A New Governance Model for Enhanced Efficiency
First AP Fund has implemented a new governance model, including new investment convictions and a revised committee structure with a new investment committee. This aims to better meet new market conditions, increase efficiency, and generate higher returns, while also enhancing transparency and strengthening trust. (Page 4, Årsredovisning 2024)
Navigating the Private Assets Market: A Foundation for Future Growth
In 2024, valuations for unlisted assets reached their lowest levels, with subdued value increases and lower transaction activity compared to pre-2022. Despite this, the fund made selective investments in the healthcare and energy sectors, and provided capital injections to its wholly-owned real estate company, Willhem. This strategy is intended to capitalize on future market changes and create long-term value for the pension system. (Page 4, Årsredovisning 2024)
Consolidation of Buffer Funds: A Structural Shift
The Swedish government decided in October 2023 to commission an inquiry into modernizing and streamlining the management of the AP funds. The inquiry’s report, presented in June, led to a legislative proposal on January 31, 2025, to consolidate the three current buffer funds in Stockholm into two. This consolidation will involve the assets of First AP Fund being equally distributed between Third and Fourth AP Funds, with changes expected to take effect on January 1, 2026. (Page 4, 7, 12, Årsredovisning 2024)
Increased Exposure to US Markets and Dynamic Currency Adjustments
First AP Fund increased its exposure to US small and large-cap companies during the year, while reducing exposure to Europe outside Sweden. The fund also dynamically adjusted currency positions and duration in fixed-income assets. (Page 6, Årsredovisning 2024)
Strategic Collaboration with Global Pension Funds
First AP Fund participated in a group study with the Australian Future Fund, examining success factors and future challenges for world-class pension funds managing 70 trillion SEK. This collaboration aims to continue achieving high returns sustainably and reliably in an increasingly complex world. (Page 6, Årsredovisning 2024)
Focus on Sustainable Investments in Private Markets
First AP Fund has identified sustainable investments that meet its return requirements and contribute positively to environmental or social goals, in line with the EU’s definition of sustainable investment. These investments are considered particularly relevant within unlisted assets, where the fund’s contribution through financing or active ownership is most evident. New investments were made in sustainable bonds and private equity, with a focus on resource-efficient solutions in areas such as food, green technology, transport, and healthcare. (Page 40, Årsredovisning 2024)
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