Andra AP-fonden (AP2) reported a total return of -5.1 per cent, after costs, for the first half of 2020. The net result was SEK -19.3 billion, while the Fund’s assets totalled SEK 357.9 billion at the end of the first half of 2020. Relative to the benchmark index, the return was -0.1 per cent, excluding alternative investments and costs.
– The global outbreak of COVID-19 has impacted very strongly on the world's securities markets trend and thereby the Fund's portfolio value, says Eva Halvarsson, CEO of AP2.
– By the end of the first half of the year, financial markets had turned upwards and most economies had begun to recover. The stock market upturn was largely driven by emerging equities in the technology sector. This has adversely affected the Fund's equity portfolios, which avoid concentrating excessive holdings in large companies, and instead over-weighting equities with a low valuation, says Eva Halvarsson.
– AP2’s return exceeds the Fund’s long-term return assumption of 4.5 per cent annually. In the past ten years the Fund’s average annual real return has amounted to 6.6 per cent, says Eva Halvarsson.
– During the first half of the year allocations to private equity funds and foreign real estate were increased, which was financed by a reduction in the allocation to Swedish bonds. The allocation to Chinese A-shares was also increased. The Fund also switched to an index with a sustainability focus for bonds in local currency in emerging countries, says Eva Halvarsson.
The complete half-year report (pdf) is published on the Fund’s website at www.ap2.se. AP2’s sustainability work during the first half-year 2020 is published in a separate report at www.ap2.se
For further details, please contact:
Eva Halvarsson, CEO at AP2, on +46 31 704 29 00 or Ulrika Danielson, Head of Corporate Communications, on +46 709 50 16 13.
AP2 is one of five buffer funds within the Swedish pension system and one of northern Europe’s largest pension funds. The Fund’s assets under management total SEK 357.9 billion (30 June 2020), and cover essentially all asset classes across the entire world. We are leading specialists in the Swedish pension system, and we strive to be a world-class asset manager. We are a global leader when it comes to integrating sustainability into our investments, for the benefit of the pension system. The Fund is a long-term and responsible asset manager. www.ap2.se