The Swedish state pension fund has doubled an original investment in an engagement fund which targets small and mid-cap Japanese companies, and upped its allocation to a European activist fund.

The Fourth Swedish National Pension Fund (AP4) has invested a further 7 billion yen (£40.9 million) in activist fund manager Governance for Owners' Japan Engagement Fund in the first quarter, following an initial investment of seed capital when the fund was launched in March 2012.