The Swedish Seventh National Pension Fund, or AP7, Stockholm, plans to issue RFPs next month for active managers to run half of the Premium Savings Funds total assets. State Street Global Advisors initially is managing 85% of the fund in a passive global and domestic equity mandate. The fund, designed to manage the assets of Swedish nationals who do not actively choose another fund from the Premium Pension Authority, is expected to have assets of 15 billion kronor ($1.5 billion) to 20 billion kronor when it is fully funded in a few months, said Peter Norman, executive president. SSgAs mandate will be reduced over time as the administrators of the fund hire active managers. Appointments likely will be made by January, said Mr. Norman.
The remaining 15% of the Premium Savings Fund will be invested in Swedish index-linked bonds and will be internally managed by AP7.