Another year of strong returns

AP3’s fund capital rose SEK 20.2 billion to SEK 212.2 billion in the year ended 31 December 2006 and net profit totalled SEK 18.6 billion, equal to a return of 9.5% after expenses.

AP3 has generated returns of SEK 59.9 billion since its inception in 2001, representing an annual average return of 5.7%. Real return (minus inflation) has averaged 4.2%.

Kerstin Hessius, AP3 Chief Executive Officer, said: “Thanks to four years of strong performance we have exceeded our target of a long-term real return of 4% per year. Together with the other buffer funds we have made a substantial contribution to the Swedish pension system.”
AP3’s active medium-term allocation strategy made a positive contribution to net profit, primarily by reducing exposure to foreign currency risk. At year-end, 8% of the portfolio was exposed to currency risk.

The listed portfolio underperformed the benchmark index in 2006, with active return totalling -0.2 percentage points. Over the last five years, AP3’s active management has outperformed the benchmark index by an average of 0.3% a year.

Annual report in full
Copies of the 2006 annual report in Swedish can be downloaded from the AP3 website at www.ap3.se.
An English version will be available mid March.

For further information please contact:
- Kerstin Hessius, CEO, phone: +46 (0)8 555 17100, kerstin.hessius@ap3.se
- Christina Kusoffsky Hillesöy, Communications Manager, phone: +46 (0)8 555 17 123,
mobile: +46 (0)709 517 223, christina.hillesoy@ap3.se

About Us

Swedish Third National Pension Fund (AP3) is one of five buffer funds in the Swedish income pension system. The Fund has the parliamentary mandate to manage the Fund's assets to the greatest possible benefit for the pension system by creating a high return at a low risk level. AP3 has a return of 9.3 percent on average per year over the past five years. The corresponding figure for the income is 2.4 percent, which means that AP3's return has greatly contributed to the pension system. As of 30 June 2015 managed fund 304 billion.

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