Change in legal requirements
Our investments are governed by the rules of the Public Pension Funds (AP Funds) Act, partly in regard to how large a percentage of the capital may be invested in each type of asset. On 1 January 2019 the Act changed, and additional changes come into effect in May 2020.
The Public Pension Funds (AP Funds) Act’s new investment rules for AP1 state that:
- Investment decisions may not be influenced by government policies, whether industrial or economic.
- The funds shall be invested in an exemplary way through responsible investment and responsible conduct without compromising the overall objective of attaining a high return.
- The Fund’s investments in regulated Swedish markets may not exceed 2 per cent of the total market value.
- The Fund may hold no more than 10 per cent of the votes in any single listed company.
- At least 20 per cent must be invested in fixed-income securities with a high credit rating.
- No more than 40 per cent may be invested in illiquid assets.
- No more than 40 per cent of assets may be exposed to foreign exchange risk.
- No investments in commodities may be made.
The First – Fourth AP Funds have jointly agreed on common guidelines on which assets should not be invested in.