SWEDEN - The Second Swedish National Pension Fund/AP2 says it has funded Global Tactical Asset Allocation mandates awarded to Goldman Sachs Asset Management and First Quadrant two years ago.
The external mandates, as well as an in-house one, have generated a surplus of more than SEK100m (€10.9m), the fund said.
The funding follows the award of five external GTAA mandates in June 2004 that AP2 planned to activate at its discretion.
"Three mandates in the area of Global Tactical Asset Allocation (GTAA) have been capitalized during the first half of the year," AP2 said in its January-June report. The size of the mandates was not disclosed.
"The two external managers are Goldman Sachs Asset Management and First Quadrant LP - the latter in association with its Swedish partner, Informed Portfolio Management," the fund added. A corresponding in-house mandate has been funded since 2005.
AP2 said: "In the first six months, the three GTAA mandates generated a joint surplus of SEK105m, contributing a joint surplus of 0.04% to the active return on the fund's market-listed portfolio."
In June 2004 AP2 named Barclays Global Investors, Bridgewater Associates and JP Morgan Investment Management alongside First Quadrant and GSAM for GTAA briefs.
AP2 said today it made an investment return of 1.9% in the first half, with capital assets rising to SEK194.8bn. It missed its benchmark by -0.1%.
"This is a good result, in light of the difficult market conditions experienced during the first half," said chief executive Eva Halvarsson.
"This favorable outcome may primarily be attributed to our selection of a benchmark portfolio featuring low currency exposure and the Fund's own choice of indexes."
"The task of making the Fund still more efficient continues. In recent years, the number of mandates under external management has been reduced, and 75% of total assets are now under in-house management."
The fund has terminated some 20 mandates in recent years, including two unspecified briefs already this year.
Last month the fund named Poul Winslöw as chief investment officer, following the departure of Petter Odhnoff amid a tax scandal.