Information prior to the procurement of Nordic equity funds

The Swedish Fund Selection Agency, FTN, now presents preliminary procurement specifications for the procurement of actively managed Nordic equity funds with a primary focus on large and mid cap, and the procurement of actively managed Nordic equity funds with a primary focus on small cap.

FTN has previously decided that these two procurements will be the next in line for procurement, but has not specified when notice will be given. However, notice will be given for both procurements at the same time.

The procurement of actively managed Nordic equity funds with a primary focus on large and mid cap companies covers approximately SEK 9 billion in premium pension assets*. The procurement of actively managed Nordic equity funds with a primary focus on small cap companies covers approximately SEK 13 billion in premium pension assets*. In total, the two procurements affects approximately 176,000 pension savers.

Both procurements apply to actively managed funds with a minimum permitted tracking error of 2% against the fund's benchmark. Maximum permitted tracking error is 4% for the fund's benchmark index relative to the procurement's category index. Both procurements are for UCITS funds with trading currency in SEK, NOK or EUR. The funds shall report according to SFDR Article 8 or Article 9.

The full preliminary procurement specifications are attached in pdf-format at the end of this article. Please note that these are drafts. The final and governing specifications will be presented when the procurements are announced.

Currently on the fund platform, there is one category for Nordic equity funds consisting of 17 funds. The decision of FTN means that the existing category will be split into two separate procurements. Fund managers who wish to participate in both procurements will have to submit two separate tenders. In connection with the announcement of the procurements, the fund agreements for the funds in the existing category will be terminated, but the funds will remain on the fund platform until the procurement is completed.

FTN is sharing these preliminary procurement specifications to give potential tenderers the opportunity to prepare and submit questions and comments. Questions and comments can be sent to procurement@ftn.se. FTN will not be able to answer all questions, but will review and consider all comments received.

Please note that documents received by an authority are official documents. Official documents are public insofar as they do not contain information that must be kept secret under the Swedish Public Access to Information and Secrecy Act (2007:400). Public documents may therefore be disclosed in full or in part if someone requests access to them. Information protected by confidentiality is not disclosed. However, FTN will make an independent confidentiality assessment which in turn may ultimately be reviewed by a court.

*The amount of assets currently allocated to the category. It is not guaranteed that the procured volume will be equally large.