South Korea's Public Officials Benefit Association is seeking two money managers to run a combined $400 million in multiasset-class portfolios.
Dong Hun Jang, the 17.9 trillion won ($15.3 billion) mutual aid association's chief investment officer, said POBA's first multiasset allocations will fall within the portfolio's opportunistic bucket.
POBA will be looking to garner a nominal return of 4.5% in U.S. dollar terms from those multiasset-class strategies, which in addition to stocks and bonds will allocate between 20% and 60% of the portfolio to alternatives, Mr. Jang said.
At the end of 2020, that opportunistic category accounted or 14.9% of the portfolio, most of it cash. Mr. Jang said some of that cash, along with new inflows, will be used to fund the multiasset allocations.
While POBA's portfolio still holds quite a lot of cash, Mr. Jang said his fund has experienced quite active capital calls this year after its general partners held off on deployments for much of the previous year. And together with existing commitments, POBA has been making additional commitments, he noted.
The RFP is availabe on POBA's website. Interested managers must submit proposals by 3 p.m. Seoul time on Sept. 16.
