AP3 reports 0.7 per cent return for the first half of the year

AP3’s CEO’s Staffan Hansén comments on the return for the first half of the year:

“AP3 ended the first half of the year with a return of 0.7 per cent after expenses. Listed equities and fixed income investments made the largest positive contributions to the return.

 However, the volatile movements in global equity markets contributed to the equity management return underperforming its benchmark index by 0.45 per cent. Fixed income management navigated the turbulence with a steady hand, outperforming its benchmark index by 0.56 per cent.

 The appreciation of the krona had the largest negative impact on the return, as the value of the Fund’s foreign investments decreased measured in Swedish krona. In alternative investments, the Fund’s portfolio of real estate, unlisted equities, infrastructure and forests delivered a positive return, but not in line with our expectations.

 In the run-up to ‘Liberation Day’ on 2 April, the Fund reduced its equity weighting, providing breathing space during the sharp falls in world stock markets. In the turbulence, the equity weighting could be increased again. In summary, the return reflects a challenging first half of the year with large and abrupt changes in financial markets.”

 Other significant events

• AP3 and AP4, in partnership with AP1, have made good progress in preparing to implement the Government’s decision to take over AP1’s financial assets at the year-end.
• During the first half of the year, AP3 continued to work closely with AP4 on the implementation of a new, cloud-based portfolio system, which will go live in the autumn.
• In the AGM season from July 2024 to June 2025, AP3 voted on more than 11,000 motions at 924 foreign AGMs. It has also voted on 4,000 motions at the 142 Swedish AGMs held so far this year. Find out more about this and AP3’s four focus areas in AP3s’s Stewardship Report.
• Work to implement AI to support operations continues. This is leading in part to increased precision in decision-making data and improved risk management through AI-based analyses in the investment process. Overall operational efficiency is increasing and time is being freed up for more value-creating work.

Earnings and receipts

• AP3’s profit for the first half of 2025 was SEK 3,974 million (35,434).
• AP3’s total return was 0.7 per cent (7.1) after expenses.
• The Fund’s full-year asset management costs were 0.07 per cent (0.07), of which operating expenses were 0.06 per cent (0.06).
• AP3’s fund capital was SEK 550,618 million (549,054 as at 31 December 2024).
• From the fund capital, SEK 2,410 million (866) 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 2025.
• AP3 had a return of 8.5 per cent (8.8) on average per year over the last five-year period and 7.8 per cent (8.7) over the last 10-year period.

Summary of AP3’s earnings as at 30 June 2025

	30 June 2025	30 June 2024	31 Dec 2024
Fund capital, 31 December, SEK bn	550.6	534.3	549.1
Profit for the period/year, SEK bn	4.0	35.4	51.3
Net flow to pension system, SEK bn	-2..4	-0.9	-2.0
Fund capital, 1 January, SEK bn	549.1	499.8	499.8
Return after expenses, %	0.7	7.1	10.3
Real return after expenses	0.2	6.4	9.4
Asset management costs. Operating expenses as a percentage of assets under management *	0.06	0.06	0.06
Asset management costs. Commission expenses as a percentage of assets under management *	0.01	0.01	0.01
Total asset management costs as a percentage of assets under management	0.07	0.07	0.07
Annualised return after expenses, 5 years, % **	8.5	8.8	8.2
Annualised return after expenses, 10 years, % **	7.8	8.7	8.4
Real annualised return after expenses, 10 years, % **	4.7	5.8	5.3

* 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.

AP3's Interim report 2025

For further information, please contact:

Lil Larås Lindgren, Head of Communications. Tel.: +46 (0)8 555 17 123 lil.lindgren@ap3.se