Sweden Selects Equity Funds for $22 Billion in Pension Savings

Sweden’s pension system has awarded 14 global equity fund mandates in a bid to modernize its Premiepension program, allocating around 200 billion kronor ($22 billion) to selected managers. The Swedish Fund Selection Agency trimmed the number of global equity funds from 45 to 14 over 16 months, with the latest procurement being the largest and longest-running in the initiative. According to reports, the overhaul aims to tighten access to pension funds following past fraud incidents that led to losses for investors.

Swedbank Robur Fonder AB and Waystone Fund Management Lux SA were among the top winners, each securing two mandates to manage large- and mid-cap equity funds for Swedish pension savers. As the selection process shows, high interest was observed, with Chairman Mats Dillen noting the exceptional level of participation.

The Premiepension system requires all working Swedes to contribute 2.5% of their salaries, with the option to choose where those funds are invested. Projections indicate savings in the system are expected to grow to 5 trillion kronor by 2040 from the current 3 trillion kronor.