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? 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 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. 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. 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. 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? Overseas based funds must register with the Financial Supervisory Service (FSS) prior to any sales activities. Overseas based funds must be represented by licensed Korean sales agent for any sales activities. Seminar and conference events are considered educational, and therefore all funds are allowed to make a presentation on the firm and its strategies. We can refer overseas based funds to reputable Korean representatives. 2 FOR INVESTORS: Value of Roundtable Program 1. Selection of Manager (by Invitation Only) Roundtable is available only to those who are eligible and prepared for fundraising from Korean institutional investors. Executive level of prominent investors can join pre-prepared efficient programs and opportunities instead of passive meeting with visiting funds. 2. Peer Manager Comparison 2-4 Hedge Funds (GP or IR/Marketing staff) will be invited to the Roundtable. Each manager will be given 45 minute presentation. 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 Investors can communicate among other investors to exchange valuable information. FOR MANAGERS: Value of Roundtable Program 1. Legal issues Legal requirement of overseas funds’ activities in Korea - Registration of fund, which costs approx. $20-30,000 and takes up to 3 months - 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. 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) 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 One Roundtable is equivalent to multiple visits. Multiple visits do not guarantee progress. 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 ASK’s office can access approx. 1,500 top Korean institutional investors. - ASK already proved investor’s active participation through 4 previous summits since 2012. (Details of summits, please visit www.asksummit.co.kr) 3 ASK already own viable information on investor’s needs from survey during previous summits. Roundtable will be organized only when more than 15 investors showed interest to participate on first come first served basis. ASK was the head of global alternative investment in Korea Postal Insurance Co. 2. Other Services of Roundtable Media exposure in the Korea Economic Daily and/or its internet service (market insight) Survey report after the Roundtable 3 Consulting Sessions (total 3 hours presentation and Q&A) - How to access Korean investors’ market by IK Song - Legal Consulting by Yulchon Law Firm - Tax Consulting by PwC Presentation translation by the organizer 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 Organizing and Supporting Including Lunch at The Westin Chosun hotel: approx. 30 participants 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 4 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 5