AP7 is the government option in the premium pension system. We work just like any fund manager that invests in mutual funds.
Our pension assets come from investors who have not actively selected a pension fund manager or who want a government-managed long-term pension savings plan. Since inception in 2000 our investments have outperformed the average returns of other funds in the premium pension system.
New mandate
Starting in May 2010, AP7 has a government mandate to upgrade the state-operated part of the premium pension system in order to raise state pensions.
New government offer
The government’s new premium pension offer has three main elements:
- The default option caters better for people who do not choose a fund manager themselves.
- The default option is also open to active investors.
- People who want to decide their investment risk can choose between three new government fund portfolios.
More than four out of ten premium pension savers currently have their funds invested with AP7 as the default government manager. Their assets represent more than a quarter of the premium pension system's invested capital. As of May 2010, AP7 Såfa is the new, improved choice for premium pension savers. AP7's government mandate highlights the importance of the premium pension being seen as an integral part of the state pension.
New risk profile
State pension capital is invested predominantly in low-risk assets. However, we are currently raising the risk level for young savers and lowering it for older savers so as to optimise overall risk and make it possible to generate higher pensions.
AP7 is also now offering three government fund portfolios, as well as an equity fund and fixed income fund that savers can choose via the premium pension fund's investment centre.
