonds

  • 2016-07-05

South Korea’s Government Employees Pension Service (GEPS) posted a notification on July 1 to invite bids for a 100 billion won ($87 million) mandate for global equity fund of funds (FoF) and another 100 billion won for global bond FoF.

The deadline for requests for proposals is set for July 14 at 3 p.m. (Korean time), according to the GEPS’ public notice on its website.

It will pick one fund house for each of the mandates by August 8.

The bond FoF for 100 billion won is required to take an enhanced index strategy, to be split evenly to a global type and a corporate bond type. They have to be fully hedged to the Korean won, with one-year loss rates to be capped to 4% points against its benchmark when measured at the end of every quarter.

For the equity FoF, either index-tracking or active investments can be employed. Its one-year loss rates should be capped to 5% points compared with the benchmark for an index type, and to 8% points for an active type.

GEPS sets a management fee at 10 basis points or below for both equity and bond FoFs.

The pension fund will hold a briefing on the mandates on July 6 at 3 p.m. at its head office.