SWEDEN – Five and a half million Premium Pension Authority (PPM) savers enjoyed an average return of 30% in 2005.

“This was because members chose to invest 90% in equities, and 30% in Swedish equities,” said the PPM chief economist Daniel Barr.

“Swedish equities did particularly well in 2005.”

Barr told IPE that the PPM did not expect this trend to continue into 2006. “I don’t think one can expect to get 30% in every year. It will probably return to something more normal.”

The SEK215bn (€23bn) PPM premium pension system funds have recovered significantly from their collapse in the 2000 stock market fall.

According to Barr, 450,000 savers have joined PPM since markets began to recover in 2003.

Among the big PPM funds, AMF Pension’s Swedish equities fund rose 33%, Didner & Gerge’s unit trust went up 37% and Premiesparfonden climbed 21%.

However, the Robur Contura fund, and Robur Medica came in at -20% and -2% respectively.