Korea Investment Securities, AQR discuss bringing global quant funds to Korea
In short
Korea Investment Securities said its president, Kim Sung-hwan, met AQR Capital Management co-founder John M. Liew at its Seoul headquarters on October 6 to discuss supplying AQR's global quant and alternative investment products to Korean investors. The two sides are coordinating fund registration requirements and a launch schedule, and plan to widen the lineup in stages. AQR, founded in 1998 and based in Greenwich, Connecticut, manages about $253 billion (about 357 trillion won), the companies said.
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Korea Investment Securities said it discussed business cooperation with global quant asset manager AQR Capital Management on supplying global investment products to Korean investors. The brokerage said president Kim Sung-hwan met AQR co-founder John M. Liew and other executives at its headquarters in Yeouido, Seoul, on October 6. The two sides are currently coordinating domestic registration requirements and a launch schedule for the products, according to the documents. [ 1 , 3 , 4 ]
The brokerage said it plans to widen its global product lineup in stages by combining AQR's asset management expertise with its own domestic retail sales network. It said the aim is to move beyond conventional stock and bond-focused overseas funds toward quant and alternative strategies, including global hedge funds and multi-strategy approaches that seek absolute returns, and thereby to strengthen its wealth management business. Yonhap quoted the company as saying it wants to expand customer access to a range of global strategies including quant and alternatives. [ 1 , 3 , 4 ]
Kim was quoted as saying that as interest in global investing grows, demand is rising not only for simple regional and asset diversification but for a range of investment strategies. He said the company would combine AQR's quantitative investment capabilities with its own product and retail strengths to offer Korean investors more varied global investment opportunities. [ 1 , 4 ]
AQR is headquartered in Greenwich, Connecticut, and was founded in 1998. The documents say it manages about $253 billion, or roughly 357 trillion won, and runs long-short equity, global macro, arbitrage and multi-strategy investments aimed at absolute returns. It operates offices in major financial centers including London, Hong Kong, Sydney and India. [ 1 , 3 , 4 ]
The October 6 meeting followed an initial meeting held during Kim's trip to New York last month, according to Seoul Economic Daily and Asia Economy. The two documents describing that earlier meeting say the latest session was arranged to work out practical steps for expanding the product range. No product names, pricing or launch dates were disclosed. [ 1 , 4 ]
Why it matters
The talks point to Korean retail investors getting access to hedge-fund style strategies such as long-short and multi-strategy quant funds that have mostly been available to institutions. For Korea Investment Securities, a retail brokerage, the partnership is presented as a way to compete on wealth management products beyond conventional overseas equity and bond funds. No products, pricing or launch dates have been announced, so nothing is yet available to investors.
Key facts
- Korea Investment Securities president Kim Sung-hwan met AQR co-founder John M. Liew on October 6 at the brokerage's headquarters in Yeouido, Seoul. [ 1 , 3 , 4 ]
- The two sides discussed supplying AQR's global investment products to Korean investors and combining their strengths in a global product lineup. [ 1 , 3 , 4 ]
- They are currently coordinating domestic registration requirements, product structuring and a launch schedule, with plans to expand the lineup in stages. [ 1 , 3 , 4 ]
- The October 6 meeting followed an earlier meeting held during Kim's business trip to New York last month. [ 1 , 4 ]
- AQR was founded in 1998 and is headquartered in Greenwich, Connecticut, with offices including London, Hong Kong, Sydney and India. [ 1 , 3 , 4 ]
- AQR manages about $253 billion, or roughly 357 trillion won, according to the documents. [ 1 , 3 , 4 ]
- Korea Investment Securities said the aim is to widen customer access to quant and alternative strategies beyond conventional stock and bond-focused global products. [ 3 , 4 ]
Confirmed by several sources
- Korea Investment Securities and AQR discussed business cooperation on supplying global investment products in Korea. [ 1 , 3 , 4 ]
- The meeting took place on October 6 at the brokerage's Yeouido headquarters and involved Kim Sung-hwan and John M. Liew. [ 1 , 3 , 4 ]
- AQR was founded in 1998 and manages about $253 billion (about 357 trillion won). [ 1 , 3 , 4 ]
- The two companies are in talks on domestic registration and launch timing for the products. [ 1 , 3 , 4 ]
Still unclear
- Whether the two companies have signed a formal agreement or memorandum of understanding. The documents describe discussions and coordination on products and schedules, and Yonhap reports the two sides 'discussed business cooperation', but none states that a contract or MOU was signed.
- Which AQR funds would be sold in Korea, under what fee structure, and when. All documents say registration and launch schedules are still being negotiated and give no product names or dates.
- The scope of Korea Economic Daily's coverage of the event. Its article text consists of links to other Korea Investment Securities stories; only the headline addresses this event.
What local media are saying
Timeline, local time
- Kim Sung-hwan and John M. Liew meet at Korea Investment Securities' Yeouido headquarters in Seoul to discuss global product cooperation. [ 1 , 3 , 4 ]
- Seoul Economic Daily reports the meeting and the plan to supply AQR quant and alternative products in Korea. [ 1 ]
- Yonhap reports the two sides are negotiating domestic registration and launch schedules. [ 3 ]