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AP3 reports a record return of 20.7%

Press release 21 February 2022

 

AP3 today announces the best annual results in its 20-year history, reporting a return for 2021 of 20.7% after expenses and a net result of SEK 86.8 billion. The Fund has delivered an average annual return of 11.1% over the last 10 years.

2021 in brief:

  • AP3 reported a net result of SEK 86.8 billion (37.2) for 2021.
  • Return totalled 20.8% (9.8) before expenses and 20.7% (9.7) after expenses.
  • The Fund made net payments of SEK 7,528 (7,902) to the pension system.
  • Fund capital stood at SEK 502,287 million (422,974), an increase of SEK 79,313 million from the prior year.
  • The asset management cost ratio was 0.08% (0.09), of which operating expenses were 0.05% (0.06).
  • Average annual return after expenses for the last five and ten years stands at 11.3% (9.1) and 11.1% (8.7) respectively.
  • AP3 has exceeded its long-term real return target, delivering an average annual real return of 5.5% since inception in 2001.
  • The Fund has made a positive contribution to the financial strength of the pension system, generating an average annual return of 7.0% since 2001. The income index, which governs pension credits and indexing, has risen by an annual average of 2.9% in this time.

AP3 CEO Kerstin Hessius commented: “We are proud to report an historic return of over 20% and an increase in fund capital to more than SEK 500 billion. We have grown from an initial portfolio of SEK 134 billion in 2001 into a fund worth SEK 502 billion today. During this time, we have paid out SEK 73 billion to the pension system in our role as a source of buffer capital, and, at the same time, helping to ensure the financial health of the system for future generations.”

Key figures31 Dec 202131 Dec 2020
Net result, SEK bn86.837.2
Net payment to the pension system, SEK bn7.57.9
Fund capital, SEK bn502.3423.0
Return after expenses, %20.79.7
Total operating expenses as a percentage of assets under management, %0.080.09
Management expenses as a percentage of assets under management, % 0.050.06
Annualised income index, 5 yrs, %2.82.8
Annualised income index, 10 yrs, %2.72.7
Annualised return after expenses, 5 yrs, %11.39.1
Annualised return after expenses, 10 yrs, %11.18.7
Real return after expenses, %16.29.1
Annualised real return after expenses, 10 yrs, %9.87.7

 

AP3’s annual report for 2021 (so far only in Swedish) is available for download here>>

www.ap3.se

 

For further information, please contact:

Lil Larås Lindgren, Head of Communications. Tel: +46 8 555 17123, lil.lindgren@ap3.se

AP3 is one of five funds that manage capital on behalf of the Swedish state pension system. As at 31 December 2021, the Fund had SEK 502.3 billion of assets under management and an annual return of 20,7%.

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. Read more about AP3 at www.ap3.se