Issue 4, 2022

The Nordic financial industry is experiencing considerable movement, with significant job changes and strategic revisions among major asset owners, particularly in pension funds. Highlights include the rapid formation of Sweden’s new Fund Selection Agency, which recently recruited a key external management duo from AP1 to lead procurement, product strategy, and manager research. This reform aims to slim down the Swedish premium pension system’s fund platform to focus on selected funds with improved sustainability, lower costs, and better returns. Concurrently, Danske Bank Asset Management has shifted its fund selection team mainly to Stockholm, adapting organizational structures amid evolving responsible investment guidelines. The industry faces prominent challenges around greenwashing, especially in Europe, accompanied by increased investor concerns about the short-term performance impact of sustainable investing, though commitment to long-term sustainability goals remains firm.

Within alternative investments, Danske Bank Asset Management is actively expanding its illiquid alternatives offerings, creating evergreen funds with some liquidity buffer, and building a stronger team through key hires to capture growth in private equity and private credit. Despite the challenges of offering liquidity in private markets, the bank employs innovative structures and risk management to balance investor needs. Meanwhile, Finnish pension giant Keva has notably grown its alternative portfolio to approximately EUR 17.5 billion, with private equity as the dominant asset class. Keva emphasizes concentrated manager selection, favors larger private equity managers for stable performance and scalability, negotiates fees and co-investments carefully, and maintains a cautious stance on infrastructure investments despite its attractive characteristics. Hedge fund exposure is managed selectively with a focus on quality and cost control.

Stability, strategic focus, and adaptability emerge as central themes, as Nordic institutional investors and asset managers navigate market volatility, geopolitical upheavals, and sustainability imperatives. Leaders like Varma’s CEO Risto Murto reflect on longer-term adjustments such as flexible hybrid work models, pragmatic sustainability approaches in light of current security challenges, and pragmatism in balancing ESG ambitions with geopolitical realities. Similarly, Pensam’s CEO Torsten Fels underscores clarity, communication, and managing expectations as crucial leadership qualities in the shifting financial landscape. Together, these insights portray a Nordic asset management sector prioritizing sustainable growth, operational agility, and responsible investment as it confronts evolving economic and political dynamics.

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Table of content

High employment activity and staff changes in Nordic financial industry

Overview of significant job changes amongst Nordic asset owners; emphasis on valuing long-serving employees for in-depth knowledge and insights.

Interview with Varma’s CEO Risto Murto

Discussion on flexible working post-pandemic, the impact of European security tensions on sustainability, responsible investment policies, and effects of Finland’s geopolitical position on its economy and companies.

AP1’s external management duo joins new Swedish Fund Selection Agency

Key appointments of Majdi Chammas and Tina Rönnholm to the newly formed agency managing Sweden’s premium pension fund platform as part of legislative reform and market value growth projections.

Danske Bank’s fund selection team relocates to Stockholm

Shift of Danske Bank Asset Management’s selection team to Stockholm, reflecting operational changes and an increased focus on responsible investment and multi-market visibility.

Challenges of greenwashing and sustainability performance concerns

Schroders’ Institutional Investor Study highlights Europe’s high concern over greenwashing, regulatory impacts, data consistency issues, and investor apprehensions regarding sustainable investment returns.

Danske Bank Asset Management expands illiquid alternatives offering

Strategic growth into private market investments with team recruitment, product innovation (evergreen funds balancing liquidity and illiquidity), and future infrastructure fund considerations.

Leadership changes at Nordic pension and asset management firms

Overview of key appointments and transitions including new CEO at AP3, CIO departures and hires at Alecta, PensionDanmark, Velux Foundations, and movements within Danish pension and asset management sectors.

Workplace culture evolution at Varma after pandemic

Exploration of flexible working practices, office space reconfiguration, staff trust, recruitment challenges, rapid CIO appointment, and responsible investment policy updates in a changed geopolitical environment.

Roundtable on real estate investing in Helsinki

Expert insights into sector performance and prospects post-pandemic, increasing importance of alternatives like data centers and healthcare, ESG integration challenges, inflation impacts, and the evolving notion of core versus alternative real estate.

Keva’s approach to alternative investments

Discussion on Keva’s large and growing private equity allocation, preference for top-quartile large managers, managing costs via co-investments and discounts, cautious infrastructure investing, and selective hedge fund exposure focusing on manager quality and fee scrutiny.

Career reflections from Pensam’s CEO Torsten Fels

Personal career highlights emphasizing economic focus, adapting from banking to pensions, managing expectations, communication importance, and navigating rapid external changes.

Upcoming and editorial information

Details on Nordic Fund Selection Journal’s publications, contacts, upcoming roundtables, editorial schedule, and focus areas for forthcoming issues.