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​AP7 seeks managers for almost €2bn of active alpha mandates

Sweden’s AP7 pension fund, which manages the default option within the state Premium Pension System, has launched a search for external managers to run up to SEK20bn (€1.9bn) of active alpha managed assets.

In an EU tender notice, the fund — which currently has a total of SEK423bn of pension assets in its equity and bond funds — said it foresaw creating between six and 10 mandates.

The pension fund said: “The objective of the tender is to render discretionary asset management services for active alpha management.”

AP7 has been preparing for this tender for almost a year, with the new mandates part of the diversification effort that has been happening in the equity fund since 2017, as CIO Ingrid Albinsson told IPE back in February.

The tender is divided into five lots including four for long-short equities management.

The equities mandates cover four regions: US, Europe, Japan and global/multi-region.

The fifth lot is for currency management, according to the EU tender notice.

AP7 said it only envisaged inviting between one and three candidates for each of the five lots.

The deadline for receipt of tenders or requests to participate is 26 December at 5pm Swedish time. The procurement process is being run by the Swiss firm PPCmetrics.

The mandates will last for 36 months, after which there will be the option of two extensions of two years each, according to the notice.

AP7 said all information about the tender was provided in the procurement guidelines, and instructions as to how to request the documents were on its website.

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  • QN-2571

    Asset class: Equities.
    Asset region: US.
    Size: $400m.
    Closing date: 2019-11-14.

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