AP3 issues e406m US equity mandate

SWEDEN- AP3, the SKr 126bn (€13.9bn) third Swedish National Pension Fund, has put out to tender an active US small/mid cap equity mandate, expected to be in the range of $200m-$400m.

“A portion of the global equity portfolio is allocated to the US, and is currently being managed passively. We have now decided to allocate part of this portfolio to form an actively managed US small/mid cap equity mandate”, explains a spokeswoman at AP3.

The move forms part of the Swedish pension fund’s strategy to reduce its share of funds that are managed passively, and step up its presence in actively managed funds, which it feels will add value.

“The US small/mid cap equity has been identified as one of those that will benefit from active management,” says AP3.

One or more managers will be selected for the mandate, which will most likely use the Russell 2500 index. Tracking error limit is expected to be at least 4%.

Applications should be received by 1st November.

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