With the support of a cautiously better transaction market, AP6 created a positive return of 9.0 percent for 2024. AP6 reports a positive net result after currency hedging of SEK 6.4 billion, which increased the managed capital to SEK 77.1 billion. AP6’s average five-year return amounted to 15.5 percent, which exceeds the target of 7.0 percent. AP6 has generated positive net profit every single year since 2012.
– In a gradually improving market climate, AP6 has generated a total net return of 9.0 percent for 2024, with all sub-portfolios contributing positively with high returns. The capital employed, without liquidity and currency hedging effects, returned 15.2 percent, says Katarina Staaf, CEO of the Sixth Swedish National Pension Fund (AP6).
The buyout portfolio returned 15.9 percent including the co-investments that are included with a return of a substantial 21.1 percent. The secondary portfolio also showed a strong return of 17.5 percent, and the venture portfolio is back on a positive return of 10.6 percent.
Of the year’s net profit of SEK 6.4 billion, approximately 42 percent is realized profit. All in all, the average net return over five years thus amounts to 15.5 percent. The corresponding figure for the employed portfolio is 21.3 percent and for the sub-portfolios: buyout 21.9 percent (this includes co-investments with 26.0 percent), venture 18.8 percent and secondary 17.3 percent. AP6’s internal costs amounted to just under 0.14% of the fund’s capital.
The liquidity impact of the statutory currency hedges has been limited in 2024. However, the negative liquidity effect of close to ten billion kroner that occurred in 2022 and 2023 has had a continued impact on the possibility of making co-investments during the year. AP6 has continued to work on strengthening liquidity during the year with selective secondary transactions where it has been possible to divest with a good return to the pension system. Since mid-autumn 2024, careful work has begun to make new co-investments. Liquidity was strengthened during 2024 and amounted to SEK 3.7 billion at the end of the year.
On January 31, 2025, the Government Office announced that the Pension Group had taken a strategic decision to merge funds in both Stockholm and Gothenburg. A legislative council referral has been published on February 6, 2025.
– I am positive that the government have acknowledge the successful operation that AP6 conducts in private equity. To provide room to utilize skills developed in AP6, the Second Swedish National Pension Fund (AP2) will, after AP6 is incorporated, have expanded opportunities to invest in unlisted assets up to and including 2036, says Katarina Staaf, CEO of the Sixth Swedish National Pension Fund.
