AP4, Stockholm, launched two separate equity searches, said statements on the pension fund’s website.
The 310.5 billion Swedish kronor ($36.8 billion) pension fund is looking for managers to run global equities allocations. An official at the pension fund said the sizes of the portfolio have not been disclosed, and officials do not intend to do so at this stage in the procurement process. AP4 had a 40% allocation to global equities as of June 30.
MSCI indexes, which were not specified, will be used as the benchmark for the passive allocation. The developed markets part of the allocation will be a managed or separate account structured into regional sub-portfolios. For emerging markets, AP4 may consider pooled funds.
Money managers that can only provide passive management for developed markets will be considered.
The active search is for a manager to run a global equities portfolio that focuses on “addressing the global water scarcity challenge,” said a second statement.
Management of the portfolio will be long-only and long-term focused, and the MSCI World index will be used as the benchmark. The allocation will be run as a managed account, said the statement.
Proposals for both searches are due Aug. 20. Further information is available on the pension fund’s website.