AP2 seeks global credit managers
SWEDEN - Andra AP-fonden (AP2), the Second Swedish National Pension Fund, is seeking external global credit bond managers for mandates valued at up to $600m (€418m).
AP2 revealed in its first-half figures earlier this week that it had increased its allocation to corporate credit bonds from 3% to 10%, with the increased allocation including both traditional corporate bonds and convertibles.
At the end of June, the strategic allocation of the fund was 40% in fixed interest assets, 52% in equities and the remainder in real estate and private equity. (See earlier IPE article: AP2 generates 6.4% gain)
However, the pension buffer fund has issued a tender notice seeking a provider of external asset management services relating to global credit bonds, as Eva Halvarsson, chief executive of AP2, said the fund believed it could get good returns from further investment in international corporate bonds following the effects of the credit crunch.
The tender is for the discretionary asset management of "several global credit portfolios" with an estimated value of between $300-600m each.
Although the exact number of mandates is unclear the document revealed AP2 expects the number of participants in the tender process to range from five to 15, with this figure being reduced during the negotiation and competitive dialogue phase.
The closing date for tender submissions is 21 September 2009 and further information including the conditions of participation can be obtained by emailing firstname.lastname@example.org
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