By the end of January, Swedish pension company AMF began reviewing its portfolio due to growing concerns about China. But AMF has kept its 30 long-term Swedish equities. "It's about wintering, and exploiting the opportunities that will arise," says Tomas Flodén, head of asset management at AMF.
Swedish pension company AMF -- manager of collective pension schemes for four million people -- began reviewing its portfolio at the end of January when major production disruptions in China were ahead. "Since then, we have been working actively with the portfolio, especially with the more liquid parts and with foreign equities, interest rates and currencies. After all, we can make quite large changes in a short time," says Tomas Flodén, head of AMF asset management, in an interview with Swedish business daily Dagens Industri. He does not say what has exactly been done, but AMF's holdings in some 30 Swedish companies have not been affected. "We have invested in companies we believe in long term and we will not get rid of those because there is a storm blowing," says Tomas Flodén. "We also have the opportunity to go in and buy assets when we see them as incorrectly valued. We shall take advantage of that to buy good assets in this situation. This crisis is transitory, it's about wintering and exploiting the opportunities that will arise." Prefers dividends to be paid AMF prefers companies to stick to paying their dividends but understands exceptions can be made this year given the situation. AMF's largest holding is industrial investment company Investor but is also a major shareholder in Swedbank and SEB. Asked if he is worried about the banking sector, Tomas Flodén says: "Our assessment is that the Swedish banks are well capitalized and have the chance to both withstand and manage this situation." The actions of the central bank and the government have been good, he says.
This post originally appeared on AM Watch.
