Alecta’s DC pension option sees 12.4% return in H1 2021

Swedish pension company Alecta’s defined contribution option had a return of 12.4 per cent in the first half of 2021, it has revealed.

Publishing its first half results, the company revealed it has a solvency position of 187 per cent. It’s DC option, Alecta Optimal Pension, returned 12.4 per cent, whilst its DB insurance had a return of 7.7 per cent. Assets under management in the total portfolio for Alecta Optimal Pension amounted to SEK 198bn at the end of the period.

Alecta CEO, Magnus Billing, said: “Alecta has delivered a good return this half year and has a continued strong financial position. We have done this with a clear and disciplined focus on cost efficiency. Alecta has, despite the challenges of the pandemic, managed to ensure a very good result for its customers. All our customers have good reasons to feel secure that we continue to create customer value through long-term good return on their pension capital at a very low fee.”

Alecta attributed the positive return to the development in the equity portfolio, but also to continued active work to find a good return from interest-bearing investments and the broadening of the asset portfolio towards more alternative investments such as real estate, infrastructure and alternative loans.

During the spring, Alecta's newly formed real estate company Alecta Fastigheter AB built up an organisation with just over 20 employees. In addition, Alecta has made investments in unlisted companies, such as Epidemic Sound, which operates a digital music platform, and Stena Renawable, active in renewable energy, as well as Stockholm-based energy company, Exergi and in Telia's mast operations in Finland and Norway.

Furthermore, Alecta has invested in a bond for social sustainability, where the capital is earmarked to support improved access to health and sanitation, reduction of pollution through renewable energy and sustainably produced food.

The provider has submitted an application to Finansinspektionen to be transformed into an occupational pension company in accordance with Sweden’s new occupational pension regulation.

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