Highest return to date for AP6
2 March 2021
In a year that was dominated by the global pandemic, AP6’s well-diversified investment portfolio of private equity investments demonstrated both resilience and strength. Carefully chosen funds together with co-investments has generated the highest return to date and the return for the year amounts to 20.4 (8.2) percent. For the last five-year period, the overall portfolio has yielded an annual return of 11.3 (9.8) percent.
Net profit for 2020 amounted to SEK 7,649 (2,858) million, which corresponds to a return of 20.4 (8.2) percent. Internal management costs amounted to SEK 89 (95) million.
“During this challenging year, our consistent strategy, with a carefully compiled investment portfolio, has demonstrated its strength and delivered good value growth. The portfolio strategy, of carefully chosen funds in combination with co-investments made with fund management teams that we have been working with over long periods of time, has generated our highest profit to date of SEK 7.6 billion, and a return of 20.4 percent,” says Katarina Staaf, Managing Director for the Sixth Swedish National Pension Fund (AP6).
During the year, fund commitments totaling SEK 7 billion were made, somewhat higher than last year, along with co-investments for approximately SEK 2 billion, somewhat lower than last year, but still a good rate of investment in such an unusual and extraordinary year as 2020.
AP6 has a special mandate of entirely focusing on investments in unlisted assets, which are illiquid assets where the return should be measured over the long term. It is an attractive asset class for pension assets because, in general, volatility is lower compared to listed companies and there is a long time horizon.
The model used by AP6 integrates sustainability into its investing activities. For all investment opportunities that are considered, sustainability is evaluated with equal weight as the other factors forming the basis for a decision. AP6 has a code of conduct which, together with the investment policy and its exclusion criteria, serves as the foundation for the work with responsible investments.
Source: AP6
