SWEDEN - Occupational pensions company Alecta posted returns of 2.5% in the first quarter of 2005 and maintained a collective funding ratio of assets to liabilities of 131%.
“The good return in our investment portfolio means that the company’s financial position has recovered from the stock market falls in 2001 and 2002,” said Tomas Nicolin (pictured), Alecta’s president (pictured). “In addition to the investment return there are factors that can affect the funding level in the future. Alecta’s board has issued a declaration of intent which states that SEK 4.9bn will be restored to a reserve to be placed at the disposal of the collective agreement parties.”
Alecta’s equity allocations produced the strongest first quarter performance at 4.4%. Swedish equities returned 3.7% while non-Swedish equities returned 4.9%. Fixed income posted the weakest results at 1.5%, with 1.7% return for Swedish bonds and 0.8% for non-Swedish fixed income. Alecta’s investments had a total value of SEK 355bn (e38.8bn) at the end of March.
Alecta’s 131% funding ratio exceeds the 110-130% ratio stipulated in company policy, the company said.
Alecta handles the major part of the ITP pension plan on behalf of the Confederation of Swedish Enterprise and the Federation of Salaried Employees in Industry and Services (PTK).
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