SWEDEN - The SEK187.2bn (e19.2bn) Forsta AP-fonden (AP1) is planning a review of its external fixed income mandates, hinting at a possible tender.
AP1 manages its nominal Swedish and index-linked fixed income portfolios internally, and has one SEK 5.13bn active US enhanced corporate bond mandate with BlackRock.
In its 2005 annual report, the first state buffer fund said: “A review of the fund’s external mandates for fixed income investments is also planned for 2006, which may lead to a new procurement.”
At year-end 2005, AP1’s net assets under management totalled SEK 187.3bn, bringing the average annualised return on net assets since the fund’s inception in 2001 to 4.4%.
The total fixed income portfolio amounted to SEK74.6bn, while equities stood at SEK110.3bn. The best performing asset class was emerging markets, posting a return of just over 62%.
The fund’s tender for three private equity mandates, which started at the end of 2004, has still not been completed, with the fund citing “ownership and organisational changes” by several candidates as having delayed the process.
In addition AP1 carried out a procurement for external equity managers in emerging markets to replace the fund’s passive holdings in this area of which these managers will be funded in the first half of 2006.
AP1’s equity exposure was 59%, while exposure to fixed-income was 34% and alternative investments 2%. Foreign exchange exposure was just under 21%.
A spokesperson for AP1 was not immediately available for comment.
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