Denmark's DKK47.0bn Pen-Sam Pensionfund has completed a restructuring of some DKK4.5bn of its DKK8bn equity portfolio with the awarding of a DKK1.1bn US equities index mandate to Nordea Investment Management ad a DKK1bn US all-cap equity mandate to T. Rowe Price.

Michael Weischer, investment manager responsible for overall asset allocation for Pen Sam said the move did not represent a replacement of an asset manager.

“They are new mandates but are part of a larger mandate restructuring that has moved almost all of our foreign equities from broad, fairly passive worldwide mandates to more active regional mandates,” he said.

The passive strategy was adopted at he time of the equity market downturn, said Pen-Sam head of equities Jens Elkjær. “We established a new strategy to get a better return and were looking for regional managers that could give us a pick-up in our fund,” he added.

Of this DKK4.5bn that has been reallocated this year some DKK4.1bn is in foreign equities and DKK400m in Danish small equities,” Elkjær said. “We used IPE-Quest to make the changes.

“In addition tot he US mandates, earlier this year we established two mandates for European equities, around DKK650m with AXA Rosenburg and some DKK650m with Capital International,” Elkjær noted. “And on Asia-pacific including Japan we awarded DKK210m to JPMorgan Fleming and DKK390m to State Street. We also awarded a DKK300m global emerging market mandate to Battery March.”

Last year Pen-Sam also used IPE-Quest to find a global enhanced manager, he added. “That mandate was given to State Street in Boston and they are running a DKK1.5bn for us on a global enhanced product.

“If you add that to the DKK4.5bn it totals DKK6bn, leaving DKK2bn in Danish equities that we are running internally in Pen-Sam,” Elkjær said.


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