Nordic noir: Swedish state pension fund’s outlook is austere
Sweden’s AP1 aims to ditch illiquid assets and target realistic returns with equities
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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