The Third Swedish National Pension Fund (AP3) has appointed managers of European small and midcap equities. The total value of the mandate amounts to 291 million Euro. The mandate is divided between four asset managers, as follows: 117 million Euro to Axa Rosenberg Investment Management Ltd and 58 million Euro each to JP Morgan Fleming Asset Management (UK) Ltd, Kempen Capital Management (UK) Ltd and Pictet Asset Management UK Ltd. These managers have investment styles that complement each other well, contributing to the risk diversification of the portfolio. The reference index for the funded mandates is HSBC European Smaller Companies Index, ex Sweden.
Until now, all of the fund’s European equity portfolios have been invested in large cap equities. By extending the investment universe to small- and midcap equities, the fund will attain a beneficial diversification of risks. Assets to the new mandates have been transferred from the fund’s internal management of European large-cap equities.
In addition to these managers, agreements have been signed with three other managers, making possible future transfer of funds within the same mandate. This is a part of AP3s strategy to create a universe of leading asset managers, within which reallocations can occur when considered appropriate. These managers are: BNP Paribas Asset Management, Morgan Stanley Investment Management Ltd and Scottish Widows Investment Partnership Ltd.