For the first six months of 2015 AP3 posted a result of 18.5 billion corresponding to a return of 6.4% excluding costs. A passive index portfolio would, for the same period, have reached a return of 3.9%. Thus, the contribution to the pension system was 2.6 percentage points, corresponding to 7.4 billion.
- AP3 generated a return of 6.4%, corresponding to a profit of SEK 18,483 million achieved for the first six months.
- Fund capital reached SEK 304,398 million, an increase of 16.1 billion during the period. 2,417 million was paid out to the Swedish Pensions Agency to bridge the difference between pension contributions and disbursements, including administrative expenses.
- AP3’s expenses on annual basis amounted to 0.12 percent.
- AP3 has generated an average annual return of 9.3% over the last five years. The corresponding figure for the Swedish Income Index is 2.9%. The Fund has thus made a substantial contribution to the pension system.
- Average annual real return since 2001 was 4.4%. Hence, AP3 has outperformed its long-term target of 4.0%.
- AP3 measures the carbon footprint of all listed equity holdings, real estate and timberland investments. The analysis of these holdings has shown AP3 portfolio to be close to carbon neutral overall.
Kerstin Hessius, AP3 CEO:
“The result shows the importance of skill in the asset management to the pension system. A passive index strategy had amounted 7 billion less for the first half of the year alone. Were we to measure for a longer period the difference is 18.5 billion. The choice to go for an investments strategy that implies somewhat higher cost has proven to be well invested.”
Kerstin Hessius adds:
“We are proud of a strong result but also for having a cost efficient and long-term sustainable asset management. A benchmark study has shown AP3’s expenses to be around 40% lower than those of a group of international pension fund peers. And our portfolio of assets is close to carbon neutral”.