Sweden’s AP1 is concluding its operations with just over SEK 500m in assets under management.

The pension fund will wind down at the end of December 2025, and its assets and operations will be transferred to the AP3 and AP4 funds.

Since 2001, the fund has increased its assets under management from approximately SEK 134m to just over SEK 500m, and has contributed approximately SEK 67m to the pension system through annual net outflows to the Swedish Pensions Agency.

AP1 chair of the board, Eva Lindström, said she was “proud” of the work that the entire organisation has done.

“For many years, AP1 has demonstrated that it is possible to combine high returns, responsibility and efficiency for the benefit of today’s and tomorrow’s pensioners,” Lindström said.

She also spoke about the change in strategic direction in 2020, which led to Kristin Magnusson Bernard being recruited as CEO.

Changes were made across the entire pension fund from investment strategies, portfolio construction and capital allocation to risk, compliance and ESG.

"The change process implemented over the past five years has had a significant impact on the fund's performance," Lindström stated.

For example, the average return over the past five years has increased to 8.2 per cent, compared with 5.8 per cent over the previous five-year period, equating to an additional return of over SEK 40bn.

Furthermore, capital has increased by approximately SEK 130bn over the past five years. Over the same period, administrative costs have fallen by almost 40 per cent, corresponding to savings of nearly SEK 1bn.

In preparation for the end of the fund’s operations, AP1 said it has undertaken extensive winding-up and transfer work. It said this was a “challenging and complex task”, carried out under considerable time pressure.

The board of AP1 expressed its thanks to Magnusson Bernard and all employees for their contributions to the income pension system.

The Swedish parliament (Riksdag) approved the Swedish government's proposal to consolidate AP funds in May 20205, with legislative amendments to take effect on 1 January 2026.

Yesterday, AP6 published its concluding results, revealing that it has contributed SEK 72.5bn to the pension system since its inception in 1996.

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