Government Employees Pension Service Finalizes Selection of 8 New Advisory Discretionary Asset Management Firms for Overseas Stocks

The Government Employees Pension Service announced on the 13th that it has finalized the selection of a total of eight new delegated asset management institutions for overseas stock advisory-type investments.

Previously, the Service received proposals and conducted a first round of quantitative evaluations and domestic on-site inspections, followed by a second round of qualitative evaluations (PT) and overseas on-site inspections to comprehensively assess the capabilities of the asset management firms and finalize the selection.

The eight selected institutions are ▲Acadian (Korea Investment), Fisher (Daishin), Franklin Templeton (NH-Amundi), Invesco (Fides), Lazard (DB), Neuberger Berman (Kiwoom), Robeco (IBK), and UBP (Shinhan).

Jeju Headquarters of the Government Employees Pension Service
[Photo by Government Employees Pension Service]

The delegated scale per asset management firm is up to 50 billion KRW, employing an active management strategy investing in developed markets. It is an advisory-type structure where domestic asset managers operate discretionary funds through investment advice from overseas asset managers (one-to-one matching between domestic and overseas asset managers).

An official from the Service stated, “Through stable portfolio management via this first attempt at overseas stock advisory-type investments, we aim to strengthen market responsiveness and create a stable profit base by reducing management fees compared to the existing fund of funds (FoFs) method, thereby contributing to the improvement of fund management returns.”