Temporary change in investment rules for Swedish National Pension Funds (AP Funds) as a result of COVID-19

21 October 2020 klockan 13.49

Uppdated 21 October 2020 klockan 16.46

The Riksdag voted in favour of the Government's proposal for a temporary change in investment rules for four of the Swedish National Swedish Pension Funds, also known as AP Funds, as a result of COVID-19.

The change applies to the First, Second, Third and Fourth National Pension Funds and will mean that the voting restriction, that is the largest possible share the funds have in a company, will be raised from the current level corresponding to 10 per cent of shares to a level of 15 per cent. The condition for this is that the National Pension Funds participate in a new share issue in the company in question. A new share issue takes place when a company, in order for example to counteract the effects of a deteriorating economic situation, issues and sells new shares.

The objective of the temporarily changed rules is to provide the National Pension Funds, in their capacity as both long-term investors and owners, with an improved opportunity to participate in new issues in Swedish companies that need capital in order for example to deal with a deterioration in profitability as a result of the corona pandemic.

The amendment will come into force on 1 November 2020 and will terminate on the last day of June 2021.