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Solid growth for AP3 in 2013

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Press release 21 February 2014

  • AP3 reported net profit of SEK 32,398 million (22,638) in 2013. This represents a total return of 14.2% before expenses and 14.1% after expenses.
  • Fund capital stood at SEK 258,475 million (232,956) at year-end, up SEK 25,519 million from the prior year. A net deficit in pension system inflows against outflows resulted in AP3 paying out SEK 6,880 million to the system during the year to help cover the shortfall.
     
  • Improved economic conditions, especially in the United States, provided the main backdrop to 2013. An easing of monetary policy combined with a gradual upswing in economic growth and low inflation lifted equity prices in North America and Europe, though stock markets lost ground in emerging markets.
  • In the 10 years from 2004 to 2013 AP3 generated a nominal annual return of 6.5%, which was higher than the 3.0% increase in the income index in this period. The income index is a benchmark used to keep pension credits in line with inflation.
  • The annual real return (adjusted for inflation) was 5.2% from 2004 to 2013, exceeding the Fund's target of a 4% average annual real return over time.

Kerstin Hessius, AP3 Chief Executive Officer, commented: "We were very pleased with our investment performance in 2013. Our return of 14.1% after expenses corresponded to a net profit of SEK 32.4 billion – our biggest profit in absolute terms since inception in 2001."

"The amount by which we are able to grow fund capital in absolute terms has a considerable impact on the pension system. On top of contributing SEK 6.9 billion to help cover pension outflows in 2013, AP3 also added SEK 25.4 billion to pension system assets. AP3’s total assets stood at SEK 258.5 billion at year-end.”

"This year's annual report includes a sustainability report that discloses our direct economic, environmental and social impacts. We see this year's report as a first step in our ambition to develop AP3's sustainability reporting."

For more information please contact:

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

AP3 is one out of five buffer funds within the Swedish National Pension System. The Fund has 31 December 2013 SEK 258,5 bn assets under management. Read more about AP3 on www.ap3.se.

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