SWEDEN - The e16bn Andra AP-Fonden (AP2) has appointed seven new external asset managers to run global equity mandates worth e700m.
The managers appointed are: Alliance Bernstein, the The Capital Group, Carnegie Investment Bank Asset Management, Franklin Templeton Investments, JP Morgan Fleming Asset Management, MFS International and Wellington Management International.
AP2’s head of equities Poul Winslöw said that the fund would initially fund only around 2-3 managers to the tune of e700m.
“This is an ongoing process. To start with, we will fund only 2-3 managers and going forward, we will review the investment and decide if we need to fund the others.
“In our search, we have focussed on the those managers that have strong and clear investment process, good stock picking record and robust organisational structures,” he said.
Global equities constitutes around 10% and regional equities around 50% of the equity portfolio. The value of the global equities portfolio amounted to SEK63.8bn (e7bn) as at end 2004.
“The appointments refer solely to the fact that these investment managers have been approved to manage mandates within global equities. Potential funding occurs subsequent to separate decisions, at the discretion of AP2.” the fund said in a statement.
The fund, which returned 11.6% in 2004, recently announced that it was terminating 16 external mandates - four Swedish and twelve European mandates.
As at 2004, the fund had awarded 53 mandates for managing equities, compared with 72 at year-end 2003. In all, 37% of the fund’s total assets are under external management, compared to 45% in 2003. On the equities side, 59% (62%) is placed under external management at the end of 2004.
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