Pension plan – how will I invest?

In Sweden the pension is run by the Swedish Pension Agency (Pensionmyndigheten). In my blog I will mostly write about my private savings. From the pension the Ocupational pension (Tjänstepension) and the Premium Pension are the ones you can somewhat decide what you want to invest in. The fees are heavliy reduced when you buy through the pension fund. Longterm high fees could decrease the returns significantly. I’m in my 30s and I won’t be able to access my pension until I’m 60-65 years old. I will not decrease my risk for awhile.

Premium Pension:

FundSelected distributionCurrent distributionFeeRisk(60 m.)Return
BlackRock – World Mining A2 45 %45 %0,57 %Very high+7,7%
AP7 Fixed Income Fund55 %55 %0,04 %Very low+0,0%
5300 USD

Occupational Pension:

FundSelected distributionCurrent distributionFeeRisk(60 m.)Return
Nordea Global Dividend Fund10 %7 %0,50%High-7,72%
Nordea Obligationsfond korta placeringar II90 %93 %0,15%Very low-0,69%
11000 USD + 4000 USD
I recently received 4000 USD which affected the current distribution.

Current investment:
Premium Pension: approx. 5300 USD
Occupational Pension: approx. 11000 USD + 4000 USD
Income Pension: approx. 40000 USD
Total: 60300 USD

Plan:
The plan is to avoid stocks, look for hedges like precious metals or markets I think will do well. Stay diversified and stay in cash while biding my time.

For the Premium Pension I have placed 45% in a mining fund. The rest, 55% in low risk bonds. There are many similarities with the depression in the late 1920s. Read gold stocks during the depression. The mining stocks seemed to have increased several times especially the yeas after the initial crash. I’m not able to invest in mining stocks through my occupational pension account so I will change it in this. I will move aggressively. I also decided to invest some in a Technology Fund with top stocks of Mastercard, Alphabet, Intel and Apple.

New distribution:
40% Blackrock World Mining A2
40% Blackrock World Gold A2
10% Swedbank Robur Technology A
10% AP7 Fixed Income Fund

As for my Occupational Pension I can only buy my bank Nordeas funds. I switched last year because I wanted access to the Nordea Global Dividend Fund. However things have changed. Nordea Obligationsfond korta placeringar II are bonds with a low risk. There aren’t many options but stocks which I do not want at the moment. I did find one hedge in Nordea Alpha 10 MA Fund which is a hedge fund.
I do want to be a bit exposed to the Asian markets, especially the Chinese. I found Nordea Asian Fund with top holdings of Alibaba, Tencent, Taiwan Semiconductor and Samsung.
I also decided to diversify my bonds to more long term ones.

The changes for both pension accounts will be made directly but will take effect during this or next week. I think there is a delay of 4-5 days trading days.

New distribution:
35% Nordea International Fund – Obligationsinvest (mostly longterm Swedish bonds)
30% Nordea Obligationsfond korta placeringar II (mostly short term Swedish bonds)
20% Nordea 1-Alpha 10 MA Fund HB (I think it’s link)
10% Nordea Global Dividend Fund
5% Nordea International Fund – Asian Fund

I will sell all of my shares in Nordea Global Dividend Fund the coming month or two. I expect it to bounce up a bit more. The bear market that started in 1929 lasted about 3 years with several record breaking bear market rallies during. I guess if it plays out the same way there is no point in buying most stocks or index funds until the bottom is in.

Leave a Reply

Your email address will not be published. Required fields are marked *