Första AP-fonden’s (AP1’s) net investment income for 2017 as a whole amounted to SEK 29.3 (27.0) billion after expenses. This equals a return after expenses of 9.6 per cent (9.3). Total net assets amounted to SEK 333 billion at the year-end. The real return for the past ten-year period was 5.0 per cent annually after expenses. AP1’s target has therefore been exceeded in both the short and long term.
CEO Johan Magnusson comments on the results:
“I am pleased to be able to report continued strong results for 2017 with a return on assets under management of 9.6 per cent after expenses, while we are also reducing our expenses. The main contributors in absolute money terms were equities and real estate.
“To meet increasingly challenging external conditions, we are striving continuously to refine and develop our portfolio. Measures in 2017 have included extending our investments in growth markets and reducing our exposure to the US dollar in favour of the Swedish krona.” Since 2009 Första AP-fonden has disbursed SEK 44 billion, of which SEK 7.4 billion in 2017, to cover the contribution deficit in the income pension system.
“AP1 is continuing its determined sustainability work with a clearly integrated approach, whereby we regard sustainability to be one of several natural and vital aspects when assessing investments.
2017 in brief
- Net investment income for 2017 amounted to SEK 29.3 (27.0) billion after expenses. This equates to a return of 9.6 per cent (9.3).
- In real terms, the return was 7.8 per cent (7.6) in 2017.
- The real return for the past ten-year period was 5.0 per cent, which is higher than the target of 4.0 per cent.
- The portfolio management generated an excess return of SEK 3.5 (4.2) billion above the Fund’s strategic benchmark*. The main contributors in absolute money terms were equities and real estate.
- The total portfolio value on 31 December 2017 was SEK 333 billion.
- Since 2009 Första AP-fonden has disbursed SEK 44 billion, of which SEK 7.4 billion in 2017, to cover the contribution deficit in the income pension system.
- The Fund’s administrative expenses fell to SEK 445 (458) million, equalling 0.14 per cent (0.15) of average assets under management.
* Första AP-fonden’s strategic benchmark for management in the long term (10 years) is defined based on the Board’s risk preference, investment beliefs and guidelines.
Please find a pdf of the press release here.