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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Clouds over Stockholm; the Swedish capital is home to AP1

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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