Denmark’s AP Pension has hired Morten Hemmingsen to head up a new internal fixed income team as part of a move to increase its in-house investment management capabilities.

The commercial mutual pension provider has created two new departments for equities and bonds within its overall investment department.

Hemmingsen – who recently left labour-market pension fund PenSam, where he was CIO – will become AP Pension’s new head of bonds from 1 August.

The DKK106bn (€14.2bn) AP Pension said it wanted to “strengthen its position in the investment market”.

The pension fund is now on the lookout for someone to become its new equities manager, and started that search yesterday, a spokesman said.

In the job advertisement, AP Pension said it aimed to increase the level of internal management at the mandate level, and tactical allocation within the stock market.

Ralf Magnussen, investment director at AP Pension, said: “We have formulated an investment strategy, which revolves around being close to our investments and actively participating in the financial markets.

“I am convinced that Morten, with his thorough knowledge of the industry, is the right candidate for the new role as bond manager.”

Hemmingsen will be in charge of both credit and bond investments at AP Pension, and will report to Magnussen.

When his departure from PenSam was announced last month, Hemmingsen said he had wanted to return to a job that involved more hands-on investment work, rather than that of CIO where administration played a significant part.

Speaking about his new job at AP Pension, Hemmingsen said: “The position of bond manager gives me the opportunity to get back to what really interests me.”