SWEDEN - The SEK66bn (e7.15bn) Sjunde AP-fonden (AP7) pension fund has re-tendered five mandates together worth SEK51.4bn (e5.56bn), and launched a manager search for an active currency overlay mandate worth between SEK10bn and SEK20bn.
The re-tenders were initiated on the back of a mandatory five-year review in line with Swedish tender laws.
The largest is a passive SEK40bn mandate invested in US, European and Swedish equities, currently managed by State Street Global Advisors (SSgA).
This is followed by a SEK4.7bn Japanese active mandate currently managed by Nomura.
A SEK3.2bn active European mandate run by Goldman Sachs Asset Management, a SEK2.8bn active ex-Japan / Asia-Pacific run by Schroders, and a SEK700m active Swedish mandate currently run by Carlson Investment Management are also up for grabs.
Deadline for tender is 28 February 2006 and AP7 said all of the existing managers had been invited to re-tender.
The fund has also tendered a new currency active alpha overlay mandate. Executive vice president Richard Grottheim said it was possible that two to three managers may be appointed to this brief.
Allocation had not been decided yet, and would be dependent on risk characteristics. However, he indicated that this allocation would be “substantial”, worth between SEK10bn to SEK20bn.
The deadline for applications is 8 February.
“We believe it is an area where you can add value through being active,” said Grottheim.
BFinance will oversee the European and Japanese equities re-tenders, while Mercer Investment Consulting will oversee the currency tender, the passive mandates, and the Asia Pacific and Swedish mandates.
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