AP1, Stockholm, is searching for managers to run a $4 billion emerging markets equity allocation, said Tina Ronnholm, portfolio manager, external management..
The 333 billion Swedish kronor ($38.4 billion) pension fund said in a notice on its website that it would consider active and passive strategies as well as different investment styles, including fundamental and quantitative approaches.
Strategies that only invest in emerging markets small cap or frontier markets will not be considered.
Ms. Ronnholm said executives are looking to build a robust portfolio of managers that, as a combination, fulfill the fund’s return and sustainability objectives. The number of managers will be decided later in the process once an approved list has been drawn up.
Managers must be able to demonstrate experience in running institutional accounts for the allocation, and a track record showing compliance with global investment performance standards for at least 12 months at the time of submitting an RFP. "The manager must also reserve capacity in the submitted strategy of at least $300 million," said a separate notice filed with European procurement website Tenders Electronic Daily.
Ms. Ronnholm said this is an existing allocation and that incumbent managers may rebid. Details could not be learned by press time.
Executives at the pension fund will pay special attention to how managers consider and integrate environmental, social and governance factors in the investment process.
Further information is available on AP1's website. Proposals are due June 29. Executives hope to have an approved list of managers before the end of the year, added Ms. Ronnholm.