Stockholm (NordSIP) – The Swedish Fund Selection Agency (Fondtorgsnämnden, FTN) announced it was open to tenders for the procurements of actively managed Swedish and European small-cap funds on April 29, 2025. The procurements cover approximately SEK 46 billion and affect around 334,000 premium pension savers.
According to FTN, “A Fund Manager wishing to offer a fund on the premium pension fund platform is obliged to manage the fund assets in an exemplary manner in terms of sustainability. To meet these legal requirements and the terms of the Fund Agreement, the organisation integrates sustainability into all stages of the investment process in order to reduce financial risks and capitalise on investment opportunities.”
Among other characteristics, FTN’s Annex 1 – Request for Proposal to this Procurement documentation also adds that a in its view “a high quality fund (…) has adequate procedures and well-integrated processes in place to identify and assess material risks and opportunities related to the sustainability of the businesses in which the Fund invests, in order to mitigate risks or capitalise on opportunities to create added value for the Fund’s unit holders.” A high quality fund should also “have adequate procedures and well-integrated processes in place to ensure compliance with the norm-based exclusion requirements.”
In order for a tender to be evaluated by the Swedish Fund Selection Agency, the fund and the fund manager must meet the requirements set out in the procurement as well as the requirements set out in order to sign a fund agreement with the Swedish Fund Selection Agency. In addition, a tender submitted must have complete and correct information.
There are currently 14 actively managed Swedish small-cap funds on the fund market with a total capital of approximately SEK 40 billion. The European small-cap category consists of five funds and comprises approximately SEK 6 billion in capital. In total, approximately 334,000 premium pension savers have funds in the two categories that are now to be procured. The Swedish Fund Selection Agency intends to procure 10 Swedish small-cap funds and four European small-cap funds.
“Investing in smaller companies generally involves higher risk but has also provided high returns in the long term. The Swedish Fund Selection Agency assesses that these two categories are suitable for the fund market and that they contribute to freedom of choice for savers,” says Erik Fransson, Executive Director of the Swedish Fund Selection Agency.
Tenders must be received by the Swedish Fund Selection Agency no later than June 16, 2025 via the procurement platform e-Avrop. In order to participate in the procurement, a tender fee must be paid, which must be paid no later than when the tender is submitted.
Questions about the procurements can be asked via the procurement platform until June 2, 2025, and the Swedish Fund Selection Agency will answer ongoing questions until June 10, 2025.
