AP2, Gothenburg, Sweden, terminated three managers in the first quarter of the year as it exited its China A-shares investments, a spokeswoman confirmed.
The investments were about 2% of the 407.1 billion Swedish kronor ($39.4 billion) fund's strategic asset allocation.
The terminated managers were UBS Asset Management, Cephei Capital and APS Asset Management. AP2 did not say how much each manager ran for the pension fund.
AP2 made its first investments in China A shares in 2013, shortly after receiving a qualified foreign institutional investor license in 2012. At the time, the Swedish pension fund focused on obtaining greater exposure to emerging market economies and diversifying the portfolio.
"China A shares have performed very well over the years," the spokeswoman said.
However, the fund has now revisited its position following a financial assessment and considers the investments to add less to the overall diversification of its portfolio.
The spokeswoman added that exiting China A shares was required due to sustainability-related reasons.
The pension fund is in the process of moving more assets in-house and it has considered the cost implications of investments in China.
