Första AP-fonden concludes its mandate – strong results after several years of focused transformation

“We are proud of the work that the entire organisation has done. Over many years, Första AP-fonden has shown that it is possible to combine high returns, responsibility, and efficiency for the benefit of todays and tomorrow’s pensioners,” says Eva Lindström, Chair of the Board.

Since its inception in 2001, Första AP-fonden has been tasked with managing part of Sweden's pension capital in a responsible, cost-effective manner and with good returns. During these years, the Fund has:

• Increased its assets under management from approximately SEK 134 billion to more than SEK 500 billion.
• Contributed with approximately SEK 67 billion to the pension system through annual net transfers to the Swedish Pensions Agency.

To enable strategic transformation of the Fund, the Board decided in 2020 to recruit Kristin Magnusson Bernard as the new CEO with a clear mandate for change.

“The change process implemented over the past five years has had a significant impact on the fund's performance.” says Eva Lindström.

• The average five-year return has increased to 8.2 per cent, compared to 5.8 per cent over the preceding five-year period. This represents an improvement in returns corresponding to more than SEK 40 billion.
• Total capital under management has increased by approx. SEK 130 billion over the past five-year period.
• Since 2020, management costs have decreased by almost 40 per cent, corresponding to savings of nearly SEK 1 billion.

The transformation has encompassed the entire business, from investment strategies, portfolio construction and capital allocation to risk, compliance and ESG. Investment strategies have been developed, sustainability work has been integrated into the entire management process, governance and control functions have been modernised, and digital solutions have streamlined operations.

Following the Swedish Parliament's decision to reduce the number of AP-funds, extensive winding-down and transition work has been carried out. This has been a challenging and complex undertaking, conducted under significant time pressure. The purpose of the work has been to ensure that the pension capital continues to be managed responsibly and with a long-term perspective.

Finally, the Board would like to express its special thanks to CEO Kristin Magnusson Bernard for her strong leadership. The Board would also like to thank all employees for their commitment and important contributions to the income pension system over many years.

For additional information, please contact:
Eva Lindström, +46 8-566 202 00, Chair of the Board Första AP-fonden

Sara Christensen, +46 709-681 250, Head of Communications Första AP-fonden