Sweden’s AMF returns 8.5% in H1 2021

Swedish pension company, AMF, made a total return of 8.5 per cent in the first half of 2021, with its solvency ratio standing at 217 per cent.

Publishing its interim results, the company revealed much improved results on the same period last year, which was when the effects of the Covid-19 pandemic were first felt in the financial markets. In the same period in 2020, it made a loss of 1.4 per cent and had a solvency ratio of 182 per cent.

AMF's management cost for traditional insurance amounted to SEK 11 per SEK 100 in assets under management. The average annual return over the past five years has been 8.9 per cent and 8.1 per cent over the past 10 years.

“We delivered a strong return of 8.5 per cent during the first half of the year and improved our financial position,” AMF head of asset management, Tomas Flodén, said. “This gives us good opportunities to deliver on our mission, to give our four million savers good and secure occupational pensions.”

He added that results improve the condition for the strategic relocation of its portfolio to more investments in long-term unlisted assets.

“The market has been characterised by optimism during the spring, in the wake of successful vaccination efforts and continued stimulus measures. The equity part of our portfolio had a very strong development during the half-year, with an increase of 18.5 per cent. Our Swedish shares were the strongest, rising by just over 20 per cent,” Flodén explained.

“The alternative part of the portfolio and our properties also delivered a positive return. During the spring, we continued to shift our investments into unlisted and alternative assets. We joined as the third-largest owner in the Finnish electricity distribution company Caruna Networks Oy, and invested in the Swedish music tech company Epidemic Sound. We have also strengthened our holdings in Northvolt, Mathem and Storskogen.”

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