The combination of a new country governance framework and a fundamental belief that now is a good time is invest has led the Swedish national pension fund AP3 to re-enter emerging markets after a two-year absence. The SEK 534 billion (EUR 47 billion) pension fund has just selected three external equity managers to invest in emerging Asia on its behalf.
The fund decided to launch a review of investments in emerging markets during 2022, which resulted in a significant reduction in the allocation. What had been a 4.5 per cent allocation to emerging market equities at the end of 2021 was only a 0.1 per cent allocation at the end of 2022. In the annual report from 2022, its CEO Staffan Hansén explained that it had become more relevant than ever to take a more proactive approach about which countries to invest in following Russia’s invasion of Ukraine. He said: “In the autumn, we phased out investments in emerging marketsThe full article is only available to members
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