Skandia in Denmark initially focused on providing pension and health insurance options, but in 2008, it expanded its services to include asset management. The expansion happened during the financial crisis, but the business was able to make this new branch successful in the face of adversity.
What partially helped the new branch thrive was that Skandia is not part of a banking group. Rather, it is known for being a successful and long-standing pension group. “Not being part of a bank helped our customers have confidence in us during and after the crisis,” adds Morten Halborg, CEO of the asset management section of the company.
The firm has a varied clientele such as life insurance companies, local municipalities, funds, holding companies and many more. One service Skandia Asset Management offers is helping to advise companies and funds about investments and asset allocation. “Asset allocation usually entails helping the client diversify their investments within the risk parameters specified by them,” says Mr. Halborg.
A second service offered by the firm is general asset management. Clients give Skandia management capabilities over their investments. This means the company is in charge of investing and divesting its clients’ assets into and out of a variety of options.
Investing is done in both traditional assets as well as alternative liquid assets such as REITS, hedge funds and commodities. Skandia Asset Management optimizes the investments for each individual investor or company, which helps minimize potential risks while at the same time selecting the right assets and funds.
Clients trust Skandia because the business is always on the lookout for the next big thing, which gives its customers an edge. The Skandia Group in the Nordics has also developed The Skandia Model, which helps local authorities to quantify what the price is of people falling outside of normal society.
“We want to give back, so we have begun focusing on social impact investing via the Skandia Model.” says Mr. Halborg. “We pride ourselves on being business and community minded – and being able to combine attractive returns with social impact makes sense on so many levels.”