SWEDEN - The SEK227.7bn (€25bn) third Swedish buffer fund AP3 has selected 13 managers for enhanced indexing briefs.
A decision on the size of the mandate and which of the following managers will be awarded a funded brief will be made at a later date, AP3 has stated.
Approved managers (in alphabetic order) are:
DLIBJ Asset Management International
Enhanced Investment Technologies (Intech)
Goldman Sachs Asset Management Henderson Global Investors Invesco Asset Management Deutschland PanAgora Asset Management Quantitative Management Associates Société Générale Asset Management State Street Global Investors, and
Union PanAgora Asset Management.
Duration of the framework agreement with these managers is eight years.
"The decision is based on the total assessment of the managers ability to deliver sustainable positive risk adjusted excess return in the long term," said AP3.
Enhanced indexation was chosen as an investment strategy firstly because it is similar to pure passive exposure in terms of low fees and low transaction costs, and secondly because of a reduced risk for underperformance and a chance to achieve a small, but consistent, outperformance, noted AP3.