Our portfolio

AP2:s investments

AP2 manages the Swedish public’s pension savings through a portfolio designed to deliver strong long-term returns with a well-balanced level of risk. By investing across multiple asset classes, markets, currencies, and in both listed and unlisted assets, we create a diversified portfolio and spread our risk.

A portfolio with several building blocks

The assets in the portfolio complement one another, as they perform differently depending on macroeconomic conditions and market environments. In this way, the portfolio contributes to returns, diversification and resilience over time.

Equities

The largest share of the portfolio is invested in equities, which over time are expected to generate higher returns than fixed-income assets, but also entail higher risk. Equities are therefore an important source of long-term value creation in the portfolio.

Listed equities

AP2 holds shares in approximately 1,300 listed companies, both in Sweden and globally, in developed and emerging markets. Different investment approaches are applied. In Sweden, portfolio management is based on fundamental analysis and company-specific investment decisions, while the global portfolio is managed using quantitative analysis and proprietary indices.

Private equity

The equity portfolio also includes private equity, which is an important part of the Fund’s long-term strategy. The private equity strategy is based on investments in a carefully selected managers with strong institutional quality, strong market positions and attractive strategies.

Investments are made globally and diversified across regions, sectors and investment types to achieve broad diversification over time.

Fixed income

Fixed-income assets play an important role by contributing stability, liquidity and diversification. They act as a counterbalance to equities and other higher-risk investments, while also providing opportunities for stable returns.

The portfolio includes sovereign bonds in developed markets, corporate bonds in developed markets, bonds in emerging markets and unlisted credit. AP2 manages the majority of the fixed-income portfolio internally, using both fundamental and quantitative analysis. Unlisted credit assets provide additional diversification and a source of ongoing returns.

Real assets

Real assets provide exposure to investments that contribute to diversification and inflation protection over time. For a long-term investor such as AP2, this represents an important complement to listed equities and bonds.

AP2’s real assets include conventional real estate, forestry and agricultural assets, and sustainable infrastructure.

Each type of real asset serves a different role in the portfolio. Real estate contributes stable cash flows and long-term value. Forestry and agricultural assets provide exposure to real resources and climate-related opportunities. Sustainable infrastructure enables investment in the transition to future energy systems and society, while also generating attractive returns.

Investments across geographical markets

AP2 invests globally to achieve broad diversification and capture attractive return opportunities in different markets. By allocating capital across regions with varying economic conditions, sector compositions and growth dynamics, geographical diversification helps to make the portfolio more robust over time.

See AP2:s portfolio holdings here.