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.