The AP4 fund, Stockholm, will outsource the active management of its Asian equities in order to enhance investment returns, according to Björn Linder, chief investment officer of the 134 billion kroner ($12.9 billion) fund. Also, later this year it will consider outsourcing the active management of its sector-oriented equity portfolios, he added.
The fund has 5% of total assets invested in Asian equities, most of which is actively managed in-house; a small proportion is managed by external passive managers State Street Global Advisors and Merrill Lynch Investment.
Currently, it is seeking active Asian equity managers to run up to 7 billion kroner total. One portfolio will cover Japanese equities, and the other, Asian equities excluding Japan.
William M. Mercer is advising.