SWEDEN – Tredje AP-fonden, the SEK175.8bn (€18.9bn) Third National Pension Fund, has procured a risk analysis system from RiskMetrics.

“After having examined and evaluated the submitted tenders, AP3 has decided to implement the Risk Manager system provider awarded by RiskMetrics Group,” the fund said in a contract award notice on its web site. Financial terms were not disclosed.

“AP3 has found that the solution offered by RiskMetrics Group was best in line with the needs of AP3,” said the notice, signed by AP3 risk management head Erik Valtonen.

RiskMetrics, which spun off from JP Morgan in 1998, has been expanding in Europe in the past year, opening offices in Frankfurt and Geneva.

Valtonen added: “AP3 has based the decision on a total assessment of functionality and suitability of the solution, applicant’s track record and experience of risk management systems for asset manager and pension funds, applicant’s deemed capability to timely carry through the implementation process, user friendliness of the solution (including ease of implementation and ease of data management), and cost-effectiveness of the solution.”

The fund tendered the solution in September last year after saying in the previous May that it planned to increase the level of active risk throughout its benchmark portfolio.

“The risk system completes a system framework where the other main components are FinanceKit from Trema (portfolio system) and Pearl from Ortec (performance attribution),” the tender stated.