SWEDEN - The SEK320bn (US$38.9bn) Swedish AMF pension fund has confirmed it is to cut discretionary pension increases.
The fund said the cut of 8% would reduce the monthly payment for an average AMF-pensioner by approximately SEK100-150 and would affect some 350,000 pensioners in the funds' defined contribution (DC) plan.
The fund said the decision was taken due to the market volatility seen in recent months but would only affect future payments, and not the guaranteed portion of pensions.
In late January, the fund said it was considering the move, which it thought woulsd equate to 5-6% of monthly payments (Globalpensions.com ; 22 January 2008)
According to figures, updated on at the end of Q3 2008, AMF's asset allocation was 34.9% equities, 56.6% money markets instruments and bonds and 8.5% real estate.
The fund added it does not invest in hedge funds, private equity or commodities.
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