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Sweden’s AP1 records 9.7% return at end of 2020
Investors - MARCH 1, 2021

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Sweden’s AP1 records 9.7% return at end of 2020

by Kali Persall

Swedish pension fund AP-fonden (AP1) has delivered a 9.7 percent return at the end of 2020, with SEK 392.6 billion ($46 billion) in assets under management at year-end.

The fund reported SEK 34.8 billion ($4 billion) in net investment income, with SEK 7.9 billion ($934 million) transferred to the national income pension system.

In addition, costs were cut by SEK 123 million ($14.5 million), a 29 percent decrease year-over-year, and the equity portfolio’s carbon footprint was reduced by 46 percent.

“During a challenging year, we have successfully steered the portfolio as well as nimbly adjusted both our exposures and our work practices,” said Kristin Magnusson Bernard, CEO of AP1. “The board of directors’ decision to stop investing in companies with fossil-fuel businesses was implemented during 2020, which led to a reduction of our listed equity portfolio’s carbon footprint by 46 percent as well as reduced its financial risk.”

Magnusson Berna

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