The mission
What is the Fund’s mission? : The Swedish Parliament has assigned the Fund the mission of generating high returns with a low level of risk. The Fund may not be influenced by government policies, whether industrial or economic. Ethical and environmental consideration must be taken in investment operations.
Are there any limitations on how the Fund may invest its assets? : Yes, according to the provisions in the Swedish National Pension Funds Act. For example at least 30% of the assets must be invested in fixed income securities with low risk. Currency exposure may not exceed 40% and the Fund may not invest in materials (commodities). Read more in the section Our mission/Investment rules.
Investment terms
Why does the Fund perform an ALM study? : ALM stands for Asset Liability Modelling. A study aimed at determining the optimal long-term allocation of investment assets in order to meet the Fund’s commitments. The study is based on the Fund’s obligations and the expected return, risk and correlations of different asset classes, and serves as a basis for the composition of the strategic benchmark.
The pension system
Which of the AP funds is NOT a buffer fund? : The First to Fourth and Sixth AP Funds, AP1, AP2, AP3, AP4 and AP6 are all part of income pension system. The Seventh AP Fund is part of the premium pension system and is not a buffer fund.
Första AP-fonden is part of the... : Första AP-fonden (AP1), like the Second, Third, Fourth and Sixth AP Funds (AP2, AP3, AP4 and AP6), is part of income pension system.