A panel of experts has named AP3 as Europe’s leader in portfolio management and portfolio construction in the annual IPE awards sponsored by Investment and Pensions Europe magazine.
The award is recognition of AP’s strategy portfolio construction. This strategy involves a structured, three-step decision-making process: 1) Choice of reference portfolio/ALM. 2) Choice of manager structure. Strategy here centers on how to implement the theoretical reference portfolio through investments in different markets. In which markets is it possible to achieve out performance? Which assets should be managed internally and which should be assigned to external managers? 3) Risk budgeting. This determines the level of financial risk permissible within specific management mandates.
AP3 was also one of three nominees competing for the title of Europe’s best state pension fund, a category won by the Dutch pension fund ABP.
AP3’s CEO Kerstin Hessius said: “I am delighted and proud that we have won this IPE award. It is a recognition of AP3’s high levels of skill and expertise. We will continue to work hard to improve our position as one of Europe’s leading pension funds.”