AP2, Gothenburg, Sweden, returned -1.9% on its investments in the year ended Dec. 31, down from 11.2% the previous year, the 216.6 billion Swedish kronor ($32.6 billion) fund announced Friday.
The fund trailed its custom benchmark by 30 basis points for the year.
Diversification of the fund's assets in recent years helped protect it from falling equity markets in 2011, according to a news release from the fund. Alternatives and bonds were top performers, fetching returns of 8.4% and 6.4%, respectively, for the year.
Spokeswoman Ulrika Danielson could not be reached for additional information.
