Swedish AP funds take different routes to find the alpha holy grail
Mon Apr 4, 2011
Swedish national buffer funds research hedge funds as they push the alternatives boundary beyond private equity and property
By Pirkko Juntunen
The Swedish national buffer funds, or AP funds, have become
somewhat regarded as pioneers in seeking and adapting new
investment ideas as well as pushing for sustainable investments
since their reorganisation and re-launch in 2001. Despite
having fairly restrictive investment guidelines (see box, p16),
the four funds have been diversifying into alternatives for
|André Havas and Mats Andersson
Första AP-fonden, also known as the First Swedish
National Pension Fund or AP1, together with AP2, AP3 and AP4
are buffer funds in the Swedish pension system. The capital of
the buffer funds is used to even out temporary fluctuations
during periods when pension contributions are not sufficient to
cover pension disbursements from the income pension system. The
returns generated by the AP funds are one of several factors
that are influential in ensuring the stability of the pension
The four buffer funds - AP1, AP2, AP3...
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