Sweden's Ministry of Finance has published a legislative referral proposing a new tax-transparent securities fund structure in Sweden, limited to certain categories of institutional investors. Under the proposal, the fund would not be a separate taxable entity and unitholders would be taxed on returns on an ongoing basis, creating a domestic fund option intended to compete with foreign tax-transparent funds. The new fund type would be a securities fund available only to institutional investors that manage pension assets or other capital on behalf of the public. This includes, for example, the state, municipalities, regions, life insurance companies and occupational pension companies. The ministry says the structure could provide a more cost-effective and tax-advantageous investment option for eligible investors and improve the competitiveness of Swedish fund companies. The proposal follows the Fund Market Inquiry's interim report En starkare fondmarknad (SOU 2025:60) submitted in May 2025. The legislative changes are proposed to enter into force on 1 January 2027.
Ministry of Finance (Sweden) 2026-05-13
Sweden Ministry of Finance proposes tax transparent securities funds for institutional investors from 1 January 2027
The Ministry of Finance (Sweden) has issued a legislative referral proposing a new tax-transparent securities fund structure limited to institutional investors managing pension assets or other public capital. The fund would not be a separate taxable entity, with unitholders taxed on an ongoing basis, aiming to offer a more cost-effective, tax-advantageous domestic alternative to foreign tax-transparent funds and enhance the competitiveness of Swedish fund companies.