Home > News > Asset Allocation > Wells Fargo A.M. Taps Joseph Sullivan for CEO Amid Rebranding
Asset Allocation

Wells Fargo A.M. Taps Joseph Sullivan for CEO Amid Rebranding

Nico Marais to step down, as former Legg Mason chief leads rechristened Allspring Global Investments.
By Michael Katz


Former Legg Mason CEO and Chairman Joseph Sullivan has been named CEO of Wells Fargo Asset Management, which will be rebranded as Allspring Global Investments after its acquisition by GTCR LLC and Reverence Capital Partners L.P. closes later this year.

Sullivan succeeds Wells Fargo Asset Management CEO Nico Marais who will retire and become a senior adviser to Allspring. Sullivan will also be the company’s executive chairman.

Sullivan served as chairman and CEO of Legg Mason Inc. from 2012 until 2020 when the company was acquired by Franklin Templeton. He joined Legg Mason in 2008 and held the roles of head of global distribution and chief administrative officer. Prior to joining Legg Mason, Sullivan served on the board of directors of Stifel Financial Corp. and as executive vice president and head of fixed-income capital markets for Stifel Nicolaus & Co. Inc.

“I am honored and energized to have the opportunity to lead Allspring, as we enter a new era for the firm,” Sullivan said in a statement. “In spending time with Nico and the organization over the past few months, I have been incredibly impressed by the depth of investment expertise and quality of our people and leadership.”

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Private equity firm GTCR and private investment firm Reverence Capital Partners agreed in February to acquire Wells Fargo Asset Management from Wells Fargo & Co. for $2.1 billion. The asset manager has $604 billion in assets under management (AUM), 24 offices globally, and nearly 500 investment professionals. The changing of the name to Allspring is expected to take effect during the second half of this year when the deal is expected to close. The Wells Fargo parent company will maintain a 9.9% equity stake in the firm.

“It is the right time for me personally and professionally to step down from active leadership and assume a new advisory role,” Marais said. “I have cherished my time as CEO of WFAM and am very appreciative of the passion and professionalism of our people. We have accomplished a great deal, including the transition to independent ownership.”

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Home > News > Asset Allocation > Sweden’s AP1 Returns 11% in First Half of 2021
Asset Allocation

Sweden’s AP1 Returns 11% in First Half of 2021

The $50 billion pension fund was aided by a strong Stockholm Stock Exchange.
By Michael Katz


Buoyed by one of the strongest stock markets in the world this year, Swedish pension fund AP1 reported an 11% investment return for the first half of 2021 to raise its total assets under management (AUM) to just over $50 billion.

The fund said the first half of the year was characterized by high global capital market activity and a quick economic rebound combined with strong risk appetite. The fund also reported five- and 10-year annualized returns of 10.9% and 10.4%, respectively.

“We have been well positioned to benefit from the prevailing market situation, and most asset classes in the portfolio contributed positively,” CEO Kristin Magnusson Bernard said in a statement. “Our considerable exposure to global and Swedish equities, where especially the latter have shown outstanding performance year-to-date, was the main return driver, although real estate and other alternative investments also contributed positively.”

Private equity was the top performing asset class for the fund, returning 22.8% during the first six months of 2021, followed by domestic equities and hedge funds, which returned 19.6% and 17.1%, respectively. Developed markets equities and emerging markets equities returned 13.5% and 10.8%, respectively, followed by real estate, which returned 10.6%.

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High-yield fixed income returned 2.6%, while infrastructure was up 1.3%. The only asset classes that declined during the first half were cash and fixed-income securities, which lost 5.8% and 2.4%, respectively.

In its interim 2021 report, AP1 said it is “fully focused” on using the trend of sustainable and “green” investments to achieve its objectives. This spring, the pension fund invested in Swedish battery developer and manufacturer Northvolt, along with AP2, AP3, and AP4 pension funds, for a total of $400 million. The fund also said its decision to stop investing in fossil-based holdings reduced its financial risk and reduced the carbon footprint of its equities portfolio by 46%.

“At AP1, we look forward to an exciting remainder of the year, where we aim to respond nimbly to changes in market direction while being firmly focused on our long-term mission,” Bernard said.

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