Sweden’s Second AP Fund (AP2) has reported a 9.6 per cent return after costs in the first half of 2026, up from 0.4 per cent in H1 2025, corresponding to a profit of SEK 48bn.

The results also revealed that the fund’s closing capital increased from SEK 475.2bn at year-end 2025 to SEK 550.5bn in H1 2026, while its initial capital increased from SEK 458.9bn in H1 2025 to SEK 475.2bn to H1 2026.

According to AP2, the strong return in H1 was driven by listed equities, particularly by the fund’s exposure to emerging markets, which returned 51 per cent.

On the other hand, the fund’s exposure to real assets continued to develop weakly, impacting the portfolio by -0.2 per cent during H1.

This included a depreciation of the former holding in Stegra, which was written down by SEK 0.33bn compared to its acquisition cost.

Meanwhile, foreign currencies made a positive contribution to the result.

The results also reported on the changes made since the integration of AP6 into AP2 was finalised at the end of 2025, as in addition to its SEK 48bn profit, AP2 received SEK 31.8bn from AP6 during H1.

This consisted of fund investments worth SEK 25.8bn and SEK 6bn in cash and cash equivalents.

AP2 noted that the incorporation of AP6 has proceeded according to plan, and that the assets that will be included in AP2's venture capital portfolio have been transferred and are now managed within the fund's ordinary management.

The remaining assets from AP6 are managed separately in a transition portfolio, and the liquidity generated by this will gradually be transferred to AP2.

The fund capital of the transition portfolio, which at the end of H1 amounted to SEK 52.3bn, is not included in AP2's reported fund capital in the report.

The total capital for which AP2 is responsible, including the transition portfolio, amounted to SEK 602.8bn at the end of H1.

The report also highlighted that the total management expense share remained unchanged at 0.08 per cent, as did operating expenses, which accounted for 0.06 per cent of the management expense share.

Additionally, AP2 has achieved an annual average return of 5.3 per cent after costs over the past five years, and 7 per cent after costs over the past 10 years.

Commenting on the results, AP2 CEO, Eva Halvarsson, said: "AP2 reports a strong result for the first half of the year in a continued uncertain environment. The markets have periodically been characterised by geopolitical turmoil and trade uncertainty, but the global economy has also shown resilience. The fund's return has primarily been driven by listed equities.

"During the period, we continued to implement important changes in asset management and at the same time took over responsibility for assets from AP6. The incorporation has been carried out completely according to plan, with good progress and cost control.”

Halvarsson added that during the first half of the year, AP2 have strengthened the organisation and welcomed around 10 new employees.

“We are now well equipped for the continued work of developing the administration and taking responsibility for the expanded assignment," she concluded.

---