Issue 4, 2015

The Nordic Fund Selection Journal covers a wide range of topics relevant to institutional investors and fund selectors in the Nordic asset management industry. Recent issues have focused on challenges in implementing strategic reforms, such as the Swedish AP fund system overhaul facing political backlash and uncertainty. Icelandic pension funds are gradually increasing foreign allocations as capital controls ease, while regulatory frameworks for Norwegian pension funds remain complex and restrictive, limiting investment flexibility. Danish pension funds like Industriens Pension are bringing more assets under internal management to reduce costs and retain talent. Meanwhile, ATP in Denmark is evolving its investment framework from traditional risk classes to broader balanced portfolios integrating alternative risk premia and illiquid assets.

The journal also emphasizes practical themes in asset allocation and fund selection, highlighting growing interest in tactical allocations as a means to enhance returns amid low yield environments, with caution about the risks of market timing. Academic insights stress the importance of humility and diversification in tactical strategies. Climate change risk continues to be a pressing concern for institutional investors, prompting differing approaches such as exclusion policies by Norwegian sovereign wealth funds or best-in-class engagement strategies by French pension fund ERAFP. The journal’s interviews and roundtables provide candid views from CIOs, fund selectors, and asset managers on adapting strategies and governance in a shifting investment landscape. Increasing regulatory scrutiny and demands for greater transparency are driving changes in fund management and marketing practices, including the cautious use of social media as a channel for credible information sharing rather than mere promotion. Overall, the Nordic Fund Selection Journal serves as a vital resource for navigating evolving market conditions, regulatory environments, and investor expectations in the Nordic investment community.

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Table of content

Introduction and Industry Overview

Discussion of sweeping pension fund reforms in Sweden and Iceland, challenges in Nordic fixed income investing, and shifts in asset management practices within large Nordic pension funds, highlighting key players and market regulatory environments.

Reform of Swedish AP Pension Funds

Analysis of political deadlock in Sweden over reforming the AP funds, including party disagreements, governance structure changes, and potential impacts on fund mergers and investment strategies.

Icelandic Pension Funds Liberalisation

Description of Iceland gradually lifting capital controls post-financial crisis, enabling pension funds to increase foreign investments, amidst regulatory challenges and renewed international interest.

Norwegian Pension Funds Regulatory Challenges

Examination of the complex regulatory environment Norwegian pension funds face, including parallel regulations and capital requirements, with discussion on needed regulatory harmonisation and cost impacts.

Insourcing of Asset Management: Industriens Pension Case

Insights on Danish pension fund Industriens Pension building internal teams for European equities and alternatives management, driven by cost considerations and asset growth.

Interview with ATP CIO Henrik Gade Jepsen

Overview of ATP’s evolving investment approach focusing on risk allocation instead of asset classes, integrating alternative risk premia strategies, and adapting to low-return markets with greater focus on illiquid assets.

Tactical Asset Allocations and Risk Management

Discussion on the growing importance and risks of tactical allocations by Nordic institutional investors, including benefits, pitfalls, implementation approaches, and philosophical viewpoints on active timing versus strategic allocation.

Academic Perspectives on Tactical Allocations

Expert insights analyzing challenges of tactical asset allocation, including behavioural biases, the importance of humility, risk budgeting, and balancing diversification with active decision-making.

Climate Change Risk and Responsible Investing

Exploration of how Nordic and European investors incorporate climate change considerations, focusing on fossil fuel divestments, engagement strategies, and best-in-class ESG approaches, including views from Norwegian and French pension funds.

M&G Multi-Asset Investment Process

Presentation of M&G’s multi-asset investment philosophy driven by valuation, behavioral assessments, and disciplined portfolio construction to capture mispricings and optimize return with controlled risk.

Fund Selection Roundtable Highlights

Highlights from a Nordic roundtable event discussing the equity bull market, emerging market perspectives, challenges in fund manager selection, market outlooks, liquidity concerns, and evolving investor expectations.

Social Media Use in Fund Selection

Analysis of Nordic fund selectors’ engagement with social media, evaluating its role beyond marketing as a tool for gaining insights and building professional networks, alongside regulatory considerations.

Up-Close and Personal with Jesper Kirstein

A personal profile of Jesper Kirstein, CEO of consultancy Kirstein, discussing his career, working style, and perspectives on fund research and investment consultancy.

Nordea Asset Management Leadership and Challenges

Profile and commentary by Nordea AM CEO and CIO Christian Hyldahl addressing organizational changes, regulatory challenges, controversies over active vs. passive management, and the integration of ESG metrics.

Japanese Equities Investment Approach

Overview of GAM’s fundamental, long-term, concentrated Japanese equity strategy aiming to identify high-quality market leaders with consistent cash flow and sustainable competitive advantages.

FundForum International 2015 Summary

Report on FundForum International’s key themes, including factor investing insights from Knut Kjær, low-yield environment challenges, active management valuation, and trends in industry branding and gender diversity.

Overview of Norway’s PKH Pension Fund

Description of PKH, the new Norwegian health-sector pension fund, detailing its asset consolidation, gradual portfolio restructuring, conservative investment approach, and outlook on growth and market position.

Industry Perception and Regulatory Landscape Commentary

Editorial discussing the rising importance of public perception in asset management, regulatory scrutiny on marketing practices, and reflections on evolving industry event locations and client engagement norms.

Fund Selection and Manager Relations at Gjensidige

Discussion of Gjensidige’s manager selection process emphasizing people dynamics, in-depth verification beyond marketing presentations, team interaction, and balancing diverse personalities for investment success.

Contact Information and Editorial Details

Publisher and contributor contacts, publication notes, upcoming event announcements, and sponsor information.