AP1, Stockholm, could reduce the number of its active equity managers to achieve its "return target and better utilize risk" as well as reduce costs, a spokeswoman said Monday.
The change, however, will not see the 352 billion Swedish kroner ($37 billion) pension fund reduce its total equity exposure, but move parts of its equity exposure from "active fundamental management" to "passive or systematic" strategies, the spokeswoman said.
Any terminations of managers are pending AP1's discussions with the unions in Sweden, but some managers "could be terminated," the spokeswoman said, though when those dismissals may occur could not be learned.
Any staffing changes may be disclosed in AP1's annual report in February, the spokeswoman said.
AP1's allocation to equities stood at 35.3% of the overall AUM as of June 30. The allocation comprises 14.5% exposure to emerging markets equities, 10.9% exposure to Swedish equities and 9.9% exposure to developed markets equities.
Cost savings was not the fund's primary objective for the restructuing, the spokeswoman said.
The spokeswoman also noted Monday that Olof Jonasson has resigned as head of equities at the fund.
Mr. Jonasson violated the fund's policy and guidelines on trading and holding financial instruments as well as AP1's ethics policy, the spokeswoman said. In September, AP1 dismissed its CEO, Johan Magnusson, for conflict of interest resulting from his trading of securities in the same companies that were owned by the pension fund.
Equity strategist Mats Larsson has replaced Mr. Jonasson on an interim basis as acting head of equities, the spokeswoman said
