SWEDEN - The SEK70bn (e7.7bn) Sjunde AP-fonden (AP7) has awarded a SEK6bn (around €640m) currency overlay mandate to Lee Overlay Partners.
Intervalor, a firm which represents a number of asset managers in the Nordic region, won the mandate on behalf of Lee Overlay Partners, an investment management firm dedicated to external currency overlay management. The "conservative" mandate aims to generate alpha of 1% a year.
Intervalor CEO Anders Bladh said: “To treat currency exposures as a complementary, separate asset class, next to equities, bonds and other assets, is becoming increasingly popular among large institutions as the separation of alpha and beta is growing in acceptance.”
Lee Overlay Partners was founded by Adrian Lee and a team of professionals who worked together in currency overlay at JP Morgan Investment Management for over ten years.
Lee Overlay Partners president and CIO Adrian Lee said: "It is all about having an analysis driven, structured and quantitative focused investment process. This is state of the art in the asset management industry."
AP7 Fund deputy CEO Richard Gröttheim added: “It has been an exciting journey to design and award this mandate which is a little bit different from the traditional mandates we have outsourced before.”
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