Sweden’s third national pension fund, AP3, delivered a return of 6 per cent after expenses in 2025, corresponding to a record high fund capital of SEK 577.1bn, its annual report has revealed.

Despite the record high in fund capital, the fund’s return in 2025 was a significant drop from 2024, when the fund delivered a return of 10.3 per cent after expenses.

Profit also saw a similar trend, as in 2024, AP3 reported a profit of SEK 51.3bn, while in 2025 the fund reported a profit of SEK 32.6bn.

According to the fund, asset management costs were 0.08 per cent, of which operating expenses were 0.07 per cent.

This means that the fund has achieved an annual average return of 7.5 per cent for the past five years and 8.3 per cent for the past 10 years.

Commenting on the results, AP3 CEO, Staffan Hansén, said: “It has been an eventful year in which the fund’s employees delivered excellent results on several fronts at the same time. This is also true of navigating the financial markets, where after a weak return in the first half of the year, the fund rebounded strongly in the second half, posting a 6 per cent return.”

AP3’s major focus in 2025 was on preparing for the consolidation of the AP funds, as well as on future-proofing the fund’s system infrastructure.

On 31 January 2025, the Government Offices of Sweden announced that the Pension Group supported the proposal for the assets of the First AP Fund (AP1) to be transferred in equal shares to AP3 and the Fourth AP Fund.

On 20 May 2026, the Swedish parliament (Riksdag) decided to implement the consolidations, which came into effect on 1 January 2026 and saw AP1’s assets and liabilities taken over.

The purpose of the consolidations was to realise greater economies of scale in the AP fund system.

After the successful transfer of assets from AP1 at year-end, the fund’s assets under management totalled SEK 832.8bn.

This increased amount of capital required new talent, and AP3 saw a record number of applicants for the positions advertised, with many highly qualified candidates.

The fund also implemented a cloud-based integrated system in 2025, which replaces several systems that support the entire business flow from analysis and order placement to portfolio management.

AP3’s corporate governance report showed that the target for the percentage of female board members in large companies has been exceeded and now stands at 43 per cent.

In addition to this, the report revealed that the percentage of companies in the portfolio with sustainability criteria in incentive programs has also been exceeded and now stands at 43 per cent.

“I would like to thank the board and my colleagues at AP3 who contributed to the successful implementation of both the change of system infrastructure and the well-executed consolidation,” Hansén said.

“I would also like to thank the other AP funds, especially AP1 and AP4, for their excellent cooperation in connection with the consolidation. AP3 is well-positioned to continue delivering on its long-term mission.”

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