AP2, Gothenburg, Sweden, returned 11.2% on investments for the year ended Dec. 31, down from 20.6% the previous year.
Assets grew to 222.5 billion Swedish kronor ($34.3 billion) at the end of 2010, up from 204.3 billion a year before, according to an AP2 news release.
The fund topped its custom benchmark by 80 basis points, with all asset classes outperforming in 2010.
During the year, the fund made its first investments in forest and farm real estate, according to the release.
Spokeswoman Ulrika Danielson could not be reached for further comment.