SPK makes use of external managers
SPK has chosen to outsource a large part of the practical asset management to external providers.
This asset management set-up gives us certain advantages:
- Competence: We can hire the best asset managers within each area globally.
- Flexibility: If one of the managers does not live up to expectations or if we change our strategy, we can change managers without any direct consequences for SPK.
- Cost efficiency: Negotiating skills, economies of scale and flexibility lead to lower costs over time compared to building up internal asset management capabilities.
On average we use 1-3 external asset managers per asset class. Each selected asset manager should bring value to the total portfolio. We believe that active returns can be created in different ways which is why we seek asset managers that complement each other and are able to contribute to stable returns at the overall portfolio level.
SPK invests time and energy in the relationship with our asset managers. We are particular about understanding exactly what we invest in and have high demands on the level of service from our providers. We avoid spreading our investments too thinly and have a minimum investment level of SEK250 million. The structure of the asset management product is not really of importance but because of administrative reasons we usually prefer fund solutions.
External asset managers are selected based on an established model of historic performance, organization, investment team and philosophy as well as process. Before the mandate is awarded and any investments are made we always meet with the responsible portfolio manager and conduct a site visit. Reporting and monitoring is usually conducted on a monthly basis, but can be more frequent if necessary. Manager searches are handled internally without involvement by external consultants.