Swedish pension company AMF returned 5.7 per cent on its investments in the first half of 2024, its half-year results have revealed.

All asset classes contributed to the result with positive returns, with equity investments proving the most fruitful with a return of 13.6 per cent.

During the spring, AMF converted SEK 5.6bn of existing surplus to strengthen its guarantees.

The reinforcement includes approximately 700,000 customers who receive their pension from AMF, and means that a larger part of the pension is guaranteed and the risk level decreases.

AMF’s total profit in the first half of the year amounted up SEK 39.9bn, up from SEK 26.8bn.

The improvement was primarily driven by the results of asset management, which contributed SEK 45.7bn.

Meanwhile, the pension company’s operating costs increased during the same period, from SEK 431m to SEK 437m.

Commenting on the results, AMF managing director, Johan Sidenmark, said: “It feels extra positive that we can deliver a strong return on 5.7 per cent to our 4.4 million savers during the first half of 2024.

“High yield is important, because it means higher pensions for those who need it the most.

“Every percent higher return can give around SEK 1,500 more per month in pension for an ordinary professional worker who saves under an entire professional life.”

During the first half of 2024, AMF Aktiefond Europa was one of the funds that was procured for the new premium pension market.

“This form of procurement is new for us and it has been a long and thorough process, which has been tough but at the same time developing and instructive for the further procurements which now follows from other categories of funds within the premium pension system,” Sidenmark stated.

---