AP2 and AP3 are searching for a custodian to provide global custody and related services, according to Tomas Franzen, chief investment strategist at AP2, Gothenburg, Sweden.
AP2 has 264.7 billion Swedish kronor ($40.8 billion) in assets, and AP3, Stockholm, has 242.3 billion kronor.
The funds have launched a joint procurement process, but each is looking to appoint one global custodian to handle custody, Mr. Franzen said. He said AP2 and AP3 are combining resources for a “common search process.” AP2's current custodian is State Street, which is invited to rebid.
The funds each are looking for a custodian to provide global custody, settlement and asset servicing through proprietary or subcustodian networks, according to a notice posted on European procurement website Tenders Electronic Daily. Services may extend to collateral management, securities lending, fund valuation and support for private equity.
A spokeswoman for AP3 referred questions to the procurement notice.
The notice is available on Tenders' website.
Proposals are due March 11 and should be submitted to Thomas Murray IDS, which provides benchmarking, monitoring and advisory services to institutional investors.