AP3 – Strong results in a challenging year

23 February 2021

AP3 reported a net result of SEK 37.2 billion, representing a return of 9.7% after expenses, for the 12 months ended 31 December 2020.

2020 in brief:

– AP3 reported a net result of SEK 37.2 billion (59.5) for 2020.
– Return totalled 9,8% (17.7) before expenses and 9.7% (17.6) after expenses.
– The Fund made net-payments of SEK 7,902 (6,520) to the pension system.
Fund capital stood at SEK 422,974 million (393,696), an increase of SEK 29,278 million from the prior year.
– The asset management cost ratio was 0.09% (0.09), of which operating expenses were 0.06% (0.06).
– Average annual return after expenses for the last five and ten years stands at 9.1% and 8.7% respectively.
– The income index, which governs pension credits and indexation, has risen by an annual average of 2.7% in the last 10 years. AP3’s returns exceeded the income index by 6.0 percentage points during this period, meaning that the Fund made a positive contribution to the financial stability of the pension system.
– AP3 has exceeded the Fund’s long-term annual real return target. Since inception in 2001, AP3’s average annual real return is 5.0 %.

AP3 CEO Kerstin Hessius commented: ”2020 was a year that brought many challenges and AP3’s extensive experience and expertise proved immensely valuable in tackling them. I am proud of our net result of SEK 37.2 billion, which represents a return of 9.7%.

”The difficult and uncertain conditions created by the pandemic made responsible ownership more important than ever. AP3 exercised active governance by voting at more than 1,000 investee company meetings, including the AGMs of more than 70 Swedish listed companies. We engaged with companies through dialogue and participated in share issues. We also developed the investment portfolio in the direction to reach our 2025 climate goals.”

Source: AP3