AP3 delivered 7.1 percent return first half of the year driven by the strong performance of the global equity markets
Staffan Hansén, CEO AP3:
“I am very pleased with the returns delivered by AP3 during the first half of the year. The equity allocation was gradually increased during the period, which paid off as the results were mainly driven by the strong performance of the global equity markets. I want to express my appreciation to all AP3 employees who are doing a fantastic job and delivering across the organisation.”
Summary of AP3’s result per June 30, 2024
Key financial data
AP3’s profit for the first half of 2024 was SEK 35,434 million (25,689).
AP3’s total return was 7.1 per cent (5.5) after expenses.
The Fund’s annualized asset management costs were 0.07 per cent (0.08), of which operating expenses were 0.06 per cent (0.06).
AP3’s fund capital was SEK 534,339 million (499,772 as of
31 December 2023).From the fund capital, SEK 866 million (2,602) was paid to the Swedish Pensions Agency to cover the difference between paid-in pension contributions and paid-out pensions and costs for the state income pension system during the first half of 2024.
AP3 had a return of 8.8 per cent (8.6) on average per year over the last five-year period and 8.7 per cent (9.3) over the last 10-year period.
Other highlights
The implementation of AP3’s new cloud-based portfolio system platform, carried out in close collaboration with AP4, continued to develop well and is expected to be completed as planned in the second quarter of 2025.
The asset management clarified its methodology, structure, roles, and mandates, and integrated AI into the asset management.
The Swedish government’s memorandum regarding the “Review of the Buffer Funds” was published on June 17. The consultation period runs until October 31.
In the spring, AP3 published the action plan for biodiversity with associated goals and expectations for the companies.
During the annual general meeting season from July 2023 to June 2024, AP3 voted at over 1,100 general meetings in 30 countries, which is virtually all meetings in the equity portfolio.
Please read this year’s Corporate Stewardship Report, which summarizes the fund’s corporate governance work and includes AP3’s four focus areas: Climate, Human Rights, Biodiversity, and Corporate Governance.
Read more at www.ap3.se
Summary of AP3’s earnings as at 30 June 2024
| 30 June 2024 | 30 June 2023 | 31 Dec 2023
|
|---|---|---|---|
Fund capital, 31 December, SEK bn
| 534.3
| 491.5
| 499.8
|
Profit for the period/year, SEK bn | 35.4
| 25.7
| 36.2
|
Net flow to pension system, SEK bn
| -0.9
| -2.6
| -4.8
|
Fund capital, 1 January, SEK bn
| 499.8 | 468.4 | 468.4 |
|
|
|
|
Return after expenses, % | 7.1
| 5.5
| 7.8
|
Real return after expenses, % | 6.4 | 3.0 | 3.2 |
|
|
|
|
Asset management costs, Operating expenses, per cent of assets under management* | 0.06
| 0.06 | 0.06 |
Asset management costs, Commission expenses, per cent of assets under management* | 0.01
| 0.02 | 0.02 |
|
|
|
|
Total asset management costs, per cent of assets under management* | 0.07
| 0.08
| 0.07 |
|
|
|
|
Annualised return after expenses, 5 years, %** | 8.8
| 8.6
| 9.6
|
Annualised return after expenses, 10 years, %** | 8.7
| 9.3
| 8.7
|
Real annualised return after expenses, 10 years, %** | 5.8 | 6.6 | 5.8 |
* The interim report measures the asset management cost ratio on a full-year basis.
** The interim report also shows annualised return for 10 and 5 years, respectively.
For further information, please contact:
Lil Larås Lindgren, Head of Communications. lil.lindgren@ap3.se
AP3 is one of five funds that manage capital on behalf of the Swedish state pension system. At 30 June 2024, the Fund had SEK 534.3 billion under management and an annual return of 7.1% after expenses. 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