05 Apr 2019 08:24

Long-standing and broad relationship characterised by trust

“It’s important that the bank understands our business and our objectives. A long-term perspective instils trust, which is a central pillar in the business we want to do together,” says Magnus Billing, CEO of the Swedish occupational pensions company Alecta.

Alecta is a mutual, customer-owned pensions company that manages occupational pensions for 2.4 million salaried employees and 34,000 companies in Sweden. The company works exclusively with collectively agreed occupational pensions and especially ITP, which is the pension plan for private sector salaried employees. This is done under assignment for the Confederation of Swedish Enterprise and the Council for Negotiation and Cooperation (PTK).

“Our basic idea from the start more than 100 years ago has been to provide financial security for employees and contribute to a flexible labour market by making it possible to switch employers without forfeiting this security,” says Magnus Billing.

Focus is on offering long-term sustainable pensions through favourable returns and efficient management. Sustainability is an integral part of business, for several reasons:

“It is something our customers ask for – they expect that we manage their money in a responsible way. It is also in line with regulatory requirements from the supervisory authorities.

Alecta works with active management with a relatively small number portfolio companies – just over 100 in all. The company has been an owner of SEB since 1948, which is the oldest standing active ownership holding Alecta has.

“Many companies, such as SEB, are good at integrating sustainability in their business to create value. It is important for us to be good at assessing how this contributes to value creation.”

Alecta also has a long-term banking relationship with SEB, primarily in the area of capital market services and cash management products.

“Secure and satisfied customers are created by maintaining a long-term perspective and offering a high level of efficiency,” concludes Magnus Billing. “We are very pleased with SEB and attach great value to our relationship.”