Issue 6, 2017

The December 2017 | January 2018 issue of Nordic Fund Selection Journal highlights several key developments in the Nordic and Icelandic asset management industries. Sweden is pioneering sustainability legislation requiring all funds to disclose sustainability practices in their reporting, with ambitions to influence EU-wide standards. Despite initial industry resistance, the Swedish government and key stakeholders emphasize transparency and integration of ESG principles. Iceland has launched its own Sustainable Investment Forum (Iceland SIF) amid new pension fund legislation mandating ethical investment considerations, joining established Nordic counterparts. Meanwhile, debates around inclusivity arise in Finland as the Helsinki Bourse Club faces criticism for its men-only membership policy, sparking a wider conversation on gender equality in finance.

The journal also provides insights from Nordic CIOs reflecting on 2017 and preparing for 2018, underscoring concerns about market valuations, political risks, and inflation. Danish pension firm Skandia is revamping its active credit manager roster, focusing on diversification and improved selection processes. Additionally, foreign exchange transaction costs emerge as an overlooked area where significant cost savings are possible, with some Nordic asset owners already managing FX internally and others urged to scrutinize these costs closely. The studies point to evolving investor preferences towards emerging market equities, with increasing interest in ESG integration, active management strategies, and careful capacity control. Overall, the issue showcases a financial sector balancing sustainability, inclusivity, strategic risk management, and cost efficiency amid an evolving Nordic investment landscape.

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Table of content

Introduction and Industry Overview

Introduction to Nordic Fund Selection Journal December 2017 | January 2018 edition, featuring updates on emerging regulations, industry debates, and sustainability initiatives in the Nordic financial markets.

Sustainability Legislation and Reporting in Sweden

Sweden introduces pioneering legislation requiring all funds to report on sustainability considerations and methods, aiming to set a European precedent by integrating sustainability into supervisory frameworks.

Iceland Sustainable Investment Forum (Iceland SIF)

Launch of Iceland SIF amid new responsible investment legislation for pension funds; aims to facilitate ESG integration, knowledge sharing, and compliance standards across Icelandic financial institutions.

Reflections and Outlook by Nordic CIOs

Insights from Nordic Chief Investment Officers on 2017 market concerns, strategic adjustments, and investment themes to monitor in 2018 including inflation, volatility, and geopolitical risks.

Debate on Gender Exclusion Policies: Helsinki Bourse Club

Public outcry and boycott ignited by the Helsinki Bourse Club’s men-only membership policy, raising issues on equality in Finnish financial circles and prompting governmental and societal scrutiny.

Manager Strategy Revisions at Denmark’s Skandia

Review and overhaul of active credit manager selection and portfolio allocation strategies at Skandia, emphasizing diversification, quantitative analysis, and alignment with long-term risk objectives.

News Highlights and Industry Movements

Key updates including legal actions by Norwegian consumers against DNB, sustainability rankings positioning Nordic countries as leaders, and personnel shifts at major Nordic fund management firms.

Emerging Markets Equity: Nordic Investor Roundtable

Discussion among Danish investors on the role of emerging market equities, focus on earnings growth, geographical exposure, ESG integration, capacity management, and active versus passive investment approaches.

Foreign Exchange Transaction Costs in Nordic Asset Management

Analysis and recommendations on mitigating FX transaction costs, emphasizing transparency, independent benchmarking, negotiation with banks, and the impact of FX cost control on portfolio performance.

Investor Focus: Icelandic Pension Funds and Direct Lending

Examination of rapid growth and challenges in Icelandic pension funds’ mortgage lending to members, regulatory considerations, and effects on portfolio allocation with regard to liquidity and asset diversification.

Adjusting Real Estate Strategy: Finland’s Sandvik Eläkesäätiö

Shift from direct property investment to indirect investments and partnerships abroad due to difficulties in local permitting, plus evolving strategic positioning of real estate within the pension fund portfolio.

Conversations with Leading Nordic Asset Owners and Managers

In-depth interviews: Åsa Wallenberg (SPP Fonder) on advancing sustainability integration; Cecilia Thomasson Blomquist (PP Pension) on investment philosophy; and insights from Frjálsi lífeyrissjóðurinn on liquidity and diversification.

Industry Developments and Future Directions

Trending topics such as ESG becoming mainstream among Nordic investors, importance of active ownership, challenges with fund industry trust, and new product launches aligned with UN Sustainable Development Goals (SDGs).

Editorial and Subscription Updates for Nordic Fund Selection Journal

Announcement regarding a new subscription and distribution model starting 2018; continued free access for institutional investors, new policies for fund companies and service providers within the Nordic region.

Events, Advertising Partners, and Publication Details

Information on upcoming roundtables, forums and award ceremonies throughout 2018, key advertisers in this issue, and contact information for Tell Media Group’s Nordic Fund Selection Journal team.