AP2, Gothenburg, Sweden, recorded a 10.7% return in the first half of 2019, with assets increasing 9.7% in the period to 367.4 billion Swedish kronor ($38 billion).
An update Wednesday said the fund showed a 35.6 billion kronor gained, compared to a 2.9% gain for the six months ended June 30, 2018, when the fund returned 9.8 billion kronor.
The pension fund's 10-year annualized return was 9.3% for the period ended June. 30. Over the past five years the fund returned an average annual return of 7.6%.
"In the first half of the year the fund adjusted its listed portfolio to the recent years' favorable growth in holdings of real estate and private equity funds by reducing the allocation to Swedish and foreign equities and Swedish bonds," CEO Eva Halvarsson said in a news release. "In addition, the share of capital allocated to emerging-market bonds issued in U.S. dollars increased."
The fund's largest portfolio exposure was to developed market equities, at 20.4%. The allocation gained 21.5% in the six months ended June 30.
A 10.4% allocation to emerging market equities returned 13.9%, while a 9.1% exposure to Swedish equities jumped 19.8%.
Swedish fixed income, with an allocation of 8.7%, advanced 1.1%; foreign government bonds exposure of 4% added 9.9% and a 7.5% emerging market fixed-income allocation returned 13.6% for the six months ended June. 30. Foreign credits, which were 10.5% of the fund's portfolio rose 13.5%.
The fund's 1% allocation to green bonds gained 10.5% in the period.
The remaining 28.4% of the portfolio was invested in alternative assets, which comprises Chinese domestic market equities, non-listed real estate, private equity, and alternative credit and risk premium, which returned 7.7%.