SWEDEN - AMF Pension has reported a nine-month return of 10.9%, which has allowed it to increase the bonus rate for its defined contribution traditional insurance plan to 8%.
Third-quarter figures from the Swedish pension provider showed the positive return of 10.9%, against 7.1% in the same period in 2008, means the average total return over the last 15 years is 8.9% per annum.
Total AMF assets reached SEK328bn (€31.3bn) at the end of September, while the value of the assets in the firm's traditional pension plan increased from SEK252bn at the beginning of January 2009 to SEK 280bn nine months later.
AMF said the total profit for the three quarters reached SEK44.7bn, following good capital returns, which has helped raise its solvency ratio from 221% to 226%. The solvency position of the DC traditional plan increased from 99% to 119% over the nine months.
As a result of the improvement in solvency and the positive returns, AMF also confirmed that from 1 November the bonus rate for the DC plan had been increased from 6% to 8%, before tax and fees.
Ingrid Bonde, chief executive of AMF, said: "With the industry's strongest balance sheet, we have the best conditions to create high returns on savers' money. AMF is still the obvious choice for anyone saving for their retirement."
To 30 June 2009, the pension fund had an overall investment strategy of 31.1% in equities, 61.3% in fixed income and 7.6% in real estate. This was further broken down as 22.7% in Swedish bonds and money market instruments and 38.6% in foreign bonds, while the equity portfolio comprised 15.1% in Swedish equities and 16% in foreign assets.
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