Swedish Church pension fund adds private equity in “uncertain world”
Carl Cederberg, CEO of Kyrkanspensionskassa, the Swedish Church Pension fund, says low interest rates mean it must take risks, so the fund is now adding alternative investments, such as unlisted shares, real estate and infrastructure to its asset mix. The fact the fund has a high level of reserves makes it possible to invest in less liquid assets, he says.
Kyrkanspensionskassa, the Swedish Church Pension fund, has now signed a new contract to invest in a private equity fund, as part of the gradual shift towards alternative investments the institutional investor has embarked on.
Farmland has performed well in an otherwise horrendous year for risky assets. Institutional investors generally search for uncorrelated return streams, potential green benefits and inflation hedges, and while the asset class ticks these boxes, it also comes with significant risks.
PFA’s real estate department is changing its strategy in expectation of more interest rate increases and recession, says the head of Nordic real estate, while three projects are being paused as ”it didn’t make sense to keep going.”
New opportunities to allocate more to riskier assets mean changes are being made at ATP. A restructuring of the central IT system has been the toughest nut to crack in the restructuring, which has been described as the most comprehensive change in the pension giant’s 60-year history.