The Swedish Fund Selection Agency’s preliminary procurement plan for 2027 indicates that target-date funds and balanced funds with equivalent risk profiles will be assessed within the same risk-based categories and procured in parallel. This represents a potentially significant structural shift on the Swedish premium pension fund platform. By consolidating these strategies within a common procurement process, the agency opens a segment historically dominated by Sweden’s major banks to a broader universe of both international asset managers and domestic providers. The approach may therefore increase competitive tension, broaden the range of investment solutions available to savers and challenge the established position of incumbent Swedish large-bank providers in the target-date funds category.
Balanced funds will be organised into three risk-based categories and procured simultaneously: Cautious, Balanced and Offensive. Allocation to these categories will be based on historical risk, the share of risky assets in the reference index and the current platform classification. Target-date funds with profiles equivalent to balanced funds will be included within the same risk-based categories and considered in the same procurement processes. At present, FTN does not foresee a separate procurement of target-date funds in 2027.
Assets under management in the category could reach SEK 440 billion.
Upcoming procurements
| Fund Category | Fund type | Management style | AUM* |
| Emerging Markets | Equity funds | Active management | SEK 15 bn |
| Emerging Markets | Equity funds | Passive management | SEK 9 bn |
| Swedish Long-Term Bond | Fixed Income funds | Active management | SEK 11 bn |
| Balanced, including equivalent Target-Date Funds | Mixed funds | Active management | SEK 60 – 440 bn |
