SWEDEN - AP2, the second Swedish national pension fund, is seeking managers for one or more US$1bn (e850m) global tactical asset allocation mandates.
Thomas Franzen, head of asset allocation, said that although the GTAA mandate was internally run, the fund was looking to add external expertise to increase the overall returns from the asset class.
“We are seeking expertise in a cost-efficient manner. It would be too expensive for the fund to undertake such an exercise at its own expense,” he said.
AP2 is looking to hire managers who can deliver a quantitative overlay mandate for generating alpha through intended active asset class long-short positions only.
The mandate is an absolute return mandate with no benchmark attached.
AP2 also stipulated that if a prospective manager uses a subjective overlay to a quantitative process, the subjective overlay must be restricted, well specified and performance attributed.
Furthermore, the fund is also looking to tender a US$1.5bn global bonds mandate by the end of the month. Early this year, AP2 declared its intentions to hire upto five managers each for a global credit investment grade portfolio, and an investment grade global government bonds brief.
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