Sixth Swedish National Pension Fund

High investment rate and stable return

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A good performance trend in the portfolio and a number of divestments sum this year's return to 8.2 percent (9.6). Over the past five-year period, the total portfolio has yielded an average annual return of 9.8 percent.

Net profit for 2019 amounted to SEK 2,858 (3,042) million, which corresponds to a return of 8.2 percent (9.6). The internal management costs amounted to SEK 95 (93) million.

In 2019, both the investment and sales rate were very high. SEK 8,1 billion in new investments have been made in the Fund and Direct investment portfolio. At the same time, sales have been made for SEK 5,6 billion. Through these transactions, the diversification and widening of the portfolio has been further strengthened and made the portfolio less cyclically sensitive and with a greater exposure in companies and industries that create value from underlying long-term trends.

AP6's mission is to focus entirely on investments in unlisted assets, which are illiquid and returns should be measured in the long term. The generally lower volatility, compared to listed companies, in combination with the long time horizon makes the asset class attractive for pension capital.

- We invest in funds that are good at value creation in their investments. AP6 has chosen to invest directly in some of these companies. With this year's investments and sales combined with those made in recent years, we are gradually building a robust portfolio with good long-term potential, says Katarina Staaf, Managing Director of the Sixth AP Fund (AP6).

AP6 has long integrated the sustainability work with the investment business. During the year, PRI, which is based on the UN principles for responsible investment, selected AP6 to be included in the PRI Leaders' Group together with some 50 other asset owner signatories. The group is considered to be at the forefront when it comes to responsible investment work.

For more information:
Ulf Lindqvist, Head of Communications AP6: +46 708 74 10 48
ulf.lindqvist@ap6.se



Sixth AP Fund (AP6)
Long-term and active investor with the mission to invest in unlisted assets. AP6 invests in funds and directly in companies. Since its inception, AP6 has contributed more than SEK 27 billion to the general pension capital. Since 1996, AP6's fund capital has grown from SEK 10,4 billion to SEK 37,5 billion at year-end 2019/20. Further information at www.ap6.se

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About Sixth Swedish National Pension Fund

Sixth Swedish National Pension Fund
Sixth Swedish National Pension Fund
Köpmansgatan 32
SE-411 06 Gothenburg - Sweden

+46 31 - 741 10 00https://www.ap6.se/en/

 

The Sixth Swedish National Pension Fund (AP6) differs from the other National Pension (AP) funds in the Swedish buffer capital system with its special mandate to invest in unlisted assets. AP6 specializes in private equity with a combination of Fund and Direct investments. Sustainability is an integral part of the investment process which includes models for ESG due diligence and monitoring. AP6 regards sustainability to be a prerequisite for achieving high returns in the long term.

 

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