AP3, Stockholm, recorded a net 11.4% investment return for the first half of 2021, with assets increasing 10.4% to 466.9 billion Swedish kronor ($54.7 billion).
The pension fund said in an update Friday that the investment return equaled a 48 billion kronor gain. For the six months ended Dec. 31, 2020, the investment return was a net 9.7%; for the six months ended June 30, 2020, the return was -0.8%.
Assets grew 20.8% over the year ended June 30.
AP3's five-year annualized return was a net 11.2% for the period ended June 30 vs. 9.1% for the period ended Dec. 31 and 6.9% for the five years ended June 30, 2020. The 10-year annualized net return was 9.7% vs. 8.7% and 8.4% for the decades ended Dec. 31 and June 30, 2020, respectively.
About 45.4% of assets is invested in equities, which returned 15.2%. Within that exposure, 11.7% was invested in Swedish equities, which returned 18.9%. Fixed-income allocations, at about 27.3%, returned -0.1%. The allocation to alternatives, about 25.7%, returned 14.7%, the update said.
"Our equity and alternative investment portfolios were the primary drivers of this strong performance. Fund capital rose by SEK 80 billion in the 12 months to 30 June, a period in which AP3 made net payments of around SEK 8 billion to cover the deficit in the state income pension system," Kerstin Hessius, CEO of the fund said in a news release accompanying the report Friday.
