Home HomeSwedenLivingWorld world_2_fill WorldBusiness BusinessSports sports-soccer SportsEntertainmentEntertain

Investigator: Merge AP Funds

Merge some of the current AP funds. This is proposed in a new investigation. The system is large and more expensive than necessary. We will create as good conditions as possible for good pensions, says Financial Markets Minister Niklas Wykman.

» Updated: 18 June 2024, 21:31

» Published: 17 June 2024

Investigator: Merge AP Funds
Photo: Lars Schröder/TT

Combine some of the current AP funds. This is proposed in a new investigation.

The system is large and more expensive than necessary. We should create the best possible conditions for good pensions, says Financial Markets Minister Niklas Wykman.

The Swedish AP funds manage approximately 2,000 billion kronor in the Swedish pension system and cost 2 billion kronor in operating costs each year, according to Niklas Wykman.

The investigator, Tord Gransbo, presented the pros and cons of four different proposals on how they can be made more efficient at a press conference on Monday.

The largest part concerns different types of mergers that can save on operating costs.

Unlisted shares as risk diversification

The sixth AP fund, based in Gothenburg, specialises in high-yielding unlisted shares. Two alternatives are presented: either AP6 is merged with the broader second AP fund in Gothenburg, or AP6 remains but is integrated into the so-called buffer fund system.

Our starting point is that the sixth AP fund's unlisted holdings are a desirable risk diversification for the entire pension system that should be preserved, says Tord Gransbo.

One fund can be phased out

The investigation also proposes that the three buffer funds, AP1, AP3, and AP4, based in Stockholm, can work more closely together to achieve higher net returns in the long run. One option is to phase out one of the funds and let the other two take over the operations and capital.

Which path the government chooses remains to be seen.

I choose not to point out any of the proposals as the best right now. The assignment was focused on highlighting the pros and cons, says Tord Gransbo.

Tags
TTT
By TTThis article has been altered and translated by Sweden Herald

More news

The Government Seeks Support for Those Affected by Northvolt
1 MIN READ

The Government Seeks Support for Those Affected by Northvolt

The regional tax will be raised next year
1 MIN READ

The regional tax will be raised next year

Astra Zeneca's China Chief Arrested by Police
1 MIN READ

Astra Zeneca's China Chief Arrested by Police

More rate cuts - but risk of turmoil with Trump
2 MIN READ

More rate cuts - but risk of turmoil with Trump

Svantesson: Trump's policy may increase inflation
2 MIN READ

Svantesson: Trump's policy may increase inflation

Major Banks Lower Mortgage Rates
1 MIN READ

Major Banks Lower Mortgage Rates

Central Bank Economist: Central Bank Cuts Interest Rate Too Late
2 MIN READ

Central Bank Economist: Central Bank Cuts Interest Rate Too Late

How You Are Affected by Lowered Interest Rates
2 MIN READ

How You Are Affected by Lowered Interest Rates

Thedéen expects turmoil after Trump's victory
2 MIN READ

Thedéen expects turmoil after Trump's victory

Inflation upswing does not threaten interest rate cuts
3 MIN READ

Inflation upswing does not threaten interest rate cuts

Stockholm Stock Exchange rises after interest rate cut
1 MIN READ

Stockholm Stock Exchange rises after interest rate cut

Most up on Asian stock exchanges
1 MIN READ

Most up on Asian stock exchanges

This is how your wallet can be affected by Trump's victory
2 MIN READ

This is how your wallet can be affected by Trump's victory

Cheerful on Wall Street after Trump win
1 MIN READ

Cheerful on Wall Street after Trump win

Thousand-kronor notes to be picked up when the Central Bank increases the pace
3 MIN READ

Thousand-kronor notes to be picked up when the Central Bank increases the pace

Swish up and running again after disruption
1 MIN READ

Swish up and running again after disruption

Trump's company is soaring on the stock exchange
1 MIN READ

Trump's company is soaring on the stock exchange

Swedish Export Threatened by Trump Victory
2 MIN READ

Swedish Export Threatened by Trump Victory

Sameby's appeal against mining company rejected
1 MIN READ

Sameby's appeal against mining company rejected

Inflation Expectations Fall
1 MIN READ

Inflation Expectations Fall