AP6, Stockholm, returned 6.5% for the year ended Dec. 31, bolstering assets by 6.4% to 28.1 billion Swedish kronor ($3.1 billion).
The return was down from 12.2% in 2015 and an annualized 9.8% over the past five years.
AP6 said in a financial update that the divestment of two stock holdings, Volvofinans Bank in December 2015 and Norrporten in 2016, combined with high rate of investment negatively affected the return during the period.
The pension fund made 10 new direct investments during the year, the financial update said.
“There is a short-term impact on return from the high liquidity, along with the fact that value creation in new unlisted investments occurs only after a certain period of ownership has passed,” Karl Swartling, managing director, said in a news release accompanying the financial update.
“Unlisted investments are held over the long term, which means that returns must also be measured over longer periods of time,” Mr. Swartling said.
The pension fund's private equity allocation increased to 31% from 26% a year earlier and private investments fell to 28% from 47% during the same period. The remaining 41%, up from 27% the year before, is held in liquidity assets.