SWEDEN - Following the general trend in the Nordic region, Telia Sonera's pension funds retuned 12.5% for 2009 compared to a loss of 8.5% in 2008.

The Swedish pension fund is by far the largest with 84% of pension assets. The fund's asset allocation at the end of 2009 was 60% fixed income, 32% equities, out of which 10% were invested in the Swedish market, and 8% in other assets, which according to Telia Sonera's annual report consists of hedge funds and private equity investments.

The expected nominal net return from the Swedish pension fund portfolio is currently 4.7% per year over a 10-year period, where inflation is assumed to be 2% per annum. The strategic allocation of plan assets is composed to give the expected average return.

This story was first published by Pensionsnyheterna, a Swedish-language specialist news service, and translated in agreement with IPE.com.

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