- Advertisement -
- Advertisement -

Alecta Piles Into Infrastructure

- Advertisement -

Stockholm (HedgeNordic) – Swedish pension fund Alecta has allocated €620 million to three funds investing in infrastructure in the past seven months. “Infrastructure is an integral part” of Alecta’s plan to increase its allocation to alternative assets to 20 percent. Since 2016, Alecta has increased its portfolio’s exposure to alternative assets from seven percent to 12 percent.

Alecta, which has SEK 900 billion or about €82 billion in assets under management as of the end of March, has committed capital to three infrastructure vehicles managed three different managers: Brookfield Asset Management, Antin Infrastructure Partners and Allianz Global Investors. “These are three large, scalable investments within infrastructure that gives Alecta’s clients the opportunity of good return,” says Axel Brändström, CIO of Real Assets at Alecta. “The size and scalability contribute to cost efficiency and diversity,” he adds.

Last week on June 30, Alecta committed to invest $300 million in Brookfield’s open-ended Super-Core Infrastructure Partners. Alecta committed an additional €250 million to a value-add fund called Antin Infrastructure Partners IV in April. This vehicle represents a global closed-ended structure with a focus on energy, telecom, transportation and social infrastructure. At the end of last year, Alecta committed €100 million to Europe-focused core-fund Allianz European Infrastructure Fund, which also has an emphasis on energy, telecom, transportation and social infrastructure.

According to Frans Heijbel, Head of International Real Assets at Alecta, “the funds we have invested in are all managed by well-reputed firms in international infrastructure with long and successful track-records.” Heijbel goes on to say that “the fact that we can close large investments with them proves that we have the capability to grow our assets within infrastructure in the pace and quality that our high set goals for sustainability, asset allocation, financial return and cost efficiency requires.”

After Hans Sterte (pictured) joined Alecta as its chief investment officer in the first quarter of 2018, the Swedish pension fund has embarked on a plan to increase its allocation to alternative investments to 20 percent of the total portfolio from about eight percent. Within that target, Alecta plans to increase its real estate allocation to 15 percent of the overall portfolio, as well as maintain a three percent allocation to infrastructure and two percent to private debt. About one-quarter of the infrastructure allocation goal of three percent has been achieved with the abovementioned infrastructure fund investments.

Picture by Evelina Carborn.


Subscribe to HedgeBrev, HedgeNordic’s weekly newsletter, and never miss the latest news!

Our newsletter is sent once a week, every Friday.

Eugeniu Guzun
Eugeniu Guzun
Eugeniu Guzun serves as a data analyst responsible for maintaining and gatekeeping the Nordic Hedge Index, and as a journalist covering the Nordic hedge fund industry for HedgeNordic. Eugeniu completed his Master’s degree at the Stockholm School of Economics in 2018. Write to Eugeniu Guzun at eugene@hedgenordic.com


Most Popular This Week

Request for Proposal

- Advertisement -

Latest Articles

Expected 75 Point Hike in Riksbank Rate

Stockholm (HedgeNordic) – Sweden’s Riksbank raised the key interest rate by an expected 75 basis points to 2.5 percent, the highest level since 2008....

The Age of Macro is Back

Stockholm (HedgeNordic) – In recent years, fixed-income macro managers such as Carlsson Norén have struggled to deliver attractive absolute returns in a low-volatility environment...

Man AHL Launches its First Systematic Article 9 Fund

Stockholm (HedgeNordic) – Man Group’s quantitative investment arm and engine, Man AHL, has launched the asset manager’s first systematic Article 9 fund. Relying on...

Corporate Bonds are Very Attractive Finds Atlant Fonder

Stockholm (HedgeNordic) – This year’s broad sell-off in the bond market due to aggressive monetary tightening in the fight against inflation may have investors...

Afalon’s Holistic Approach Amid Fund Closure

Stockholm (HedgeNordic) –  Finnish asset manager Afalon Investment Management has called time on its hedge fund that sought to identify investments aligned with sustainability...

HedgeNordic’s CTA Roundtable Back in the Flesh

Stockholm (HedgeNordic) – On November 17, 2022, HedgeNordic hosted its traditional, annual CTA roundtable in Stockholm. After two years in a virtual format, it...