Issue 2, 2024

The Nordic Fund Selection Journal's 2024 issue covers a breadth of institutional investment topics including NBIM’s organizational culture, insurance-linked securities, Nordic small-cap equity strategies, and sustainability action plans by Swedish AP funds. Anthropologist Tone Danielsen shared insights from her embedded year-long study of NBIM, highlighting the unique organizational culture, leadership challenges, and the balance of trust and control. Meanwhile, the journal highlights the increasing interest in Nordic small-caps with plans for a new Norwegian state fund managed by Folketrygdfondet, and a roundtable discussion underscored evolving allocation strategies amid varying economic cycles and valuation considerations. Also covered is the robust performance and strategic role of insurance-linked securities amid evolving climate risks, where key Nordic investors like AP2 and Veritas emphasize manager quality and dynamic exposure adjustment.

The journal further explores Swedish pension funds' sustainability efforts, notably AP3’s comprehensive action plans tackling corporate governance, climate, human rights, and biodiversity risks, stressing long-term engagement despite political uncertainty. AP2 is adapting its investment organization and portfolio strategy to enhance flexibility, dynamic asset allocation, and sustainability integration, reflecting challenges from geopolitical fragmentation and climate transition. Additionally, the Society of Swedish Literature in Finland illustrates how a foundation with a very long time horizon embeds responsible investment principles, focusing on increasing private equity allocations aligned with sustainability goals and pragmatic ESG manager evaluation. Collectively, these reflections underscore the Nordic institutional investors’ nuanced approaches to stewardship, portfolio innovation, and sustainability in a complex and evolving market landscape.

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Table of content

Editorial and Overview

An introduction to key themes including NBIM’s anthropological study, Finnish investors’ perspectives on small-cap equities, insights into insurance-linked securities, and an interview with AP2’s CIO on investment strategy adaptations.

Norway’s New Nordic Small-Cap State Fund

Discussion on the proposed establishment of a state fund based in Tromsø to invest in Nordic small caps, managed by Folketrygdfondet, highlighting strategic intentions, operational challenges, and regional policy aspects.

Swedish Fund Selection Agency Tender Outcomes

An analysis of the first public tender for European equity funds on Sweden’s premium pension platform, detailing selection criteria, challenges faced, fee reductions, and impacts on sustainability and market players.

Anthropological Study of NBIM’s Organisational Culture

Insights from anthropologist Tone Danielsen’s year-long embedded research at NBIM, capturing internal responses, challenges of fieldwork, and reflections on the institution’s culture and leadership.

Sweden’s AP3 Action Plans for Sustainability Risks

Overview of AP3’s four focus areas—corporate governance, climate, human rights, and biodiversity—with strategies and targets to address systemic sustainability risks amid political uncertainties.

Interview with AP2 CIO Erik Kleväng Callert

A conversation about AP2’s portfolio and organisational restructuring to enhance flexibility, dynamic allocation, and green transition investments within the national pension fund framework.

Insurance-Linked Securities: Market, Returns, and Climate Risk

Exploration of insurance-linked securities as an asset class, including Nordic institutional investors’ experiences, investment strategies, manager selection considerations, and the assessment of climate change impacts.

Roundtable: Approaches to Investing in Small-Cap Equities

A dialogue with Finnish selectors and allocators on market timing, valuation, portfolio construction, challenges, and ESG integration in the small-cap investment universe.

In Conversation: Responsible Investing at the Society of Swedish Literature in Finland

An interview with Magdalena Lönnroth on the foundation’s long-term investment philosophy, plans to increase private equity allocation, challenges in sustainability evaluation, and emphasis on positive responsible investment developments.

About Nordic Fund Selection Journal and Publisher Information

Details regarding the Nordic Fund Selection Journal’s publishing body, subscription information, editorial contacts, advertising partners, and forthcoming events including a fixed income sustainability roundtable.