Issue 3, 2025

The June-July 2025 issue of Nordic Fund Selection Journal focuses on change and transition across Nordic institutional investors, asset managers, and emerging markets. A central theme is the dismantling of Sweden’s buffer fund AP1 following a political decision to reduce the number of AP funds, which involves the highly complex task of transferring AP1’s assets—valued at SEK 496.9 billion (EUR 45.7 billion)—to sibling funds AP3 and AP4, while managing ongoing portfolio discipline and operational challenges. AP1’s CEO Kristin Magnusson Bernard highlights the dual-focus on “business as usual” and complex consolidation work, emphasizing stakeholder communication, leadership, asset liquidity management amidst volatile markets, and the cultural strength sustaining the organization through this unprecedented change.

Alongside AP1’s story, the issue explores broader strategic evolution within Nordic pension funds. The Finnish Yleisradion eläkesäätiö under CEO Topi Piela has shifted its allocation towards increased equity risk and diversification, adding private equity and reducing real estate exposure to balance returns and risks. Meanwhile, Gamla Livförsäkringsaktiebolaget SEB Trygg Liv, led by new CEO Erik Callert, is reviewing its allocation with a focus on liquidity due to its slowly diminishing portfolio size, maintaining a heavy allocation to alternatives such as private equity, infrastructure, and hedge funds. Elo’s CIO Jonna Ryhänen discusses Finnish pension industry caution ahead of regulatory reforms likely to elevate listed equity allocations, while emphasizing team collaboration and long-term strategic stability in a volatile environment.

The journal also features insightful expert discussions on infrastructure investment, highlighting the complementary roles of listed and unlisted infrastructure with a thematic focus on energy transition and data growth, as well as their risk-return profiles amid geopolitical uncertainties. Investor roundtables reveal a guarded resurgence of interest in emerging market equities, with asset owners and selectors acknowledging structural valuation disparities, ESG considerations, and the need for nuanced, active management targeting long-term growth rather than short-term momentum. Aberdeen Investments CIO Peter Branner reflects on leadership in large asset management organizations, the importance of embracing and managing change, and the practical adoption of communication tools to unify teams during periods of market volatility and organizational transformation.

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Table of content

Editorial and Issue Overview

This issue focuses on change within Nordic institutional investing, featuring interviews and news analysis on leadership, fund closures, and investment strategies, particularly amid market volatility and regulatory shifts.

Sweden’s AP1: Dual Task of Closure and Portfolio Management

Following a political decision to reduce AP funds, Swedish buffer fund AP1 is preparing for its dismantling and asset transfer while maintaining disciplined portfolio management up to closure at year-end. CEO Kristin Magnusson Bernard discusses operational challenges, leadership demands, and managing market volatility.

Gamla Liv’s Strategic Review Post-Leadership Change

After a CEO transition, Swedish pension company Gamla Liv is revisiting its investment strategy, focusing on allocation and liquidity management amidst a shrinking portfolio, while maintaining significant unlisted investments and strong ties with SEB.

Infrastructure Investments: Balancing Short-Term Challenges and Long-Term Opportunities

Industry experts discuss differences between listed and unlisted infrastructure investments, inflation hedging, geopolitical impacts, sustainability, and return expectations within the evolving infrastructure sector.

Trade Finance as Portfolio Diversification

Federated Hermes outlines its approach to trade finance investing, emphasizing large, diversified loan portfolios supporting global commodity flows, with focus on risk mitigation and steady deal pipelines even amid global financing shortages.

Elo’s Investment Outlook: Regulatory Awaiting and Diversification Strategies

Finnish pension company Elo’s CIO Jonna Ryhänen reflects on a wait-and-see stance regarding regulatory reforms expected to increase equity allocations, alongside continued diversification into listed and unlisted assets and a strong team-oriented culture.

Aberdeen’s Leadership and Change Management

Chief Investment Officer Peter Branner shares insights on leading a large asset manager through organizational change, sharpening investment strategies, cost management, communication practices, navigating market turbulence, and integrating AI initiatives.

Emerging Market Equities: Investor Perspectives and Future Triggers

A roundtable with Nordic investors and selectors examines shifting sentiment towards emerging markets, highlighting valuation opportunities, sustainability integration, geopolitical considerations, stock-picking potential, and the need for diversification away from developed markets.

Yleisradion Eläkesäätiö: Strategic Asset Allocation Changes

CEO Topi Piela discusses strategic shifts in Finland’s Yle pension fund, including increased equity risk, new private equity investments, reduced real estate exposure, and cautious positioning regarding hedge funds and regulatory changes.

Nordic Fund Selection Forum 2025 – Stockholm Highlights

The 18th annual forum featured panels on selection challenges, facilitated interactive asset class discussions, and concluded with insights on macroeconomic scenarios from Folksam’s chief economist amidst a turbulent global backdrop.

Upcoming Industry Roundtable and Contact Information

Announcement of a forthcoming roundtable on fixed income and ESG in Copenhagen, along with publishing details and contact information for Nordic Fund Selection Journal and Tell Media Group.