AP3, one of the four main buffer funds in Sweden’s state pension system, has started advertising for a new head of alternative investments after the current leader of the asset class opted to take more of a back seat in the alternatives operation.

A spokeswoman for the Stockholm-based fund said the current head of alternative investments Bengt Hellström had chosen to step back from the role slightly, but would still remain at AP3 for the time being.

“Therefore AP3 is looking for a new head of team to take that role. Bengt is and has been a very valuable colleague and team head,” she said.

Hellström’s new title has not yet been decided upon, she added.

Announcing the job opportunity, AP3 said on its website that its alternative investments group was responsible for the management of the fund’s unlisted investments in the areas of real estate, private equity, infrastructure, forestry and insurance-linked securities.

“We are now looking for a manager for the group who will also have their own portfolio responsibility,” the pension fund said.

Alternative investments, as defined by AP3, make up around 25% of its total capital – which was SEK386.4bn (€37.2bn) at the end of June – and the team managing them currently consists of five “senior and highly competent employees”, the fund said.

In the last year, AP3 has been driving through a number of changes to its investment set up under CIO Pablo Bernengo.

It implemented a new portfolio structure at the end of 2019, and put a new investment organisation in place on 1 May this year.

Since then, its investment management structure consists of an equity team, a fixed income & currency team and an alternative investments team.

Following the shake up, alternative investments was the only team of the three to be led by its existing head – namely Hellström – with internal hires Magnus Tell and Joakim Blomkvist leading equities and fixed income & currencies, respectively.

Looking for IPE’s latest magazine? Read the digital edition here.