Sweden's state-owned energy giant Vattenfall has announced it is to switch its retirement liabilities from the balance sheet to a new pension fund or foundation.

According to Bengt Edström, pensions manager at Vattenfall, the fund, with assets of around Skr4bn (Ecu425m) will be looking to invest in both international and domestic bonds and equities, and begin capitalising and seeking external investment managers in March.

We are planning on contracting two Swedish and two international asset managers for the equities portfolios, with further managers for a bond portfolio," he says.

Until now Vattenfall has worked in conjunction with Wassum Investment Network, but Edström declined at this stage to comment on any future consultant arrangements."