The drama of the Swedish AP funds continues. After facing criticism for poor returns, poor active management and high administrative costs over the past year, there are increasing demands for the AP funds to merge into one fund.

Keva, the E24.1bn Finnish Local Government Pension Fund, is set to abandon its long-term strategic asset allocation.

Vital, the NKr229bn (e27.1bn) Norwegian pensions company, plans to take advantage of continued “cyclical upturn” next year by doubling its emerging market equity exposure.

Finland’s decentralised pension system is becoming endangered by the continuing trend among pension funds to transfer liabilities to insurers, according to the managing director of the Association of Pension Foundations.

Demand for investment practices to take into account environmental, social and governance (ESG) issues is set to increase, according to research by Eurosif.

How has Varma’s investment strategy changed during 2009?

We have reviewed our investment policy. We want to have a diversified portfolio and will continue with that policy, but we have adjusted our allocation to different asset classes. Further-more, we have been aggressive in the management of the overall risk level during last 12 months.

Foreign asset managers are showing renewed interest in the Nordic region because of growing distribution opportunities.

Keva, the Finnish Local Government Pensions Institution, has appointed Merja Ailus as chief executive officer. She is replacing Markku Kauppinen, who left Keva in July. Ms Ailus is currently president of Jyty, the Federation of Public and Private Sector Employees. She was appointed amid harsh competition and the decision was not unanimous. Timo Viherkenttä, deputy CEO of Keva and one of the short-listed contenders, received 10 votes against 19 votes for Ms Ailus. It is not yet decided when Ms Ailus will take on the position.

Following disappointment with existing alternative energy fund managers, the pension company has launched a renewable energy fund and expects other Danish pension funds to join. Caroline Liinanki reports.

A dispute between the Icelandic government and the pensions industry over foreign investments has stalled plans for a joint real estate venture, writes Spencer Anderson

Following industry demand, Six Telekurs and Ethix SRI Advisors have teamed up to launch the Nordic region’s first sustainability indices.

John Foster investigates

The pension fund for Finland’s Central Church is preparing for the challenges ahead after announcing plans to increase its exposure to emerging market bonds and equities. Reeta Paakkinen investigates

As pension funds move from exclusion to engagement, Fredric Nyström at GES Investment Services insists that there is value-added information in norm-based analysis

Timo Viherkenttä, deputy CEO of Keva, the Finnish Local Government Pensions Institution, tells Caroline Liinanki what lessons have been learnt from its poor performance last year, and about the changes it is planning to its investment strategy

Norway’s typically conservative Vital is planning to more than double its exposure to global equities, writes James Redgrave

The Finnish Broadcasting Company’s pension fund has seen the worst of the crisis, but is wary of market growth, writes Reeta Paakkinen

Caroline Liinanki
Editor

How has the industry changed with the most turbulent part of the financial crisis behind us?

Proposals to strengthen insurance regulation under a more stringent directive are making the Nordic industry increasingly anxious. Gill Wadsworth investigates

The path leading up to Swedish Länsförsäkringar Liv’s demutualisation has been littered with controversy. Pirkko Juntunen investigates

Is this the right time to consider an allocation to distressed debt? Derek Stewart, a director at Mellon Global Alternative Investments, investigates

Universal concern over operational transparency, increasing regulations and cost pressures mean that asset servicers can provide valuable assistance to Nordic institutions, writes Northern Trust’s Mireille Andersson

The economic turmoil and increasing liquidity needs has led to the emergence of a real estate secondary market. Erik Gunnervall investigates the opportunities

2008 was a difficult year for Ireland’s National Pensions Reserve Fund, but its investment directors are keen to learn from past mistakes, writes Henry Smith