The average saver in Sweden’s AP7 fund saw their premium pension grow by 18.4 per cent in 2023, the fund has announced.

According to AP7’s sustainability report, published on 23 February, the AP7 Aktiefond saw returns of 19.9 per cent, while the lower-risk AP7 Räntefond had returns of 5.3 per cent.

Announcing its results, AP7’s CEO, Pål Bergström, said it had "created good returns for its savers through some simple and clear investment convictions".

"It is about creating a generation-adapted risk-taking where young savers can and should bear high, even very high, risk – a risk level that is then adjusted downwards in line with the saver's increasing age.”

Bergström said: “It is also about diversifying the portfolio well, not least geographically. And about having a corporate governance strategy with a focus on influence via active corporate governance to get companies to act in the desired direction.”

AP7 reported that its investments in green bonds had increased in 2023 to SEK 37.5bn, making up around 33 per cent of the AP7 Räntefond. It said in 2023 it had voted at over 4,300 general meetings, and placed extra focus on holding company boards accountable for ensuring that companies pursue a credible climate transition.

AP7’s head of asset management, Lena Fahlén, said: “AP7’s managed volumes have grown significantly in recent years. In combination with our new mandate and ambitious sustainability targets, this requires us to develop our asset management.

"We are reviewing and modernising our investment processes, we are developing a strategy for alternative investments and have ambitious plans to integrate sustainability even more into our management."

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