BOK picks 2 local AMCs to manage FX holdings

The Bank of Korea has selected two domestic asset management companies to manage its foreign exchange holdings and make stock market investments in advanced economies, officials said Monday.

The local AMCs will join two foreign firms which have being managing BOK’s FX holdings so far. The central bank however did not name the two firms that have been selected, in accordance with industry practices.

“We will sign a consignment contract by April and put $150 million in a trust for each (company),” the BOK said in a press release.

A total of nine qualified companies had submitted their applications and five were given the opportunity to give a presentation, before taking a decision.

By selecting domestic AMCs for the overseas stock trust scheme, the BOK expects to promote the global competitiveness of the local industry, officials added.

Seeking to encourage the overseas investment capacities of local companies, the central bank designated three domestic AMCs as trustees in 2012 for Chinese yuan securities investment.

Last year, it also entrusted four local brokerages with foreign currency bond transactions. The BOK’s foreign currency bond transaction volume with domestic securities firms stood at $4.8 billion as of last year, data showed.

By Bae Hyun-jung (tellme@heraldcorp.com)