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AP3 reports strong results for 2014

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– and publishes annual report containing pensions discussion and sustainability report

  • AP3 reported income of SEK 34,977 million (32,398), representing a total return of 13.8% before expenses and 13.7% after expenses.
  • Equities and currencies were the largest positive contributors to income.
  • Fund capital stood at SEK 288,332 million at year-end, up SEK 29,857 million from the prior year.
  • AP3 made payments to the pension system totalling SEK 5,210 million.
  • Since inception in 2001 the Fund has achieved its target of a 4% annual real return over time.
  • AP3 has outperformed the benchmark portfolio by an average of 2.5 percentage points in the last three years.
  • The Fund extended the process of implementing environmental and social governance across asset management operations and also measured the equity portfolio's carbon footprint.

AP3 CEO Kerstin Hessius said: “I am proud to report yet another record year, with income of SEK 35 billion representing a total return of 13.7%. Since inception in 2001 we have attained our long-term target of an average annual real return of 4%. The fact that the income index has risen by 3.1% during this time means we have accomplished our mission within the pension system."

“Since 2009, the AP funds have together paid out SEK 100 billion to cover the deficit in the state income pension scheme. AP3 has contributed a quarter of this amount. At the same time, the AP funds have made a growing contribution to the pension system’s long-term financing. Our combined fund capital now exceeds 13% of total pension system assets, compared to 10% at inception.”

Discussion about the pension system
The 2014 annual report carries an article based on a three-way discussion between two of the architects of the current pension system, Anna Hedborg and Bo Könberg, and AP3 CEO Kerstin Hessius. The meeting, which took place in early January this year, discussed how the system has evolved. Anna Hedborg and Bo Könberg shared similar perspectives on the system's success but differed on their view of the future for the AP funds.

Sustainability report
For 2014 the annual report includes a sustainability report, which takes a closer look at social and environmental governance-related issues.

The English versions of the annual and the sustainable report will be available in March.

For more information please contact:

Kerstin Hessius, CEO, +46 8 555 17 100, kerstin.hessius@ap3.se
Lil Laras Lindgren, Head of Communications, +46 8 555 17 123, lil.lindgren@ap3.se

The Third Swedish National Pension Fund (AP3) is one of five buffer funds – known as AP funds – within the Swedish pension system. Together, the five funds hold around 13% of Sweden's income pension system assets. AP3's fund capital totalled SEK 288,332 million at 31 December 2014. The Fund paid SEK 5,120 to the Swedish Pensions Agency during the year to cover the deficit between pension contributions and liabilities. See www.ap3.se for further information about AP3's mission, our asset management operations and our role as an institutional shareholder.

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