The Swedish Fund Selection Agency (FTN) has given notice for the procurement of Nordic large-cap equity funds and Nordic small-cap equity funds.

The two procurements comprise a total of around SEK 18bn and approximately 140,000 savers.

They will run in parallel, with fund managers wishing to participate in the procurements having until 10 June 2024 to submit tenders.

The first procurement is for actively managed equity funds with a main investment focus on Nordic large and mid-cap companies, while the second is for actively managed equity funds with a focus on small-cap Nordic firms.

There are currently 11 Nordic large and mid-cap equity funds on the fund platform, with pension savers having a total capital of just over SEK 9bn invested in these funds.

FTN stated that it intended to procure a maximum of four funds in this category.

Five funds on the platform are currently categorised as Nordic small-cap equity funds, with savers having total capital of just under SEK 9bn invested in them.

It also intended to procure a maximum of four funds in this category.

In connection with the notice of the procurements, the fund agreements for the affiliated funds affected by the procurements will be terminated.

However, FTN noted that the funds will continue to be available on the platform until the procurements were completed and funds that are been awarded fund agreements have replaced them.

FTN published preliminary procurement specifications in March for the two Nordic equity procurements, and the newly published specifications contain “no significant differences” to the preliminary specifications.

"Our aim is to improve the fund offering for pension savers as quickly as possible,” commented FTN executive director, Erik Fransson.

“Currently, we are already on procurement four and five. Simultaneously, we are working to further develop our processes to ensure efficiency for both us and the tenderers.”

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