Issue 6, 2022

The Nordic Fund Selection Journal's 2022 issue presents a comprehensive overview of challenges and developments in Nordic and global institutional investing amid a difficult macroeconomic backdrop of rising inflation, energy costs, and geopolitical tensions. Despite these headwinds, some funds like Sweden's Apotekets Pensionsstiftelse have managed positive returns through strategic risk management and portfolio adjustments, including protective options and currency hedging. Meanwhile, sustainability and ESG integration remain focal points for Nordic investors, who are actively engaging companies on complex issues such as climate change and social responsibility, though regulatory frameworks like the EU's sustainable investment rules present ongoing challenges around definitions and investment approaches.

Highlighted in the issue are notable leadership and organizational changes, including Henrik Gade Jepsen’s appointment as chief investment officer at Sweden's Alecta, bringing extensive pension fund experience during a pivot to active management. The Swedish AP funds' revisited ethical council aims to broaden its scope to include credit investments and strengthen governance. New publications by Finnish ESG veterans provide practical clarification amid widespread misconceptions about ESG ratings and impact investing. Moreover, perspectives from Nordic selectors such as Skandia emphasize the importance of understanding style biases beyond past performance and integrating ESG across investment processes, while expressed concerns highlight potential misalignments within regulatory frameworks favoring best-in-class over transitional investments.

The journal further explores thematic discussions from expert roundtables on impact investing, where Nordic Norwegian asset owners debate definitions, measurement, and reporting challenges, acknowledging the difficulty of standardization but stressing the value of transparency and credible impact assessment. Interview insights from American Century Investments’ CEO Jonathan Thomas reflect on the firm’s unique ownership model enabling "dual impact" through supporting medical research, the evolving global ESG regulatory landscape, and the pitfalls of labeling within responsible investing. Lastly, exclusive conversations with asset management leaders like Storebrand’s Jan Erik Saugestad underscore the commitment to integrating sustainable finance with robust portfolio construction amidst an era of rapid change and underline nature-related financial risks as critical to the investment dialogue. Overall, the issue encapsulates a Nordic investment community navigating transition, uncertainty, and the pursuit of aligning financial returns with environmental and social outcomes.

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Table of content

Editor’s Comment

Overview of a turbulent 2022 investment climate characterized by rising rates, inflation, geopolitical instability, and discussions around ESG’s evolving role in Nordic investing.

Henrik Gade Jepsen Takes Charge at Alecta

Profile of Henrik Gade Jepsen’s appointment as CIO at Sweden’s largest pension company Alecta, highlighting his background, relocation, take on investment challenges, and strategic outlook.

ESG Veterans Publish New Responsible Investment Book

An introduction to the new English edition of a responsible investing handbook by Finnish ESG experts, addressing terminology, common misconceptions, ESG ratings, and future challenges in a rapidly evolving field.

Apotekets Pensionsstiftelse on Track Toward Positive 2022 Returns

Insight into how Sweden’s pharmacy pension fund managed to protect returns amid a difficult market through tactical adjustments, risk management strategies, and cautious outlook for 2023.

Sweden’s AP Funds Review Active Ownership Collaboration

Summary of a strategic review and revamp of the Council on Ethics collaboration among Sweden’s four AP funds, expanding scope to credit investments, restructuring governance, and reinforcing engagement on complex sustainability challenges.

Interview with Kerstin Hessius, AP3’s Former CEO

Discussion of her leadership tenure, pension system evolution, liquidity management, investment philosophy changes, views on central bank policies, and reflections on navigating regulatory and geopolitical challenges.

Skandia’s Manager Selection and ESG Insights with Per Lindgren

An exploration of manager selection practices focused on style awareness, fund size implications, integrated ESG analysis, Skandia’s sustainability pyramid approach, and critiques of EU sustainable investment regulation.

Roundtable on Impact Investing with Norwegian Investors

Dialogues addressing definitions, intentionality, measurement challenges, reporting standards, ESG backlash, financial returns versus impact balance, and ideas for enhancing transparency and credibility in listed impact investing.

In Conversation: Jonathan Thomas of American Century Investments

Reflections on unique ownership structure enabling dual impact investing, evolving ESG considerations amid U.S. politicization, regulatory complexities, and the importance of aligning client, employee, and owner interests in a fast-changing industry.

Up-Close & Personal: Storebrand’s Jan Erik Saugestad

A personal profile focusing on his leadership philosophy, career evolution, current investment and ESG priorities, lessons learned, and passion for nature and mountain activities as balance outside work.

Advertisers and Publisher Information

List of institutional asset managers featured and contact information for Nordic Fund Selection Journal’s editorial and publishing team.