The Swedish municipality of Sundybergs is setting up a Skr 100m($12.2) pension fund plan from now until 2005 to meet the pensions liabilities of its employees.

And the first of the investment mandates for the fund has been awarded to Stockholm based Carlson Investment Management, which has picked up a balanced brief of SKR30m.

The Carlson money constitutes the 'foundation' element of the fund and will be invested in Swedish fixed-income instruments and domestic and foreign equities.