Recording from the status update event with the Swedish Fund Selection Agency - nov 18th 2022

Good morning and welcome to this status update, my name is Erik Fransson and I am the Executive Director of the Swedish Fund Selection Agency It is a large assignment and an exciting organization I am responsible for building the office of the government agency and of course, in the future, running the operations along with all talented colleagues The Swedish Fund Selection Agency is a new goverment authority, and a new organization When we reserved this location and invited you all to the event

, we where not sure of what we would be able to share We didn't know that then, but we thought that regardless of where we are in the process, it will be better to share the status of the organization and its development with you Building the organization is a process, we are not done and there are many parallell processes to develop the government agency We started our operations formally June 20th, during the Midsummer week, so after that the summer vacation followed but after that was when

the work really startedd We are now going full speed ahead with the development, but this also means that we might not be able to answer all of your questions right now There are some questions where both consultation and decision from the Board are needed to decide where we stand But it feels like, as you probably could tell from the agenda, that we despite this have a lot of updates to share with you today And it is our ambition to continue to be transparent and give all stakeholders updates

in our process through market dialogue Our assigment is to procure, evalute, quality-ensure and monitor funds to the premium pension fund platform. The aim is to create a fund platform of high quality, resulting in more reliable and higher pensions for swedish pension savers. We view this as a big and important assignment, a view we hope that you share, so that we together can create better conditions for our 8 million savers to obtain a high and reliable pension As I mentioned, June 20th the

new law regulating the procurements and our operations came into force. In the laws, what we should do is specified, which I will come back to I can also add that as with the system as it has been up until today, the new fund platform will be characterized by a high degree of freedom of choice for the saver And the savers will be able to choose between funds of varying levels of risk and investment strategy. The new legislation means higher requirements on both funds and fund managers compar

ed to the former legislation The former requirements have been too low, both before and during the process that is called Step 1 was implemented, to guarantee high quality and the higher requirements for the funds but also for the fund managers, will enable us to reach our goals and create a better fund platform for our savers How this will be done, my colleagues will soon describe, but first let me describe the premium pension system in short It is part of the public pension and the Swedish so

cial insurance system, with the aim to deliver a good pension to all savers It can be described as a mandatory defined contribution system where every year, 2.5 percent of your pensionable income and other taxable benefits are allocated to the premium pension This means that we have savers, customers, that we have throughout their entire lives - it is a life-long, mandatory savings account, which highlights the importance of our assigment of creating a high-quality fund platform Today, the as

sets of the premium pension system amounts to around 200 billion euro, where 100 billion euro is allocated in the state pre-selecttion AP7 Såfa. It is a system where the inflows are higher than the outflows, meaning that in 2040, the assets will amount to around 400 billion euros on the fund platform a forecast made under the conditions that the 2,5 percent allocated each year remains the same, It is a lot of money and a big responsibility for all of us, as we need to make sure that this task

is carried out succesfully - a task that in the end can create positive change for all pension savers Moving on, it has been a long journey, which started a long time ago. An important milestone for the accelerated work was the pension agreement in December 2017 The pension group decided that the future premium pension system would be based on procurements instead of the application process with lower requirements, A decision I believe was made based on a number of consultations and investigati

ons, for example Stefan Lundbergs investigation which he presented around the summer of 2017, where he concluded that the new system should have an independant principal, ensuring that the fund platform is consistantly of high quality And all of this was of course triggered by fraudulent funds found on the platform. Something needed to be done, and the first action was to implement "Step 1" to increase the safety and reliability, to stop the fraudulent funds to access the fund platform. We have

put a lot off effort in this process since then, and have built a due diligence function of high quality. But it was already back then decided that the future system would be based on thourough procurements, where award is based on quality, cost-efficiency and sustainability. After this, a consultation process was initiated and led by the government offices of Sweden, where Mikael Westberg was special examiner before I took over the assigment in 2019 A new legislation was needed - quite early in

the process it was established that LOU was not suitable, and it does not include funds Not having a legislation would not be an option. We then gained a new legislation that describes how our procurements should be conducted It is one of few, or maybe the only legislation in the world, that regulates fund procurement The legislation is good to read, and describes the process of procuring funds. Another legislation, regulating the government authority was passed at the same time, An important m

esure to ensure the independance of the goverment agency, regardless of the elected governing parties, that should not be able to change the direction of the agency without re-writing the law and having it passed in the Riksdag Which is why the Swedish Fund Selection Agency, both its mission - the procurements, and the government agency itself, are regulated by law The laws where passed May 31st 2022, and the legislation as well as the organization was entered into force June 20th. Of course, a

lot of the organizational development was prepared before June 20th, apart from for example hiring to the goverment agency But as you can see, we are planning to start the procurements during spring 2023 and one interesting challenge that we are working on right now, is how to scale up operations from zero, to being able to procure the first categories, during a few months time As we simultaneously are building the organization. This means a high tempo in our development, and a lot that has bee

n done will be presented here today We have an organization that consists of three units, of which one - the Operational due diligence unit, is one that exists since before and is known to many of you It has been moved to us from the Swedish Pension Agency, and is led by Magnus Strömer who today joins us via link It is a unit in which we have achieved a very high level, and we are recruiting more people to extend the team, to be able to closely monitor the funds on the platform The office of the

Swedish Fund Selection Agency is formally a part of the Swedish Pension Agency, our host authority that is managing our administration, but our operations are independant from theirs. It is an efficiently structured organization, as the Pension Agency supports us with tasks related to HR, finance, office management and more. The Board makes all strategic and large decisions, and governs the office of the Fund Selection Agency. We also have the other two teams in our organization, and as we note

d on a business development workshop with everyone held last week, we have grown into a relatively large organization in a very short time. We have made some great recruitments, and we are already well on our way toward our goal, but we will of course need to continue building the organization. The three units are, in addition to ODD, a unit which we calls Procurement and product strategy led by Majdi Chammas. They work with designing and running the procurements as well as their criteria, among

else We also have the unit Investment due diligence, led by Tina Rönnholm, responsible for the evaluation of the fund managers after the criteria that we set up And lastly, we have Operational due diligence, as I have decribed already and is led by Magnus Strömer We also have four important cross-functional teams; Legal: Jessica Edvall, Administration: Helene Långström, Quantitative analysis: Martin groth, Communication/sustainability: TBA We have designed the organization to ensure a spread of

the responsibility and a holistic way of working, where multiple units are involved in each step, as the procurement design, evaluation and monitoring are separated, with multiple sets of eyes on important decisions, ensuring quality and reliability Two of the responsible for the units will present the process today; how it is designed and conducted to build the future fund platform with sustainable, cost-efficient funds of high quality This is the Board of the fund selection agency, comprised

of experienced professionals with diverse backgrounds and competences, with Mats Sjöstrand as Chairman The board makes all major decisions, based on the material that we prepare for them, such as on the business plan, the procurement plan, the procurement design, start of procurement, award decisions and more. Having this strong and diversified competence in our board feels very stable for us in the Office. Three Board meetings has been held so far. We will soon go more into detail on the procur

ement process, and this is the team that we have mentioned. Majdi and Tina have both worked at AP1, doing for them what we are about to do here, which is invaluable for us It means that they know funds, fund procurement, fund evaluation and investment due diligence, and they have experience of working in a similar environment Then we have Magnus Strömer, who joins us from the Länsförsäkringar's fund company, where he has been responsible for the asset management which means that we have a very s

killed, competent person leding our ODD-unit, with high understanding of your businesses and how you funds are managed Now it is time for me to hand over to you Majdi, your time to take the stage. Thank you! My name is Majdi, and i join most recently from AP1. I am responsible for Procurement and product strategy. For us to be able to deliver on all dimensions of our important assignement and choose funds that are suitable, of high quality, cost-efficient, sustainable, and controllable we have

together with all units designed a procurement process. A close collaboration will be an important aspect for us to be succesful. To be succesful, and reach our goal of creating reliable and higher pensions for the Swedish savers The procurement process that we have designed is made to quality-ensure, evaluate and procure the most suitable funds for the fund platform and for us to be able to maintain the quality that we procure, we must design the range of funds on the platform based on control

lability, the funds must be able to be controlled and monitored easily Controllability enables us to monitor the funds, both before and during the procurement, but of course also after The work will be conducted in project form, where members from all three units will participte in each step, overseeing and evaluating all submissions This is to ensure that we get the best submissions, and procure the best funds to the platform. Looking at the different steps of the procurement process, we start

with the design phase. Here, the different categories are analyzed; the range and the quality on the platform today, market trends, the availability of funds, the different needs, etc - to then enter the seccond phase, the Preparation phase Here, we will create the procurement material, set up the mandatory qualification criteria that you must live up to, to be able to be part of the procurement process We will also set the award criteria that will be evaluated later during the procurement proce

ss. This material will be prepared, and be presented to the Board that will make a decision They will decide on the qualification criteria, the award criteria as well as on procurement start After a decision is made, a notice about the procurement will be announced via e-Avrop, and the Procurement phase is then initiated. Hi all of you, my name is Magnus Strömer, joining via link from an unusually sunny Gothenburg My team, ODD, is known alredy by many of you that currently have funds on the fund

platform. We monitor all funds on the platform, and we will also be responsible for designing the requirements for the procurement to then be able to monitor the fund platform based on an evene more granular, thourough process During a transition period, we will work with two sets of regulations - from the old as well as the new, procured fund platform A couple of these guiding values re-occuring throughout the preparatory work is suitability and controllability. A lot of the requirements we se

t up will aim to ensure transparency and access to the data needed for the monitoring A lot of questions will touch on this subject, to ensure what we call an organizational quality and suitability for the fund platform This will be both qualification criteria, requirements needed to be qualified for the platform, and some will be award criteria, which will be evaluated during the procurement process When the notice is made through e-Avrop, the procurement material will be made public for everyo

ne. I will give you a few recommendations: The first one is that even though you are not planning to participate in the first procurement, download and look through the material to gain an understanding of the procurement process, what we are looking for, and the size of the procurement material. The second is that when you answer the questions, answer all questions to enable a fair evaluation.The worst case is you not having answered all questions. If it is answered, it will be evaluated. The t

hird is that you should answer the questions correctly and thruthfully – not based on ambitions or expected future accomplishments, this does not make for a good interview later on. The fourth recommendation is that everyone in the organization affected by the questions should look through them, to anchor the information to the view of the organization submitted in the material. To conclude - look through the material, answer all questions and correctly, and make sure that everyone affected agre

es with what is submitted. And when the material is submitted to e-Avrop, our thourough work to review it starts, to analyze the answers both quantitatively and qualitatively. Now, I will deep dive into how we will evaluate quality on the fund platform. In the preparatory work, emphasis is placed on the fact that no support in research has been found for past performance being a guidance of future returns and the quality of the funds Thorough analysis of both funds and fund managers is needed to

be able to determine the quality of the funds, where other aspects than past performance are taken into account. In the new procurement legislation, it is also stated that we should do a qualitative evaluation that should be part of the process How is this done, then? Well, we will evaluate quality with main focus on these areas. The first one, is the investment philosophy. It should be clear, answer the question "why?" and describe how the fund manager works to create added value. What is uniq

ue? What differentiates you? The philosophy must be adopted by the entire organization and must be reflected in your daily work. The next one is the investment process, that answers "how?" and describes how the work has been done. Each step and their order should be described – all the way from idea to portfolio construction. For us, a number of building blocks characterize and define a good invetsment process. It should be disciplined, predictable, repeatable, documented and controllable. We mu

st be able to see how you review the process. We want to know what people are involved in the process in each step, with as much detail as possible. There must be a shared view regarding the philosophy and the process in the organisation. The next part is the investment resources. We want to know a lot about the resources, the organization, turnover, and the culture and more - it is a large area, where also the financial health of the company is determined. Talent management and diversity in mu

ltiple aspects are evaluated, which we see is a success factor for good asset management. The fourth area is the investment result, which is not a question but a receipt that the processes of the fund manager work – that we see in the quantitative analysis that you will be able to deliver on what has been described. In the evaluation process, we will use the material you have provided as a starting point. I want to stress what Magnus said - review the material, answer correctly and all questions

and anchor it in the organization. This will be important for you to qualify to the next step of the process You also see sustainability, permeating the four areas. This means that the role of sustainability must be taken into account. It is in fact a legal requirement stating that the assets should be managed in an exemplary manner with regards to sustainability. Investment processes should have an integrated sustainability perspective, where active ownership is practiced We want to see how we

ll the investment philosophy is adapted to sustainability and how integrated the ESG dimensions are in the process, what resources the fund manager has dedicated to sustainability work as well as how this is reflected in the results. For the sustainability work, forming a sustainability strategy for the fund platform is underway, and a recruitment of a person responsible for sustainability is ongoing In the preparatory work, one of the reoccuring aspects that we should take into account is that

we should act in an exemplary manner. This means that the bar is set quite high for what we should accomplish within sustainability Sustainability will be evaluated on two levels. The minimum requirements, or the qualification criteria within sustainability, will apply to all funds on the platform. This is the first level. In addition to this, each procurement will have specific sustainability and ESG requirements, that may be the base of the evaluation of the award criteria, but could also be

qualification criteria. This is to ensure a range of funds where the individual saver has then the final decision to choose between funds of different sustainability levels. When we have done the evaluation phase, evaluating the material you have submitted, a smaller number will be qualified to the next step and we enter the Interview phase, where we will do on-site visits to meet the team and as many as we can from the organisation, to ensure that what you actually do reflects what you have sub

mitted in the tender, to give us a good view on the asset management Finally, we will make a final selection of the funds for the fund platform and prepare material for the Board, which will then make an award decision. After this, the procurement phase is finalized, and the award decision will be made public After this, we enter into the implementation phase, where we together with the fund managers and internal teams, such as legal and the Swedish Pension Agency’s trading unit, will start prep

aring for the transition to the new, procured platform, securing the interests of the savers. After this, the monitoring of the fund platform continues. The monitoring is ongoing for a long time, during the whole length of the agreement, that the law stipulates must not exceed 12 years. What is new for the procured funds, is that there are new requirements that could lead to a breach of contract If a breach of the agreement is made today, we can terminate the agreement.This is true going forward

as well. What is new is that a decline in the quality that the fund manager initially showed at the time of the award can lead to a terminated contract. A decline in the award criteria, for the time of procurement, can lead to termination of the agreement. The quality we deem that you have when you are awarded must be maintained over time, which we will monitor thouroughly. If we see that this is not the case, that quality is declining, then all of the three units will make an assessment and de

cide if it could lead to a termination of the agreement Additionally, external factors can also create a need for a new procurement of a category. Things that we are not aware of today, can lead to new procurements in the future. Transparency is crucial during the procurement process, and we can illustrate how we will ensure this in three steps Before the procurement, an open dialogue with the market is held where as much information as possible is shared. The information that is made public wil

l be available on the website, an important channel, which is continuously updated to ensure equal treatment. No party will have access to more information than any other. During the procurement process, we enter a more restrictive phase where a structured dialogue will be maintained - we will have a lot to do, but it is also crucial that everyone gets the same information at the same time which means limited communication with the fund managers or the participants of the procurement. Questions

that is submitted during the procurement process will be gathered and answered to the market on chosen occasions If needed, clarifications of the procurement material may be requested at certain times. When the results of the procurement process have been made public, feedback on the procurement results will be offered upon request. The feedback process is important and will ensure a structured, disciplined and well-documented process To summarize the process, a holistic method is applied throu

ghout the process and in the monitoring. Participating members from all three units will evaluate the submissions, ensuring the process from both a quality and a reliability perspective. The final result is a product of the competence and work of all units, where at least two sets of eyes will evaluate each step This visualization can be a little hard to understand. There is a few things that will not be part of the fund platform, and one thing is the so called discount model It will be valid a

s long as your current agreement is valid, It decided what the saver should pay for a fund. On the new platform, the price payed by the saver will be set by you in the procurement process, and we will then see what the final price will be when the process is over. We do not need a model to set the price payed by the saver, the procurement process will handle this, hence the discount model will be removed. There is then what we call the fee model, which is a requirement for us to finance our oper

ations. The organization is to be financed outside the state budget, by fees paid by participating fund companies It will not be connected to the price for the fund, and will be known up front for all participants and could be factored in when submitting the tenders This is done order to secure long term targets and independency from the state budget, political or external factors The fee model is designed to cover all our costs, but nothing more or less than that. We have, like all government a

uthorities, a responsibility to run our operations in a cost-efficient manner For the funds procured to the platform, an annual fee covering running costs among else, will be charged all fund companies that have been awarded with a fund agreement. The new fee-model is currently a proposal subject to referral, but for the current suggestion, the annual fee will be either 0.5 basis points for passive funds or 1.5 basis points for actively managed funds The procurement process is financed by a fee

designed to cover its costs, which is estimated to be SEK 18 000. This is to be paid before a submission can be processed. As mentioned, this is currently a proposal subject to referral, with consultations in the industry and other government authorities among else, and a final decision will then be made by the Board For administrative purposes, we prefer funds with clean share classes. It does not matter much to the savers, but it will be smoother for our work. However, it is not a requirement,

and we will also accept funds with a discount model. The procurement pace will be relatively fast, and searches and procurements are planned to go on until mid-year 2025, as requested by the government. We will also need to continue developing our operations, meaning that we will need to commence soon to be able with to complete around 30 procurements in 36 months. This is a challenge, but one that we believe is possible, and we are planninng based on this time schedule. he searches and procure

ments are planned to commence in the spring 2023, when the first RFPs are created and a notice of the first procurement can be made Being done in 2025 is the plan, it is a guidance but not a requirement, but we will do everything we can to meet the request from the government we believe that it is possible, but the focus will always remain on quality throughout the process. It is a lot of assets and an important assignment, for us, for you and for the savers Focus will always remain on quality,

which is prioritized over the time plan These are the categories that will be procured first, the four presented without mutual order It will be European equity: active and index ; Global equities index ; Nordic equities, active ; and Global Fixed Income Which category will be procured in the first procurement is not yet decided. We have not yet come as far as to decide this, but a decision will be made as soon as possible If we place ourselves in the procurement process, we are somewhere in the

end of the design phase right now, and will soon enter the preparation phase. There are many parallell questions to be answered and decided internally, and by the Board - which is why we could say that we are in between the two first phases But as you could see, the pace is ambitious, and the notice for the second procurement will as you can understand closely follow the first if we are to keep up the pace Regardless of which is first, there will be no major delays for the second, third and fou

rth procurement - but these are the four first categories These are decided to be the first categories based on complexity, volume, the interest and needs of the savers among else But in the end, all 30 categories are to be procured during a short period of time, and we will continously update the market when the plan is developed, with as much margins as possible This applies to all procurements, and the website will be the most important source of information where we will publish everything W

e are getting closer to the end of this presentation. As Magnus mentioned, for us to make a good and fair evaluation, we need correct and well-written information Remeber those recommendations, and I also want to stress that everything we do is characterized by transparency and equal treatment. We want to share as much as possible with you We will inform you on the website, and no party will have access to more information or benefits than any other As Majdi said, we will always share new inform

ation so that it could be accessed by everyone at the same time, in our market dialogue that we should have according to the new legislation We will continue our dialogue with the industry and fund managers, but this does not mean any new iformation is shared in meetings It is time for me to leave the stage to you Mikael, for a Q&A session Yes, thank you. Let us see if have some questions from the audience One thing I have a question about, is what Magnus mentioned about the lenght of the agreem

ents, could one have shorter agreements than 12 years? Theoretically, it is possible, but in our process we have concluded that the length of the agreements will in general be 12 years, however this does not mean that it in practicallity will be for the full length Everything has to do with quality over time, keeping the quality over time, and of course external things related to the category - if we need to procure a category again to ensure the savers' interests OK, but if quality is maintaine

d and no breach of the agreement is made, you should be able to be on the fund platform for 12 years? Yes, but don't forget that the prerequisites on the market could change as well, which could require a new procurement of a category What external third-party sources will be used by the agency for data and information collection? Both related to quantitative and sustainability aspects We will use as many sources as possible, and we will have access to different tools that we are currently procu

ring. We will collect data from for example MSCI and from Sustainalytics, etc This will be used to evaluate, but it is nothing that will steer us, the procurement or the award decision. Maybe the question is asked to shed light on what the requirements that fund managers should fulfill Your own analysis will be the best source, to give you a recommendation If five funds make up for a category, how is the assets distributed after the procurement? The Board will make a decision for each category p

rocured, based on a number of factors. Could it be any ratio? It is yet to be decided, it does not have to be exaclty the same. Transparency will be crucial, and a reasonable estimate of the assets that one could get if an agreement is made will be part of the procurement material That is also why it is important that we decide how many funds we should have for each category, so that a fund manager can in some way make an estimation and include this in their business case, and set a good a price

as possible Funds already affiliated will retain their volume, if they are awarded in the procurement, which also can effect the ratio in general Right, the funds that transition from the old to the new platform. We have a question regaring the number of funds in teh larger categories, such as Global equity, Swedish Equity and Swedish small cap Yes, it is an important question in the design phase, where we need to decide how many funds to procure based on the volume we have, and on what the sav

ers believe is an attractive range for each category How do you know what an attractive range of funds is? We analyse the prerequisites for each category, also based on historical information. Where it gets somewhat tricky is for categories with capacity limits. For those, we need to find the right ticket size, as we also need to procure funds with as good a price as possible. For some categories, we believe that the best price is not obtained by offering as much assets as possible We must find

a balance for each category, which means that in some categories there will be many funds, and in others, fewer We must balance the freedom of choice, and balance the controllability to be able to monitor, review and evaluate the funds procured - an aspect that needs to be taken into account What we should focus on for the new system is the savers, what creates value for them. This will always be our focus If a certain number of funds are decided for a category, it is because this number of fund

s will bring the most value for the savers. There are no other criteria that we must fulfill This question might put your memory to the test a little - which are the 30 categories that will be procured? The categories on the fund platform today is a good reference, which can be found online Great, so visit the website to see the current categories. Are there any criteria regarding size, volume outside the fund platform, to qualify? The legal requirements from Step 1 will no longer apply as we ha

ve the new legislation, however they still apply for funds currently on the platform with old agreements They still apply in some way, but for the new procurements will have other criteria. We will stop at this for now. A lot of qualification criteria will be added. What is included in the category European equity as shown before, is it both Growth, Value, Small capital, All cap etc? This will be stated clearly in the procurement material Meaning this will be answered later. Is it possible to su

bmit multiple submissions within a category? In a wide category, a company can have multiple funds with different strategies. Yes. However, but the submission fee is charged for every individual submission. Will the submissions have to be made in Swedish, or can you handle other languages as well? This is currently being discussed, we have an ambition to be able to handle both Swedish and English, but there are legal aspects to be evaluated before we can know for sure Will you give any special t

reatment to tenders from fund companies that already have large positions on the current fund marketplace? Absolutely not. We follow the principle of equal treatment and will not distinguish between tenders, regardless of the sender. All parties involved will have the same prerequisites. For the annual fee, will there be an indication of what you would like? No. We want the best possible quality to the best price possible. How is this weighted? We will do this based on what we see in the procure

ment material. During the transition period, how long could this be? This is part of the preparation phase, we can't say now how long it will be. But could it be very stretched over time? We must first finish the agreement negotiations, and sign the agreements, and plan the transition to the fund platform for the neew funds - this is what could take time. After that, it is done. We do not know how long it will take, but estimate that it will not take too much time. What information and to what e

xtent will fund managers be required to submit data annually for the ongoing review process? We are currently planning this. There is an expectation from the government to increase the quality, and so, the monitoring also needs to be increased to ensure quality The funds on the platform today now the amount required today, and for the new platform this will not decrease - rather it will mean a more extensive material collection going forward A diplomatic answer, we can conclude that you like rea

ding a lot then as you will receive lots of material Exactly, I have extremely talented people in my team that loves to read your material in a time-efficient manner Is there a risk that as The Swedish Fund Selection Agency grows, a higher fee than what is currently proposed has to be charged? It is in our and the savers interest to keep the fees under review and adjust them if necessary, based on cost coverage. However, we must respect that doing this requires resources. Yes, but if the organiz

ation grows a lot, what happens then? This is not something that we can estimate right now - to conclude, the fees will be kept under review, and they could also be lower. The way we measure fund managers - cost-efficiency, sustainability, quality, we also use to evaluate our own operations For how long will a procurement last? At present, we anticipate approximately 6 months from the notice to award. Six months. Does this mean 6 months from the tender is submitted? Yes, from the start of the pr

ocess we estimate that it will take around six months from notice to award. What will be the order after the first four categories are procured? As we mentioned before, volume can effect this. If we do the volume-heavy parts first it will mean that we can be done faster which is what the government of course want us to do - if we do it well, then it is better that we do it as soon as possible Rather than it taking longer. If we can start with more volume, it means more assets being managed in a

qualitative way sooner, than if it takes longer. Complexity and other external factors can also impact the order, but we anticipate that the procurements will overlap at a high pace, regardless of the order. Can a fund manager have several different funds on the procured fund platform? Yes, if you are that good, this is a possible scenario. So there is no limit regarding the number of funds on the platform from a specific company? No Everything seems to happen at the Office of the Fund selection

agency. What are the respective roles of the Board and its office? The board of The Swedish Fund Selection Agency decides on the guidelines and directives that the office follows in its work. The board makes all strategic decisions for The Swedish Fund Selection Agency. We supply them with material as basis for strategic decisions and perform the operational activities that they have decided. If an agreement is breached and then terminated, how long could it take to be excluded from the fund pl

atform? It can of course vary, depending on what has happened. A decline in quality or other issues needs to be evaluated first, meaning it is not a quick decision, but the evaluation will be done as fast as possible. So as with any fraudulent actor, such as Allra, Falcon or Celina, it could happen fast, but it will need to be thouroughly examined first? Yes. Is there any risk that the procurement law could cause any uncertainties? We see it as a support, and our framework after which we should

work. It's states what we should deliver on - it is a great support. Is there a deadline for when the entire current fund marketplace will be replaced by new procured funds? There is no strict deadline or legal requirement, but it is our ambition is to complete the procurement of the new funds by 2025. Will you reach this goal? Yes we do, at least that is what we always plan and aim for Will the range of funds and categories look different on the procured platform than it does today? I think so.

It is part of our responsibility to be aware of the market and external factors, new strategies and products, to offer the savers a good range This could potentially mean procuring funds that we do not have today. We have no limits, if we used to be limited to UCITS funds, We will also be able to include AIF with daily liquidity in the future. If we see a category or strategy that adds value to the savers, then we can procure this. But then you must also encourage the savers to choose this cate

gory? Yes, that means starting from zero. Will starting from zero be harder? Not for us. Let's see if we have any other questions. Is the Board a decision maker for the fund selection? We will prepare material for them to make a decision about the selection that we have suggested, based on the evaluation, after which they make their decision. Could there be a situation where the Board overrules the people working in the Office? We have yet to put our process to the test. Theoretically, it could

happen, but if so, we have done our jobs poorly. Will you negotiate the price in the end of the process, or will the price stated in the tenders be valid? There will be possibilities to to it both ways - you can state in the RFP what your price will be, or that it can be negotiated further on in the process. We would like to evaluate the quality before deciding on a price. We are running out of time Yes, and we will conclude this status update, but first I would like to ask - does this mean that

there will be no fraudulent fund companies on the fund platform such as Allra or Falcon? Yes, frauds like them should not be on the platform, we will increase the monitoring and safety on the platform Among the companies we will look for - the most qualitative ones, you will not find fraudulent companies such as these on any list, they generally have not performed so well either however we can't guarantee anything as a company can change after being awarded, but this is why we will do a thourou

gh due diligence and conduct continous monitoring And from an investment perspective, it is important for us that we always understand what happens within the fund companies, and if this isn't clear, you will not qualify With that said, our time has run out. We have had many interesting questions. Any last comments to the audience from you? Thank you for coming!