AP2’s broad portfolio mitigated the impact of the turbulent markets

Andra AP-fonden (AP2) reported a total return of -6.2 per cent, after costs, for the first half year of 2022. The result amounted to SEK -27.3 billion and the Fund’s assets amounted to SEK 411.7 billion at the first half of 2022. During the period, SEK 2 billion was transferred to the pension system.

The first six months of 2022 was among the most turbulent ever for the financial markets and the real economy. Russia’s invasion of Ukraine is primarily a humanitarian disaster but has also affected energy, food and commodity prices. Inflation has risen to levels not seen in decades and central banks have tightened much more than previously expected. As a result, both equities and bonds have recorded a sharply negative return during the half year.

 “Primarily, it is listed asset classes that were negatively affected during the period. However, the Fund’s broad portfolio has mitigated the impact of the turbulent markets. The Fund’s total return amounted to -6.2 per cent, compared with OMX Stockholm, which during the same period decreased by about 28 per cent and global indices such as MSCI World (excl. currency effects) decreased by about 18 per cent,” says Eva Halvarsson, CEO of AP2.

“It is positive that our alternative investments, which include unlisted real estate, private equity funds and sustainable infrastructure, generated a return of as much as 10 per cent in these turbulent times,” says Eva Halvarsson.

“AP2’s return since it was launched exceeds the Fund’s expected long-term return. Over the past ten years, the Fund’s return has averaged 8.2 per cent,” says Eva Halvarsson.

Key ratiosJan.-June 2022Jan.-June 2021Jan.-Dec. 2021
Fund capital carried forward, SEK billion411.7421.2441.0
Net result for the period, SEK billion-27.339.262.3
Net outflows to the national pension system, SEK billion-2.0-4.2-7.5
Fund capital brought forward, SEK billion441.0386.2386.2
    
Asset management costs: operating expenses, %0.060.060.06
Asset management costs: commission expenses, %0.050.050.05
Total asset management costs, %0.110.110.11
    
Return after costs, %-6.210.216.3
Real return after costs, %-9.79.612.0
Annualised return after costs, 5 years, %6.18.78.5
Annualised return after costs, 10 years, %8.28.59.5
Real annualised return after costs, 10 years, %6.57.58.3

Read the full interim report (pdf) on the Fund’s website www.ap2.se

AP2’s sustainability work during the first half of 2022 is described in a separate published report at www.ap2.se                   

For further information please contact:

Eva Halvarsson, AP2’s CEO, tel. no. (+46) (0)31 704 29 00 or

Ulrika Danielson, Head of Corporate Communications, tel. no. (+46) (0)709 50 16 13.