Investment policy and risk management plan
This document sets out the rules governing AP7's investment practices. It describes how responsibilities are allocated in the asset management process, how we measure, limit and monitor risk, and how we report our investment performance.
The investment policy and risk management plan are approved by the board of directors. The board has discretion to adjust or make exemptions to the investment policy and risk management plan when necessary.
Corporate governance policy
The corporate governance policy sets the guidelines for governance relating to the AP7 Equity Fund.
Under Swedish legislation, AP7 cannot use its voting rights in Swedish companies and we therefore exercise governance in other ways.
By working closely with other institutional investors without being part of a formal group we can take an active part in board nomination processes. We can maintain contact with senior company officers and can attend shareholder meetings without executing our voting rights. We are allowed by law to vote in foreign companies and are free to participate in public debate.
The board of directors approves the corporate governance policy as part of the operational plan.
Ethical guidelines
AP7 manages a large volume of premium pension assets on behalf of many individuals. Many of these investors have not actively chosen us, relying instead on the government to provide an effective default asset management alternative. It is paramount that the government and the public have confidence in how we manage premium pension assets.
It is not enough to deliver strong returns, low costs and effective control and administrative systems. Maintaining confidence also means ensuring that everyone involved in running the business is above reproach.
The ethical guidelines seek to ensure that no employees or persons close to them gain personally from their connections to AP7 or become involved in a conflict of interest between themselves and the Fund. The guidelines demonstrate to the public that AP7 takes these issues seriously.
The guidelines are in two sections. The first focuses on AP7's conduct as an organisation. The second is oriented to individuals and aims to help employees in situations where their conduct may be open to question.
