Now and next in Nordic Fund Selection JournalPosted January 10 14:22
In the days leading up to Christmas, the latest issue of Nordic Fund Selection Journal was published. For this issue of the magazine, I’ve been to Oslo to speak with DNB Liv’s chief financial officer Truls Tollefsen about the difficult juggling act around returns and regulation and why the Norwegian life and pension company is dumping real estate for loans.
Few investors in the Nordics are in quite as challenging a position as the Norwegian life and pension companies when it comes to dealing with low interest rates mixed with regulation - both domestic and Solvency II. Finding ways to optimise against all these different ends is an intricate puzzle and appears like an almost unsolvable equation. “It’s a bit like the Gordian knot – almost impossible to solve,” Truls Tollefsen said.
Most notably, DNB Liv has embarked on a shift from more traditional investments like listed equities and investment-grade bonds to more illiquid assets, especially those that are favourably treated under Solvency II. The full interview with Truls Tollefsen can be read here.
While in Oslo, I also met up with professor Knut Anton Mork, who headed a recent government committee, to talk about the pros and cons about increasing the equity allocation of the Norwegian Government Pension Fund Global.
Elsewhere in the magazine, we have dug into low carbon strategies: discussed methodology and how to find the right low carbon path, as well as getting an update on the project of setting up a new digital platform to standardise due diligence questionnaires. It also includes a Nordic Fund Selection Awards supplement with interviews with all the winners.
Work is already underway with the next issue of the magazine. I’ve been catching up with Per Frennberg, chief investment officer of Sweden’s largest institutional investor Alecta, in what turned out to be a very interesting and frank conversation. I’m also currently working on a longer article about rethinking portfolio construction. In the pipeline are also articles about how to contribute to the UN Sustainable Development Goals and how Icelandic pension funds are changing their asset allocations.
FBNW subscribers can access PDF versions of all previous issues of the magazine here.