DENMARK - The DKK25.8bn (€3.5bn) Danish teachers' pension and life fund, Lærernes Pension, has replaced PFA Pension, which managed DKK13.3bn (€1.8bn) worth of bond mandates, with Nordea Investment Management.

Anders Betramsen, portfolio manager at the fund, told IPE PFA previously managed the fund's entire range of Danish government and mortgage-backed securities, global government bonds, Danish inflation-linked bonds, and global investment grade bonds.

PFA had to be replaced for legal reasons, Betramsen told IPE: "We are no longer a subsidiary of PFA, so they were not allowed to continue managing assets for us."

Lærernes Pension was set up in 1993 in cooperation between the teachers association and existing pensions provider PFA, which owned 51% of the shares of that new teachers scheme and served as administration provider for Lærernes.

In May 2006, the administration of the scheme was switched to a new joint venture owned by three parties - Forca, the pensions admin firm owned by Lærernes, PFA and PBU.

PFA Pension managed some investment mandates for Lærernes, though this is not allowed anymore because Lærernes no longer is a subsidiary of PFA Pension, but a separate entity.

The teacher organizations now own the entire 100% percent of Lærernes Pension.

In late December, the scheme also replaced PFA, alongside BankInvest, as its Danish equity manager.

Instead, Lærernes appointed the managers Gudme Raasschou and FMS04 for the DKK1.9bn portfolio.

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