Sweden’s AP3 sees $5.5b positive return

Swedish pension fund AP3 has reported a positive net result of SEK 48 billion ($5.5 billion) for first half 2021.

The total return was 11.4 percent after expenses (compared to a –0.8 percent return in the same period of 2020) and the fund’s capital rose to SEK 466.8 billion ($53.6 billion), an increase of SEK 43.9 billion ($5 billion) since December.

“Our equity and alternative investment portfolios were the primary drivers of this strong performance,” said Kerstin Hessius, CEO of AP3. “Fund capital rose by SEK 80 billion ($9 billion) in the 12 months to June 30, a period in which AP3 made net payments of around SEK 8 billion ($919 million) to cover the deficit in the state income pension system.”

AP3 said the return outperformed the LSP benchmark portfolio by 2.7 percentage points during the period.