Nordic Investor Insights 2025

The Nordic Investor Insight 2025 report provides a comprehensive overview of trends, challenges, and opportunities among asset owners and fund selectors in the Nordic region. Drawing on interviews, surveys, and events involving 51 industry representatives managing over EUR 360 billion, the report highlights a slowdown in the insourcing trend among Nordic asset owners, with most satisfied with their current external versus internal management balance. Despite this, a majority of selectors plan to increase the number of external managers they work with, focusing heavily on equities, especially developed markets and private equity, with growing interest in emerging markets and alternatives like infrastructure and private debt. Challenges for asset managers include product relevance, fee pressures, and effective communication, with many Nordic selectors calling for improved performance reporting and clearer strategy-specific communication.

Asset allocation insights reveal Nordic institutional investors’ resilient appetite for green transition investments despite recent setbacks, with increased allocations expected toward private equity, developed market equities, and emerging markets. While asset owners exercise caution due to inflation, geopolitical risks, and market valuations, asset managers anticipate more dynamic shifts in investor allocations, especially toward private debt and infrastructure. The report underscores the importance of "getting the basics right" for asset managers: delivering clear, detailed, and relevant communication to stand out in a competitive Nordic market. Furthermore, Nordic selectors indicate that equity-focused searches will dominate new fund selection efforts in the year ahead, with challenges including concentrated benchmarks, regulatory complexity, and resource constraints.

Looking forward, the report offers a roadmap for 2025/2026 emphasizing the need for asset managers to align with investor priorities in private equity, developed equities, and emerging markets while addressing core concerns like inflation, geopolitical risks, and market volatility. Asset managers are advised to leverage intellectual capital and strategic insight, particularly around evolving macroeconomic and geopolitical landscapes, to build trust and foster relationships in this complex environment. The Nordic region remains an attractive market but requires tailored approaches to navigate increased competition, insourcing dynamics, and investor expectations effectively.

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Table of content

About the Report

An annual review of trends among Nordic asset owners and fund selectors based on ongoing interviews, events, and surveys with 51 industry representatives. It emphasizes a qualitative, bottom-up research approach to gain nuanced insight into the Nordic investment landscape.

The Nordic Region Overview

An attractive but challenging market for international asset managers, with steady interest demonstrated by staffing increases. Key challenges include product-related issues, fee pressure, active vs passive management, and gaining investor access. Geopolitical and regulatory issues are less prominent concerns.

The Nordic Opportunity and Insourcing Trends

The insourcing trend among Nordic asset owners has slowed, with most content with the current internal vs external management balance. While some assets are still being insourced, others are shifting back toward external management, especially for satellite, niche, and private market exposures. Fund selectors plan to increase the number of external managers they work with.

Asset Allocation Trends

Nordic investors remain optimistic about equities, with an anticipated increase in allocations to both listed and unlisted equities including private equity, developed market equities, and emerging markets. Appetite for green transition investments remains steady despite some setbacks. Investors continue to express caution due to inflation, geopolitical risks, and market valuations.

Discrepancies Between Asset Managers and Owners

Asset managers expect more pronounced allocation shifts by investors than owners indicate, especially for private debt, infrastructure, and emerging markets. Managers suggest investors could diversify further, including into niche credit strategies, venture capital, and natural capital, while cautioning against excessive insourcing of portfolio management.

Fund Selection Trends

Equities dominate fund selection searches by Nordic selectors, particularly global, small cap, and Nordic equities. Challenges include poor reporting clarity, concentrated equity benchmarks, regulatory pressures, and resource constraints. Communication improvements from asset managers, especially in performance and strategy-specific reporting, are needed.

Communication and Marketing Insights

Selectors highlight the need for asset managers to get the basics right in performance reporting and communication to stand out in a competitive environment. Persistence, relevance, and understanding investor needs are key tactics to secure meetings with hard-to-reach Nordic investors.

Outlook 2025/2026: Roadmap and Key Themes

Getting foundational elements right is crucial amid a crowded market. Investors emphasize concerns around geopolitical risks, inflation and valuation pressures, and other market uncertainties including economic growth and debt levels. Private equity, emerging markets, and small-/mid-cap equities remain favored areas. Asset managers offering insightful market views and scenario planning are well positioned for success.