Korean investors’ criteria for new manager selection
An investment manager’s track record and risk management skills top Korean investors requirements in manager selection, according to a January survey conducted by The Korea Economic Daily. Of the 26 major Korean institutional investors surveyed (including sovereign wealth funds, pension funds, mutual aid and insurers) on their alternative investment and manager selection, more than 90 percent indicated track record (including years of experience and execution capability) and risk management (including during the 2008 global financial crisis) are the most important factors in picking a new manager.
Nearly as essential to these investors (also above 90 percent) is a potential general-partner’s deal pipeline. In addition, 88 percent of respondents want a new manager to be able to swiftly deploy capital. With respect to currency hedging, 77 percent of these Korean investors indicated it is a must in an investment fund. And roughly 70 percent of these investors believ