Investment policy
The Board of the Nuclear Waste Fund establishes an investment policy annually.
The purpose of the policy is to provide rules for the investment of the Fund´s assets. The policy sets the goal for rate of return while defining the division of responsibilities between the Fund´s Board of Governors and the Legal, Financial and Administrative Services Agency. The policy stipulates how different risks are controlled and limited and how the results of fund management are reported.
The standard portfolio consists of
· 70 percent investments with a nominal rate of return.
· 30 percent investments with a real or index-linked rate of return.
The percentages refer to the market value of the capital in the Fund.
The comparison index is a composite index consisting of
· 30 percent OMRX Real Return Bond Index (OMRX REAL)
· 70 percent OMRX Bond Index (OMRX BOND)
OMRX REAL is used as the comparison index for the part of the portfolio with index-linked investments. This index consists wholly of index-linked bonds issued by the Swedish state.
OMRX BOND is used as the comparison index for the part of the portfolio with fixed-income investments. This index currently consists of about 30% fixed-income bonds issued by the Swedish state and about 70% covered bonds issued by Swedish banks and housing finance institutions.
The goal is — taking into account the restrictions imposed by the Government on the investment activities — to achieve the highest possible real return on the managed capital.
By “real return" is meant the nominal return less inflation, measured as the percentage change of the consumer price index during the measurement period.
The goal is that the Fund´s nominal return over a five-year period should exceed the strategic portfolio´s comparison index by an average of 0.25 percentage point per annum with an active risk between 1.0 and 2.0 percent
Active risk is a measure that describes the standard deviation of the difference between the Fund´s performance and the performance of the normal portfolio. Another name for this measure is “tracking error".
Standard portfolio
The standard portfolio consists of
· 70 percent investments with a nominal rate of return.
· 30 percent investments with a real or index-linked rate of return.
The percentages refer to the market value of the capital in the Fund.
Comparison index
The comparison index is a composite index consisting of
· 30 percent OMRX Real Return Bond Index (OMRX REAL)
· 70 percent OMRX Bond Index (OMRX BOND)
OMRX REAL is used as the comparison index for the part of the portfolio with index-linked investments. This index consists wholly of index-linked bonds issued by the Swedish state.
OMRX BOND is used as the comparison index for the part of the portfolio with fixed-income investments. This index currently consists of about 30% fixed-income bonds issued by the Swedish state and about 70% covered bonds issued by Swedish banks and housing finance institutions.
Long-term goal for real return
The goal is — taking into account the restrictions imposed by the Government on the investment activities — to achieve the highest possible real return on the managed capital.
By “real return" is meant the nominal return less inflation, measured as the percentage change of the consumer price index during the measurement period.
Goal of Legal, Financial and Administrative Services Agency´s management
The goal is that the Fund´s nominal return over a five-year period should exceed the strategic portfolio´s comparison index by an average of 0.25 percentage point per annum with an active risk between 1.0 and 2.0 percent
Active risk is a measure that describes the standard deviation of the difference between the Fund´s performance and the performance of the normal portfolio. Another name for this measure is “tracking error".
Uppdaterad av: Anna Major, 2012-05-14 13.32
Kärnavfallsfonden, c/o Kammarkollegiet, Box 2218, 103 15 Stockholm, Tel: 08-700 08 00, Fax: 08-20 38 81, E-post: karnavfallsfonden@kammarkollegiet.se