Swedish pension fund Andra AP-fonden (AP2) has reported a total return of –6.2 percent (after costs) in first half 2022. Despite historic financial market turbulence, however, alternative investments still generated positive returns.
The result amounted to a loss of SEK 27.3 billion ($2.6 billion), and the fund’s assets amounted to SEK 411.7 billion ($38.7 billion) at the end of first half 2022, according to AP2. During that period, SEK 2 billion ($188 million) was transferred to the pension system.
The pension fund attributed the results to Russia’s invasion of Ukraine and its effect on energy, food and commodity prices, as well as rising inflation levels.
“Primarily, it is listed asset classes that were negatively affected during the period,” said Eva Halvarsson, CEO of AP2. “However, the fund’s broad portfolio has mitigated the impact of the turbulent markets. It is positive that our alternative investments, which include unlisted real estate, p