Sweden's PPM to get Sek20bn injection
SWEDEN- Sweden’s PPM scheme will receive a Sek20bn (e2.2bn) cash injection at the beginning of February when contributions from its 4.9m members’ 2000 earnings are introduced into the system. The increase will take PPM’s total assets to Sek85bn.
To date, 62% of members have chosen where to invest their contributions while the remaining 38% have automatically ended up in the default AP7 fund. After the inflow of cash, AP7’s assets should exceed Sek32bn.
Unless individual policyholders contact PPM and specify where they want their latest contributions invested, the money will automatically be added into their original funds.
Spokesman Mattias Johansson says policyholders are able to alter their preferred investment funds but that in practice PPM has only been receiving an average between three and five hundred daily requests to change.
“We’ve had very few changes as we believe people have taken a long term view and have planned ahead,” he says.
Policyholders are now presented with more options-PPM now offer investors the choice of 600 funds, up from the original 465.
A further 100,000 Swedes, those who recently entered the workforce for the first time, will join the scheme in the Spring.