I K H

Transcription

I K H
INVITATION TO
KOREA HEDGE FUND ROUNDTABLE
Host: Alternative Summit Korea (ASK) & Event Partner: HFA
Hedge Fund Roundtable Korea is the most high-level platform for exchange between hedge funds
and the most influential Korean institutional investors, financial regulatory leaders, service providers/
advisors. The Roundtable provides a select group of invitation only hedge funds with an educational
and unique networking opportunity during which key matters of common interest are addressed.
The roundtable comprises a full day worth informative seminar, fund presentations, and investors’
meetings with the most important voices in the Korean financial industry today.
Why Korean investors are increasing Overseas and Alternative Investments today?
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Asset held by institutions are projected to grow from USD 1.8 tn to 5 tn during the next
30 years, with a faster projected growth rates for alternatives.
Domestic interest rates have remained quite low for a long period of time.
Domestic stock market has been within a tight range for the last several years, despite
a strong rally in the global equities market over the past few years.
Domestic real estate markets have also been stagnant for several years.
Source
Korea Appraisal Board:
http://www.kab.co.kr
Korea Exchange:
http://www.krx.co.kr
Statistics Korea:
http://www.index.go.kr
Negative Sentiments against hedge funds have changed after the introduction of
Korean Hedge Fund by Korean government
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Historically, Korean institutional investors invested in overseas Hedge Funds before the
global financial crisis. Unfortunately, many investors were exposed to Madoff’s feeder
funds, and since then, the word “Hedge Funds” became “Forbidden” among many
Korean institutions.
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Negative sentiment changed after Korean government promoted "Domestic Hedge
Funds" on December 2011. As of March, 2014, the AUM of Korean Hedge Funds
reached USD 2.7 bn.
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Korean institutions are allocating approx. 80% to fixed income, continuously decreasing
fixed income allocation, and are increasing overseas alternative investment starting
from real estate, infrastructure, private equity, private debt, and now hedge funds.
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Hedge funds can be the perfect solution for fixed income substitute by bringing stable,
consistent, and absolute returns regardless of market environments.
Key Korean investors' projected plans for hedge fund investments
Institution
Fund Type
AUM
(USD Bn)
Investment in
Hedge Fund (USD Bn)
National Pension Service (NPS)
Pension Fund
435.9
Near to Start
Korea Investment Corporation (KIC)
Sovereign Wealth
64.6
2 Bn, planning to increase
Korea Post Savings
Government
60.9
In process of changing managers
Korea Post Insurance
Government
42.4
In process of manager selection
Korea Teachers' Credit Union (KTCU)
Mutual
23.0
114 Mn invested
Teacher's Pension (TP)
Pension Fund
15.0
Near to start
The Military Mutual Aid Association
(MMAA)
Public Officials Benefit Association
Mutual
6.9
60 Mn of new investment this year
Mutual
6.2
200 Mn of new investment this year
(POBA)
Government Employees Pension
Service
(GEPS)
The Police
Mutual Aid Association
Pension Fund
4.2
Planning to invest
Mutual
1.6
Planning to invest
Source: ASK 2014 Survey and Presentation, various reports and media.
New Korean Capital Market Law: What overseas based funds must know?
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Overseas based funds must register with the Financial Supervisory Service (FSS) prior to
any sales activities.
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Overseas based funds must be represented by licensed Korean sales agent for any sales
activities.
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Seminar and conference events are considered educational, and therefore all funds are
allowed to make a presentation on the firm and its strategies.
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We can refer overseas based funds to reputable Korean representatives.
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FOR INVESTORS: Value of Roundtable Program
1. Selection of Manager (by Invitation Only)
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Roundtable is available only to those who are eligible and prepared for fundraising from
Korean institutional investors.
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Executive level of prominent investors can join pre-prepared efficient programs and
opportunities instead of passive meeting with visiting funds.
2. Peer Manager Comparison
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2-4 Hedge Funds (GP or IR/Marketing staff) will be invited to the Roundtable.
Each manager will be given 45 minute presentation.
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ASK will perform deep research on the attractiveness of the strategies and managers and
provide peer group analysis, which will be presented at the Roundtable.
3. Collective Wisdom
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Investors can communicate among other investors to exchange valuable information.
FOR MANAGERS: Value of Roundtable Program
1. Legal issues
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Legal requirement of overseas funds’ activities in Korea
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Registration of fund, which costs approx. $20-30,000 and takes up to 3 months
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Appointment of legally licensed sales agent (Korean third party marketer)
According to Financial Supervisory Service (FSS), simple introduction of the company
can be considered as sales activities.
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FSS confirmed summits and seminars are free from above legal requirements.
(FSS video file at ASK 2014 summit is available though the speech was made in Korean)
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Roundtable is not sell side event but a serious of programmed academic/educational
events to provide general overview of investment opportunities in various assets,
strategies and region.
2. Save Time, Cost and Investors’ Feedback
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One Roundtable is equivalent to multiple visits.
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Multiple visits do not guarantee progress.
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Managers can make quicker decision to drop or proceed with projects, reflecting the
investors’ feedback after Roundtable.
The Organizer’s Capability and Other Services
1. Manager invitation
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ASK’s office can access approx. 1,500 top Korean institutional investors.
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ASK already proved investor’s active participation through 4 previous summits since 2012.
(Details of summits, please visit www.asksummit.co.kr)
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ASK already own viable information on investor’s needs from survey during previous
summits.
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Roundtable will be organized only when more than 15 investors showed interest to
participate on first come first served basis.
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ASK was the head of global alternative investment in Korea Postal Insurance Co.
2. Other Services of Roundtable
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Media exposure in the Korea Economic Daily and/or its internet service (market insight)
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Survey report after the Roundtable
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3 Consulting Sessions (total 3 hours presentation and Q&A)
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How to access Korean investors’ market by IK Song
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Legal Consulting by Yulchon Law Firm
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Tax Consulting by PwC
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Presentation translation by the organizer
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Sales support from licensed third party marketer including meeting with investors
if agreement is made with the third party marketer (Korean securities firm).
Cost of Roundtable Event: USD 20,000/fund
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Organizing and Supporting
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Including Lunch at The Westin Chosun hotel: approx. 30 participants
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Simultaneous English/Korean translation
Roundtable Schedule: 1st Wed or Thurs of Each Month
(2nd Wed or Thurs, if 1st Wed or Thurs is holiday)
Day & Time
Activity
D-90
D-60
D-50
Show interest for Round table
Research, Investor Survey
Agreement & Payment
Fund
Organizer
Fund & Organizer
D-10
Presentation Review
Organizer
Investors' Meeting (Optional)
3 Consulting Sessions
Translator Meeting
Registration
Organizer Presentation
Presentation 1
Presentation 2
Q&A, Discussion
Closing
Dinner & Cultural Event
Feedback Report
Arranged by sales agent
Organizer, PwC, Yulchon
Translator
Day 1
Day 2
8:30
10:45
11:00
11:15
11:30
12:15
13:00
14:00
19:00
Within a week
With whom
Organizer
Fund 1
Fund 2
Moderated by organizer
Organizer
Organizer
Venue & Others
Fix Date for roundtable
Conference call:
fund manager and organizer
Subject to agreement with sales agent
Seoul Finance Center
Seoul Finance Center
Seoul Finance Center
Seoul Finance Center
Seoul Finance Center
Seoul Finance Center
Seoul Finance Center
Optional
Speakers:
IK Song, ASK Organizer, CAIA/Special Columnist of Korea Economic Daily
Ben Hur, Partner of Yulchon, Korean Securities Law
Taejin Park, Partner of PwC, Korean Tax
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Venue:
DATE: December 4, 2014
TIME: 9 am - 5 pm
Seoul Finance Center, Seoul
21st floor, 84 Taepyungro-1 ga Chung-gu
Seoul, Korea
Tel : (82-2) 3783-4500
www.sfckorea.co.kr
CONTACT INFO
If your fund is interested, please contact us for more detail info.
USA:
Raymond Kang, Co-Director of HFA-Korea Chapter
CEO/Managing Partner of Prodigy Capital Management, LLC
Park 80 West, Plaza II, Suite 200
Saddle Brook, NJ 07663, USA
[email protected]
(201) 291-2707
KOREA: IK Song, CAIA/Special Columnist, Korea Economic Daily
[email protected] (82)10-5474-4680
Robert Kim, Co-Director of HFA-Korea Chapter
[email protected]
Host: ASK Summit. Event Partners: Hedge Fund Association (HFA) & Yulchon
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