SWEDEN - Sjunde AP-fonden (AP7), the seventh Swedish National Pension Fund has tendered for an active European equities manager to replace CDC IXIS Asset Management, terminated by the fund in November.
The mandate is valued at approximately SEK2.2bn (e245.4m) and will be benchmarked against FTSE All World Europe Index with an expected excess return of 1-2% a year.
CDC IXIS lost the brief on the back of AP7’s three year review of investment managers. Mandates with State Street Global Advisors and Goldman Sachs Asset Management were retained.
Richard Grottheim (pictured), executive vice president at AP7, previously told Global Pensions high staff turnover and administration and reporting problems were behind the decision to lay off CDC IXIS.
“The administration was not working properly in our minds,” he said.
“Administration is a key issue because we are a lean organisation and need to rely on the reporting from the managers. That didn’t work properly in all the details. There has also been and still is quite a lot of turbulence on the personnel side, which is worrisome as well.”
Laurent Imbert, head of European equities at CDC IXIS recently departed after less than a year in the job.
Goldman Sachs Asset Management is currently acting as interim manager for the SEK2.2bn brief.
Mercer Investment Consulting is advising the fund on the new manager search. Deadline for tender is January 21, 2005.
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