AP3 delivers 6.0 per cent return in an eventful year

Staffan Hansén, CEO of AP3, comments:

“It has been an eventful year in which the Fund’s employees delivered excellent results on several fronts at the same time. This is also true of navigating the financial markets, where after a weak return in the first half of the year, the Fund rebounded strongly in the second half, posting a 6 per cent return.”

Net result and contributions:

• AP3’s net result totalled SEK 32.6 (51.3) billion
• AP3’s return was 6.1% (10.4) before expenses and 6.0% (10.3) after expenses. 
• AP3’s assets under management stood at SEK 577.1 (549.1) billion
• AP3’s asset management expense ratio was 0.08% (0.07), of which operating expenses were 0.07% (0.06)
• Net payment to the pension system from AP3 totalled SEK 4.6 (2.0) billion
• AP3’s annual average return after expenses was 7.5% (8.2) for the last five years and 8.3% (8.4) for the last 10 years
• AP3’s listed equities asset class returned 16.0% (17.4) and was the largest contributor to the return.
  
  

Other important events:

• On 31 January 2025, the Government Offices of Sweden announced that the Pension Group, in which all parliamentary parties are represented, supported the proposal for the assets of AP1 to be transferred in equal shares to AP3 and AP4. The decision to consolidate the AP Funds was prepared during the year and, at the year-end, AP1’s assets and liabilities were taken over.
• Larger capital has meant that new talent needed to be recruited. There were a record number of applicants for the positions advertised, with many highly qualified candidates.

• A modern, new, cloud-based, integrated system solution was implemented during the year, following intensive work by the Fund’s employees. This future-proof system infrastructure replaces several systems that support the entire business flow from analysis and order placement to portfolio management.
• Stewardship work has resulted, among other things, in the target for the proportion of female Board members in large companies having been exceeded. The proportion now stands at 43 per cent. The target for the proportion of companies in the portfolio with sustainability criteria in incentive programmes was also exceeded and the proportion now stands at 43 per cent. 
  
  

AP3’s key metrics	2025-12-31	2024-12-31
Assets under management at 31 Dec, SEK bn	577.1	549.1
Net payments to pension system, SEK bn	4.6	2.0
Net result, SEK bn	32.6	51.3
Return before expenses, %	6.1	10.4
Return after expenses, %	6.0	10.3
Total asset management expense ratio, %	0.08	0.07
Asset management expense ratio excluding commission expenses, %	0.07	0.06
Annual average return after expenses, 5 years, %	7.5	8.2
Annual average return after expenses, 10 years, %	8.3	8.4

AP3’s Annual Report 2025

The annual report in English will be published in March

About the Third Swedish National Pension Fund (AP3) 

AP3 is one of five buffer funds in the Swedish national pension system. At 31 December 2025, the Fund managed SEK 577.1 billion. Most of the assets under management are managed by means of active internal management and a smaller part by means of external passive management.

AP3 is mandated by the Swedish Parliament to manage the assets for the maximum benefit of the pension system by generating high returns at a low level of risk in an exemplary manner. The aim is to ensure that current and future pensioners benefit from a robust pension system.

Read more about AP3 at www.ap3.se    

National Pension Funds Act: National Pension Funds Act (2000:192) | Swedish Parliament