24 February 2022
The AP funds together create the best result ever at SEK 316 billion. This contributes greatly to the stability of the income pension system and the mission to be of the greatest possible benefit to today’s and tomorrow’s pensioners.
The average return for the year was 19.3 percent after costs. The AP funds’ average returns over the past five- and ten-year periods amount to 10.5 and 10.7 per cent per year, respectively, compared with the development of the income index of 2.8 and 2.7 per cent per year over corresponding time periods. The income index is used to list pensions and pension rights in the income pension system. When the AP funds’ returns exceed the development of the income index, the AP funds contribute to the strength of the pension system.
At the end of 2021, the AP funds’ total fund capital amounted to SEK 1,937 billion, which is an increase of SEK 285 billion compared with the end of 2020.
In 2021, the AP funds paid out SEK 30 billion to cover deficits in the pension system. Since the start in 2001, the AP Funds’ net contribution to the pension system has been SEK 233 billion. At the same time, the funds ‘returns have contributed to the pension system’s financial strength, 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.
In accordance with the Paris Agreement, the AP funds continued their work during the year to adapt their portfolios to the climate. In 2021, carbon dioxide emissions in the portfolios were reduced by a further 14 percent. Of this year’s reduction in emissions, 5 percentage points are due to the portfolio companies reducing their emissions and 8 percentage points to the AP funds’ portfolio changes.
During the year, the Council on Ethics continued its important advocacy work in around 90 company dialogues with a focus on, among other things, human rights, corporate governance and the environment. As sustainability is increasingly integrated into the funds ‘management strategies and objectives, it was decided at the end of 2021 to review the Council on Ethics’ mission and strategy.Source: AP1
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