Stable execution and US stock market records contributed to strong performance

Net investment income amounted to SEK 44.6 billion, corresponding to a return of 9.9 per cent before expenses. Assets under management amounted to SEK 496.9 billion as of 31 December 2024 and during the year we transferred SEK 2.0 billion to the income pension system. Yet again we exceeded the target of 3.0 per cent real return over the last ten-year period, as the Fund’s average real return amounted to 4.4 per cent. Positive earnings contributions were mainly generated from the equity portfolio, with particularly good returns from foreign equities, while returns from unlisted assets contributed slightly negative. The Fund's continuous efforts to promote cost efficiency have further reduced the expense ratio to 0.05%.

“The most prominent market theme of the year for listed assets was the strong performance in the US stock market. US financial assets benefited from many factors such as strong household balance sheets, a dynamic labour market, interest rate cuts, extensive fiscal stimuli and a clear outcome in the presidential election. After a strong first half of the year, the Swedish and European stock markets were weaker in the rest of the year. Weaker economic development in Europe, together with expectations of increased trade barriers and geopolitical influence, were identified as the main drivers. We therefore increased our exposure to US small and large caps, reduced our exposure to Europe outside Sweden, and dynamically adjusted our currency positions and duration in fixed income assets. As long-term and committed owners, we acted during the year through nomination committees, voted at all general meetings and engaged in individual dialogues with companies to create the best possible conditions for them. We recognise that a profitable and sustainable climate transition remains a high priority in the business community, even if the transition rarely is simple nor follows a straight line. It is therefore important for us to responsibly support the companies we own towards a more sustainable development, at a pace that balances what the circumstances enable and what our future requires,” says Kristin Magnusson Bernard, CEO Första AP-fonden.

In October 2023, the government decided to investigate and propose measures to modernise and improve efficiency of the AP Funds' management. On 6 February 2025, the government submitted a referral to the Council on Legislation that means that AP1 will be consolidated into AP3 and AP4 and that the assets will be transferred. The legislative changes are proposed to enter into force on 1 January 2026.

“We continue to pursue high returns in a sustainable and trust-building manner in an increasingly complex world where systemic risks are becoming more important. Transparency, clear frameworks and accountability are key to support execution power, returns and trust among all stakeholders”, concludes Kristin Magnusson Bernard.

Key ratios	2024-12-31	2023-12-31	2022-12-31
Closing net assets, SEK bn	496.9	454.4	421.2
Net investment income for the period, SEK bn	44.6	38.0	-39.9
Net flow Pension system, SEK bn	-2.0	-4.8	-4.7
Opening net assets, SEK bn	454.4	421.2	465.8
Expense ratio, Operating expenses, %	0.05	0.06	0.05
Expense ratio, Commission expenses, %	0.00	0.00	0.01
Total expense ratio, %	0.05	0.06	0.06
Return before expenses, %	9.9	9.1	-8.5
Return after expenses, %	9.8	9.1	-8.6
Real return after expenses, %	9.0	4.7	-20.9
Annualised return after expenses, 5 years, %	7.7	8.7	6.7
Annualised return after expenses, 10 years, %	7.5	7.9	8.1
Real annualised return after expenses, 10 years, %	4.4	5.0	5.6
Weighted average carbon intensity tCO2e/SEK m 1)	5.1	5.9	7.1

^{1) The metric adds together each portfolio company’s carbon intensity, i.e. a company’s carbon emissions in relation to its turnover, weighted according to each company’s share in the portfolio.}

Download Första AP-fonden’s 2024 Annual Report here.