The Swedish Fund Selection Agency announces award decision in the procurement of European small-cap equity funds

Today, 28 May, the Swedish Fund Selection Agency announces its decision in the procurement of actively managed European small-cap equity funds. These fund managers and funds are:

Danske Investment Management A/S
Danske Invest SICAV Europe Small Cap (New)

J.P. Morgan Asset Management (Europe) S.à.r.l
JPMorgan Funds - Europe Sustainable Small Cap Equity Fund (New)

SEB Funds AB
SEB Europafond Småbolag

Swedbank Robur Fonder AB
Swedbank Robur Small Cap Europe

For pension savers, the procurement means that all the funds in the category have undergone an extensive evaluation and are of high quality.

The procurement affects approximately 68,000 savers with total assets of SEK 5.5 billion. As just over 99 per cent of savers have previously been invested in the two funds that remain, the procurement means that the majority of savers can keep the same fund as before but at a lower fee. The average annual fee for funds in the category has been reduced by over 19 per cent.

“The outcome of the procurement means lower fees and better possibilities for oversight. It will therefore contribute to the objective of higher and more secure pensions for savers,” says Mats Dillén, Chairman of the Swedish Fund Selection Agency.

By law, the procured funds must be suitable, controllable, sustainable, cost-efficient and of high quality. In addition, the range on the fund platform must provide pension savers with freedom of choice.

“For the vast majority of savers in the category, the procurement means that they will keep the same fund at a lower fee, which will have a positive effect on value growth over time,” says Erik Fransson, Executive Director of the Swedish Fund Selection Agency.

The three funds in the category that have not been awarded a contract will, after a phase-out period, be deregistered from the fund platform. Just over 700 savers hold units in the three funds that will be removed from the fund platform, these savers will be given the opportunity to make a new choice. If the saver does not make an active choice, the assets will automatically be transferred to an equivalent procured fund.

For further information, The Swedish Fund Selection Agency has published a procurement report which can be accessed here pdf, 3.7 MB..

For questions, please contact:
Viktor Ström Head of Communication, the Swedish Fund Selection Agency, FTN.
+46 73 321 64 46 or viktor.strom@ftn.se