AP funds (Swedish "AP-forderna") are Swedish public sector pension funds ("Allmänna Pensionsfonder") existing since the 1960s. Having changed in character, number and focus over the years, today there are six funds, which collectively act as buffer funds for the Swedish public pension system as well as state-owned labour-market pension provider (so-called "Pillar 1" and "Pillar 2" pensions, respectively). The purpose of the AP funds is to contribute to Swedish public pensions, smoothing out differences between tax intake and pension payments, and to generate returns for the pensioners in the long term. Together, their assets under management are around 1.7 trillion Swedish kronor, or 180 billion US dollar, making them collectively one of the biggest pension funds in Europe.
Individual AP funds
- AP1, AP3 and AP4 are based in Stockholm, and invest in stocks, bonds, currencies and alternative investments globally.
- AP2 ("Andra AP-fonden") is based in Gothenburg, and also has a global mandate to invest in all asset classes. Together, the four first funds make up the so-called "buffer funds" ("buffertfonderna"), each with approx. 350 billion Swedish kronor assets under management.
- AP6 ("Sjätte AP-fonden") is based in Gothenburg. This fund is around 1/10th of the other funds, and only invests in unlisted companies. The strategy focuses on mature companies rather than venture capital, aiming for long-term high returns, both through direct investments and through other investment funds.
- AP7 ("Sjunde AP-fonden") is based in Stockholm and is the state alternative to the labour-market pension funds. The fund's assets come from pensioners who have not chosen a pension provider, and so default to the government's provider. This means the fund operates like private mutual funds.
- 1960 the Public Pension Fund was created with three asset managers, AP1-AP3. Only bond investments were allowed.
- 1974 AP4 was created, with a mandate to invest in stocks.
- 1988 AP5 was created, with a mandate to invest in stocks.
- 1996 AP6 was created, with funds from labour-market funds and a mandate to invest in stocks.
- 2001 AP1-AP5 merged to four funds (1,2,3,5) with new mandates and tasks in the new pension system. AP7 was founded as a labour-market pension fund.
- Första AP-fonden
- Andra AP-fonden
- Tredje AP-fonden
- Fjärde AP-fonden
- Sjätte AP-fonden
- Sjunde AP-fonden
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