Andra AP-fonden (AP2) reported a total return of 10.7 (2.9) per cent, after costs, for the first half of 2019. The net result was SEK 35.6 (9.8) billion, while the Fund’s assets totalled SEK 367.4 (352.4) billion at the end of the first half of 2019. Relative to the benchmark index, the return was -0.4 per cent, excluding alternative investments and costs.
– AP2’s return exceeds the Fund’s long-term return assumption of 4.5 per cent annually. In the past ten years the Fund’s average annual real return has amounted to 8.1 per cent, says Eva Halvarsson, CEO at AP2.
– The beginning of 2019 saw a strong recovery in the world markets after the major downturn at the end of 2018. However, this was followed by growing concern that global real economic growth may lose momentum. This concern was amplified by uncertainties regarding Brexit and, in May and June, the escalating trade conflict between USA and China. This political uncertainty ems to have played a part in a declining investment climate the world over, says Eva Halvarsson.
In the first half of the year the Fund adjusted its listed portfolio to the recent years’ favourable growth in holdings of real estate and private equity funds by reducing the allocation to Swedish and foreign equities and Swedish bonds. In addition, the share of capital allocated to emerging-market bonds issued in US dollars increased. The Board also decided that the Fund shall no longer be invested in tobacco companies or companies that are involved in the maintenance and modernisation of nuclear weapons systems, says Eva Halvarsson.
|Jan-June 2019||Jan-June 2018||Jan-Dec 2018|
|Fund capital carried forward, SEK billion||367.4||352.4||334.8|
|Net result for the period, SEK billion||35.6||9.8||-4.3|
|Net outflows to the national pension system, SEK billion||-3.0||-3.3||-6.8|
|Fund capital brought forward, SEK billion||334.8||345.9||345.9|
|Asset management costs: operating expenses, %||0.07||0.06||0.06|
|Asset management costs: commission expenses, %||0.07||0.08||0.08|
|Total asset management costs, %||0.14||0.14||0.14|
|Return after costs, %||10.7||2.9||-1.3|
|Real return after costs, %||9.8||1.8||-3.3|
|Annualised return after costs, 5.0 years, %||7.6||9.5||6.9|
|Annualised return after costs, 10.0 years, %||9.3||7.3||8.8|
|Real annualised return after costs, 10.0 years, %||8.1||6.4||7.7|
For further details, please contact:
Eva Halvarsson, CEO at AP2, on +46 31 704 29 00 or Ulrika Danielson, Head of Corporate Communications, on +46 709 50 16 13.