Premium Savings Fund

The Premium Savings Fund was discontinued and its assets transferred to the new state-managed default alternative, AP7 Såfa, in May 2010.

The fund had 2.5 million investors at the end of 2009 and assets with a market value of SEK 89.7 billion, equating to 26.4 percent of total premium pension system assets and making it the largest fund in the system.

Management of the Premium Savings Fund was based on a normal portfolio containing the long-term asset mix.

Normal portfolio in 2009 as a percentage of Premium Savings Fund's market value:
Equities 82%
– Swedish 20%
– emerging markets 10%
– global 52%

Fixed income 8%
– Swedish index-linked bonds 4%
– nominal bonds in US dollars 2%
– nominal bonds in UK sterling 2%

Alternative investments 10%
– private equity 8%
– hedge funds 2%

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 Premium Savings Fund outperformed the average of all premium pension system funds by 1.8 percentage points from the launch of the premium pension system in 2000 to 31 December 2009.

In 2009 the Premium Savings Fund generated a return of 35.1 percent, outperforming the average of all premium pension system funds (the AP7 PPM Index) by 0.1 percentage points.

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