AP3 ends a year of change and strong delivery. A major focus was on preparing for the consolidation of the AP funds, as well as on future-proofing the Fund’s system infrastructure. At the same time, the Fund maintained a laser focus on its mission to deliver returns for the benefit of current and future pensioners. After the successful transfer of assets from AP1 at the year-end, the Fund’s assets under management totalled SEK 832.8 billion.
Staffan Hansén, CEO of AP3, comments:
“It has been an eventful year in which the Fund’s employees delivered excellent results on several fronts at the same time. This is also true of navigating the financial markets, where after a weak return in the first half of the year, the Fund rebounded strongly in the second half, posting a 6 per cent return.”
Net result and contributions:
- AP3’s net result totalled SEK 32.6 (51.3) billion
- AP3’s return was 6.1% (10.4) before expenses and 6.0% (10.3) after expenses.
- AP3’s assets under management stood at SEK 577.1 (549.1) billion
- AP3’s asset management expense ratio was 0.08% (0.07), of which operating expenses were 0.07% (0.06)
- Net payment to the pension system from AP3 totalled SEK 4.6 (2.0) billion
- AP3’s annual average return after expenses was 7.5% (8.2) for the last five years and 8.3% (8.4) for the last 10 years
- AP3’s listed equities asset class returned 16.0% (17.4) and was the largest contributor to the return.
Other important events:
- On 31 January 2025, the Government Offices of Sweden announced that the Pension Group, in which all parliamentary parties are represented, supported the proposal for the assets of AP1 to be transferred in equal shares to AP3 and AP4. The decision to consolidate the AP Funds was prepared during the year and, at the year-end, AP1’s assets and liabilities were taken over.
- Larger capital has meant that new talent needed to be recruited. There were a record number of applicants for the positions advertised, with many highly qualified candidates.
- A modern, new, cloud-based, integrated system solution was implemented during the year, following intensive work by the Fund’s employees. This future-proof system infrastructure replaces several systems that support the entire business flow from analysis and order placement to portfolio management.
- Stewardship work has resulted, among other things, in the target for the proportion of female Board members in large companies having been exceeded. The proportion now stands at 43 per cent. The target for the proportion of companies in the portfolio with sustainability criteria in incentive programmes was also exceeded and the proportion now stands at 43 per cent.
