SWEDEN - Buoyed by the strong rebound in the global equities market, AP7, the default Swedish pension fund, has posted returns of 18.7% in 2003, as compared to returns of -26% in the previous year.
The strong performance was boosted by returns in the equities portfolio with the global equities returning 19%, while the Swedish equities returned 34%.
Fixed income returns stood at 6% while alternative assets, including private equity and hedge funds returned 10%.
Total pension capital of the fund now stands at e4bn (Skr39bn).
The fund is expected to tender for e1bn (Skr10bn) currency overlay managers next month and is also considering investments in property and US small-cap equities later this year.
AP7 is Sweden’s additional mandatory system which began in 2000 and has compulsory contribution levels of 2.5% for almost all working Swedes.
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