Interim report 1 January-30 June 2011

• The debt crisis in Europe, political turmoil in North Africa and the Middle East, the earthquake in Japan and slower economic growth in the United States were the backdrop for the first six months of 2011. Together, these factors led to uncertainty and weakness on financial markets.

• Profit for the first six months was SEK 3,449 million (4,034), representing a return of 1.6% (2.0) before expenses and 1.6% (1.9) after expenses.
  
  
• Fund capital stood at SEK 224,094 million on 30 June, an increase of SEK 3,265 million since
  1 January.

• Payments of SEK 184 million to the pension system had a marginal impact on fund capital.

• Since inception in 2001, AP3 has generated a nominal annual return of 4.0%, outpacing the income index that is used to keep pension credits in line with inflation. The real annual return (minus inflation) stands at 2.3% during this period.
  
  
• Turbulence on global equity and fixed income markets intensified after the reporting date, with an adverse impact on AP3's fund capital.

“The first six months were marked by uncertainty on financial markets. Foreign exchange exposures made a negative contribution to the overall result but portfolio diversification lifted returns, with private equity and real estate recording strong gains”, says Kerstin Hessius, CEO of AP3.

AP3 will publish its annual corporate governance report in Swedish today and in English next week. The report presents the Fund’s corporate government strategy for the Swedish and global portfolios and the main focus issues at corporate AGMs during the last 12 months.

AP3’s interim report 2011 and AP3s governance report can be down loaded from www.ap3.se.

For more information please contact:
Christina Kusoffsky Hillesöy
Head of Communications
Phone: +46 8 555 17 123, christina.hillesoy@ap3.se

AP3 is one out of five buffer funds within the Swedish National Pension System. The Fund has SEK 224.1 bn assets under management. Read more about AP3 on www.ap3.se.