AP7, one of Sweden’s five state pension funds, has less than 8 percent of its investments in bonds, and holds a very short duration of about two years. Pension funds across the OECD last year held on average more than 50 percent of their portfolios in bonds, according to a study released in June. That’s becoming costly in a world dominated by negative interest rates.

AP7 manages two funds, a 281 billion-krona stock fund and a 23 billion-krona fixed-income fund. Over the past two years, the stock fund has returned 10 percent on average, while the bonds has gained 1.4 percent.