AP2, Gothenburg, Sweden, recorded a 15.9% return in 2019, with assets increasing 13.8% in the period to 381.3 billion Swedish kronor ($40.9 billion) driven by positive returns of all asset classes.
An update Monday said the pension fund recorded a 53 billion kronor net gain, compared with a 1.3% loss for the 12 months ended Dec. 31, 2018, when the pension fund lost a net 4.3 billion kronor.
The pension fund's 10-year annualized return was 8.4% for the period ended Dec. 31, 2019. Over the past five years the pension fund returned an annualized 7.4% .
"Despite the (global) turbulence, many of the world's financial markets experienced strong growth," said Eva Halvarsson, CEO of AP2, in a news release.
"All asset classes saw positive returns," Ms. Halvarsson added.
The pension fund's 20.5% allocation to developed market equities gained 31.7% in the 12 months ended Dec. 31. An 11% allocation to emerging market equities returned 19.9% in the period, while a 9% exposure to Swedish equities added 30.2%.
Alternative investments, 27.5% of AP2's portfolio, returned 13.2% in the period.
The pension fund also had an 8% allocation to Swedish fixed income, an emerging market fixed-income allocation of 7.5% as well as a 4% exposure to foreign government bonds. The pension fund also increased its allocation to green bonds to 3% from 1%. The remaining 9.5% was invested in foreign corporate bonds.
The return figures for these asset classes were not disclosed by AP2.
Ms. Halvarsson added in the release that in 2019, the pension fund added to its analysis the risks posed by climate change to economic growth.
During 2019, the pension fund also divested from equities and bonds of 60 producers of tobacco and nuclear weapons.
