Swedish pension company AMF achieved a return of 7.8 per cent on its investments in 2023, its annual financial statement has shown.

This represents a year-on-year improvement of 16.4 percentage points compared to the -8.6 per cent return in 2022.

The pension company’s average total return over the past five years also increased in 2023, from 5.6 per cent to 6.9 per cent, however its 10-year average return fell slightly from 7 per cent to 6.9 per cent.

During 2023, listed equities were the strongest performing asset class for AMF, returning 15.8 per cent, while its fixed income and alternative assets returns 5.4 per cent and 5.2 per cent respectively.

However, the pension company’s return on its property portfolio was -4.3 per cent.

The solvency ratio, which is the market value of the company’s assets in relation to savers’ guaranteed commitments, fell from 228 per cent to 220 per cent during the year.

The AMF Group’s total managed capital, meanwhile, increased from SEK 534bn to SEK 790bn.

“We deliver a strong total return of 7.8 per cent to our savers in 2023, despite a turbulent and troubled year in many ways,” stated AMF CEO, Johan Sidenmark.

“The nice return made it possible for us to increase the pensions for the majority of our paying customers, which feels good, not least in a situation where we know that many people are having a tough time financially.

“It also feels good that during the year we were able to improve security for our customers, among other things by increasing the guarantee for premiums paid to 100 per cent, by introducing a new guarantee reinforcement model and by converting SEK 9.3bn of earned surplus into guarantees.

“AMF continues to be in a very strong financial position, which is reflected in our continued strong solvency. It gives us good opportunities to continue investing in important Swedish companies that we believe can contribute to our savers' returns over time, despite a weak economy and a challenging situation.”

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