SWEDEN - Sweden's third buffer fund AP3 has promoted its head of alpha and beta management to head of asset management and executive vice-president of the board in a shake-up of the organisation's structure.

Gustaf Hagerud, who has been with AP3 since 2008, will also take over the role of chief investment officer, a spokeswoman confirmed.

This follows the previously announced departure of Erik Valtonen, who will continue as a consultant until the end of June 2011.

Hagerud's promotion will coincide with a reorganisation of the fund's structure, aimed at improving risk management, AP3 said.

As such, responsibility for strategic allocation and alternative investments, as well as alpha, beta and risk management, will be pooled in one department led by him.

Chief executive Kerstin Hessius said: "Gustaf Hagerud has played a key role in implementing the separation of alpha and beta management and in developing our dynamic asset allocation model.

"By gathering all asset management into one unit under Gustaf, we will increase our focus on total portfolio risk while increasing the scope for effective management."

AP3 recently posted returns of 1.9% for the first six months of 2010, ahead of both AP2 and AP4.

It has assets totalling SEK208.6bn (€22.2bn).