Issue 2, 2019


Oslo Børs, the Norwegian stock exchange, celebrates its 200th anniversary amid a current ownership bidding war involving Nasdaq and Euronext. Founded in 1819 as Christiania Børs, it initially served as a hub for merchants and a venue to set exchange rates amid Norway's monetary uncertainties. Over time, Oslo Børs evolved from listing commodity prices to becoming a fully electronic securities exchange in the late 20th century. Key developments include its transition to electronic trading in 1988 and the introduction of decentralized trading in 1999, which transformed it from a physical marketplace to a digital platform.

Svenska kyrkan (the Church of Sweden) emphasizes sustainable equities as a significant part of its portfolio and highlights its long-term investment in Generation Investment Management’s flagship global equity fund, which focuses on climate-conscious strategies. Despite challenges in finding outperforming ESG managers domestically, the church has successfully integrated microfinance and impact investments, contributing positively to returns and engagement in sustainable product development. Meanwhile, Danish pension company Pensam has implemented a new ESG strategy targeting dubious tax practices, reflecting a broader move among institutional investors to integrate social responsibility with financial diligence in their portfolios. These examples illustrate the growing focus on ESG integration and responsible investing across Nordic asset owners.

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Table of content

Finnish investors polishing their hedge fund strategies

Experienced Finnish hedge fund investors are focusing on more niche strategies, increased due diligence, and fee negotiations as they refine their portfolios amid low-yield environments and regulatory challenges such as AIFMD.

Church of Sweden: the highs & lows of sustainable equities

Svenska kyrkan balances strong returns from long-term sustainable investments, including Generation Investment Management’s global equity fund, with challenges in domestic ESG manager performance; they also emphasize active dialogue and product development in sustainability.

Bjarne Graven Larsen sets up alternative risk premia boutique

Former CIO of Ontario Teachers’ Pension Plan and ATP Bjarne Graven Larsen launched Qblue Capital, a Copenhagen-based boutique focused on alternative risk premia strategies that emphasize low equity correlation, transparency, and risk management.

Interview with AP1’s CEO Johan Magnusson

Magnusson discusses navigating regulatory changes, ESG integration challenges, clarifying investment narratives internally and externally, and cautious asset allocation amid uncertain market outlooks and evolving sustainability mandates.

Tougher times in finding good hedge fund opportunities

Finnish investors report difficulty in sourcing attractive hedge fund opportunities, especially in crowded markets, leading to increased travel, stronger fee scrutiny, and a pivot towards less conventional regions and strategies, including Asia and macro funds.

A step closer in solving the ESG dilemma for passive EMs

AP1 advances its emerging market equity manager tender with ESG integration as a key criterion and seeks innovative passive solutions that balance systematic exposure and sustainability, while emphasizing manager engagement and long-term partnerships.

Making manager searches public

Nordea’s Anders Bertramsen explores the benefits and drawbacks of publicly announcing manager searches via LinkedIn to enhance transparency, gain diverse input, and improve access to niche strategies like ESG-focused US direct lending.

Assessing cyber security risk

Investors and companies recognize escalating cyber risks but struggle with inadequate data and board-level understanding; improved disclosure practices and investor pressure are needed to strengthen corporate cyber resilience.

Alternative risk premia: portfolio construction considerations

Wellington Management outlines four key pillars—manufacturing premia internally, broad diversification, strategic exposure blending, and robust risk management—to improve risk premia returns and resilience in Nordic portfolios.

Facilitating lower fees in private markets

Kasper Struve launches Unified Investors to help pension funds collaborate on scale to negotiate better fees and access co-investment opportunities, addressing market fragmentation and investment process inefficiencies in private markets.

New investment rules and strategic focus at Sweden’s AP funds

Despite new regulations allowing increased illiquid investments, AP1 maintains cautious allocations, concentrating on responsible investment practices and collaboration with peers while awaiting further legislative updates and improved mandates.

Danske Bank Asset Management: accelerating change & rebuilding trust

Leadership highlights efforts to rationalize products, intensify ESG integration with organizational support, and restore client trust amid bank scandals, alongside expansion focus on Sweden and alternative investment development.

The highs and lows of sustainable equities at Svenska kyrkan

Svenska kyrkan experiences strong returns in global sustainable equities but challenges in domestic ESG portfolios, complements with microfinance and alternative impact investments, and actively participates in sustainable product initia- tives.

Impatient wait for regulatory clarity at SPK

SPK’s CEO discusses balancing operational readiness with uncertain regulatory timelines, planned strategic reassessment, and adapting to potential new capital requirements and legal frameworks within Sweden’s occupational pension industry.

New ESG tax screening strategy at Danish pension company Pensam

CEO Torsten Fels details Pensam’s initiative to exclude companies with unfair tax practices, emphasizing ESG integration as a driver for long-term value creation and advocating for coordinated investor action to influence corporate tax fairness globally.

Up-Close and Personal: Mika Leskinen, FIM/S-Bank Wealth Management

Mika Leskinen describes his transition from equity trader to ESG integration pioneer and newly appointed CIO, highlighting his passion for sport, focus on disciplined decision-making, and commitment to integrating sustainable invest- ment at the core of portfolio management.

Financial Markets History: Oslo Børs celebrating 200 years

The Norwegian stock exchange marks two centuries with a journey from a modest 19th-century commodity price venue to a modern, fully electronic exchange, shaped by economic wars, technological innovation, and expanding global capital markets integration.