February 19, 2019
- AP3 reported a net result of SEK 2,202 million (28,239) for the 12 months ended 31 December 2018.
- Return totalled 0.7% (8.9) before expenses and 0.6% (8.8) after expenses.
- AP3 made payments of SEK 6,773 million (7,375) to the pension system during the year.
- Fund capital at year-end was SEK 340,668 million (345,239).
- AP3’s average annual return in the last five years stands at 7.8%. The income index, the reference used to keep pension credits and pensions in line with average wage increases, has risen by an annual rate of 2.0%.
- In 2018 the Fund achieved the four sustainability goals set in 2014, including doubling strategic sustainable investments – which now stand at SEK 28.5 billion.
- Since inception in 2001, AP3 has outperformed its long-term target of an annual average real return of 4%.
“I am pleased to report a positive return of 0.6% at the end of a year in which equities, our most important asset class, generated a negative contribution to total return of 4.7 percentage points. However, thanks to our real estate investments, other unlisted assets and our currency positions we succeeded in more than offsetting this weak market return,” comments AP3 CEO Kerstin Hessius.
“The net result for the year highlights the importance of our long-term investment strategy comprised both of listed and unlisted assets. We therefore welcome the new investment rules that came into force in 2019 as they promote the integration of sustainable practices and portfolio diversification.”
|31 Dec 2018||31 Dec 2017|
|Net result, SEK bn||2.2||28.2|
|Net payment to the pension system during year, SEK bn||6.8||7.4|
|Fund capital, SEK bn||340.7||345.2|
|Return after expenses, %||0.6||8.8|
|Operating cost ratio, percentage of assets under management %||0.06||0.06|
|Total management cost ratio, percentage of assets under management %||0.09||0.10|
|Real return after expenses, %||-1.4||6.9|
|Annualised real return after expenses, 10 yrs, %||7.4||5.1|
|Annualised return after expenses, 5 yrs, %||7.8||10.5|
|Annualised return after expenses, 10 yrs, %||8.5||6.1|
|Annualised income index, 5 yrs, %||2.0||2.4|
|Annualised income index, 10 yrs, %||2.7||3.0|
For further information, please contact:
Kerstin Hessius, CEO. Tel: +46 (0)8 55517100
Kristina Hedberg, Assistant to the CEO. Tel: +46 (0)8 55517100
AP3 is one of five funds that serve as a capital buffer for the Swedish state pension system. The Fund had SEK 340.7 billion of assets under management as at 31 December 2018. AP3 is tasked by Parliament with generating maximum possible benefit for the pension system by managing its fund capital so as to deliver strong investment returns at a low level of risk.