AP3 withstands challenging 2022
Press release
22 February 2022
Staffan Hansén, new CEO of the Third Swedish National Pension Fund (AP3) since 31 October, commented:
“As an investor, we are always affected by major global movements in the financial markets, but given the general performance of markets over the year, the return should be regarded as reasonable.”
2022 in brief:
- The return was -5.8% (20.7) percent after expenses
- Fund capital stood at SEK 468.4 billion (502.3)
- The asset management cost ratio was 0.08% (0.08), of which operating expenses were 0.05% (0.05)
- Disbursements to the pension system from AP3 totalled SEK 4.7 billion (7.5)
- Average annual return after expenses was 8.1% for the last 5 years and 9.3% for the last 10 years.
- AP3’s alternative investments returned 8.9%, mainly due to investments in
infrastructure and timberland - AP3 developed sustainability goals in the focal areas of corporate governance, climate, human rights and biodiversity.
AP3 has contributed to strengthening the pension system over time. Since its inception in 2001, AP3 has generated an annual average return of 6.4%, while the income index, which determines the adjustment of pension credits and pensions, has risen by the equivalent of 3.0%.
| Key figures | 31 Dec 2022 | 31 Dec 2021 |
|---|---|---|
| Net result, SEK bn | -29.2 | 86.8 |
| Net payment to the pension system, SEK bn | 4.7 | 7.5 |
| Fund capital, SEK bn | 468.4 | 502.3 |
| Return after expenses, % | -5.8 | 20.7 |
| Total operating expenses as a percentage of assets under management, % | 0.08 | 0.08 |
| Management expenses as a percentage of assets under management, % | 0.05 | 0.05 |
| Annualised income index, 5 yrs, % | 2.9 | 2.8 |
| Annualised income index, 10 yrs, % | 2.7 | 2.7 |
| Annualised return after expenses, 5 yrs, % | 8.1 | 11.3 |
| Annualised return after expenses, 10 yrs, % | 9.3 | 11.1 |
| Real return after expenses, % | -16.1 | 16.2 |
| Annualised real return after expenses, 10 yrs, % | 6.8 | 9.8 |
AP3 Annual report 2022 can be downloaded here (only in Swedish now but in English later on in March)
For further information, please contact:
Lil Larås Lindgren, Head of Communications. Tel.: +46 (0)8-555 17 123 lil.lindgren@ap3.se
AP3 is one of five funds that manage capital on behalf of the Swedish state pension system. At 31 December 2022, the Fund had SEK 468.4 billion under management and an annual return of -5.8%.
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 the Third Swedish National Pension Fund at www.ap3.se