AP Fonden 1 today announced a sweeping overhaul of its internal investment management team, including the layoff of almost a third of its 65-member staff, according to a news release.
The restructured asset management team will focus on strategic asset allocation, which has the greatest influence on the funds ability to deliver long-term returns, Johan Magnusson, managing director of the Swedish pension fund, said in a news release. We will become much more active when it comes to the composition of our portfolio. We will take a more flexible approach and be more opportunistic with our time horizon.
The move by the 172 billion Swedish kronor ($20.5 billion) fund, based in Stockholm, is aimed at reducing operating expenses by 25% and was announced a week before its financial report is due to be published. In 2008, the fund returned -21.9%, according to preliminary data provided by the fund.
About 58% of assets are invested in equities while 37% is invested in bonds, according to a financial statement as of June 30. The remainder is in cash and alternatives. About 30% of the total assets are externally managed.