AP1, AP2, AP3 and AP4 post record profits of SEK 316 billion in 2021

25 April 2022

Together, the AP Funds (AP1-AP4) achieved their best result ever of SEK 316 billion. This significantly contributes to the stability of the income pension system and the mission to be of the greatest possible benefit to current and future pensioners.

The average return for the year was 19.3 per cent after expenses. The AP Funds’ average return over the past five years and the past ten years respectively is 10.5 and 10.7 per cent per year, compared with the performance of the income index of 2.8 and 2.7 per cent per year over the corresponding time periods. The income index is used to calculate pensions and pension entitlements in the income pension system. When the AP Funds’ return exceeds the performance of the income index, the AP Funds contribute to the strength of the pension system.

At the end of 2021, the AP Funds’ total assets under management amounted to SEK 1 937 billion, corresponding to an increase of SEK 285 billion compared with the end of 2020.

In 2021, the AP Funds paid out SEK 30 billion to cover shortfalls in the pension system. Since their start in 2001, the AP Funds have made a net contribution to the pension system of SEK 233 billion. At the same time, the Funds’ return has contributed to the financial strength of the pension system and the AP Funds’ share of the pension system now accounts for almost 18 per cent of pension assets, compared with 10 per cent in 2001.

Source: AP1