Sweden’s third largest pension fund, AMF, today announced that it is merging the life and fund aspects of its asset management business into one, in order to pool resources and ultimately obtain higher returns on investment.
To date, Tomas Flodén – until now Director of Investments for the Life and Retirement Division of the AMF, AMF Pensionsförsäkringar – is Managing Director of AMF Fonder, the investment fund subsidiary which will henceforth insure the entire group asset management, the firm said in a statement.
He was also appointed responsible for the overall management of the AMF group’s assets, the press release said.
The AMF declared: “The objective of the merger is to strengthen the AMF’s offer to all savers, by bringing together expertise and resources, and to facilitate closer cooperation on issues of strategic importance such as sustainable development and corporate governance.
When asked if potential returns could increase as a result of the change, Flodén told IPE: “Yes, absolutely. This is the whole purpose of the merger.
Prior to the merger, assets managed by AMF Fonder and AMF Pensionsförsäkringar were treated separately, he said, with the exception of corporate governance where he said some collaboration had taken place. .
The AMF currently manages SEK 800 billion (€ 78.4 billion), including SEK 600 billion in traditional life insurance and SEK 200 billion in mutual funds, he said.
When asked if the new combined division would be able to achieve economies of scale and if the additional volume would give the AMF access to more investment opportunities, Flodén said the AMF was above all “impatient to come together in a single organization to amplify our capacities”.
“I am certain that we will be even better in terms of strategic allocation and active positions, and that we will be able to act more powerfully as an owner to create long-term returns,” he said. he declares.
Regarding the AMF Fastigheter real estate transaction, he specified that although being a 100% subsidiary of the AMF, it was part of the portfolio of assets managed by the asset management of the AMF – AMF Fonder.
Åsa Kjellander will continue to chair the new Founder of the AMF, according to today’s announcement, and the current AMF Pensionsförsäkringar asset management staff will be transferred to the Founder AMF effective today. hui.
Anders Oscarsson will be responsible for equities and property in the new organization, Katarina Romberg will be responsible for alternative investments and real estate, the AMF said, while Bengt Björken will be responsible for fixed income assets and Magnus Jonasson responsible for l ‘allocation.
All four are transferred to AMF Fonder in the same role they occupied in the life and pension insurance company.
The AMF said the managers responsible for the AMF funds would remain in place in the respective funds.
Per Wiklund, who served as AMF Fonder’s interim CEO, is returning to his previous role as deputy CEO and chief of staff of the company, the company said, with Christoffer Axelsson being head of administration and Ebba Hammarström head of risk.