SWEDEN - AMF Pension Fondforvaltning, the mutual fund unit of life insurer AMF, has launched two new funds.

They are a short-term fixed income fund as well as a small- to mid-cap Swedish equities open-ended fund.

The funds are “aggressively priced” at 15 basis points and are to be internally managed said Fredrik Nordstrom, managing director of the subsidiary.

Nordstrom told IPE that the short-term fixed income offering, managed by Bengt Bjorken, would “cover more on the risk scale”.

Jens Barnevik, is to run the small- to mid-cap fund. It would “offer an interesting solution with a higher risk.” Barnevik is also head of mutual funds, Nordstrom explained.

The products are going to be available on the Premium Pension Authority, or PPM, which constitutes part of the state first pillar pension system.

They are also going to be open to institutional investors, said Nordstrom.

Stockholm-based AMF said in March that it had made a total return of 10.8% in 2003, marking a shift from a negative 10.2% return a year before.

AMF is 50-50 owned by the Confederation of Swedish Enterprise and the Swedish Trade Union Confederation. Late last year AMF named AP4’s head of performance and risk control Sarah McPhee as chief investment officer.