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Kammarkollegiet, officially known as the Legal, Financial, and Administrative Services Agency, is a cornerstone of Sweden’s public administration. With roots dating back nearly five centuries, it plays a multifaceted role in supporting state authorities, ecclesiastical organisations, and other entities through a broad range of services. Its responsibilities include legal and financial administration, insurance provision, translation services, procurement, and one of its most high-profile activities: asset management.
Kammarkollegiet’s scope extends to vital services like overseeing the Swedish Inheritance Fund, facilitating recruitment and procurement for government agencies, and enabling public sector transition programs for employees in workplaces without collective agreements.
The agency operates from three locations: its headquarters in Stockholm, with additional offices in Karlstad and Härnösand.
Centuries of History and Evolution
Kammarkollegiet was established in 1539 by King Gustav Vasa, originally tasked with managing Sweden’s financial and legal matters. Initially serving as an accounting office for the kingdom, it played a critical role in the centralisation of state functions during Sweden’s transition from a medieval society to a modern state. Over time, the agency expanded its remit, adapting to Sweden’s evolving needs. Today, it stands as Sweden’s oldest government institution.
Asset Management: A Key Pillar
At the heart of Kammarkollegiet’s operations is its Asset Management Department, which manages investments exceeding SEK 170 billion (approx. €15 billion). This includes funds from state and ecclesiastical organisations, as well as the Swedish Inheritance Fund. This fund, in Swedish allmänna arvsfonden, is a state-managed fund that receives assets from deceased individuals without heirs or wills, using the proceeds to finance projects that benefit children, young people, and individuals with disabilities.
The assets of the Swedish Inheritence Fund are invested in equity (58% of which 38% Swedish shares and 20%foreign shares), fixed income (27& of which 16% in Swedish traditional fixed income and 11% in corporate bonds). In addition, 12% is currently invested in real estate funds and 2% in private equity. The remaining 2% are invested in cash.
For all its clients, Kammarkollegiet’s Asset Management Department offers a wide range of financial products and investment strategies, managing equities and fixed-income securities across global markets. The agency’s approach emphasises prudent risk management, focusing on delivering stable, long-term returns.
Sustainability at the Core of Investments
A distinguishing feature of Kammarkollegiet’s investment activities is its commitment to sustainability. The agency incorporates environmental, social, and governance (ESG) criteria into its decision-making processes, aligning its financial objectives with societal and environmental goals.
For instance, Kammarkollegiet has made notable investments in green bonds, such as those issued by Skanska, to fund sustainable construction projects.
Kammarkollegiet’s sustainable investment policy integrates ESG considerations into its asset management practices. This approach is applied across all actively managed consortia, focusing on selecting companies with sustainable business models to achieve long-term returns. The policy involves both positive selection of companies demonstrating strong ESG performance and exclusion of those primarily engaged in controversial sectors such as alcohol, tobacco, commercial gambling, military equipment, weapons, fossil fuels, and pornography. Additionally, companies violating international norms and conventions are excluded from investments. In passive management, a negative screening process is employed to avoid investments in companies that do not meet these established criteria.
Broader Activities and Partnerships
Beyond investments, Kammarkollegiet plays a central role in Sweden’s administrative and operational framework. It facilitates procurement agreements for state authorities, helping secure cost-effective solutions for goods and services. Recent agreements include partnerships with Poolia for recruitment services and Kinnarps for furniture procurement, showcasing its extensive influence on public-sector operations.
In this context the agency has prioritised partnerships with organisations that demonstrate a commitment to reducing environmental impact. In 2022, the agency extended its agreement with Scandinavian Airlines (SAS), driven by the airline’s pledge to cut carbon emissions and increase the use of sustainable aviation fuels.
The agency also provides insurance services tailored to the needs of state authorities, covering areas such as property, personnel, and travel. Additionally, it oversees the certification of translators and interpreters, ensuring high-quality language services for government and public use.
Balancing Tradition and Modernity
As Kammarkollegiet continues to play a vital role in managing the Swedish Inheritance Fund and other assets, the future of the fund itself remains uncertain. Recent audits and governmental reviews have raised questions about the viability and effectiveness of the Swedish Inheritance Fund, with proposals to potentially phase out the fund in favour of alternative systems. While the fund has historically provided significant support for vulnerable groups, these discussions reflect broader societal debates about the most efficient and equitable ways to manage public resources. As these deliberations unfold, the Swedish Inheritance Fund stands at a crossroads, with its legacy and impact hanging in balance amidst calls for reform and modernisation.
