SWEDEN – AP2 has reported an overall half-year return of 4.3%, thanks in part of Swedish equity returns of nearly 9% and despite losses on its fixed income portfolio.
The buffer fund’s SEK248bn in Swedish and non-domestic equities returned 8.8% and 7.6% respectively. The alternatives portfolio brought in 6.3%,
But a 0.7% loss on fixed income holdings held overall returns back at the 4.3% level, with a return of just 3.9% for the listed asset portfolio.
Commenting on the results, chief executive Eva Halvarsson said: “It is pleasing that all asset classes once again outperformed against the benchmark index, thereby generating a net contribution of SEK0.4bn.”
AP2, in common with the Swedish system’s other buffer funds, contributed SEK3.1bn towards pension payments last quarter. The 4.3% return amounted to SEK10bn over the period.
Halvarsson added: “Over the past ten years, the fund has generated a real average annual return of 6%, which significantly exceeds our long-term target of an average annual real return of 5%.”
AP2 is the third of the AP funds to report half-yearly results. AP4 and AP3 both benefitted from a strong equity market, with AP4 highlighting the positive contribution of a weakening Swedish krona over the euro and dollar.
AP3 meanwhile noted in particular the returns from its Japanese equity investments, achieving an overall 5.4% return in the six months to June.
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