The Second AP Fund today publishes its 2010/2011 Corporate Governance Report. The Fund’s governance activities are presented together with a number of feature articles, covering topics such as sustainability in focus with investments in forest and agriculture, the development of the number of women on publicly quoted boards, corporate governance in Asia and as the Fund is celebrating its tenth anniversary – how governance was in the spotlight from start.

For further information, please contact:

Ulrika Danielson, Head of Communications, on +46 (0)31 704 29 29.

A group of institutional investors currently representing US$1.3 trillion in assets have today launched the Principles for Responsible Investment in Farmland (the “Farmland Principles”) with the goal of improving the sustainability, transparency and accountability of investments in farmland.

Recent years have seen a strong increase in investor interest in farmland. The Farmland Principles provide institutional investors with best practice guidelines for:

– Promoting environmental sustainability (Principle 1)

– Respecting labour and human rights (Principle 2)

– Respecting existing land and resource rights (Principle 3)

– Upholding high business and ethical standards (Principle 4)

– Reporting on activities and progress towards implementing and promoting the Principles (Principle 5)

The Farmland Principles were developed and are endorsed by AP2 (Sweden), ABP (Netherlands), APG (Netherlands), ATP (Denmark), BT Pension Scheme (UK), Hermes EOS (UK), PGGM (Netherlands) and TIAA-CREF (USA), all of whom are signatories to the UN-backed Principles for Responsible Investment (PRI). These institutions are committed to implementing the Farmland Principles in their investment policies and practices. Other institutional investors are invited to also endorse the Farmland Principles and use them as a framework for developing their own responsible farmland investment practices.

Jose M. Minaya, Head of Natural Resources & Infrastructure Investments at TIAA-CREF, said “As the world faces the challenge of feeding 9 billion people, it is critical that new investments into agriculture are made with sensitivity to their environmental and social impact. The Farmland Principles express a strong commitment by long-term oriented investors to practice responsible investment as we seek to create value for our clients.”

Xander den Uyl, Vice-Chairman of the Board of Trustees of ABP, added, “Farmland operations that respect the environment, adhere to responsible labour practices and maintain positive stakeholder relations are better long-term investments – for the local communities, for host countries and for the pensioners we serve. We hope these principles will provide a reference point also for other investors’ farmland investments.”

Christina Olivecrona, Sustainability Analyst at AP2, said, “Environmental and ethical issues are an important part of our investment process. Having recently decided to invest in farmland, AP2 therefore actively supported the development of the Farmland Principles with the goal of improving sustainability and transparency in this asset class.”

The Farmland Principles have been developed with respect to other best practice guidelines guiding the actions of financial institutions worldwide.

The institutions that launched the Farmland Principles are also part of a newly formed PRI investor working group that will develop implementation support and tools to further advance responsible investment in farmland. The institutions are planning to review the Farmland Principles based on implementation experience and stakeholder feedback.

More information is available on the PRI website at: www.unpri.org/commodities

Notes to editors

View the full text of the Farmland Principles by visiting: www.unpri.org/commodities

A condensed list is found below:

Principles for Responsible Investment in Farmland

Principle one: Promoting environmental sustainability
We will promote measures aimed at protecting the environment and contributing to the sustainability of specific crops and locations, for example by reducing soil erosion, protecting biodiversity, reducing chemical emissions, effectively managing water, and mitigating climate impacts.

We will require investment managers and operators acting on our behalf to conduct an environmental assessment identifying the relevant environmental impacts and risks of a planned investment.

Based on this environmental assessment, investment managers and operators will be expected to implement mitigation and management measures relevant and appropriate to the nature and scale of the proposed investment.

Principle two: Respecting labour and human rights
We will respect labour and human rights in our farmland investments. We will require investment managers and operators acting on our behalf to do the same and to avoid complicity in human rights abuses.

We will require investment managers and operators to identify relevant labour and human rights risks and impacts of a planned investment and to implement mitigation and management measures to address them appropriately.

Depending on the location and the nature of the investment we expect investment managers and operators to explicitly implement policies to respect rights such as those relating to indigenous peoples, vulnerable groups, unique cultural systems and values, local food security, labour and any other relevant rights in the scope of their risk assessment and mitigation measures.

Principle three: Respecting existing land and resource rights
We will respect the existing use of and ownership rights to land and other resources and we will require investment managers and operators acting on our behalf to do the same.

Investment managers and operators acting on our behalf will be required to implement processes for land acquisitions and related investments that are culturally appropriate and transparent, are monitored, ensure accountability and the engagement with relevant stakeholders.

For investments with potential significant adverse impacts on affected communities, the investment managers are expected to implement processes to ensure their free, prior and informed consultation and facilitate their informed participation as a means to establish whether a project has adequately incorporated affected communities’ concerns.

Principle four: Upholding high business and ethical standards
We will promote high business and ethical standards in our farmland investments.

We will require that investment managers and operators acting on our behalf respect the rule of law even where it is poorly enforced. We will also require them to implement processes aimed at avoiding corruption in all its forms, including extortion and bribery, and to reflect an informed view of industry best-practice in their operations.

Principle five: Reporting on activities and progress towards implementing the Principles and promoting the Principles
We will report publicly on our activities and progress towards implementing the Farmland Principles, taking into account appropriate confidentiality considerations.

We will encourage other institutional investors to endorse and implement the Farmland Principles.

Media Contacts:

AP2: Ulrika Danielson (+46 709 50 16 13 / ulrika.danielson@ap2.se)

ABP: Jos van Dijk (+31 45 579 2911 / jos.van.dijk@abp.nl)

APG: Thijs Steger (+31 45 579 8100 / thijs.steger@apg.nl)

ATP: Kristjan Joergensen (+45 4820 3878 / krj@atp.dk)

BT Pension Scheme / Hermes EOS: Jean Dumas (+44 20 7680 2152 / j.dumas@hermes.co.uk) and Asmita Kapadia (+44 20 7680 2120 / a.kapadia@hermes.co.uk)

TIAA-CREF: John McCool (+1 212 916 6223 / jmccool@tiaa-cref.org

The Second AP Fund’s return on invested capital contributed SEK 5 billion during the first half of 2011 and increased the Fund’s total capital assets to SEK 227.5 billion. The Fund posted a total return, excluding costs, of 2.4 percent. Relative to benchmark index, return was 0.1 percent, excluding alternative investments and costs.

– The Second AP Fund’s assets under management amounted to SEK 227.5 (204.8) billion as of June 30 2011.
– The Fund posted a first-half net result of SEK 5 (2.5) billion.
– The Fund’s return on the total portfolio was 2.4 (1.3) percent, excluding commission costs and operating expenses. Including these costs, the portfolio generated a return of 2.3 (1.2) percent.
– The Fund achieved an active return of 0.2 (0.4) percent. The relative return for the portfolio of quoted assets, including implementation effects but excluding alternative investments, commission costs and operating expenses, was 0.1 (0.4) percent.
– The Fund’s level of currency exposure was 18 percent.
– During the first half, the Fund implemented a significant reallocation of assets, from Swedish equities and fixed-income securities to equities and credit instruments on emerging markets.
– During the report period, the Fund has formed a joint real-estate company in association with the First AP Fund, focused on investment in European real estate. The Fund has also established a joint company with US pension fund TIAA-CREF, for investment in agricultural real estate in the US, Australia and Brazil.

“In July and August, the volatility experienced by financial markets has intensified. This has not caused us to make any new changes in our strategic portfolio. Nevertheless, we continue to implement the changes planned earlier, in line with the fundamental longterm strategy adopted for the management of our assets. This is especially important when the situation is so fluid and unpredictable”, states Eva Halvarsson, CEO of the Second Swedish National Pension Fund/AP2.

The complete half-year report (pdf) is published on the Fund’s website at www.ap2.se

A Corporate Governance Report will be published separately in October.

For further details, please contact CEO Eva Halvarsson, Second Swedish National Pension Fund, or Ulrika Danielson, Head of Corporate Communications, on +46 31 704 29 00.

Cityhold Property AB will be the name of the company for European property investments jointly owned by the First and Second Swedish National Pension Funds. Cityhold Property will be operated in cooperation with Catella, which will assist the company with resources and expertise under a long-term management agreement. Senior personnel have now been appointed in Sweden and on the key markets in Europe.

The newly formed company will focus on long-term investments in commercial properties in prime locations in major cities in Europe. Per Sjöberg will be the Managing Director of Cityhold Property. He hails most recently from his own property company, Reiton AB, and was previously Managing Director of CLS Holdings plc i London. Per Sjöberg possesses many years’ experience in the international property business.

Cityhold Property’s other senior personnel comprise Andrew Smith, (Investment
Manager), Sir Julian Berney (Asset Manager, London), as well as Christophe Murciani, (Asset Manager, Paris) and Robb Simpson (investment analyst). Recruitment of a few additional key employees, for example on the German market, is underway.

“I am very proud to have been appointed to build up a diversified property portfolio
with stable cash flows on behalf of the First and Second Swedish National Pension
Funds. I’m also proud of the strong team of employees that we have put together,
possessing long and broad experience of the European markets,” says Per Sjöberg,
Managing Director of Cityhold Property AB.

For more information, please contact:
Per Sjöberg, Managing Director, Cityhold Property AB, +46 8 463 33 08, +46 70 898 44 00

Rickard Backlund, Chairman of the Board, Cityhold Property AB, +46 70 655 99 60

Press contact:
Anne Rådestad, Head of Communications, Catella, +46 8 463 34 29, +46 73 654 74 50

Cityhold Property AB is owned in equal shares by the First and Second Swedish National Pension Funds.
The company will be operated in cooperation with Catella, which will assist the company with resources
and expertise under a long-term management agreement. Cityhold Property AB will have equity totalling
EUR 500 million. Catella is a European finance group operating within Corporate Finance and Asset
Management.

The Swedish Government has appointed Helén Källholm, CEO of Svenska kyrkans arbetsgivarorganisation, as new member of AP2’s board.

The Second Swedish National Pension Fund/AP2 has decided to establish a joint venture with US pension fund TIAA-CREF, with a view to investing in agricultural real estate in the USA, Australia and Brazil.

The Second AP Fund is to invest about USD 250 million in a newly formed company that will acquire and manage agricultural real estate in the USA, Australia and Brazil. TIAA-CREF will be the majority shareholder and administrator. The company will first and foremost invest in grain production.

This investment constitutes one element in the Second AP Fund’s broader strategy of diversifying its total portfolio. The return on agricultural real estate is expected to be stable, with low covariance with the Second AP Fund’s other investments, such as equities and bonds. This will serve further diversify the Fund’s portfolio risk.

TIAA-CREF is a leading US retirement provider, with assets of more than USD 400 billion under management. TIAA-CREF has a well-developed platform for agricultural investment where environmental considerations and social responsibility are integrated. The Second AP Fund has carried out a comprehensive sustainability analysis of TIAA-CREF’s guidelines, policies and processes and considers that they are of very high quality. Like the Second AP Fund, TIAA-CREF is a signatory to the UN’s Principles for Responsible Investment (PRI).

“This chance to co-invest with TIAA-CREF presents the Second AP Fund with a highly attractive opportunity. Like us, TIAA-CREF is a long-term investor. The organization has considerable competence in and experience of this type of investment, while also sharing our values and principles. TIAA-CREF enjoys an excellent reputation, not least for its active and progressive work in corporate governance and sustainability. We anticipate that the newly established company’s investments will promote productivity gains and long-term, well-managed and profitable agriculture that, in a sustainable manner, will help meet the growing global demand,” says CEO Eva Halvarsson, Second AP Fund.

For further details:
Eva Halvarsson, CEO, AP2: phone +46 (0)31-704 29 00
Anders Strömblad, Head of External Management, AP2: phone +46 31-704 29 00
Ulrika Danielson, Head of Communications, AP2: phone +46 (0)31-704 29 29, mobile +46 (0)709-50 16 13 www.ap2.se

The Second Swedish National Pension Fund is one of five buffer funds within the Swedish national pension system. The fund are committed to investing Sweden’s pension assets to maximum benefit for the national pension system and to generating a high return at low risk over the long term. At year-end 2010, the Second Swedish National Pension Funds had pension assets of around SEK 220 billion under management.

Wednesday May 18, Anders Strömblad, AP2, along with Ossian Ekdahl, AP1, received an award at IPE European Pension Funds Awards, for the funds newly established joint company that will invest in European real estates.

The joint Ethical Council of Sweden’s First, Second, Third and Fourth AP funds (AP1, AP2, AP3 and AP4) has today presented its annual report for 2010. The report describes how the four AP funds make a difference by using their influence as owners to take action against infringement of international conventions and demand changes.

The report gives an account of the past year’s developments in the Ethical Council’s ongoing dialogues with portfolio companies that can be associated with violations of the ethical guidelines governing the four AP funds’ investments. Significant advances have been made in several of the dialogues that the Ethical Council conducted throughout the year. One company, Vedanta Resources, has been removed from the dialogue list and dialogues have been started with three new companies, Alstom, Veolia and Motorola Solutions.

The progress made in these dialogues has strengthened the AP funds’ belief in the importance of taking their responsibility as owners and acting according to the principles of commitment, action and change in order to make a difference. The principles and basis for the Ethical Council’s commitment have been defined in the funds’ core values, which were further developed during the year.

The Ethical Council’s resources and network were strengthened during 2010 and John Howchin was appointed as Secretary General. This reinforcement will enable the Ethical Council to work more proactively by leading and participating in investor initiatives aimed a influencing companies to increase their transparency, act more responsibly and address important issues in the ethical and environmental area.

– The progress we see in the companies with which we are engaged in dialogue has reaffirmed our conviction that the Ethical Council’s guiding principles to act on the basis of commitment, action and change in order to make a difference is the right approach for us as a responsible, long-term investors,” says Nadine Viel Lamare, Chairwoman of the Ethical Council.

– It can sometimes take time to gain a hearing for our views, but experience shows that we do more good as owners by making demands on the companies than by selling our holdings. A sale generally doesn’t solve the problem in the company and we therefore do our utmost to urge the companies to make a change. The sale of a holding can be a last resort when no other means of influence is effective,” she adds.

Read more about company dialogues and the Ethical Council’s other activities in the annual report for 2010, available for download at www.ethicalcouncil.com.

For further information, please contact:
Nadine Viel Lamare, Chairwoman of the Ethical Council in 2011
Telephone: +46 8-566 20 270
E-mail: info[at]ethicalcouncil.com

The First and Second Swedish National Pension Funds (AP1 and AP2) have decided to form a joint company in association with Catella, for investment in European real estate. The formation of this company will enable both funds to establish long-term ownership of real estate on the most significant European markets. The company’s business strategy is to invest in commercial real estate, focusing on office premises centrally located in major European cities.

The First and Second Swedish National Pension Funds will be joint and equal (50/50) owners of the new real estate investment company, which will have a total equity capital of EUR 500 million. During the initial phase, the First and Second Swedish National Pension Funds have collaborated with Catella, a European finance group. Furthermore, the two funds have signed an agreement with Catella, securing its support in terms of resources, competence and expertise during the build-up phase of the new company.

Rickard Backlund has been appointed to chair the new real estate company. Among previous positions, Rickard Backlund was CEO of Aberdeen Property Investors. The work of appointing the other members of the board and the recruitment of a CEO has already started.

“These investments in real estate can provide us with a solid return relative to the level of risk. As long-term investors, this presents us with a promising opportunity to complement our other real estate investments in Sweden and elsewhere with a number of well chosen properties in Europe. This offers a rapid and cost-efficient means of building up a real estate company that through its investments can utilize knowledge of the local markets,” states Johan Magnusson, CEO of Första AP-fonden (First National Swedish Pension Fund/AP1).

“This company will now enable us to complement our current real estate investments in Sweden, Denmark and Germany, broadening our European portfolio. It will enhance the Fund’s overall investment focus and is expected to generate a robust and stable return over the long term. The form of collaboration chosen provides us with a tailored investment solution which, among other things, is grounded in a shared long-term investment objective and joint requirement of cost-efficient portfolio management,” states Eva Halvarsson, CEO of Andra AP-fonden (Second National Swedish Pension Fund/AP2).

“The initiative adopted by the First and Second Swedish National Pension Funds represents a new form of direct investment in foreign real estate. It unites the capacity and financial competence of these institutions with Catella’s market know-how and market proximity, with a view to creating long-term value. We are proud of the confidence expressed by the First and Second Swedish National Pension Funds in entrusting Catella with this mission,” states Johan Ericsson, CEO of Catella AB.

For further details:

Första AP-fonden
Johan Magnusson , CEO Första AP-fonden: phone +46 (0)8-566 20 200
Ossian Ekdahl, Head of Communications, Första AP-fonden: phone +46 (0)8-566 20 209,
mobile +46 (0)709-681 209
www.ap1.se

Andra AP-fonden
Eva Halvarsson, CEO Andra AP-fonden: phone +46 (0)31-704 29 00
Ulrika Danielson, Head of Communications, Andra AP-fonden: phone +46 (0)31-704 29 29,
mobile +46 (0)709-50 16 13
www.ap2.se

The First and Second Swedish National Pension Funds are two of five buffer funds within the Swedish national pension system. These funds are committed to investing Sweden’s pension assets to maximum benefit for the national pension system and to generating a high return at low risk over the long term. At year-end 2010, the First and Second Swedish National Pension Funds had pension assets of around SEK 440 billion under management.

The Second AP Fund’s net result for the year amounted to SEK 22.3 billion. Return relative to benchmark index was 0.8 percent, excluding alternative investments and expenses. All asset classes outperformed their respective benchmark indices. The Fund’s high exposure in Swedish equities has also continued to contribute strongly to the positive absolute return in 2010.

• The Second AP Fund’s assets under management totalled SEK 222.5 (204.3) billion on December 31, 2010, against which net outflows to the national pension system were charged in an amount of SEK 4.0 (3.9) billion.
• The net result for the year amounted to SEK 22.3 (34.9) billion.
• The Fund’s return on the total portfolio was 11.2 (20.6) percent, excluding commission fees and operating expenses. Including these expenses, the portfolio noted a return of 11.0 (20.3) percent.
• The Fund’s active management posted an ongoing positive result. The relative return on the Fund’s overall portfolio, excluding alternative investments, was 0.8 percent, corresponding to SEK 1.4 billion.
• The Fund’s low FX exposure of 12 percent was favourable, contributing positively to the net result.
• During the year, the Fund made its first investments in forest and agricultural real estate.

“For the second year in succession, the Second AP Fund has been able to generate a solid result, achieving a growth in the worth of its market assets in excess of the five percent target. Equally pleasing is the fact that the active management of our assets has in two years contributed a total of SEK 2.6 billion,” states Eva Halvarsson, CEO of the Second Swedish National Pension Fund/AP2.

The English-language version of the AP2 Annual Report 2010 will be available at www.ap2.se from the end of February.

For further details, please contact the Second AP Fund’s CEO, Eva Halvarsson, at +46 (0)31-704 29 00, or the Head of Communications, Ulrika Danielson, at +46 (0)709-50 16 13.