AP3 reports a strong first half-year 2021
AP3 reported a positive net result of SEK 48,133 million (-3,090) for the first six months of 2021.
The total return was 11.4% (-0.8) after expenses.
The annualised asset management cost ratio was 0.09% (0.09), of which operating expenses totalled 0.05% (0.06).
Fund capital rose to SEK 466,887 million (422,974 at 31 Dec 2020), an increase of SEK 43,913 million.
SEK 4,220 million (4,200) was paid from fund capital to the Swedish Pensions Agency during the period to cover the difference between paid-in pension contributions and outgoing pensions and to meet pension system costs.
AP3 has generated an average annual return of 11.2% over the last five years and 9.7% over the last 10 years.
Return outperformed the LSP benchmark portfolio by 2.7 percentage points during the period.
CEO Kerstin Hessius:
“Our equity and alternative investment portfolios were the primary drivers of this strong performance. Fund capital rose by SEK 80 billion in the 12 months to 30 June, a period in which AP3 made net payments of around SEK 8 billion to cover the deficit in the state income pension system.”
Summary of AP3’s interim results at 30 June 2021 | 30-06-2021 | 30-06-2020 | 31-12-2020 |
|---|---|---|---|
Fund capital at 30 June, SEK bn | 466.9 | 386.4 | 423.0 |
Net result for the period, SEK bn | 48.1 | -3.1 | 37.2 |
Net payment to the pension system, SEK bn | 4.2 | 4.2 | 7.9 |
Fund capital at 1 January, SEK bn | 423.0 | 393.7 | 393.7 |
Return after expenses, % | 11.4 | -0.8 | 9.7 |
Real return after expenses, % | 10.8 | -0.5 | 9.1 |
Asset management cost ratio, operating expenses, percentage of assets under management* | 0.05 | 0.06 | 0.06 |
Asset management cost ratio, commission expenses, percentage of assets under management* | 0.03 | 0.03 | 0.03 |
Total asset management cost ratio, percentage of assets under management* | 0.09 | 0.09 | 0.09 |
Annualised return after expenses, 5.0 years, %** | 11.2 | 6.9 | 9.1 |
Annualised return after expenses, 10.0 years, %** | 9.7 | 8.4 | 8.7 |
Annualised real return after expenses, 10.0 years, %** | 8.7 | 7.2 | 7.7 |
Reports
For any further information, please contact:
Lil Larås Lindgren, Head of Communications, Tel: +46 (0)8 555 17123 lil.lindgren@ap3.se
AP3 is one of five funds that manage capital on behalf of the Swedish state pension system. The Fund had SEK 466,9 billion of assets under management as at 30 June 2021. AP3 is tasked by Parliament with generating maximum possible benefit for the state pension system by managing its fund capital responsibly and delivering strong investment returns at a low level of risk.