Only ESG funds to be considered in SEK 1trn Swedish premium pension procurement

The Swedish Fund Selection Agency will only consider submissions from asset managers that incorporate ESG into their strategies in the upcoming procurement process for the new defined contribution (DC) premium pension platform.

Late last year, the agency announced that it will launch a series of procurements for asset managers to assist in allocating DC pension assets, which Bloomberg has reported will total SEK 1trn.

Those selected will be asked to manage the SEK 1trn (€89bn) of assets for the public premium pension system in Sweden.

Asset managers who do not fully incorporate ESG into their strategies will not have their submissions accepted.

All fund managers and investment managers will be required to have signed and be subject to the UN Principles for Responsible Investment (PRI), or be subject to the signing of PRI principles made the firm’s group of companies.

Under the procurement criteria, they will only be able to offer investment products registered as Article 8 and Article 9 funds under the Sustainable Finance Disclosure Regulations (SFDR).

It is expected that the Swedish Fund Selection Agency will begin its first procurement in the second quarter of 2023.

PPCmetrics AG, a consultancy firm, has been appointed by the agency to assist in the procurement process.

The premium pension system, which was launched in the late 1990s, currently has assets of around €200bn.

However, with inflows larger than outflows, the agency expects that assets will increase to around €400bn by 2040.

Its aim is to complete around 30 procurements for the new defined DC premium pension platform between spring 2023 and the middle of 2025.

    Share Story:

Recent Stories

Podcast: The benefits of private equity in pension fund portfolios
The outbreak of the Covid-19 pandemic, in which stock markets have seen increased volatility, combined with global low interest rates has led to alternative asset classes rising in popularity. Private equity is one of the top runners in this category, and for good reason.

In this podcast, Munich Private Equity Partners Managing Director, Christopher Bär, chats to European Pensions Editor, Natalie Tuck, about the benefits private equity investments can bring to pension fund portfolios and the best approach to take.

Podcast - The power of three: Using Common Contractual Funds to improve tax outcomes for investors
Large asset owners are still investing in equities in a way where they are taxed on their income. The implication is that they get a poorer return. They need to, and can, improve this, but how?

In this podcast, AMX Head of Client and Manager Development, Aaron Overy, and AMX Product Tax Specialist, Kevin Duggan, discuss with European Pensions Editor, Natalie Tuck, about three options to help ensure good withholding tax outcomes for institutional investors.

Mitigating risk
BNP Paribas Asset Management’s head of pension solutions, Julien Halfon, discusses equity hedging with Laura Blows