SWEDEN – The 140 billion-crown (15 billion-euro) Tredje AP-fonden Swedish buffer fund has appointed five managers to run mid- and small-cap European equities.

AP3 said: “European mid-cap is introduced as a new separate mandate and will be managed actively by a combination of three managers from AP3’s universe of contracted asset managers.

“Those appointed are AXA Rosenberg Investment Management Ltd, BNP Paribas Asset Management and Kempen Capital Management.”

European small-caps would be managed by J P Morgan Fleming Asset Management and Pictet Asset Management. The reference index will be FTSE Developed Europe Small Cap Index ex-Investment Companies.

AP3 spokeswoman Pernilla Klein said the size of the mandates would be disclosed in the fund’s semi-annual report in August. She added that the fund did not use an investment consultant to aid in the selection.

European large-caps would continue to be actively managed internally and externally on a passive basis by State Street Global Advisors.

The scheme added that it is changing its reference index for its global equity holdings from the FTSE All-World Index to the new FTSE Global Equity Index Series.

AP3’s European equity portfolio totalled 25.2 billion crowns at the end of 2003, of which 9.2 billion crowns was managed externally.

AP3 says it is an active “manager of managers”, making reallocations within a pool of leading managers with which it has contracts. Allocations between managers are based on risk budgeting considerations.

Topics