Swedish state pension fund AP7, which runs the default option in the nation’s first-pillar premium pension system, has produced a return between January and June that is higher than the average gain generated by privately-operated funds offered within the system.

Data on AP7’s website show the return for the pension fund’s Såfa life-cycle pension product was 16.1% by the end of June.

This is higher than the average return of 14.9% produced by private funds, according to the information published.

The return for the AP7 equity fund – the larger of the two building-block funds AP7 runs, which are combined in differing proportions in the Såfa product depending on a saver’s age – was 17.8% for the first half.

The other fund, AP7 Fixed Income, had a first-half return of 1.2%.

AP7’s total assets at the end of June were SEK1.29trn, up from SEK1.11trn at the end of December, with the equity fund having SEK1.17trn and the bond fund holding SEK114bn of the assets.

Figures on the Swedish Pensions Agency’s website show the AP7 equity fund has made further returns since the end of June, with its year-to-date return up to 22 July standing at 21.9%.

The bond fund has also extended year-to-date gains, bringing those to 2.0% by 22 July, the data show.

The Stockholm-based pension fund – Sweden’s second-largest investment institution after occupational pension fund Alecta – is expected to release its interim report on 23 August.

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Rachel is IPE's Nordic correspondent. She has long been a freelance writer, and over the years, has written for The Telegraph, The Independent, The Observer, AMWatch and elsewhere. In 2001, Rachel's personal finance book Kickstart Your Money was published by John Wiley & Sons.View full Profile

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