A Stockholm-based investment company that runs Skr13bn (€141.5m) of insurance assets for government employees could appoint new external fund managers following the reform of the workers' pension system.

FSO, the insurance company for Swedish government employees, is set to see its assets boosted by as much as Skr780m annually when the reforms allow government employees to have more control over how their pension assets are invested. FSO manages the bulk of the funds internally but also uses Independence Investment Associates, Lombard Odier and State Street Global Advisors as its external asset managers. Baring Asset Management subadvises the asset allocation on the SSgA mandate. The externally managed mandates cover 8% of total assets.