AP2 tenders global tactical asset allocation
SWEDEN – The second Swedish national pension fund, Andra AP-fonden or AP2, is tendering one or more global tactical asset allocation mandates, with a notional value of around one billion dollars each (850 million euros).
At present the global tactical asset allocation is run internally by the fund as an overlay focusing on rebalancing as well as return enhancement from intended deviations form the strategic benchmark.
Now the fund has decided that it will now seek external managers within this area in order to increase the overall excess return from global tactical asset allocation.
Candidates should deliver a quantitative overlay mandate for generating alpha through intended active asset class long-short positions. Net long positions will not be allowed. The mandate is an absolute return mandate with no benchmark attached.
AP2 is seeking one or two mandates with a notional value in the vicinity of one billion dollars each. An absolute annual net return of around 25 million dollars (21.3 million euros) is expected.
The deadline for applications is January 12 2004.
AP2 has around 135 billion Swedish crowns (15.08 billion euros) in assets.