The Swedish Fund Selection Agency (FTN) has confirmed the final procurement specifications and given notice for the procurement of actively and passively managed Swedish equity funds, focusing mainly on large and mid-cap companies.

The procurements cover more than SEK 155bn and are expected to affect over 1 million pension savers.

As part of the procurement, the FTN is looking for actively managed Swedish equity funds and for passively managed Swedish equity funds, focusing mainly on large and mid-cap Swedish companies.

In particular, the actively managed Swedish equity funds category will comprise of around SEK 96bn in premium pension fund capital, while the passively managed Swedish equity funds will hold approximately SEK 59bn.

According to FTN, there are 23 actively managed Swedish equity funds and 11 passively managed Swedish equity funds on the fund platform.

As part of its tender process, FTN intends to procure a maximum of 10 actively managed Swedish equity funds and a maximum of 5 passively managed Swedish equity funds.

The Swedish Fund Selection Agency previously shared the preliminary procurement specifications for the two procurements in May, in order to allow the market to comment and prepare for the procurements.

However, it confirmed that the final procurement specifications do not contain any significant differences compared to the preliminary specifications.

The two fund categories will be chosen through two separate procurements and fund managers wishing to participate in both therefore need to submit separate tenders.

Commenting on the procurement, FTN executive director, Erik Fransson, said: “Swedish equity funds are an important building block for many savers and an important product for many Swedish fund managers.

"We hope that all fund managers who consider themselves to have competitive funds will submit tenders and contribute to a higher and more secure pension for pension savers.”

Fund managers that wish to participate in the procurements have until October 31, 2024, to submit tenders.

The FTN also recently revised its broader procurement plan for 2024 for the premium pension fund platform.

As part of the changes the procurement of global fixed-income funds will no longer take place in 2024, as the FTN is instead lining up a tender for actively managed global equity funds, focusing on large and mid-cap companies, in the fourth quarter of 2024.

Notice will be given after the procurement of Swedish equity funds and Swedish index funds.

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