Lonmodtagernes Dyrtidsfond, Frederiksberg, Denmark, hired GuardCap Asset Management in London to manage an up to 600 million Danish kroner ($95 million) global developed market equity allocation, according to Kristoffer Birch, the fund's head of equities.
The new contract, which is focused on concentrated, high-quality global developed markets companies, will begin in the fall. GuardCap, which is owned by financial services firm Guardian Capital Group, was selected from 33 money managers. The firm will invest on behalf of LD Pensions in 20 to 25 companies that are expected to grow over the next five to 10 years, while integrating sustainability and active ownership into the investment process.
The new allocation will be funded from a restructuring of an equity portfolio managed by MFS Investment Management, whose contract has expired, Mr. Birch said in an email.
The fund's equity allocation is 22.5% of the 35 billion Danish kroner portfolio. Developed markets account for around 88% of the equity allocation.
"We have lacked a manager who can give us exposure to quality companies with high growth and high earnings, which both perform well in growth environments with low interest rates as now, and at the same time can protect the portfolio in crises," Mr. Birch said in a news release on the fund's website.
"We get this with GuardCap, which in addition delivers an investment style that fits into the rest of the equity portfolio," Mr. Birch added.
