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Alternative investments

Growing in importance

Alternative investments account for around 34% of the AP3 portfolio. They consist of private equity funds, real estate, infrastructure assets, timberland and insurance-related investments.

Alternative investments are the part of the AP3 investment model that has grown fastest in the last 15 years through allocations of assets from listed equities and fixed income instruments. Several factors are driving this trend, which is mirrored by many long-term investors at global level.

As of 12/31/2022

Alternative investments 34.9 percent of the portfolio
Return +8.9%
Contribution +2.7%

Learn more about AP3’s alternative investments

Real estate


Private equity


Insurance-related investments

Alternative investments in the AP3 portfolio as of 12/31/2022

Private equity funds 7.4
Real estate 18.6
Infrastructure 5.4
Timberland 3.1
Insurance risk 0.5

—”Alternative investments are well suited to create value based on AP3’s distinctive features. The illiquid aspect means that long-term investors can fully exploit the potential of investments such as real estate, infrastructure and timberland. For example, long-term investors have the opportunity to take advantage of attractive investment opportunities that may arise during times of stressed market conditions, times when other investors cannot be as competitive as AP3.”

Maria Björklund, Head of Alternative Investments, AP3

Did you know…?

Alternative investments for AP3 are not only unlisted. Today, there are mainly two exceptions to the rule that alternative investments are unlisted; the listed property company Sagax and within the asset class insurance-related investments.

Alternative investments are growing with new regulations

The mission of the AP funds is to make the greatest possible benefit for the income pension system by generating a high financial return in the long term. When the AP funds Act was revised, a change was made in the regulations for how the buffer capital can be invested, which meant increased opportunities to invest in unlisted assets. The main rule since the start in 2001 has been that the capital must be invested in above all listed assets and the proportion of liquid bond holdings must be high, at least 30 percent of the capital in bonds with low credit risk. With the revision of the AP Funds Act, 20 percent of the capital must be invested in liquid bonds with low credit risk, while 40 percent of the assets can be invested in illiquid assets. The AP funds may own unlisted shares via venture capital companies or through co-investment with venture capital companies, where the voting share in venture capital companies may amount to a maximum of 35%. Unlisted real estate companies are allowed to own a larger share of the AP funds. Investments in unlisted credits are made possible through a change in the AP Funds Act, via external managers or side investments with venture capital funds in which the fund is invested. 
The investments that AP3 has in real estate, infrastructure, forestry and unlisted companies via venture capital funds or companies are included in illiquid assets.