AP1 sides with the Fed on inflation

Sweden's AP1 is uncomfortable betting against the US central bank, which has turned its prediction for "transitory inflation" into a mantra that gets repeated to nervous market participants every time there's another sign of a spike in prices.

Kristin Magnusson Bernard, the chief executive of Sweden's AP1 pension fund. | Photo: AP1/PR

One of Sweden's biggest pension funds has arranged its inflation strategy around the Federal Reserve's view that price spikes will prove transitory, and says that, with a bit of hedging here and there, the approach has worked well.

Kristin Magnusson Bernard, the chief executive of Sweden's AP1 pension fund, says inflation will "also end up being a headache for central banks for a while." But for now, consumer price growth is "more difficult from a political view point" than from a monetary policy stance, she says in an interview in Stockholm.

Read the whole article

Get 14 days free access.
No credit card required.

An error has occured. Please try again later.

Get full access for you and your coworkers.

Start a free company trial today

More from AMWatch

ATP's managed assets maintained growth in Q3

A positive result from investments and a negative hedging portfolio outcome are the main takeaways from ATP's Q3 report, which reports that total managed assets have increased, and the bonus rate has also swelled further.

Velliv divests coal and tar sands

Neither coal nor oil extracted from tar sands will be be found in Velliv's portfolio now that the company has decided to completely exclude companies associated with those activites.

Further reading

Related articles

Trial banner

Latest news


Latest news from FinansWatch (dk)

Latest news from EnergyWatch

Latest news from ShippingWatch