Welcome to AP3
A responsible investor – for the current and future pensioners
AP3’s mission is to generate maximum possible benefit through responsible investment and management of the pension system buffer.
CEO’s comments on the return for the first half of the year
AP3 ended the first half of the year with a return of 0.7 per cent after expenses. Listed equities and fixed income investments made the largest positive contributions to the return. However, the volatile movements in global equity markets contributed to the equity management return underperforming its benchmark index by 0.45 per cent.
Fixed income management navigated the turbulence with a steady hand, outperforming its benchmark index by 0.56 per cent. The appreciation of the krona had the largest negative impact on the return, as the value of the Fund’s foreign investments decreased measured in Swedish krona. In alternative investments, the Fund’s portfolio of real estate, unlisted equities, infrastructure and forests delivered a positive return, but not in line with our expectations. In the run-up to ‘Liberation Day’ on 2 April, the Fund reduced its equity weighting, providing breathing space during the sharp falls in world stock markets. In the turbulence, the equity weighting could be increased again.
In summary, the return reflects a challenging first half of the year with large and abrupt changes in financial markets. Fortunately, both AP3 and the income pension system remain strong for the future. We also note that the “Pension Group” has now proposed to introduce a ‘gas mechanism’ in the system. The issue will be referred for consultation this autumn.
Staffan Hansén, VD AP3