Swedish pension company AMF returned 3.9 per cent in the first quarter of 2024, its quarterly report has revealed.

This represents a 1 percentage point increase on its 2.9 per cent return in the first quarter of 2023.

The pension company’s solvency ratio also increased year-on-year, from 227 per cent in Q1 2023 to 230 per cent in Q1 2024.

Over the past five years, AMF’s average annual return was 6.7 per cent, while its average annual return over the past 10 and 15 years was 7.1 per cent and 7.8 per cent respectively.

The AMF Group’s total managed capital rose from SEK 766bn to SEK 837bn between March 2023 and March 2024.

AMF head of asset management, Tomas Flodén, said that equities was the asset class that performed the strongest during the quarter, while its interest rate investments and alternative assets also had positive returns.

“Being able to achieve a sustained high return through a well-diversified and wisely composed and managed portfolio is the key to being able to provide our savers with secure and high pensions over time,” he stated.

“Several of our funds also had a positive start to the year, driven by strong development on several important exchanges.”

Commenting on the quarterly figures, AMF CEO, Johan Sidenmark, said the pension company’s results for the first quarter of 2024 “breathes a certain faith” in the future, despite the economic and geopolitical unrest in the wider world.

“Many predict that the economic turnaround is within reach,” he continued.

“Important parts of Swedish industry continue to show resilience, despite the weak economy, and the Riksbank's first interest rate cut in eight years came as a relief to many households and companies.

“At the same time, we know that many people, not least those with slightly lower incomes, continue to have a tough time after a number of tough years with high interest rates, high inflation and growing unemployment."

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