Sweden’s AP2 saw profits of SEK 62.3bn in 2021, the best result the fund has ever recorded, it has revealed.

For 2021, the fund’s total return was 16.3 per cent, which resulted in its capital increasing to SEK 441bn after deducting the net outflow to the pension system.

The relative return was 0.5 per cent, while its real return after costs was 12 per cent.

This comparted to returns after costs of 3.5 per cent and real returns after costs of 3 per cent in 2020.

AP2 CEO, Eva Halvarsson, stated that the fund had positive development in “virtually all” asset classes, with returns on Swedish and global equities being the primary drivers behind the record increase.

Furthermore, the fun saw returns of as much as 66.1 per cent from its venture capital investments.

Over the past 10 years, AP2 has returned 148.5 per cent, meaning an average return of 9.5 per cent a year.

Commenting on the results, Halvarsson said: “In 2021, the fund reduced the cost share of assets under management to historically low levels and the total management cost share now amounts to 0.11 per cent.

“AP2 celebrated its 20th anniversary in 2021. Since the start in 2001, we have not only increased our fund capital by SEK 307bn, we have also developed our sustainability work to today be among the foremost in the world.

“It is not something that happened overnight, but has been a constant work that required the commitment and competence of all employees.

“The fund continues to develop and improve this work, with the aim of contributing to both sustainable development and a stronger pension system.”

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