AP2, Goteborg, Sweden, terminated four Swedish and 12 European equity managers as part of a new investment strategy involving more internal management, said AnCi Johannisson, spokeswoman for the 158.1 billion Swedish krona ($22.4 billion) pension fund. Underperformance also played a role in the terminations, she said. Ms. Johannisson could not identify the terminated firms and said the portfolios would be disclosed in the fund's full annual report in March.
The plan's Swedish equities, international equities and fixed-income investments underperformed their benchmarks during the year, according to the fund's preliminary 2004 year-end report. AP2 posted a 2004 overall investment return of 11.6%.
A "key element" of the fund's new investment strategy is "the clear definition of mandates, with respect to the relative degree of risk incurred," the report said.