By Muskan Arora
Since stepping into the role of CEO at Sweden’s Kåpan Tjänstepension in February 2025, Marie Giertz has led a bold restructuring of the $18.7B (SEK 165B) pension fund, placing environmental, social, and governance (ESG) principles at the center of its investment philosophy — even if it meant exiting entire markets.
One of her most significant early moves was a full divestment from emerging markets in 2024, citing persistent underperformance and ESG-related governance concerns. “We didn’t get paid for the extra risk,” Giertz told Markets Group in an exclusive interview.
Yet with the MSCI Emerging Markets Index returning +12.7% over the 12 months through May 2025 — outpacing many developed market benchmarks — and Latin American currencies buoyed by high real yields and fiscal stability, Giertz suggested the door isn’t closed permanently to this market.
“If we see a way to re-enter more efficiently — maybe in a more niche way, focusing on companies we believe in — we could try that in the future.”
Giertz’s leadership comes with a long runway: before becoming CEO, she served as Kåpan’s chief investment officer from 2017. During that time, she brought much of the global equity management in-house, reducing reliance on external fund managers and shifting away from indexed strategies in favor of more targeted, direct investments.
This internalization allows for deeper ESG integration and tighter control over strategy implementation.
“It’s about strengthening capabilities across all asset classes,” Giertz said. “That’s how we stay resilient in a more volatile world.
Kåpan, a defined contribution pension plan, uses a three-bucket asset allocation model tailored to different generational risk profiles. The model tilts younger members more heavily toward equities, while older cohorts gradually shift toward bonds and income-generating real assets.
Roughly 35% of the equity portfolio remains focused in Sweden, with the rest invested globally. The fund’s private equity exposure is international but leans heavily toward the U.S., reflecting innovation cycles and capital availability.
Another noticeable pivot under Giertz has been Kåpan’s growing focus on real assets, particularly in real estate and infrastructure.
Domestically, the pension has built a concentrated real estate portfolio centered around government-leased properties — including police stations and court buildings. “The security and reliability of that client base is attractive to us,” she said.
About 5% of the real estate allocation is invested abroad, with exposure in both Europe and the U.S.
In infrastructure, Kåpan favors core and value-add strategies and often co-invests in club deals alongside peer Nordic institutions. “It gives us an advantage during the due diligence process and helps share the risk,” Giertz noted.
Broader macro and geopolitical developments are also influencing Giertz’s thinking. She points to Europe’s shifting role in global security and fiscal expansion.
“It’s been very clear, with the new geopolitical landscape, that Europe needs to step up,” she said. “There’s been a lot of talk about fiscal expansion — across infrastructure, energy, and now even defence.”
