Restructuring Sweden’s AP Funds for Scale and Global Impact

8 Pages Posted: 1 Jun 2010

See all articles by Malin Bjorkmo

Malin Bjorkmo

affiliation not provided to SSRN

Stefan Lundbergh

Algemene Pensioen Groep (APG)

Date Written: Spring 2010

Abstract

This article summarizes the findings of a recent report commissioned by the Expert Group for Studies in Public Economics, a standing committee of the Swedish Ministry of Finance. The report makes the case that significant efficiency gains are possible through improving the management of the buffer capital in the Swedish public pension system. The current ten year old structure was based on the assumption that competition between the four AP Funds would produce such efficiency gains. However, the anticipated gains have not been realized, most likely due to agency costs. The report proposes improvements in three main areas: governance structure, investment rules, and the creation of greater economies of scale. Its recommendations have provoked an intense debate on how Swedish national pension reserves should be managed in the future.

Keywords: Agency Costs, Cost Savings, Governance, Pension Fund, Trustees

Suggested Citation

Bjorkmo, Malin and Lundbergh, Stefan, Restructuring Sweden’s AP Funds for Scale and Global Impact (Spring 2010). Rotman International Journal of Pension Management, Vol. 3, No. 1, 2010, Available at SSRN: https://ssrn.com/abstract=1618831 or http://dx.doi.org/10.2139/ssrn.1618831

Malin Bjorkmo (Contact Author)

affiliation not provided to SSRN

Stefan Lundbergh

Algemene Pensioen Groep (APG) ( email )

P.O. Box 75283
Amsterdam, 1070 AG
Netherlands

Do you have a job opening that you would like to promote on SSRN?

Paper statistics

Downloads
155
Abstract Views
1,091
Rank
284,263
PlumX Metrics