Swedes hold off from merging AP buffer funds
The Swedish government has dismissed for the time being a suggestion to merge the four biggest AP buffer funds, worth a total SEK626.5bn (€68.4bn), as a cost-cutting measure.
Swedish local government and financial markets minister Sven-Erik Österberg told the press that a merger of AP1, AP2, AP3 and AP4 is “not being considered at this stage”.
Österberg was referring to a government-sponsored study conducted by accountancy firm KPMG which looked at the schemes’ expenses. This year the government will base its evaluation report of the buffer funds on this study.
The minister conceded that the report had highlighted high costs in the management of the funds and told the press that government will keep “a close look” at them.
Costs in the future might be capped and the government could demand “more co-operation” between them.
The cabinet’s stance will become clear when the government’s annual evaluation report is published later this month.
The government will still consider the issue of performance with a report prepared by Hewitt Wassum Investment Partners. Parliament is set to discuss the funds in the autumn.