Andra AP-fonden’s (AP2) total return for 2024 was 8.2 per cent after costs, and the result was SEK 34.9 billion. The Fund capital at year-end amounted to SEK 458.9 billion. The portfolio shows a good risk-adjusted return, with a Sharpe ratio of 1.0 over the past 10 years. In 2024, the Fund continued to develop its sustainability work within its four focus areas.
“We deliver a strong result for the year with a good return, where the largest contribution comes from equities in developed markets and private equity. Within fixed-income assets, listed and unlisted credits are key drivers to the result. As the Swedish krona has weakened during the year, currency hedging has had a negative impact on the return,” says Eva Halvarsson, CEO of AP2.
”We live in a changing world, and I am therefore particularly proud that AP2 has launched a new fund management strategy in 2024 with a changed decision-making structure to manage the portfolio more effectively. The goal is to combine long-term decisions with the ability to make dynamic shorter-term allocations. The year began with a reorganisation to support the strategy, which has already led to improved collaboration between our departments,” says Eva Halvarsson.
Key ratios | 31 Dec 2024 | 31 Dec 2023 |
Fund assets under management carried forward, SEK billion | 458.9 | 426.0 |
Result for the year, SEK billion | 34.9 | 23.8 |
Net payments to the national pension system, SEK billion | -2.0 | -4.8 |
Return after costs, % | 8.2 | 5.9 |
Annualised return after costs, 5 years, % | 5.2 | 6.6 |
Annualised return after costs, 10 years, % | 6.3 | 6.8 |
Sharpe ratio, 10 years* | 1.0 | |
Asset management costs: operating expenses, % | 0.07 | 0.07 |
Asset management costs: commission expenses, % | 0.01 | 0.02 |
Total asset management costs, % | 0.08 | 0.09 |
*Reported with start 2024.
”During the year, the government has assessed the operations of the AP Funds, to review the possibilities of streamlining and modernising them. According to the upcoming bill, AP6 will be incorporated into AP2. We look forward to taking on the implementation and will do our best to ensure that the integration of AP6’s operations into AP2 will be as good as possible for the Swedish pension system,” says Eva Halvarsson.
“In AP2’s separate Sustainability Report, we describe our ambitious work within sustainability. During the year, we have made progress within our sustainability focus areas, including that we have defined climate plans towards net zero emissions for 94 per cent of the portfolio, we have co-developed a new model for analysing deforestation risk and developed a remediation process for the Fund’s investments,” concludes Eva Halvarsson.
The English versions of AP2’s Annual Report 2024 and Sustainability Report 2024 will be available at www.ap2.se in March. During spring, the Fund will also publish a Climate and Nature report in accordance with TCFD and TNFD recommendations.
For further information please contact:
Eva Halvarsson, Andra AP-fonden’s CEO, tel. +46 (0)31-704 29 00 or
Åsa Mossberg, Head of Communications and Sustainability, tel. +46 (0)705-25 11 81.