Sweden’s recipe for success: Active, low cost, ESG
CEOs at Sweden's four buffer funds link stellar returns to low costs, sustainability and active management.
PKA, one of Denmark’s largest pension service providers, is exploring whether to increase its risk budget by 10 per cent to boost returns. Michael Flycht, deputy director of equities and liquid alternatives at PKA, outlines why the fund is achieving this objective via leverage rather than direct exposures, and where it's allocating towards in hedge funds and infrastructure.
CEOs at Sweden's four buffer funds link stellar returns to low costs, sustainability and active management.
PMT, the Dutch fund for metal and technical workers, has just increased the screens guarding its equity and bond allocations from ESG laggards. It is also increasing its engagement with companies to try and build climate awareness.
Railpen, well known for its belief in the cost and control benefits of inhouse management visible in its large in-house team has also built up an internal engagement team to better align stewardship with its ESG objectives, particularly ambitious net zero targets.
CalSTRS' long-time CIO, Chris Ailman, is cautious about the outlook for markets with his "spider senses" working over time trying to understand the hidden risks in the economy. He told Amanda White the fund will focus the year on allocating to diversifying strategies and climate solutions.
Danish pension fund PensionDanmark is not only providing its members with robust returns, it's also leading Denmark's ambitions to become the "new Norway" but in green energy rather than oil and gas.
The United Nations Joint Staff Pension Fund plans to explore impact investment for part of the $90 billion portfolio including in developing and emerging markets like Africa, and boost diversification of its investments across developed, developing and emerging markets.
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