SWEDEN - Första AP-fonden (AP1), the First Swedish National Pension Fund, has awarded an AU$100m (€51.9m) Asian equities mandate to the Australian boutique investment firm Treasury Asia Asset Management (TAAM).

The firm, based in Singapore and Sydney, will run an Asian equities excluding Japan mandate for the SEK201.8bn pension fund, following its decision to review its pacific equities portfolio in October 2007. (See earlier IPE article: AP1 reviews Pacific mandates)

Although TAAM is an Australian investment firm specialising in Asian equities, Rob Sullivan, head of distribution at Treasury Group, revealed around half of TAAM's clients are based in the UK and Europe - including relationships with Fortis Investments, Skandia and Santander Asset Management.

Sullivan said: "We've been speaking with AP1 for about a year, since they initiated the search for Asian equities managers, and we're glad to have secured such a high quality client out of Sweden."

AP1 has also revealed its Pacific equity portfolio is valued at around €478 and a further 12 investment managers have been approved to run equity mandates, including Capital International and Lloyd George Management, previous managers of the portfolio.

The other 10 managers awarded contracts by the fund in September are:

Blackrock Barclays Global Investors F & C Investments Fidelity International Goldman Sachs Asset Management JP Morgan Asset Management JF Asset Management Irish Life Investment Managers Absolut Asia Asset Management Schroders Investment Management

Although the exact split of the portfolio has not been confirmed, AP1 said the selected managers "will give the fund good flexibility and portfolio diversification together with a high expected risk-adjusted excess return net of costs".

It added: "The managers complement each other well in terms of investment styles and risk profiles and will thereby contribute to the diversification of the portfolio."

Meanwhile AP1 is continuing its search for US small cap managers, which was confirmed shortly after it revealed in its half-year report that it intended to increase its equity allocation despite a loss of 8% in 2008. (See earlier IPE articles: AP1 pursues US small caps managers and AP1 to increase equities despite 8% loss)

If you have any comments you would like to add to this or any other story, contact Nyree Stewart on + 44 (0)20 7261 4618 or email nyree.stewart@ipe.com

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