The Swedish Fund Selection Agency (Fondtorgsnämnden, FTN) has published preliminary specifications for its second procurement for the reformed premium pension funds platform, including the permitted tracking error that fund managers will have to adhere to.
In a release sent out just before the Easter break, the FTN gave no date for the upcoming twin tender – for actively-managed Nordic equity funds with a primary focus on large and mid-cap, and actively-managed Nordic equity funds with a primary focus on small-cap – but said notice would be given for both procurements at the same time.
This second tender is set to reshuffle the management of some SEK22bn (€1.9bn) of Swedish first-pillar pension savings. It is twice as large as the FTN’s inaugural tender for European equity fund, the results of which were announced a week ago.
The agency said of the upcoming tenders: “Both procurements apply to actively-managed funds with a minimum permitted tracking error of 2% against the fund’s benchmark.
“Maximum permitted tracking error is 4% for the fund’s benchmark index relative to the procurement’s category index,” it said.
Among other specifications – which are all preliminary at this stage – the agency said both procurements were for UCITS funds with trading currency in Swedish kronor, Norwegian kroner or euros, and that the funds had to report according to Sustainable Finance Disclosure Regulation Article 8 or Article 9.
There are currently around SEK9bn of premium pension assets held in actively-managed large and mid-cap focused Nordic equity funds, and some SEK13bn in active Nordic equity funds focusing mainly on small-cap stocks, according to the FTN.
In total, the two procurements affect approximately 176,000 pension savers, it said.
The agency said in February that the Nordic equity tenders would be its next procurement, and gave a list of the next processes in line.
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