SWEDEN – Swedish insurance group Länsförsäkringar Liv has outsourced approximately SEK 4bn (e420m) in North American and European equities – the equivalent of 5 % of its total assets – with the purpose of creating competition between internal and external managers.
CDC IXIS Asset Management has picked up an e100n European equity brief, while T. Rowe Price and Aeltus Investment Management will both manage $150m apiece in North American shares.
Länsförsäkringar says the selection process, which was advised by Wassum Investing Consulting and Wilshire Associates, focused on managers that could reflect the firm’s return and risk profile.
Other factors in the management selection included good historic returns, stable and competetent management, developed risk control systems and low fees in combination with a performance based fee struture.
The firm says the externalisation programme will facilitate management and establish a presence in prioritised markets.
"The competition will give us opportunities to improve our own skills,” says Länsförsäkringar CIO, Bo Ennerberg.