The AP7 Fixed Income Fund is designed as the cornerstone of the state-managed premium pension offer.
The strategy is to invest the assets of the AP7 Fixed Income Fund in fixed income instruments that:
- Have low credit risk
- Have an average duration of approximately 2 years
- Are primarily denominated in Swedish kronor
Investments in bonds are limited to bonds that are:
- Issued or guaranteed by the Swedish government or other governments with a high credit rating
- Issued by companies in which the Swedish government owns a majority equity holding
- Issued under the Covered Bonds (Issuance) Act (2003:1223)
The AP7 Fixed Income Fund's can invest up to 30 percent of its assets in bank deposits.