AP1 to review equity, fixed income management costs

Swedish buffer fund AP1 is to review its external equity and fixed income mandates with the aim of cutting management costs.

In a tender, the fund said it was looking at ways to reduce the “long-term” cost of its long-only fixed income and equity portfolio.

It said it was reviewing its approach to external mandates with several goals in mind.

In addition to cutting costs, these include increasing transparency and the time its internal management team spends on matters relating to external mandates

AP1 is also looking to improve integrated and operational-risk management, its manager-selection process and the flow of data from external managers.

The buffer fund is seeking an investment services provider to help research transition managers and custodians.

It said it would consider only providers with demonstrable track records of working with similarly sized clients.

AP1 currently manages SEK297bn (€31.3bn) in assets, 37.3% of which is held in equities and 31.2% in fixed income securities.

Interested parties have until 28 November to respond to the tender.