The Swedish Fund Selection Agency (FTN) has shared the final procurement specifications and given notice for the procurement of actively managed global equity funds, focusing on large and mid-cap companies in developed markets.

The procurement, which covers more than SEK 200bn and is expected to affect approximately one million savers, includes all global equity funds, including those with a geographical weight to the Swedish market.

FTN recently presented its preliminary procurement specification for the procurement, after previously confirming that actively managed global equity funds in developed countries were next in line for procurement.

However, the final procurement specifications clarified that FTN intends to procure funds that promote sustainability, reporting under SFDR Article 8 during this procurement phase, while plans to procure Article 9 funds will be addressed at a later stage.

Currently, 45 actively managed global equity funds are on the premium pension fund platform, mainly in two fund categories; Global and Global & Sweden.

The latest in a number of procurements undertaken by FTN since it revised the procurement plan for 2024 for the premium pension fund platform, the procurement also comes hot on the heels of the results of both its European and global equities tenders.

Commenting on the news, FTN executive director, Erik Fransson, said: "The procurement of global equities is our largest to date and global equity funds are an important component of many people's long-term savings.

"We know that we have a process that works and I hope that all fund managers with competitive funds will submit tenders thereby creating the conditions for safer and higher pensions for Sweden's pension savers’, says Erik Fransson, executive director of FTN.

The fund agreements for the affiliated funds impacted by the procurement will be cancelled. However, these funds will remain available for trading on the fund platform until the procurement process is finalized and new fund agreements are awarded.

To be evaluated by FTN, the fund and the fund manager must meet the requirements outlined in the procurement, as well as the criteria for signing a fund agreement with FTN.

In addition to this, all submitted tenders must contain complete and accurate information.

The deadline for submitting tenders in the procurement is 16 December 2024. Participation in the procurement also requires the payment of a tender fee.

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