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Nordic roundup: ITP, AP7, AP fund boards, PensionDanmark

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  • Nordic roundup: ITP, AP7, AP fund boards, PensionDanmark

SWEDEN - More than 98,000 privately employed Swedes (41%) have already made their selection for their supplementary occupational pension provision, ITP, according to Collectum, the administrator.

A total of 240,000 are eligible to make the selection within the system, and they have until 30 June to make an active choice.

Collectum announced the eligible providers earlier this year, and some of the earlier providers from 2007 are no longer on the list.

The assets will remain with these providers unless the individuals make another selection.

The default provider within the system is Alecta, the pension and insurance manager.

The new structure at AP7, which manages assets within the Swedish premium pension system, has attracted some 1,200 people since 18 May.

Since the changes last month, AP7 has offered generational or life-cycle options within the system.

Apart from the selectable options of aggressive, balanced and cautious funds, AP7 continues to be the default option within the Swedish system.

The earlier structure of AP7 prohibited it from advertising, but this restriction has been lifted, although the company will use this option sparingly, as all expenses would have to come out from the savers in fees.

Instead, AP7 will use conferences and other public events to promote its products.

Four out of 10 members of the AP fund boards are chosen by the labour market partners, such as unions and employer representatives.

As a result, Lasse Thörn, a representative from Kommunal, the union for local authority employees, is now a member of AP2's board.

Lars Ernsäter, an economist at LO, the largest blue-collar union in Sweden, is member of the AP3 board, while Peter Hellberg, vice-chairman of Unionen and TCO, the unions representing, has also been appointed to the AP3 board.

Jan Kvarnström has stepped in to the role of vice-chairman of AP6.

He has worked for Dresnder Bank and been the chief executive of other Swedish blue-chip companies.

Kvarnström has also worked in private equity as a senior advisor for 3i and an executive chairman at Lindebrook.

Following the resignation of Tommy Persson as chairman of AP7, Bo Källstrand has stepped into the role.

Other new members of the AP7 board include Mats Lagerqvist and Hellen Wohlin Lidgard.

Elsewhere in the Nordic region, PensionDanmark is increasing its investments in Danish private equity by another DKK60m (€8m).

The assets are invested with Industri Udvikling III, which focuses on the industrial sector and is expected to invest some DKK338m in small and mid-sized companies in the coming years.

PensionDanmark has invested in private equity funds since 2000 and now has a portfolio of DKK3.6bn and another DKK2.7bn earmarked but yet to be invested.

Of the total private equity assets invested, 20% are in Denmark.

Separately, Danish pension funds returned 7.6% for 2009, according to the country's regulator, Finanstisynet. 

In real assets, this increase resulted in the DKK121bn boost for pension providers.

Currently, 38% of Danish pension assets have a 4% minimum guarantee.

Pension assets totaled DKK2.7trn at the end of last year.

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