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Nordic noir: Swedish state pension fund’s outlook is austere
Sweden’s AP1 aims to ditch illiquid assets and target realistic returns with equities
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The prospect for fixed income returns is grim. And in the current low-to-no-yield world, targeting returns in high single figures is simply not realistic. This is the pragmatic take of Mikael Angberg, chief investment officer at AP1 – Första AP-fonden – Sweden’s state pension fund.
“If the risk-free interest rate goes from 5% to zero, there’s no magic one can do,” says Angberg. “I feel sorry for some of the US pension funds that still have to generate 8–9% nominal returns. I think it’s not
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