Strong financial markets defied the uncertain economic outlook during the first half of the year

AP3 in brief half-year 2023

Earnings and receipts

• AP3’s profit for the first half of 2023 was SEK 25,689 million (-35,347).

• AP3’s total return was 5.5 per cent (-7.0) after expenses.

• The Fund’s full-year asset management costs were 0.08 per cent (0.08), of which operating expenses were 0.06 per cent (0.05).

• AP3’s fund capital was SEK 491,496 million (468,410 as at 31 December 2022).

• From the fund capital, SEK 2,602 million (2,013) was paid to the Swedish Pensions Agency to cover the difference between paid-in pension contributions and paid-out pensions and costs for the state income pension system during the first half of 2023.
Stewardship and sustainability

• The 2023 Corporate Governance report summarizes that the Fund has voted at the AGMs of 1,050 companies in 30 countries and on 13,000 motions. AP3 has chosen to support most of the motions from other shareholders and voted in favour of 7 out of 10 motions.

• Priority issues highlighted by AP3 include how companies should incorporate sustainability criteria in remuneration plans, gender-equal boards and ambitious climate strategies.

• AP3 has developed guidelines and expectations for portfolio companies’ sustainability work within the framework of AP3’s priority focus areas: Climate, Human Rights and Corporate Governance.

Summary of AP3’s earnings as at 30 June 2023.

	30-06-2023	30-06-2022	31-12-2022
Fund capital, SEK bn	491.5	464.9	468.4
Net result for the period, SEK bn	25.7	-35.3	-29.2
Net payment to the pension system, SEK bn	-2.6	-2.0	4.7
Fund capital at 1 January, SEK bn	468.4	502.3	502.3
Return after expenses, %	5.5	-7.0	-5.8
Real return after expenses, %	3.0	-11.7	16.1
Asset management cost ratio, operating expenses, percentage of assets under management*	0.06	0.05	0.05
Asset management cost ratio, commission expenses, percentage of assets under management*	0.02	0.03	0.02
Total asset management cost ratio, percentage of assets under management*	0.08	0.08	0.08
Annualised return after expenses, 5.0 years, %**	8.6	8.5	8.1
Annualised return after expenses, 10.0 years, %**	9.3	9.9	9.3
Annualised real return after expenses, 10.0 years, %**	6.6	8.0	6.8

 * The interim report measures the asset management cost ratio on a full-year basis

** The interim report also shows annualised return for 10 and 5 years, respectively.

The half-year report can be downloaded here

For further information, please contact:
Lil Larås Lindgren, Head of Communications. lil.lindgren@ap3.se