AP1, Stockholm, reported a net return of 10.9% in the six months ended June 30, with assets increasing 9.9% to 431.5 billion Swedish kronor ($50.6 billion).
The pension fund said in an update Wednesday that the return was equal to a gain of 43.1 billion kronor. For the six months ended June 30, 2020, the fund lost 1.8%, or 6.6. billion kronor.
Assets have increased 21.5% since June 30, 2020.
AP1 achieved an annualized total net return of 9.9% for the five years ended June 30, and 9% for the 10-year period.
"We have been well positioned to benefit from the prevailing market situation, and most asset classes in the portfolio contributed positively. Our considerable exposure to global and Swedish equities, where especially the latter have shown outstanding performance year-to-date, was the main return driver, although real estate and other alternative investments also contributed positively," Kristin Magnusson Bernard, CEO of the fund, said in a news release accompanying the update.
The fund's total allocation to equities returned 15.4%. Swedish equities delivered a 19.6% return, developed market equities returned 13.5%, while emerging market equities returned 10.8%.
High-yield bonds returned 2.6%, while other fixed-income showed a loss of 2.4%.
The fund's exposure to alternative asset classes also boosted overall returns with AP1's allocation to venture capital returning 22.8%, allocation to hedge funds returning 17.1% and allocation to real estate returning 10.6%.
In addition, infrastructure returned 1.3% and cash recorded a loss of 5.8%.