Sweden’s AP7 Såfa returns 31.5% in 2021

Sweden’s AP7 Såfa made a return of 31.5 per cent in 2021, it has revealed.

The fund said it was one of the best years since its launch over 10 years ago. Since AP7 Såfa was created in May 2010, it has returned 409 percent to savers, which corresponds to an average annual return of 15.0 per cent.

The fund has revealed that from 1 January 2022 there will be a reduced fee for AP7 Aktiefond to 0.05 per cent down from the previous 0.075 per cent.

AP7 Aktiefonds' reduction from 0.075 per cent to 0.05 per cent means an annual saving of more than SEK 190m for the five million savers in the fund. The last time the fee was reduced for AP7 Aktiefond was in January 2021. AP7 Räntefond has an unchanged fee of 0.04 per cent.

AP7's fees are continuously reduced whenever possible as AP7 as a government agency is not profit-making but has the sole task of managing the money for those savers who do not choose any of the private funds in the premium pension system.
“Low contributions are an important parameter for long-term pension savings. As a default in the premium pension, we have a responsibility to continuously reduce the fee when there is room for it. The fact that the equity fund's fee is increasingly approaching the fixed income fund's low level clarifies the value for savers of the economies of scale in the equity fund,” AP7 CEO, Richard Gröttheim, said.

The average fee in AP7 Såfa has more than halved since 2010, from 0.13 per cent to 0.047 per cent. The fee in Såfa depends on the combination of AP7 Aktiefond (fee 0.05 per cent) and AP7 Räntefond (fee 0.04 per cent) and differs between the age groups because AP7 Såfa is automatically adapted to the saver's age.

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