Stockholm (NordSIP) – On April 8th, AMF announced it would invest SEK5 billion in Swedish companies to support them through the financial turbulence that has accompanied the COVID19 outbreak.
“The pandemic puts great strain on many companies. However, there is a time after the pandemic,” the Swedish pension fund noted. AMF is a long-term owner in approximately thirty Swedish companies, both listed and unlisted. Despite its intention to support the Swedish economy, AMF’s fiduciary duty is to protect and grow the pension investments of its clients, which means it has to be more selective.
“As a major owner, we have both a responsibility and an interest in ensuring that our good and long-term viable companies remain and are competitive even when the pandemic is over. For our pension savers, it is important that we ensure that the values that exist in these companies remain and grow even in one, two and twenty years,” said Tomas Flodén (Pictured), asset management manager at AMF. “When we invest in companies, be it in times of crisis or when the economy is more favourable, we do it because we believe it is in the long-term interest of our savers,” Flodén adds.
AMF’s SEK5 billion investment in viable Swedish companies is the first step in the form of new equity in those companies where it is already a long-term owner. However, AMF is open to investing capital in other companies, together with their current owners or other investors.
According to Flodén, AMF is focused on the interests of its pension savers and in safeguarding the value of their savings by ensuring that viable companies do not now fail. At the same time, the pandemic has disrupted the economy and not all companies will survive this crisis. AMF’s ability to intervene in the markets to facilitate soother financial conditions should not lose sight of the need to ensure that their pension savers money is only invested where there are long-term growth prospects, Flodén explained.
Image courtesy of AMF