Poll reveals Alecta as big winner among Swedish ITP savers

Published: 11 December, 2007

Page 6

Fifteen per cent of the savers in Sweden’s new white collar workers’ scheme (ITP) who made an active choice did so because they felt any option was better than Alecta’s default fund.

A further 55 per cent believe making an active choice would secure them higher returns, according to a survey by Collectum, the administrative body of the ITP scheme.

However, only 5 per cent thought making an active choice would bring them lower fees.

Despite this, only 35 per cent of savers actually chose a provider, leaving Alecta to manage over 70 per cent of pensions. It also got a 25 per cent share of those making a choice.

AMF Pension was the runner-up, with a market share of 11 per cent. Moderna Liv & Pension and Nordea Liv & Pension came out as losers, with less than 2 per cent each.

Investments can be split between traditional insurance products, which invest mainly in bonds and guarantee a minimum level of income, or in riskier fund options.

At least half of members’ contributions must be invested in traditional pension insurance products. Länsförsäkringar, which offers products in both categories, ended up with only 5 per cent of assets. AMF Pension also offers both.

A significant 48 per cent of respondents also believe that the fees within the ITP scheme were higher than that for private pension savings, despite the proclaimed success by negotiators in bringing fees down.

Mandates for managing the ITP scheme were awarded this spring, with Alecta becoming manager of the default option with 10 additional mandates awarded, split between a low risk and a higher risk option.

The new ITP scheme, which was a move from defined benefit to defined contribution, has so far only gathered SKr403m (€43m). CL

Printer friendly version

Email this article to a friend