AP1, Stockholm, returned 10.2% on investments in the year ended Dec. 31 as total assets rose to 218.8 billion Swedish kronor ($33.9 billion), confirmed spokesman Ossian Ekdahl.
Returns in 2010 were driven primarily by rallying stock markets and increases to equity allocations. Equities returned 14.6% for the year; allocations to Swedish and emerging markets equities rose to 15.7% and 8.5%, respectively, up from 13.8% and 7.3%, respectively, a year earlier. Swedish equities returned 27.6%, while emerging markets equities returned 12.4%.
“With the good results for 2009 and 2010, we have now recouped the value decline that was caused by the financial crisis, which is positive for future pensions,” Johan Magnusson, managing director of the fund, said in a news release.