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Swedish government evaluates effect of new investment mandate on AP-funds

The government has published a report analyzing whether the new focus on sustainability has had any effect on the buffer funds since being implemented in 2019.

While AP1 and AP2 decided to completely divest the fossil fuel sector during 2020, AP2 and AP4 still have some left in their portfolios. | Photo: FREDERIC J. BROWN/AFP / AFP

Sweden's first four National Pension Funds (AP1-4) have generated SEK 132bn (EUR 13bn) in total returns during 2020, equating to 8.5 percent.

The four buffer funds have a higher return than some of its international peers; a selection of international pension funds of similar size and mandate have an average return of 5.2 percent for 2020, according to a new report by the Swedish government.

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