Jaemtland County Council in Sweden may start looking for a manager in the summer for its fledgling pension fund. The council, which has SKr1.2bn ($156m) in pensions liabilities, is planning to set up a pension fund to which it will add Skr40m each year.
We may use a manager, or we may buy parts of pooled funds," says Annika Jonnson, treasury manager at the council. "The managed option is the most likely. Around 40-50% of the new fund's assets are seen invested in shares, with 15% in foreign shares, while the rest will probably be held in bills and bonds."
At the moment, the council pays its pensioners Skr40-45m each year out of existing revenues. Swedish law now requires county councils to decide how to manage those liquid assets connected with the annual increase in pensions liabilities, allowing for a pension fund to be set up.
Jaemtland may appoint a foreign or domestic manager, but is likely to enlist the help of a consultant in its search. The council is also currently offering a mandate to take over the administrative and payment side of its pension scheme."