Första AP-fonden

Looking ahead during a time of transition

In the first half of 2023, global-fixed income and equity markets recovered from the sharp market downturn of the previous year. It seemed as if the world’s investors struggled to interpret risk, and between prolonged periods of slow activity, the tentative upturns grew almost unnoticeably stronger. Despite an uncertain and volatile market, Första AP-fonden contributed positively to the stability of the income pension system with a return of 6.6 per cent and reported net investment income of SEK 27.8 billion. Assets under management totalled SEK 446.4 billion at mid-year.

The Fund’s CEO Kristin Magnusson Bernard comments:

Once again, we exceed our target of 3 per cent real returns, with returns over a rolling ten-year period averaging 5.7 per cent. Positive earnings contributions came from listed equities and from foreign exchange, which offset the negative return from unlisted real estate. Cost levels remained low with a expense ratio of 0.06 per cent.

Rising inflation rates have been the main concern of global investors for some time now. During the spring, the rising inflation gradually subsided in many developed countries but remained well above the inflation target levels set by the world’s central banks. Market sensitivity to unexpectedly high inflation outcomes over the period was high, which is not surprising given that the central banks´ austerity measures were historically dramatic both in terms of pace and scope. Despite this, labour markets in many countries showed consistently strong performance and many financial reports exceeded analysts’ expectations.

In the hesitant, but over time positive market sentiment, we gradually increased the allocation to equity and the duration, i.e sensitivity to interest rate, returning to just above neutral levels after holding a more conservative position last year. The real estate companies we own have retained their excellent credit ratings and continuous access to capital.We have also committed to maintain our financing strategies to uphold the trust from investors.

In this current moment, there are no signs that the tragic invasion of Ukraine is coming to an end any time soon. Geopolitical tensions and energy dependencies will likely continue to affect the near-term investment climate and our world is likely to be characterised by great uncertainty, substantial market volatility and high cost of capital. Going forward, expected market returns are likely to be somewhat lower, but hopefully more sustainable, with viable business models being strengthened, and higher prices bringing about prudent management of limited resources.

Maintaining stability and creating returns in such an environment requires good governance and management. During the year, our Board initiated a review of our ten-year old governance model and risk framework. The aim is to ensure that our risk-taking framework provides us with the best conditions possible to fulfil our statutory mandate and that it is on a par with the most professional pension funds around the world.

On the brink of a new era, I very much look forward to continuing to develop Första AP-fonden together with our Board and our employees.

Key ratios

30 Jun 2023

30 Jun 2022

31 Dec 2022

Closing net assets, SEK bn




Net investment income for the period, SEK bn




Net flow to the pension system, SEK bn




Opening net assets, SEK bn




Expense ratio, Operating expenses, %*




Expense ratio, Commission expenses, %*




Total Expense ratio, %*




Return after expenses, %




Real return after expenses, %




Annualised return after expenses, 5 years, %**




Annualised return after expenses, 10 years, %**




Real annualised return after expenses, 10 years, %**




* In the six-month interim report, the expense ratio is calculated as the full-year effect.

** In the six-month interim report, the annualised return is calculated for 5 and 10 years respectively

Read the full half year report 2023 here



Kristin Magnusson Bernard, CEO Första AP-fonden
Kristin Magnusson Bernard, CEO Första AP-fonden


About Första AP-fonden

Första AP-fonden
Första AP-fonden
Regeringsgatan 67
111 56 Stockholm

08-566 202 00https://www.ap1.se/

Första AP-fonden (AP1)

Första AP-fonden (AP1) is one of five pension funds in the Swedish national income pension system (the AP Funds). AP1 has assets under management of SEK 446 billion (30 June 2023) in a portfolio consisting of listed equities, fixed income securities, currency, real estate, hedge funds, private equity funds, infrastructure and high yield. Investments are made worldwide. AP1 is a long-term investor and an active, engaged owner. As an owner the Fund imposes stringent demands in the areas of Environment, Social and Governance. www.ap1.se

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Latest releases from Första AP-fonden

On the brink of a new era22.2.2024 08:50:00 CET | Press release

Global fixed-income and equity markets recovered in 2023, after the sharp market downturns of the previous year. The year alternated between substantial upturns and sharp market downturns as investors tried to assess interpret the situation, and deal with the increased volatility. With carefully considered portfolio positions and a steady focus on implementation, Första AP-fonden achieved a return of 9.1 per cent, which corresponds to net investment income of SEK 38.0 billion.

På tröskeln till en ny tid22.2.2024 08:50:00 CET | Pressmeddelande

Globala ränte- och aktiemarknader återhämtade sig under 2023 från de kraftiga marknadsfallen föregående år. Under året växlade betydande uppgångar med kraftiga marknadsfall när investerare försökte tolka det svårbedömda läget och hantera den ökade volatiliteten. Med en noga övervägd portföljpositionering och ett fokuserat genomförande nådde Första AP-fondens avkastning 9,1 procent, vilket motsvarar ett resultat på 38,0 miljarder kronor.

Framåtblick i brytningstid20.7.2023 09:00:00 CEST | Pressmeddelande

Globala ränte- och aktiemarknader återhämtade sig under första halvåret 2023 från de kraftiga marknadsfallen föregående år. Riskbilden tycktes svårtolkad för världens investerare och mellan långa perioder av stiltje växte de trevande uppgångarna nästan obemärkt i styrka. Trots en osäker och volatil marknad bidrog Första AP-fonden (AP1) positivt till stabilitet i inkomstpensionssystemet med en avkastning på 6,6% och redovisade ett resultat på 27,8 miljarder kronor. Det förvaltade kapitalet uppgick vid halvårsskiftet till 446,4 miljarder kronor.

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