Sweden’s AP7 Seeks Initial Risk-Factor Investments

Allocation percentage to be determined.

AP7, Sweden’s $53 billion pension fund, is eyeing risk-factor investments for the first time.

According to IPE, the fund put out a bid on advice for obtaining “active alpha management.” The fund also told the publication that it’s seeking between eight and 12 managers for three strategies across three categories, which include long/short equity, long/short risk-factor strategies, and risk-reducing strategies.

Long/short-risk strategies has been in place since 2005, a factor that was part of a standard procedure.

AP7 CIO Ingrid Albinsson told IPE that the fund had not yet determined how much of the portfolio would be allocated to the new investments, but they will primarily focus on equities and currency exposure.

“The procurement is in an early stage and the allocation has not been decided, more than the fact we will be looking for one to three mandates as described in the procurement information,” she told IPE.

The application deadline for the advice tender is March 8.

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