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ITP calls in fund experts to assist tender review

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  • ITP calls in fund experts to assist tender review

SWEDEN - Officials responsible for ITP, the Swedish white collar workers defined contribution pension scheme, are in the process of reviewing the entire operation and seeking advice from fund-related businesses on how to go about it, as the existing insurance wrapper contracts are due to expire next summer.

ITP Nämden, the authority overseeing the schem, Collectum, which manages the administration and inflows, along with officials from PTK, the white collar workers union, and Svenskt Näringslive, the employer representatives, have completed 75% of the review which will determine how the system will look in the future, what funds and information will be provided and how the tender process for new providers will be laid out as a result.

Leonard Johansson, part of the first procurement process for ITP and now head of IT department at Collectum, said the team has a deadline of October to complete the tender process review before invitations can be issued regarding the procurement process, although much of the work has still to be done.

"The current agreement or contracts run to June next year, so we have no insurer behind the ITP plans in July if we don't do anything," said Johansson. "Parties within the Swedish labour market are directing the content of the ITP plan. So we are waiting for their final instructions for the process."

He confirmed Morningstar, the fund information provider, has been giving officials advice on the fund review process but was unwilling to confirm who the other parties giving advice were.

"What we are quite good at it is the administration to facilitate the procurement process, but we are less skillful on the fund reviews. So we are looking for some assistance on the fund review process although it is still in preparation stage," added Johansson.

IPE understands that advice on the fund review process is also being provided by Wassum, the Stockholm-based investment consultancy, alongside FondbolagensFörening, the Swedish investment fund association, and Pioneer Investments.

Officials involved in discussions say one of the key issues the ITP regime is trying to improve is how to gain maximum economies of scale and acknowledge its position as an institutional investor, as ITP has until been seen as a retail buyer and therefore carried higher purchasing costs.

If you have any comments you would like to add to this or any other story, contact Julie Henderson on + 44 (0)20 7261 4602 or email julie.henderson@ipe.com

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