The Swedish Fund Selection Agency, FTN, has given notice of the procurement of actively managed Swedish small-cap equity funds and actively managed European small-cap equity funds.

The procurement covers approximately SEK 46bn and is expected to affect around 334,000 premium pension savers.

Currently, 14 actively managed Swedish small-cap funds, with a capital of around SEK 40bn, are listed on the fund platform, while the European small-cap category comprises five funds with approximately SEK 6bn in capital.

Around 334,000 premium pension savers have funds in the categories that will now be procured.

As part of the plans, the FTN is expected to procure 10 Swedish small-cap funds and four European small-cap funds.

The fund agreements for the affiliated funds affected by the procurements will be terminated.

However, the funds will be available for trading on the platform until the procurement is finalised, and the funds awarded fund contracts will replace the affiliated funds.

Commenting on the news, FTN executive director, Erik Fransson, said: "Investing in smaller companies generally involves higher risk but has also yielded high returns in the long term.

“FTN deem that these two categories are suitable for the premium pension fund platform and that they contribute to the freedom of choice for savers.”

---