AP3, Stockholm posted a -5.8% investment return in 2022, driven by a downturn in financial markets, but offset by positive returns for its alternative assets portfolio, the fund said Wednesday.
The investment return in 2021 was 20.7%.
Assets fell 3.1% to 486.4 billion ($46.6 billion) Swedish kronor at the end of 2022.
"As an investor, we are always affected by major global movements in the financial markets, but given the general performance of markets over the year, the return should be regarded as reasonable," Staffan Hansen, CEO of the fund, said in a news release.
AP3's five-year annualized average return was 8.1%, while the 10-year annualized return was 9.3%.
As of Dec.31, 2021, the fund's annualized five-year return was 11.3%, while the 10-year annualized return was 11.1%.
Alternative investments returned 8.9% in 2022, driven by gains from investments in infrastructure and timberland. In 2021, alternatives gained 30.7%.
Equity investments returned -18% in 2022, compared to 23.8% in 2021, while fixed-income investments returned -8.3%, compared to 0.2% in 2021.
The pension fund invested about 40% of its assets in equities, about 35% in alternatives and about 25% in fixed-income assets as of Dec. 31.