SWEDEN - The SKr 142bn Telia Pensionstiftelse, the pension fund for the Stockholm-based telecoms company, has sealed its first foray in global specialist equities.
The fund has appointed Axa Rosenberg and Merrill Lynch Investment Managers to a European small-cap and US small cap briefs respectively. It is the first time that Telia - which would not disclose the size of the mandates - has ventured into these asset classes. Previous forays in segregated equity classes have been in domestic stocks.
The latest hires are the outcome of an asset liability study conducted last year, explained Peter Antonsson, managing director.
Telia’s new benchmark allocation - agreed in December 2000 - is 18% Swedish equities; 37% international equities; 20% inflation-linked bonds; 15% domestic fixed-income; 10% alternative investments (incl. 5% in hedge funds and private equity).
Earlier this year, Stockholm-based Telia hired hedge fund Brummer & Partners. The fund also complemented its existing international equities portfolio with a global passive mandate awarded to State Street Global Advisors, again for an undisclosed sum.
The fund is advised by Wassum Consulting.
By Madhu Kalia
Partner Insight: Members' evolving needs and expectations are driving changes in scheme administration. As the pensions landscape inevitably continues to change, how will your scheme's approach need to develop to keep pace?
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