Korea Scientists & Engineers Mutual-aid Association (SEMA) has picked Mirae Asset Global Investments and Korea Investment Management Co., Ltd as its global multi-asset fund managers and will soon commit up to 500 billion won ($415.3 million) to them, Financial News reported citing investment banking sources on June 22.
A multi-asset fund uses a diversification strategy by distributing investments throughout several asset classes such as cash, equity or bonds to reduce volatility risk compared to holding one class of assets.
SEMA will add to the new investment separately managed account (SMA) worth about 360 billion won. SEMA has been investing via the SMA of multi-asset strategy since 2018.
SEMA aims to invest using Global Tactical Asset Allocation, or GTAA strategy, a top-down investment strategy that attempts to exploit short-term mispricing among a global set of assets. The strategy focuses on general movements in the market rather than on performance of individual assets.
SEMA, founded in 2003, has 6.7 trillion won ($5.5 billion) in assets under management as of the end of 2019, yielding an average of 8.15%. (Reporting by Kyoungho Lee)