SWEDEN - AP7's Premium Savings and Premium Choice funds both bounced back last year after a torrid 2008.
Sweden's default pension option, Premium Savings, returned 35.1% in 2009, almost erasing losses from the previous year, when assets fell 36.2%.
Premium Choice, which can take more risk and had more exposure to emerging markets than its sister fund and no fixed income investments, rose 46.1% over the same 12-month period.
The company also confirmed in its annual report that from May 2010, the SEK92bn ($13bn) managed in the two funds will be transferred to the new default lifecycle fund alternative AP7 SÅFA, unless the individual makes an active choice.
Through AP7 SÅFA, individuals will be fully invested in equities until age 55, after which the fund will decrease its equity holding by 3% a year for the next 20 years.
For those taking a more of an active interest in saving for their retirement, there will be three other government portfolios to choose from. They will be split along risk levels.
AP7 will also allow investors direct access to the two building block funds - one equity, one fixed income - which will be used as the foundations for the new system.
Once it comes into effect, the Premium Savings and Premium Choice investment vehicles will be dissolved.
Separately, Swedish pension fund AP2 has reported a jump in global credit exposure from 3% to 10% to take advantage of a sharp rise in risk premium.
In its 2009 annual report, published in English last week, the scheme manager said it cut four percentage points from its government bond allocation and three percentage points from global equity investments to fund the move, which includes investments in convertibles.
It has approved five external investment managers to boost expertise in the area.
As of December last year, Rogge Global Partners was the sole manager of the fund's SEK11.3bn ($1.59bn) of credit investments.
But on February 1 this year, AP2 hired BNY Mellon Asset Management, Goldman Sachs Asset Management, PIMCO and Schroders Investment Management to assist Rogge in managing investments in the asset class.
The Pensions and Lifetime Savings Association (PLSA) is in the process of convening an industry-wide group to take forward the work of the Institutional Disclosure Working Group (IDWG).
The Transfers and Re-registration Industry Group (TRIG) has given its support to an initiative which aims to complete occupational pension transfers within three weeks.
Scottish Widows has completed a bulk annuity deal for the Hitachi UK Limited Pension Scheme.