Första AP-fonden (AP1, the Fund) manages assets with a value of SEK 298 billion (as of June 30, 2016). AP1 is one of the buffer funds assigned by the Swedish Parliament (Riksdagen) to manage the Swedish people's pension funds. Combined with well-balanced financial risks our mission is to achieve the highest possible return on the Fund's invested assets and thereby contribute to a strong and predictable old-age pension for current and future pensioners. More information about our portfolio and how we have built up our management organisation to enable the fulfilment of the set goals is presented on our web-site: www.ap1.se.
The Fund's assets are managed both internally and externally. A decisive factor in the choice between internal and external management is the ability to create a higher return (after management costs) compared to the established strategic benchmark. Management areas where the Fund does not possess or has difficulty in obtaining the right expertise are managed externally.
Since the Fund is a governmental institution (central level) the tender procedure is regulated in the European Procurement legal framework, primarily in Directive 2004/18/EC of the European Parliament and of the Council.
Furthermore, the Fund has a Sustainability policy that applies to the entire fund, including externally managed mandates. The complete policy document is available for download at www.ap1.se.
The allocation to High Yield is approximately 4 % of the Fund's AuM as of 30.6.2016. The current exposure is mainly US High Yield.
The objective of this search is to broaden the universe to Global High Yield.
The tender is open for the following strategies:
— Global High Yield.
— US High Yield.
— European High Yield.
Strategies that are similar to the strategies mentioned above might be considered.
The investment company must be able to document experience in management of institutional accounts for the specified mandate. The manager must be able to show a live GIPS compliant track record for the offered product of at least 12 full months at the time of submission. The manager must also reserve capacity in the submitted strategy of at least 300 000 000 USD
In the evaluation process special attention will be paid to how the manager considers and integrates ESG factors in the investment process. Expressions of interest must be accompanied by information/documentation in respect of the following:
1. Registration with relevant regulatory authorities.
2. Recent annual report (or similar document).
3. CV's for the CEO and the board members or equivalent for the relevant entity.
4. A full list of portfolio holdings for the offered product, including ISIN identifier, nominal holding and market value of the most recent quarter, in the Excel spreadsheet provided.
5. Monthly returns for the composite and the benchmark in the excel spreadsheet provided by AP1.
6. A sample of the reports made available to clients, including performance and risk reports.
The management of a Passive Global Equity portfolio of approximately 230 000 000 000 SEK through segregated accounts with 3 asset managers.