SWEDEN - AP7, the government default option within the Swedish premium pension system, is taking an unusual step by managing its emerging markets equities passively.
AP7 said that, until now, it has invested in emerging markets using different financial instruments and techniques that generated returns equivalent to the index.
The fund said it would transfer these assets to direct holdings over time, lowering costs and generating "more pure" beta management, it said.
The holdings are defined by an index of 800 companies. The transfer is expected to be finalised by the end of the year.
In other news, the Swedish government has appointed Ingemar Eriksson to explore ways of enabling people to stay in work longer.
Eriksson is currently at the Ministry of Health and Social Affairs and is yet to start the new assignment.
He is expected to wrap up his report on 1 April 2013, providing an interim report in January next year.
Eriksson has worked in the Ministry of Finance and has served as the minister for economic affairs at the Swedish Embassy in Washington DC. He has also been part of the Swedish delegation to the OECD.
Part of Ericsson's role will be to look at occupational pensions and how they are constructed.
His investigation will also look into the impact of increasing the state pension age on occupational pensions.
The government said the investigation would have a particularly large effect on occupational pensions and the relationship with the social partners.
It further stated that communicating with these organisations was of "vital importance".
A special group with representatives from the social partners will be consulted continually through dialogue and discussion.
Pensionsgruppen - the multi-party working group on pensions - will also be informed regularly of the progress of the investigation, the government said.