Swedish pension buffer fund AP1 has said that it is “following with concern” how shareholder rights are being challenged, particularly in the United States, where the rules can make it more difficult for shareholders to influence company development.

In the fund’s interim report, it said that it had conducted active shareholder governance work and participated physically at the majority of the annual general meetings of its Swedish portfolio companies.

Board fees have also been a central theme over the past year, with several major owners taking the initiative to bring remuneration in Swedish companies closer to a more internationally competitive level.

"Our position is that fees should be market-based and motivated, to enable the recruitment of the right expertise to the companies' boards," AP1 CEO, Kristin Magnusson Bernard, said.

However, there are concerns in the international space, as she confirmed that the fund is "following with concern how shareholder rights are being challenged, especially in the USA, where new rules risk making it more difficult for shareholders to influence company development and in matters relating to climate and social responsibility".

"We are convinced that strong shareholder engagement is crucial for sustainable value creation, and we will continue to promote the right to dialogue, proposals and influence," she stated.

This comes amid growing scrutiny over the influence of external forces on pension fund investments across Europe, with a report from the Centre for Research on Multinational Corporations (SOMO) highlighting particular concerns over the growing influence of American asset managers in the Netherlands.

PFZW hit back at these claims, arguing that external parties have no influence on its voting behaviour, and has since announced a major overhaul of its portfolio that is intended to strengthen sustainability oversight.

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