AP1, AP2, AP3 and AP4 post record profits of SEK 316 billion in 2021
- The average return for the year was 19.3 per cent after expenses.
- The AP Funds’ average return over the past five years and the past ten years respectively is 10.5 and 10.7 per cent per year, compared with the performance of the income index of 2.8 and 2.7 per cent per year over the corresponding time periods. The income index is used to calculate pensions and pension entitlements in the income pension system. When the AP Funds’ return exceeds the performance of the income index, the AP Funds contribute to the strength of the pension system.
- At the end of 2021, the AP Funds’ total assets under management amounted to SEK 1 937 billion, corresponding to an increase of SEK 285 billion compared with the end of 2020.
- In 2021, the AP Funds paid out SEK 30 billion to cover shortfalls in the pension system. Since their start in 2001, the AP Funds have made a net contribution to the pension system of SEK 233 billion. At the same time, the Funds’ return has contributed to the financial strength of the pension system and the AP Funds’ share of the pension system now accounts for almost 18 per cent of pension assets, compared with 10 per cent in 2001.
- In accordance with the Paris Agreement, the AP Funds continued to work on climate change adapting of their portfolios during the year. In 2021, carbon emissions in the portfolios were reduced by a further 14 per cent. Of the year’s reduction in emissions, 5 percentage points were due to the portfolio companies reducing their emissions and 8 percentage points were due to the AP Funds’ portfolio adjustments.
- During the year, the Council on Ethics continued its important advocacy work in around 90 company dialogues with a focus on human rights, corporate governance and climate. As sustainability is increasingly being integrated into the Funds’ management strategies and objectives, at the end of 2021 a decision was taken to review the Council on Ethics’ mission and strategy.
Kristin Magnusson Bernard, CEO of AP1, Eva Halvarsson, CEO of AP2, Kerstin Hessius, CEO of AP3 and Niklas Ekvall, CEO of AP4, jointly commented:
"Our joint results for 2021 are our best ever and amount to as much as SEK 316 billion. We started in 2001 with assets under management of SEK 536 billion, which had grown to SEK 1 937 billion by the end of 2021. The AP Funds deliver long-term returns that have significantly exceeded the performance of the income index over time, which means that the AP Funds have contributed strongly to the stability of the pension system. From a 10-year perspective, the return has been very high, averaging 10.7 per cent per year. Internationally, we are considered to be a role model in sustainability and we have continued to develop this important work through both responsible investments and responsible ownership."
For more information, see the Funds’ annual reports and sustainability reports at www.ap1.se, www.ap2.se, www.ap3.se and www.ap4.se
For more information, contact:
Sara Christensen, Head of Communications, AP1, sara.christensen@ap1.se
Ulrika Danielson, Head of Communications, AP2, ulrika.danielson@ap2.se
Lil Larås Lindgren, Head of Communications, AP3, lil.lindgren@ap3.se
Karoline Hammar, Head of Communications, AP4, karoline.hammar@ap4.se
The AP Funds (AP1-AP4)
The AP Funds have a mandate from the Swedish Parliament to manage the buffer capital in the national pension system on behalf of the Swedish population for the benefit of current and future pensioners. The AP Funds’ asset management shall be conducted in an exemplary manner through responsible investments and responsible ownership. Particular emphasis must be placed on how to promote sustainable development without compromising on the overarching goal of being of the greatest possible benefit to the pension system. The AP Funds have the same mission, but different management strategies and are governed by the Act on National Pension Insurance Funds (2000:192).
About Fjärde AP-fonden
AP4:s uppdrag är att bidra till ekonomisk trygghet för dagens och morgondagens pensionärer genom att förvalta en del av det allmänna pensionssystemets buffert. AP4:s långsiktiga perspektiv, ansvarstagande som ägare och stora engagemang för hållbarhet skapar möjligheter för hög avkastning till låg kostnad. På så sätt verkar AP4 för tryggare pensioner.
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Latest releases from Fjärde AP-fonden
Good return in the first half of 202426.8.2024 10:26:32 CEST | Press release
The Fourth Swedish National Pension Fund's (AP4) return for the first half of 2024 amounted to 6.9 per cent after costs. As of the end of June 2024, AP4's fund capital amounted to SEK 533.3 billion, compared with SEK 499.6 billion at the beginning of the year. Profit for the first half of the year was SEK 34.6 billion. During the same period, SEK 0.9 billion was transferred net to the pension system.
God avkastning första halvåret 202426.8.2024 10:25:03 CEST | Pressmeddelande
Fjärde AP-fondens (AP4) avkastning för första halvåret 2024 uppgick till 6,9 procent efter kostnader. AP4:s fondkapital uppgick per sista juni 2024 till 533,3 miljarder kronor, att jämföra med 499,6 miljarder kronor vid årets början. Resultatet för första halvåret blev 34,6 miljarder kronor. Under samma period överfördes netto 0,9 miljarder kronor från AP4 till pensionssystemet.
AP Funds strengthen the Swedish income pension system by adding SEK 142 billion5.3.2024 09:10:00 CET | Pressmeddelande
The First-Fourth AP Funds performed well in 2023 and strengthened the financial position of the income pension system by SEK 142 billion. The result corresponds to an average return of 8.1 per cent. At year-end, the four funds managed total assets of SEK 1,880 billion. The net payments of the AP Funds to the pension system totalled SEK 19 billion. This contributes strongly to the stability of the income pension system and its mission to maximise benefits for current and future pensioners.
AP-fonderna stärker det svenska inkomstpensionssystemet med 142 miljarder kronor5.3.2024 09:10:00 CET | Pressmeddelande
AP-fonderna (AP1-AP4) summerar ett bra resultat för 2023 och stärker inkomstpensionssystemets finansiella ställning med 142 miljarder kronor. Resultatet motsvarar en genomsnittlig avkastning på 8,1 procent. Totalt förvaltade de fyra fonderna vid årsskiftet 1 880 miljarder kronor. AP-fondernas nettoutbetalningar till pensionssystemet var 19 miljarder kronor. Detta resultat bidrar starkt till inkomstpensionssystemets stabilitet och uppdraget att vara till största möjliga nytta för dagens och morgondagens pensionärer.
Good returns in uncertain times23.2.2024 08:23:33 CET | Press release
The Fourth Swedish National Pension Fund (AP4) reports a good return of 9.6 per cent after costs for the full year 2023. With a profit of SEK 43.9 billion, fund capital increased to SEK 499.6 billion after SEK 4.8 billion was transferred net to the pension system during the year. The portfolio's carbon dioxide emissions decreased by 11 per cent compared to 2022 and AP4 has reduced emissions by a total of 65 per cent since 2010. AP4 takes responsibility as owner and served on 56 nomination committees during the year.
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