Sterte, who is coming to the SEK800bn (€83.5bn) pension provider from a corresponding role in Skandia, will start his new job in the first quarter of 2018.
He will take over from Tony Persson, who has been acting as interim CIO since Frennberg’s departure.
Magnus Billing, Alecta’s chief executive, said: “I am very pleased to welcome Hans as new manager of Alecta Asset Management.
“His long experience as a leader in various types of organisations and his deep knowledge of asset management will be very valuable for Alecta and for the execution of Alecta’s mission.”
Frennberg left in the wake of a disagreement with the chief executive about the company’s business response to increasing digitalisation.
He had worked at Alecta since 1995, rising to the position of CIO and a becoming a member of the leadership group in 2009.
Before his job at Skandia, Sterte worked at LänsföRSäkringar, an insurance group, and before that he held roles at Sweden’s Finance Ministry and the central bank, Riksbanken.
Sterte said: “Alecta’s asset management model, with successful active management and direct ownership in more than 100 companies, had created great values for corporate and private customers.”
After Sterte’s arrival next year, Persson will go back to his job as head of the company’s interest and strategy group, Billing said.