What does it take to succeed as an asset manager in today’s fickle market landscape? Niklas Nyberg, Head of Institutional Global Custody at SEB, sat down with Marcus Andersson, Chief Operating Officer at Länsförsäkringar Fund Management, to find out.
Swedish Länsförsäkringar’s fund arm targets retail and pension savers through a broad product range and strong distribution. In recent years, the company has moved from external fund management to an in‑house model.
COO Marcus Andersson explains, “Most of our asset management used to be outsourced through white‑label structures, but the last few years we’ve been gradually bringing it home and building our own teams. Today, less than 1% of assets are externally managed. This is a clear signal that we believe in our own ability to provide customer value.”
When SEB’s Niklas Nyberg asked about shifting customer expectations – and the growing cost pressure from passive funds – Andersson did not hesitate. “Passive products have benefited from a very favourable market environment in recent years, not least due to their concentration in large-cap stocks, which have performed strongly. The question is what happens when market conditions change. That’s when active management can demonstrate its value through greater flexibility to adapt the portfolio, capitalise on market opportunities, and navigate a more volatile environment.”
The market backdrop is growing increasingly complex on several other fronts, too.
Regulation, geopolitics, and a shifting landscape
When it comes to the regulatory environment shaping the industry, Marcus Andersson sees both opportunities and challenges. “At its core, new requirements around sustainability, reporting, and risk management are driving positive change. But they are also adding complexity. Regulatory adaptation tends to create fragmented technical and operational solutions – you end up building satellite solutions for each requirement, which affects scalability.”
He pointed out that economies of scale can provide larger players such as Länsförsäkringar with an advantage in responding to increasing regulatory demands. “Regulations apply equally to everyone, but larger companies often have greater resources and more opportunities to leverage synergies across the group.”
When Nyberg then turned to the geopolitical backdrop, another source of uncertainty, Andersson comments, “Geopolitical developments are a natural consideration in portfolio- and risk management. Investment flows reflect clients’ risk appetite, and during the current period of geopolitical uncertainty we have seen shifts from global and US-focused funds to European and Swedish funds – flows that have subsequently moved back again.”
“This highlights the value of a diversified offering – with exposure across regions and asset classes, as well as both passive and actively managed funds.”
SEB central to post‑trade operations
The relationship with SEB plays a central role in Länsförsäkringar’s operating model, with the bank acting as a hub for post‑trade services. “From a post‑trade perspective, SEB is a full‑service provider for us. We rely on them across custody, cash management, clearing brokerage, OTC, and collateral management – with a high degree of integration that simplifies our operations. Accessibility, local presence and proactive dialogue also make a real difference”, Andersson says.
“What do you expect from us going forward?” Nyberg asks.
“Continued automation, efficiency improvements, and technological innovation will remain important, particularly as we scale up and adapt to an increasingly complex operating environment. Both we and our partners need to be prepared to adapt to technological shifts. This is especially relevant in the rapidly evolving field of AI, where it is still unclear which initiatives will have the greatest impact,” Andersson shares.
Then, the million‑dollar question: what does it take to succeed as an asset manager today? “Ultimately, it comes down to delivering consistent value to customers – combining strong distribution with a relevant product offering, while staying adaptable in a changing market environment,” Andersson concludes.