Andra AP-fonden (AP2) reports a result of SEK 20.9 billion for 2025, a year marked by global uncertainty. During the year, the Fund also carried out two major change initiatives – a new asset‑management model and the reform of the AP Funds.
”AP2 delivers a result of SEK 20.9 billion after a year in which we have navigated an uncertain world while simultaneously managing internal transformation. I would like to thank all employees at AP2 and AP6 who have, in an exemplary manner and at high pace, implemented the decision on changes to the buffer funds”, says Eva Halvarsson, CEO of AP2.
AP2’s total return for 2025 amounted to 4.6 per cent after costs, corresponding to a result of SEK 20.9 billion. The Fund capital totalled SEK 475 billion at year‑end. Currency effects had a negative impact on total return of –3.5 percentage points. The underlying return after costs, excluding currency effects, was 8.1 per cent. The largest contributions came from emerging markets equities (return of 28.0 per cent in local currency), developed markets equities (14.9 per cent) and private equity (7.9 per cent), while real assets showed weaker performance (–4.5 per cent).
The year was characterized by two profound transformation processes – the implementation of a new asset management model, where several steps were taken with the aim of increasing returns, and the execution of Parliament’s decision to reform the AP Funds and integrate the Sixth AP Fund (AP6) into AP2.
AP6 and its employees have generated solid returns for the Swedish pension system and conclude operations with closing fund capital of SEK 83.5 billion. The result for 2025 was SEK 6.4 billion, corresponding to an 8.3 per cent return. The sale of the holding in Asker, which was listed during the autumn, contributed SEK 2.5 billion to the result. AP6’s operations ceased at year‑end as AP2 assumed responsibility for the fund’s assets and commitments. The work to integrate the capital is progressing according to plan over the coming years.
New asset‑management model for higher returns
In 2024, we began a broad review of our strategy with the clear objective of increasing returns. We are shifting our management model – purposefully, systematically and responsibly.
We work for a good retirement for all generations. To fulfil our mandate to be of maximum benefit to the pension system, we are adapting the asset management model to our time, our role in the Swedish pension system, and the latest research. While we continuously review our strategy, this represents a more substantial shift.
The new strategy entails changes at many levels, including clearer mandates, decision making structures and processes. We have strengthened the organisation with enhanced capacity to operate across different time horizons and reviewed strategies within several asset classes. This has, for example, included updates to our proprietary indices and the introduction of a new fund structure with fewer and broader mandates within the fixed income portfolio.
The clear objective of our new management model is to generate higher returns and better meet an increasingly complex environment. The new strategy gives the Fund improved opportunities to act in a changing world and to generate returns across multiple time horizons.
Implementation of the parliamentary decision to integrate AP6
During 2025, AP2, together with AP6 and the government‑appointed special investigator, conducted extensive work in a short timeframe to assume responsibility for AP6’s assets and commitments. The goal is to carry out the integration responsibly and cost‑effectively, with focus on creating value for the pension system. We estimate that the savings, beginning in 2027, may amount to SEK 80–100 million annually.
Given that AP2’s mandate remains unchanged, as a diversified buffer fund, the Fund’s return and risk must be balanced according to the needs of the pension system. The strategic allocation to private equity in the portfolio has been increased from 10 to 15 per cent. This is high by international standards and is the level expected to generate the best risk‑adjusted return.
To manage and oversee the increased capital, AP2 has strengthened the organisation and will welcome around ten new employees in 2026 across asset management, business support, risk, legal and sustainability. AP2 has over two decades of experience in successful private equity investments, supported by a Swedish and international network, a globally diversified portfolio, and a strategy that has delivered high returns.
The assets from AP6 have been divided into a transport portfolio and a transition portfolio. About one‑third of AP6’s assets belong to the transport portfolio and will be transferred to AP2’s private equity portfolio during 2026. The remaining assets will be managed separately in a transition portfolio until their respective liquidation dates, when the proceeds are transferred to AP2’s portfolio. This is the most cost‑effective way to implement the change. As AP6’s portfolio is mature in profile, around half of the transition portfolio is expected to reach liquidity within two years.
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