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AP7 hopes to find “pure alpha” by January

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SWEDEN - The SEK80bn (€8.8bn) Swedish buffer fund AP7, Sjunde AP-fonden, is closing in on its "pure alpha" plans, according executive vice president Richard Grottheim.

The fund outlined the concept - whereby no money is transferred to managers - at last year's IPE awards. Now it seems progress is being made.

"We think that there is favourable development in the market for our pure alpha strategy," Grottheim told IPE today.

The fund is currently in the process of finishing the re-tendering of equity mandates after the five-year contracts of the incumbent managers State Street Global Advisors, Carlsson Investment Management and Goldman Sachs Asset Management had run out.

"In these tenders we have asked the managers to consider pure alpha instruments if possible. Maybe three of the managers have said that they can probably supply a pure alpha product," Grottheim explains.

Chief executive Peter Norman detailed the idea a year ago at the awards in Berlin.

"A pure alpha concept means that no money is transferred to the managers. We want managers to produce alpha for us in any way they choose through equities, fixed income - or fine art if they wish," he said.

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  • QN-2546

    Asset class: Real Estate Equity Fund (non listed).
    Asset region: Europe.
    Size: Total CHF 600m, approx. CHF 100-300m per fund investment.
    Closing date: 2019-06-28.

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