Initial enthusiasm for fund selection under Sweden’s new PPM pensions system appears to be waning with fewer individuals making their own investment choices and more money flowing towards the default seventh AP fund.
Seventy seven per cent of the working population in the two northern regions of Sweden – the first to make their selections – decided to make an individual choice, while only 62% of those living in the district of Stockholm and the island of Gotland have selected their own fund so far. A total of SEK49.3bn (e5.7bn) has been invested through the system in the whole of Sweden.
Robur’s Contura (SEK2.25bn) and Pension (SEK1.57bn) equity funds, along with AMF’s World (SEK1.81bn) and Sweden (SEK2.25bn) equity funds have been the most popular investment choices throughout the country.