Första AP-fonden’s 2015 annual report
Four percent return and continued focus on long-term investments
Stockholm, 19 February 2016 – Första AP-fonden’s net investment income after expenses for 2015 amounted to SEK 11.3 billion. The return was 4,0 percent after expenses, which is in line with the Fund’s target. The average annual return of the Fund after expenses for the past 10-year period is 5.5 percent. Real return (i.e. adjusted for inflation) after expenses for the same 10-year period is 4.4 percent – above the Fund’s long-term target.
Highlights of the year (see also next page)
- Net investment income after expenses was SEK 11.3 billion (prev. year 36.4).
- Net assets increased by SEK 6.4 billion to SEK 290.2 billion.
- During the period, Första AP-fonden paid a net amount of SEK 4.9 billion (prev. year 5.1) to the pension system to cover the difference between pension contributions and disbursements.
- The Fund’s annual administrative expenses were SEK 493 million (prev. year 456), equalling 0.17 percent (prev. year 0.17) of assets under management.
CEO Johan Magnusson comments on the outcome:
“The return of 4.0 per cent after expenses in 2015 is decent considering the great market turbulence during the year. It is in line with the Fund’s target. We have contributed a result of SEK 165 billion in total since inception in 2001 to the pension system.”
Första AP-fonden continues to invest with a long-term approach, for instance through direct investments in real estate and infrastructure.
“We purchased, as part of a consortium, electricity distribution company Ellevio from Fortum. The company has already embarked on major investments to enhance delivery performance to customers.
We also formed a real estate company – Secore Fastigheter – together with ICA Fastigheter. The ambition is to allow Secore to grow further by acquiring further properties in which ICA stores are the main tenant,” comments Johan Magnusson.
Första AP-fonden also endeavours to create long-term sustainable value in a broad sense.
“As a long-term investor, it is natural to incorporate non-financial sustainability aspects into the investment analysis. Last year, we decided on a new overall sustainability strategy, in which we focus on resource efficiency. That means that we expect that the use of natural resources, human capital and financial capital shall take place responsibly,” explains Johan Magnusson.
| 31/12/2015 | 31/12/2014 | |
| Net assets at 31 December | SEK 290.2 bn | SEK 283.8 bn |
| Net investment income for the year | SEK 11.3 bn | SEK 36.4 bn |
| Net flow from the pension system | SEK -4.9 bn | SEK -5.1 bn |
| Net assets at 1 January | SEK 283.8 bn | SEK 252.5 bn |
| Operating expenses, annualised, % of AUM | 0.06% | 0.07% |
| Commission costs, annualised, % of AUM | 0.11% | 0.10% |
| Return after expenses | 4.0% | 14.6% |
| Real return after expenses | 3.9% | 15.0% |
| Annualised return after expenses 5.0 years | 7.7% |
| Annualised return after expenses 10.0 years | 5.5% |
| Real annualised return after expenses 10.0 years | 4.4% |
Contact
| Johan Magnusson, CEO | Ossian Ekdahl, Head of Communications and ESG |
| +46 709 681 209, ossian.ekdahl@ap1.se |
Första AP-fonden is one of five AP funds in the Swedish national income pension system. The capital reserves in the AP funds ensure that pension benefits can be paid even when disbursements from the pension system exceed contributions into it. Första AP-fonden has assets under management of SEK 290 billion (31 Dec. 2015) in a global portfolio comprising equities, fixed income securities, real estate, private equity funds and hedge funds. Första AP-fonden invests to achieve high and long-term sustainable return.
More information about the AP funds is available at apfonderna.se and about Första AP-fonden at ap1.se
Contact: Johan Magnusson Managing Director Tel: 46 8 566 20 200 Ossian Ekdahl Head of Communications and ESG 46 8 566 20 209 (office) 46 709 681 209 (mobile) e-mail: ossian.ekdahl@ap1.se
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