Sweden’s AP2 returned -6.2 per cent, after costs, in the first six months of 2022, its interim results have revealed.

The result amounted to SEK -27.3bn and the fund’s assets amounted to SEK 411.7bn at the end of the first half of 2022. During the period, SEK 2bn was transferred to the pension system.

The first six months of 2022 was among the most turbulent ever for the financial markets and the real economy with many pension funds reporting negative returns. Russia's invasion of Ukraine is primarily a humanitarian disaster but has also affected energy, food and commodity prices.

Inflation has risen to levels not seen in decades and central banks have tightened much more than previously expected. As a result, both equities and bonds have recorded a sharply negative return during the half year.

"Primarily, it is listed asset classes that were negatively affected during the period. However, the fund's broad portfolio has mitigated the impact of the turbulent markets. The fund's total return amounted to -6.2 per cent, compared with OMX Stockholm, which during the same period decreased by about 28 per cent and global indices such as MSCI World (excl. currency effects) decreased by about 18 per cent," AP2 CEO, Eva Halvarsson, said.

"It is positive that our alternative investments, which include unlisted real estate, private equity funds and sustainable infrastructure, generated a return of as much as 10 per cent in these turbulent times. AP2's return since it was launched exceeds the Fund’s expected long-term return. Over the past ten years, the Fund’s return has averaged 8.2 per cent.”

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