Premium Choice Fund

The Premium Choice Fund no longer exists.
Changes by parliament to the structure of the premium pension system resulted in the closure of the fund in May 2010.

Investors could previously select the Premium Choice Fund from among the numerous funds available within the premium pension system.

At the end of 2009, around 95,000 people had assets of SEK 2.5 billion invested in the Premium Choice Fund, equivalent to 0.7 percent of total premium pension system assets.

The Premium Choice Fund was the 20th largest of the almost 800 funds available to premium pension system investors.

The Premium Choice Fund was managed using a normal portfolio containing the long-term asset mix.

Normal portfolio in 2009 as percentage of Premium Choice Fund's market value:
Equities 90%
– Swedish 20%
– emerging markets 20%
– global 50%

Alternative investments 10%
– private equity 10%

Global equities in the normal portfolio are spread across four regions (Europe, North and South America, Japan and South-east Asia/Oceania) in proportion to their respective weights in the global equity market. In 2009 AP7 invested in equities in the eurozone and in Sweden, Denmark, Norway, Poland, Switzerland, the UK, the Czech Republic, Hungary, Turkey, Brazil, Canada, Mexico, the US, Japan, Australia, Hong Kong, South Korea, New Zealand, Singapore and Taiwan.

The fund management fee in 2009 was 0.15 percent of fund assets.

* AP7's PPM Index