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.
CEO Johan Magnusson comments on the half-year:
– “The primary driver behind the positive results is strong development on the world’s equity markets, but all our asset classes have contributed. Looking forward, we believe that the asset markets generally will be low-yielding. We have therefore continued at a lower level of risk than we have preferred historically. Our mandate is to conduct our management based on a long-term perspective, and the Fund should also be assessed over a longer period to be of relevance. Our real return after expenses in the latest ten-year period has been 7.7 per cent, which exceeds the long-term target of 4.0 per cent.”
The first half of 2019 in brief
- Net investment income for the first six months of 2019 amounted to SEK 31.4 billion (8.5) after expenses
- Return totalled 9.7 per cent (2.5) after expenses
- The average real annual return for the past ten-year period was 7.7 per cent (6.3)
- Since negative net flows for the national income pension system in 2009, AP1 has disbursed a total of SEK 54 billion, of which SEK 3.0 billion (3.3) was transferred to the Swedish Pensions Agency in the first half of 2019
- Total net assets increased by SEK 28.4 billion (5.2) to SEK 352.0 billion as per 30 June 2019
- The Fund’s administrative expenses decreased to SEK 217 million (221), equating to 0.13 per cent (0.13) of assets under management in annual terms
For further information, please contact:
Johan Magnusson, CEO, AP1. Phone +46 (0)8-566 202 00
Sara Christensen, Head of Communication, AP1. Phone +46 (0)70-968 12 50
Första AP-fonden (AP1) is one of five pension funds in the Swedish national income pension system (the AP Funds). AP1 has assets under management of SEK 352 billion (30 June 2019) in a portfolio consisting of listed equities, fixed income securities, currency, real estate, hedge funds, private equity funds, infrastructure and high yield. Investments are made worldwide. AP1 is a long-term investor and an active, engaged owner. As an owner the Fund imposes stringent demands in the areas of Environment, Social and Governance. www.ap1.se.