Announcing the 2015 Leader in Nordic Institutional Investment Management – Nordea Investment Management

Institutions in the Nordics already have continental Europe’s biggest allocations to equities, and those exposures—along with investments in other risk assets—are poised to grow further as institutions continue to adapt to persistently low interest rates by seeking out sources of badly needed return.

“We are, like everybody else, moving up the risk curve,” said the representative of a Danish public pension fund participating in Greenwich Associates 2015 Continental Europe – Nordic Investment Management Study.

Fixed income made up 40% of Nordic institutional assets in 2015, versus an average fixed-income allocation of two-thirds of total assets across the rest of continental Europe. Equities represent an average 40% of Nordic institutional assets, compared with only 19% across Europe. Among corporate pension plans in Nordic countries, equity allocations stand at nearly 50% in 2015. 

Nearly 1 in 3 Nordic investors have indicated that they expect their allocations to domestic government bonds to significantly decrease. Instead more than a quarter of Nordic institutions are planning to boost allocations to active European corporate bonds and 1 in 4 intends to significantly increase U.S. equity exposure.

“Nordic institutions are quite comfortable with equity exposures, so many are now moving to diversify their established equity portfolios with more specialized strategies," says Greenwich Associates consultant Lydia Vitalis.  

Regulations Pose Real Challenges
Like institutions across Europe, Nordic institutions are grappling with the challenge of managing investments, structuring portfolios and generating required investment returns against the backdrop of a strict and increasingly unpredictable regulatory framework. Uncertainty about how regulatory reforms will play out in Sweden and other Nordic countries is complicating institutions’ long-term planning.

2015 Greenwich Quality Leader
Nordic institutions consider the best way forward while facing persistently low interest rates, new regulations and a challenging return environment, they are looking for support in their decision making. Nordea Investment Management has responded well to institution’s new demand by positioning themselves to successfully provide advice on investment policy and strategy issues. 

The 2015 Greenwich Quality Leader in Nordic Institutional Investment Management Service is Nordea Investment Management.