Första AP-fonden’s return for 2016 was 9.3 per cent after expenses

Stockholm 23 February 2017 – Första AP-fonden’s net investment income for 2016 as a whole amounted to SEK 27.0 billion (11.3) after expenses. This equals a return of 9.3 per cent (4.0). Total net assets amounted to SEK 311 billion at the year-end. The real return for the past ten-year period was 4.3 per cent annually after expenses. Första AP-fonden’s target has therefore been exceeded in both the short and long term.

CEO Johan Magnusson comments on the year’s results:

“It feels good to be able to report strong results for 2016 with a return on assets under management of 9.3 per cent after expenses. The main contributions came from real estate as well as from allocation and foreign exchange. The strong results were achieved during a year characterised by turbulence in global politics and eventful financial markets.”

Since 2001 Första AP-fonden has delivered total net investment income of SEK 192 billion.

“Naturally it is satisfying that we have been able to help strengthen the Swedish pension system for so many years.”

In 2016 the Fund paid SEK 6.6 billion into the pension system.

“However, we face a challenge in maintaining the good development and reaching the target of a real return of 4 per cent on a rolling 10-year basis. This is due to several factors, such as the many uncertain market factors around the world as well as our relatively high percentage of fixed-income assets which are governed by the investment rules that apply to AP funds.

Första AP-fonden’s administrative expenses fell to 0.15 per cent in 2016 compared with 0.17 per cent in 2015.

“It is pleasing to note that our focus on cost efficiency has yielded results. We have continued to develop a more robust portfolio with a lot managed internally, which is cost effective. The parts that are managed externally are often more expensive, but they are expected to make a strong contribution after expenses. Analyses of the Fund’s expenses must, therefore, always be carried out from the perspective of the investment strategy.”

Highlights of the year

– Net investment income for 2016 amounted to SEK 27.0 billion (11.3) after expenses. This equals a return of 9.3 per cent (4.0).
– In real terms, the return was 7.6 per cent in 2016.
– The real return for the past ten-year period was 4.3 per cent, which is higher than the target of 4.0 per cent.
– Administration generated an excess return of SEK 4.2 billion (3.6) above the Fund’s strategic benchmark. The main contributions came from real estate as well as from allocation and foreign exchange.
– Första AP-fonden has disbursed SEK 36.6 billion since 2009, of which SEK 6.6 billion in 2016, to cover the contribution deficit in the income pension system.
– The Fund’s administrative expenses fell to SEK 458 million (493), equalling 0.15 per cent (0.17) of average assets under management.

Contact
Johan Magnusson, CEO

Anna Fall, Head of Communications
+46 (0)709 681 250
Första AP-fonden is one of five AP funds that ensure stability in the Swedish national income pension system.
Första AP-fonden shall be a world-class pension manager through long-term investments and the professional work of its employees. We manage assets worth SEK 311 billion (31 December 2016) in a global portfolio comprising shares, fixed-income securities and alternative investments. Our brief is to achieve the highest possible return with well-judged financial risks, and thereby to contribute to a high, predicable income pension for current and future pensioners alike.

Read the original press release pdf here.

2019

Första AP-fonden’s return for the first half of 2019 was 9.7 per cent after expenses

Första AP-fonden’s (AP1’s) positive net investment income of SEK 31.4 billion for the first six months of 2019 entails an increase in total net assets to SEK 352 billion as per 30 June. AP1 thereby exceeds the long-term target of a real return after expenses of 4.0 per cent over a rolling ten-year period. During the first six months of 2019, SEK 3.0 billion was transferred to the income pension system.

Första AP-fonden has decided to accept the public offer of Oriflame

Första AP-fonden har beslutat att acceptera det publika budet på Oriflame om 227 kronor per aktie.

The Council on Ethics of the Swedish AP Funds Annual Report 2018: New issues in focus during 2018

For more than 10 years, the AP Funds’ Council on Ethics has exercised influence on the AP Funds’ global portfolio of listed companies to improve their environmental, human rights and corporate governance work through engagement and dialogue. During 2018, the engagement and efforts of the Council on Ethics have been directed at problem areas such as Facebook and human rights; the use of pesticides threatening the survival of bees; and the legalisation of cannabis in Canada and the emergence of listed cannabis companies. Other focus areas have been oil companies’ long-term climate work, deforestation in South America, and tailings dams in Brazil.

Swedish AP Funds form new company – Polhem Infra – for investments in infrastructure

AP1, AP3 and AP4 (Swedish National Pension Funds) form a joint company, Polhem Infra, for investments in unlisted Swedish companies focusing on infrastructure.

Första AP-fonden Ownership Report 2018: focus on developing sustainability work and preparing for changes to the AP Funds Act

Första AP-fonden (AP1) publishes its Ownership Report (English version) for 2018 today. Developments in the field of sustainability continued at a fast pace during the year. Intensive preparations were made ahead of the changes to the AP Funds Act, in partnership with the other AP Funds.

Decision regarding the procurement of Investment Management services for Global Emerging Markets Equities

In the procurement for External Management of Global Emerging Markets Equities (reg.no EXT2018:25) Första AP-fonden has decided to approve several managers.

Första AP-fonden Annual Report 2018: Exceeding the long-term goal

Första AP-fonden’s (AP1’s) net investment income for 2018 as a whole amounted to SEK -2,074 million (29,349) after expenses. This equals a return of -0.7 per cent (9.6). Total net assets amounted to SEK 324 billion at the year-end. The average annual real return after expenses for the past ten-year period is 7.4 per cent, which is higher than the target of 4.0 per cent.

Changes to the AP Funds Act

On 1 January 2019, the rules in the National Pension Insurance Funds (AP Funds) Act changed. For example, a new goal has been introduced that the First, Second, Third and Fourth AP Funds must contribute to sustainable development by managing their funds in an exemplary way.

2018

Swedish National Pension Fund Första AP-fonden (AP1) to Measure Sustainability Through Arabesque S-Ray®

Arabesque S-Ray® and AP1 are working closely together to develop a sustainability score assessing the compliance of companies with Human Rights.

Young employees give new perspectives

New recruits at Första AP-fonden (AP1) are plunged straight into the core business and have an opportunity to influence the results.

Financial institutions launch cutting-edge research project to integrate climate change into strategic investment decisions

The financial institutions AP1, a.s.r., OPTrust, Pensioenfonds van de Metalektro (PME) and Philips Pensioenfonds, supported by Ortec Finance - the provider of investment decision technology and solutions - announce the launch of their climate-savvy Asset Liability Management/Strategic Asset Allocation (ALM/SAA) pilot project.

Green financing for Willhem AB

Första AP-fonden’s (AP1’s) wholly owned housing company Willhem is planning to issue a ‘green bond’ to fund its environmental initiatives.

Första AP-fonden’s return for the first half of 2018

Första AP-fonden’s (AP1’s) net investment income for the first half of 2018 amounted to SEK 8.5 billion (16.1) after expenses.

Important for a board member to dare to say no

The nomination committee helps ensure that the Board of Directors is comprised of the right areas of expertise.

AP1 invests in new Emerging Markets Equity Impact fund of BlackRock

BlackRock has launched the BlackRock Emerging Markets Equity Impact Fund, responding to Swedish pension fund AP1’s wishes to invest with sustainability considerations in the emerging markets.

Sustainable investments on emerging markets

Första AP-fonden (AP1) is investing in a new, data-driven fund with a sustainability emphasis, with investment management company BlackRock. The focus is on emerging markets.

The Council on Ethics focuses on counteracting corruption

The Council on Ethics of the Swedish National Pension Funds (the Council) celebrated ten years in 2017. During these ten years, the Council has influenced global portfolio companies to improve their work and information regarding environmental, social issues and corporate governance through corporate dialogues.

Första AP-fonden’s return for 2017 was 9.6 per cent after expenses

Första AP-fonden’s (AP1’s) net investment income for 2017 as a whole amounted to SEK 29.3 (27.0) billion after expenses.

2017

Climate Action+

Första AP-fonden (AP1) has signed the Climate Action 100+, a collaborative five-year global initiative.

Hermes Investment Management wins $400 million Global High Yield mandate

Hermes Investment Management, the £30.1 billion manager (30.6 2017), has been appointed to manage a $400 million Global High Yield credit investment mandate by Första AP-Fonden (AP1), one of five buffer funds in the Swedish national income pension scheme.

Första AP-fonden’s return for the first half of 2017 was 5.2 per cent after expenses

Första AP-fonden’s (AP1’s) net investment income for the first half of 2017 amounted to SEK 16.1 billion (10.6) after expenses. This equals a return of 5.2 per cent (3.5).

The Ethical Council Annual Report 2016 – Human rights continues to be in focus

The Ethical Council of the Swedish AP Funds celebrates ten years 2017. During these ten years the Council has through engagement encouraged the AP Funds' global portfolio companies to improve their work on environmental issues, human rights and corruption.

Elo, Första AP-fonden and Trevian establish a joint venture to invest in Finnish real estate

Elo Mutual Pension Insurance, Första AP-fonden (AP1) and Trevian Asset Management Oy have agreed to establish a joint venture company which invests in the Finnish real estate market.

Första AP-fonden’s return for 2016 was 9.3 per cent after expenses

Första AP-fonden’s net investment income for 2016 as a whole amounted to SEK 27.0 billion (11.3) after expenses.

2016

Första AP-fonden accepts GE’s bid for Arcam

Första AP-fonden (AP1) has decided to accept General Electric’s (GE) bid for Arcam. The bid expires tomorrow Friday 14 October.

Första AP-fonden’s interim report January – June 2016

Första AP-fonden’s net investment income after expenses for January – June 2016 amounted to SEK 10.6 billion. Return after expenses was thus 3.5 per cent.

Första AP-fonden’s 2015 annual report

Första AP-fonden’s net investment income after expenses for 2015 amounted to SEK 11.3 billion. The return was 4,0 percent after expenses, which is in line with the Fund’s target.

2015

AP Funds to co-ordinate carbon footprint reporting

The Swedish AP Funds, the First, Second, Third, Fourth, Sixth and Seventh AP Funds, have agreed to coordinate the way carbon footprints are reported.

Första AP-fonden’s six-month report

New initiatives and targets met by a margin

Strategic partnership to invest in European office properties

First and Second Swedish National Pension Fund, together with TIAA-CREF, create strategic partnership to invest in European office properties

AP1 part of consortium acquiring Fortum Distribution AB

Första AP-fonden har som del av ett konsortium bestående av Borealis Infrastructure, Tredje AP-fonden (AP3), Folksam med dotterbolag och Första AP-fonden (AP1) (”Konsortiet”) idag ingått avtal om att förvärva Fortum Distribution AB, Fortums elöverföringsverksamhet i Sverige.

Första AP-fonden’s annual report: High return benefits the pension system

Första AP-fonden’s net investment income after expenses for the 2014 full year amounted to SEK 36.4 billion. Return after expenses was 14.6 per cent.

2014

Första AP-fonden hires Kaj Martensen

Första AP-fonden (AP1) has hired Kaj Martensen from January 1, 2015.

Första AP-fonden’s semi-annual report

Good return makes valuable contribution to the pension system

Första AP-fonden’s annual report: Continued strong return

Första AP-fondens resultat 2013 uppgick till 25 678 mkr efter kostnader.