The Swedish Fund Selection Agency (Fondtorgsnämnden, FTN) has released preliminary procurement specifications for its actively-managed small-cap Swedish and European equity funds’ tender, without yet giving a launch date for the process.
The agency this morning presented a range of information for would-be bidders in what will be its next tender, as it continues working to re-populate the premium pension system’s funds platform with quality-assured investment options.
The procurement is for funds to replace the SEK50bn (€4.5bn) of premium pension assets currently invested in these two fund categories on the existing platform. These are split between 14 actively-managed Swedish small-cap funds, with some SEK44bn, and around SEK6bn in European small-cap funds.
In the draft details of the Swedish active small-cap procurement, the agency specified that its category benchmark would be the Carnegie Small Cap index, while bidders are simply required to use a benchmark “that is rules-based, transparent, constitutes an appropriate reference for the market it pertains to and is publicly disclosed in an appropriate manner”.
Funds are to have a minimum 2% active risk relative to their benchmarks, or at least 60% in active share relative to their index.
Securities lending is allowed but not required, and funds are not permitted to invest in other funds, according to the draft.
This article has been amended to clarify that the tender is to replace incumbent managers.
Rachel is IPE's Nordic correspondent.
She has long been a freelance writer, and over the years, has written for The Telegraph, The Independent, The Observer, AMWatch and elsewhere.
In 2001, Rachel's personal finance book Kickstart Your Money was published by John Wiley & Sons.View full Profile
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