Andra AP-fonden (AP2) reported a total return after costs of 5.9 per cent for 2023, with a result amounting to SEK 23.8 billion, which was affected by a positive development, primarily in the Swedish and foreign developed equity markets. After net payments to the national pension system of SEK -4.8 billion, Fund assets under management totalled SEK 426.0 billion. The relative return was 0.2 per cent.

“2023 was an eventful year. Inflation and interest rates peaked in the summer and then fell in the latter part of the year, which contributed to a strong finish. Our result has been affected both by a positive development of primarily Swedish and foreign developed equity markets, but also by a negative development mainly within our real-estate investments,” says Eva Halvarsson, CEO of Andra AP-fonden.

“Internally, the year was characterised by extensive work to reshape governance and organisation in order to better cope with a changing world. Naturally we have always devoted time and energy to continually improving the organisation, but in 2023 we worked alongside our employees and the Board to look at all aspects of operations. We reviewed our asset management strategy, with the aim of generating a better return using a more dynamic and efficient approach,” says Eva Halvarsson.

“One further change that affected 2023 was our efforts to cut costs. Before the start of the year, the Board decided to reduce the total cost budget by 16 per cent, which is a result of our decision to bring most of our externally managed mandates in-house, and to discontinue management of Chinese A shares. We have been able to achieve this without any additions to our internal resources. Relocating our office to new, smaller premises also means a cost reduction,” says Eva Halvarsson.

“In the past ten years, AP2 has generated a return of 92.4 per cent, equivalent to an average annual return of 6.8 per cent, says Eva Halvarsson.

“During 2023 we have continued to develop responsible ownership and responsible investments. This took place within all five focus areas prioritised by the Fund. Among other things, climate plans have been defined for additional asset classes and the Fund’s reporting has been expanded with emissions data for more asset classes and Scope 3. AP2 was also one of the financial players announced at the World Economic Forum in Davos in January 2024 as an early adopter of the new framework Taskforce on Nature-related Disclosures (TNFD), as the Fund will publish a report for 2023 in the spring, says Eva Halvarsson.

Key ratios	31 Dec 2023	31 Dec 2022
Fund assets under management carried forward, SEK billion	426.0	407.1
Result for the year, SEK billion	23.8	-29.2
Net payments to the national pension system, SEK billion	-4.8	-4.7
Fund assets under management brought forward, SEK billion	407.1	441.0
Asset management costs: operating expenses, %	0.07	0.06
Asset management costs: commission expenses, %	0.02	0.05
Total asset management costs, %	0.09	0.11
Return after costs, %	5.9	-6.7
Real return after costs, %	1.4	-16.9
Annualised return after costs, 5 years, %	6.6	5.2
Annualised return after costs, 10 years, %	6.8	7.4
Real annualised return after costs, 10 years, %	3.9	5.0

The English versions of AP2’s Annual Report 2023, the Sustainability Report 2023, the TCFD and the TNFD reports will be available at www.ap2.se during March.

For further information please contact:
Eva Halvarsson, Andra AP-fonden’s CEO, tel. (+46) (0)31 704 29 00 or
Ulrika Danielson, Head of Communications and Corporate Governance, tel. +46 (0)709 50 16 13.