The defined contribution (DC) product of Swedish pension company Alecta yielded 9.6 per cent in 2025.

The Alecta Optimal Pension product was boosted by its 60 per cent exposure to equities, as the asset class achieved a return of 14.1 per cent.

Alecta said its equity portfolio, which consists of approximately 200 holdings, delivered strong results thanks to good stock selection and successful allocation between sectors and regions.

Investments in the technology and finance sectors, in particular, contributed to the good returns.

Alecta head of asset management, Pablo Bernengo, said: “Interest-bearing assets and alternative investments also performed well, with returns of 3.2 and 4.5 per cent, respectively.

“A high degree of currency hedging also protected the value of our foreign assets when the krona strengthened last year. A single year is a short time when it comes to pension savings, but we are of course delighted to be able to offer our customers a good return for 2025.”

Regarding bond yields, Alecta noted that although bond yields rose in continental Europe and Sweden, the interest rate portfolio's government bonds delivered a positive return.

Credit bonds also had a good relative return compared with government bonds, which contributed positively to the return on interest-bearing securities, Alecta said.

In terms of alternative investments, Alecta said that private equity outperformed infrastructure and real estate.

The figures are for private customers with ITP 1 and ITPK up to the age of 63.

---