SWEDEN - Forsta AP-Fonden, the First Swedish National Pension Fund (AP1), has shortlisted 12 managers to run emerging market equity mandates worth e900m(US$1bn).
The fund has named Aberdeen Asset Management (Active), Alliance Capital Management (Active), Barclays Global Investors (Passive), Brandes Investment Partners (Active), Capital International (Active), Citigroup Asset Management (Active), Emerging Markets Management (Active), Lazard Asset Management (Active), Marvin & Palmer Associates (Active), Merrill Lynch Investment Managers (Semi-passive), PanAgora Asset Management (Active) and Vontobel Asset Management (Active).
An AP1 spokeswoman said: “The global emerging markets equity was managed passively, but we decided we needed active managers for this brief. We have not decided in what proportion these managers will be funded but I doubt if we will fund all the managers.”
The fund had invested 5% of its portfolio in the Pearl product solution of UBS. This portfolio returned 15.8%, lower than the benchmark return of 16%, as at December 31, 2004. Total equities portfolio returned 15.5%, while total returns of the fund amounted to 11.4% for 2004.
In a statement, the fund said: “This decision is motivated by the following: the selected managers will give the fund good flexibility and portfolio diversification together with a high expected risk-adjusted excess return net of costs. The managers complement each other well in terms of investment styles and risk profiles and will thereby contribute to the diversification of the portfolio.”
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