The DKK25bn (€3.4bn) Danish teachers’ fund, Laerernes Pension, has appointed a fixed income specialist, Morten Roed Sørensen to be its new portfolio manager.

He replaces Anders Bertramsen, who left earlier this year to head up external manager selection for Handelsbanken Asset Management in Copenhagen.

Laerernes Pension uses a wide range of external managers, including an extensive programme in timber investments. Sørensen’s chief focus, however, will be manager selection and monitoring for the approximately 90% the fund invests in debt and equities.

Sørensen has been working as a portfolio manager on the AAAsgard fund at Nordic Asset Management, a young independent firm based in Copenhagen.

The AAAsgard fund invests both long and short government bonds and mortgage bonds. It has a long-term target return of 15%, with volatility below 18% and maximum leverage of 30.

Nordic Asset Management said that given the current state of the mortgage bond market, Sørensen would not be replaced.

Sørensen previously worked at the Danish Central Bank for seven years, responsible for the currency reserve bond portfolio, and is a chartered financial analyst (CFA).

Laerernes Pension was one of the first Danish funds to invest in foreign fixed income, which now accounts for almost 29% of assets.
Sørensen starts on August 18.