Global and European index funds next in line
This week the Swedish Fund Selection Agency announced the upcoming categories for procurements of funds to the premium pension fund platform.
In early July, the Swedish Fund Selection Agency launched its first procurement for the premium pension platform and that search for European equity funds is still ongoing. Earlier this week, the agency announced two more procurements in its pipeline, planned for the end of 2023 or the beginning of 2024. Notices will be made simultaneously for the procurements of European equities index, a category that currently holds some SEK 14 billion of assets, and global equities index, which currently has SEK 40 billion of assets.
Later next year, the Swedish Fund Selection Agency is planning procurements for an additional four categories:
- Nordic equities, actively managed: AUM of some SEK 19 billion
- Global bonds: AUM of some SEK 0.7 billion
- Swedish equities, actively managed: AUM of some SEK 74 billion
- Swedish equities, index: AUM of some SEK 46 billion
For the upcoming searches of index funds, the agency has stated the following preliminary requirements:
- Fund must be constructed to replicate or follow an index.
- Tracking error < 0.5 per cent against the selected benchmark index.
- Selected benchmark should be a standardised index or a customised index e.g. sustainability screened indices.
- Preferred strategies for index funds are full replication or stratified replication.
A longer interview with Erik Fransson, executive director of the Swedish Fund Selection Agency, can be found here.