AMWatch

AP7 calls for broader investment mandate after cutting gearing

The default fund in Sweden's premium pension system, AP7, wants a government go-ahead to diversify more in alternative assets. CEO Richard Gröttheim also tells AMWatch why the fund has reduced its risk and why it's important to improve the fund ahead of the latest premium pension reform.

AP7 CEO Richard Gröttheim | Photo: PR / AP7

In 2019, Swedish premium pension system default fund AP7 had a record year, delivering a 33.1-percent return and comfortably beating a majority of funds available on the fund platform Fondtorget.

A volatile 2020 meant returns of 4.4 percent were not quite as lucrative last year, whereas the average return from the private funds was 8.8 percent. But CEO Richard Gröttheim is still satisfied with the figures for 2020.

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