Första AP-fonden (AP1), which manages part of the capital in Sweden’s national income pension system, has reported a return of 5 percent after expenses in the first half of 2024. Net investment income was SEK 22.7 billion ($2.1 billion) and assets under management totaled SEK 476.2 billion ($45 billion) at midyear.
According to AP1, global equity markets rallied during the first half of 2024, while valuations of unlisted assets stabilized. The investment company cited a strong U.S. economy and slowly declining inflationary pressures as the main reasons for company and investor optimism.
Kristin Magnusson Bernard, the fund’s CEO, said AP1 has consistently exceeded its target of 3 percent real return during rolling 10-year periods, with an average return of 4.8 percent during the past decade. Positive contributions in the first half of 2024 came from listed equities, while the returns from unlisted assets such as real estate, private equity investments and infrastru