Första AP-fonden’s semi-annual report 2012: Positive performance in a turbulent market
- Continued focus on long-term strategy
Stockholm, 7 september 2012 – Första AP-fonden’s net investment income after expenses for the first half of 2012 was SEK 9.7 billion (3.0), equal to a return of 4.5 percent (1.4). Net assets under management increased to SEK 221.3 billion. The period was marked by continued macroeconomic uncertainty and turbulence in the financial markets.
Measured over a rolling ten-year period, Första AP-fonden has delivered a return after expenses of 5.7 percent. The Fund’s long-term target is a return of 5.5 percent after expenses.
“It is satisfying that we have exceeded our long-term target over a ten-year period. Our return was also good in view of the current market conditions and the investment rules we are bound by,” says Johan Magnusson, Managing Director of Första AP-fonden.
In the first half of the year the Fund continued to pursue the long-term strategy to create a robust portfolio that is able to withstand market fluctuations. Part of this effort consists of the hedge fund initiative in which a large share of a total of SEK 10 billion was invested during the first half of the year and thereafter. In line with its strategy to be an active and engaged owner, the Fund further reduced the number of stocks in the internally managed equity portfolio during the period.
Highlights of the period
- For the first half of 2012 the Fund delivered net investment income of SEK 9.7 billion (3.0) after expenses. The period was marked by continued macroeconomic uncertainty and unrest in the financial markets.
- Return after expenses was 4.5 percent (1.4). The Fund’s administrative expenses amounted to SEK 161 million (137), which is equal to an annual expense ratio of 0.15 percent (0.13).
- Net assets under management rose by SEK 8.0 billion to SEK 221.3 billion. During the period, the Fund paid a net amount of SEK 1.7 billion (0.2) to the Swedish Pensions Agency.
- Exposure to alternative investments increased from 9,3 to 13,3 percent.
- The Fund has continued its efforts to create a more robust portfolio with lower risk.
Ossian Ekdahl, Head of Communications and ESG
+46 709-681 209
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 to the system. Första AP-fonden has assets under management of SEK 221.3 billion in a global portfolio consisting of equities, fixed income securities and alternative investments that include real estate, private equity funds and hedge funds. Första AP-fonden invests to achieve high long-term returns with a low level of risk.