AP3 and AP4, Swedish buffer funds based in Stockholm, reported returns on investments of 9.1% and 11%, respectively, for the year ended Dec. 31.
AP3's assets grew to 220.8 billion Swedish kronor ($34.3 billion), while AP4's assets were 212.8 billion kronor, the funds reported in separate announcements Friday.
Returns for AP3 were driven by equities, which increased 13.5% in the year. Despite the rise, equities fell as a portion of total assets to 55.7% as of Dec. 31, down from 58.2% a year earlier. The remaining allocation was to the following risk categories: credit, 18.6%; fixed income, 14.5%; inflation, 13.4%; absolute-return strategies, 3.8%; and other exposures, 1.1%. The allocation totals more than 100% because of the use of derivatives. The fund also has a foreign exchange exposure of 11.3% because of international investments.
AP4 did not provide similar return data.
Spokesmen for the funds could not be reached for further comment.