GLOBAL - Sweden’s SEK120bn (€13.4bn) buffer fund AP7 is tendering nearly a dozen unfunded equity and currency mandates as it seeks new managers for all of its existing awards.
The government-backed choice within the country’s premium pension system, AP7 has six fund options, with Denmark’s Kirstein appointed earlier in the year to oversee the 10 equity and currency mandates within AP7 Såfa.
Releasing further details today, the fund said the mandates would work within the pre-established framework for its active mandates, with all appointments unfunded - although AP7 said it would handle all matters related to collateral incurred through investment.
Mandates will look at global, regional, sector-specific and countrywide equity investments, as well as exposure to currency - with managers unrestricted by any benchmark, due to the unfunded nature of the strategy.
They are asked not to exceed 50% of long or short positions and avoid any beta investment, as AP7 said it achieved this through other means.
As many as 10 equity managers will be considered, with an additional two currency managers also possible.
Unfunded mandates should range in size from €100m to €400m, with Australian, Canadian, New Zealand and US dollars allowed in the FX mandate.
Additionally, investment in the Swiss franc, euro, pound sterling, Japanese yen and the native Swedish krona will be allowed.
Managers should not expect a fee in excess of 20 basis points plus performance.
Requests for pre-qualification are due by 28 June.
Meanwhile, the UK’s Wiltshire Pension Fund has confirmed the managers for two previously announced framework agreements.
According to recently published minutes from a meeting of the pension fund committee, the £1.3bn (€1.6bn) local authority fund has chosen Berenberg Bank for its dynamic currency hedge - with the mandate hedging around £500m of non-sterling equity exposure and replacing a passive currency hedge previously in place.
The award means Record Currency Management will lose its passive mandate, while State Street Global Advisors and Pareto were unsuccessful in competition with Berenberg.
The second award, for an absolute return fund manager, saw Newton Investment Management and Pyrford International lose out against Baring Asset Management.
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