SWEDEN - AP2, Sweden's Skr133.5bn (E14.4bn) second national pension fund, is to seek global bond managers by month-end, one mandate for which is likely to be for specialised credit .
Based on figures from AP2’s 2001 annual report, 40% (Skr53.4bn) of entire assets are currently allocated to fixed-income which is held in Swedish bonds including real estate by an in-house team.
The value of the new mandate will not exceed 50% of the current portfolio, explained Ole-Petter Langeland, head of fixed-income.
Langeland added that the mandates are likely to have a broad remit, although there will be one specialised credit mandate.
“We can do several things. We have one part that will focus on credit, down to investment grade, [as] one mandate. The rest of the portfolio could be on a broad basis or we might have regional mandates.”
Recently, a benchmarking exercise was carried out by consultants Towers Perrin, resulting in the fund adopting the Lehman Brothers Global Aggregate Bond Index. This switch is expected to be finalised by the beginning of 2003.
The fund has recently issued a raft of global active equities mandates worth a combined E13.4bn (US$13.5bn). The mandates cover several regions and sectors; managers can apply for any number of combinations. Deadline for rfps is August 18, 2002. The contracts are for 2 years with the possibility of further yearly extensions. The new portfolios are expected to be in place by October.
AP2 will issue its IH figures later this month.
MPIR Investment Research advises.
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