The Swedish Fund Selection Agency (Fondtorgsnämnden FTN) has announced the selection of actively managed funds invested mainly in mid and large cap Swedish equity, with the funds set to account for some SEK92bn of Premium Pension allocation in that pillar of the state pension system.
FTN, which is a government authority with a mandate to procure, monitor and quality-ensure the funds in the Premium Pension system, says its search has resulted in a list of 10 funds issued by seven providers. Five funds have been available to savers previously and five are new.
Funds selected
| Fund Manager | Fund |
|---|---|
| AMF Fonder AB | AMF Aktiefond Sverige |
| Carnegie Fonder AB | Carnegie Sverigefond |
| Carnegie Fonder AB | D&G Aktiefond |
| Cliens Kapitalförvaltning AB | Cliens Sverige |
| Handelsbanken Fonder AB | Handelsbanken Sverige Selektiv |
| SEB Funds AB | SEB Sverigefond |
| SEB Funds AB | SEB 3 – SEB Sweden Equity Fund |
| Simplicity AB | Simplicity Sweden |
| Swedbank Robur Fonder AB | Folksam LO Sverige |
| Swedbank Robur Fonder AB | Swedbank Robur Sverige |
Mats Dillén, chairman of The Swedish Fund Selection Agency, commented: “Our assessment is that these are high-quality funds that have the potential to generate good returns over time. In addition, savers will be able to invest in the funds at generally low fees.”
By law, the funds procured must be suitable, controllable, sustainable, cost-efficient, and high quality. In addition, the range on the fund platform must provide pension savers with freedom of choice. FTN considers that a sufficient number of high-quality tenders have been received in the procurement process to enable a result that meets the legal requirements.
Erik Fransson, executive director of The Swedish Fund Selection Agency, commented: “Swedish fund managers have demonstrated a strong commitment to contributing to a stronger premium pension system. All tenders received have met the mandatory requirements, and there has been tough competition for places on the fund platform.”
Existing funds in the Sweden equity category that have not been selected will be deregistered from the platform through a phase out period. Savers in those funds can make a new choice. If they do not, their Premium Pension savings are automatically moved to an “equivalent procured fund”, FTN notes.
The current platform and selection activities of FTN were introduced through pension reforms after the previous Premium Pension platform grew to some 900 funds that were not subject to selection oversight, but rather relied on fund managers signing agreements with the Swedish Pensions Agency. However, the previous system saw some funds and fund managers act in ways deemed not to be in the best interests of savers, resulting in a cross-party political agreement for change.
The Premium Pension directs 2.5% of mandatory pension savings within the state pension system to the platform. Total assets are projected to hit EUR400bn by 2040.
Ongoing procurement
The most recent announcement by FTN on its procurement is part of an ongoing programme of planned procurement decisions.
