Around 70% of Swedes in the north of the country have chosen to actively invest their assets in the second round of selection under the PPM (Premium Pensions Authority) national pension scheme. Participation is “much bigger” than the authorities had expected , comments Hans Jacobson, managing director of PPM. As a result PPM says it is slightly behind schedule for the scheme, due to be finished by the end of the year.
Some SEK21bn (e2.44bn) has been invested into funds already, with SEK14bn (e1.63bn) in pure equity funds, SEK4bn (e465m) in generation funds (mixed lifestyle funds), SEK1.5bn (e174m) in mixed funds, and some SEK400m (e46m) in fixed income funds.
Interestingly, the biggest Swedish banks, which currently hold around 80% of domestic retail investment, have only been able to attract one third of the pension investments.
“The biggest winners are the insurance companies, especially those who are in some way related to pensions, such as SPP and AMF, both well known for their occupational pension schemes,” says Jacobson.
Robur’s Contura fund is still the biggest fund in the PPM scheme, with some SEK1.2bn (e140m) in pension assets. Jacobson believes: “Despite Contura’s relatively high risk level people are not throwing their money away; the average saver with money in Contura has invested 25%, almost 26% of his money in that specific fund, and in general people have chosen between 3 and 4 funds to distribute their money in.
“Those who invest in generation funds, tend to distribute around 50% of their assets into these funds, while those allocating assets to equity funds usually invest slightly more than a third in pure equity. Generally people are making very sensible choices, which we are very pleased about,” Jacobson concludes.
On November 2 the undirected premium pension assets from the north of the country, allocated to the default fund, AP Premium Savings Fund, amounted to a total of SEK790m (e92m).