Sweden’s Skanska takes notes from Einstein

Fri Jun 3, 2011

Construction firm Skanska’s pension foundations put their success down to a focus on absolute return – and meticulous investments

By Pirkko Juntunen

Since the financial crisis risk management and risk budgeting have become the buzz-words du jour among pension funds. The topic is on the agenda of every conference, and there is certainly a lot of talk about bringing the topic of risk to the fore. However, when it comes to implementing strategies that truly focus on risk, few veer too far from their peers in terms of asset allocation. Equities usually hover somewhere between 35% to 55%, bonds perhaps slightly less and alternatives rarely above 15%, depending on national preferences.

There are a few brave exceptions, and they tend to be the largest players in each country which are diversifying and looking further afield because of necessity and resources available to them. But there are exceptions and one that is perhaps the most exceptional of all is Skanska Pensionsstiftelser, the Swedish pension foundations of the multinational construction company...

ISSN: 2151-1845 / CDC10004H

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