Sweden’s AP1 and AP4 announced returns after expenses for 2013 of 11.2% and 16.4%, respectively.
Assets at AP1, Stockholm, increased 8% to 252.5 billion Swedish kronor ($38.7 billion), with an annualized return of 6.5% after expenses for the 10 years ended Dec. 31, which exceeds the fund’s target of 5.5%, according to a news release.
Net investment income was 25.7 billion kronor.
“In accordance with our strategy, we have continued to diversify risks in the portfolio,” said Johan Magnusson, CEO of AP1, in the news release.
The fund has increased allocations to real assets, including real estate and private equity, and has reduced investments in public equities and fixed income, Mr. Magnusson said. A breakdown of the fund’s asset allocation was not available.
Assets at AP4, Stockholm, increased 13% in the year to 260 billion kronor. The annual nominal total return after expenses averaged 7.2% over 10 years, adjusted to 5.9% annually in real terms. The board’s real-return requirement is 4.5% on average annually.
“In 2013, AP4 further increased its greenhouse gas-efficient investments,” said Mats Andersson, CEO of AP4, in a separate news release. “This can be seen in light of the fund’s wish to increase its strategic investments, with an investment horizon extending beyond three years.”
Ossian Ekdahl, head of communications and ESG at AP1, and Mr. Andersson were not available to comment by press time.