The first Swedish state pension fund is to cut its staff by about a third and radically alter its investment style after poor performance pulled the value of its assets down by almost Skr50bn (€4.6bn) last year.

Sweden's AP1 pension fund has said in a statement today, ahead of its full-year results next week, that it will make 20 employees redundant and move others to different internal positions. The fund employed 66 staff at the end of June last year, 30 of which were directly or indirectly involved in making investment decisions, according to its half-year report published at the time.