Police Mutual seeks asset managers to run blind fund

[THE INVESTOR] Korea’s Police Mutual Aid Association, the country’s state pension with total assets under management of approximately 2 trillion won (US$1.64 billion), will create a blind fund of 100 billion won, sources said on June 21. 

The PMAA will announce the launch of the private equity fund this week to pick six asset managers -- two of each PEF, venture capital firm and private debt fund. 

The selected PEFs and PDFs will manage 20 billion won each and the remaining 20 billion won will be committed to two VCs. The offer for PDFs is open for foreign asset managers while other are limited to local players.

Established in 1989 to support retired policemen and their families, the PMAA invests in stocks (5 percent), bonds (45 percent), real estate (30 percent), and other alternative investment projects (20 percent). The association secured investment returns of about 4 percent last year.

By Park Han-na (hnpark@heraldcorp.com)