Swedish pension fund AP3 delivered a return of 10.3 per cent after expenses in 2024, with a profit of SEK 51.3bn, its latest accounts have revealed.

The update showed that the fund had a "successful" year in 2024, with investment returns pushing the value of its total capital up to SEK 549.1bn at year-end.

According to the group, asset management costs were 0.07 per cent, of which operating expenses were 0.06 per cent. This is unchanged on the previous year.

This means that the fund achieved an annual average return of 8.2 per cent for the past five years and 8.4 per cent for the past 10 years.

AP3 CEO, Staffan Hansén, said: “The 2024 financial year was defined by geopolitics, US economic dominance and Trump’s re-election as president. AP3 navigated the year wisely and delivered strong returns to the benefit of the national pension system.

"In parallel, the fund worked hard to implement its new system platform. All in all, I am very pleased with our performance in the past year.”

The group also confirmed that it is currently undertaking "intensive" work to implement the new system platform to future-proof its operational support.

In line with the new global investment risk framework, the fund has also gradually returned to investing in emerging markets.

Further work lies ahead, however, as the government recently announced that it would push forward with its plans to consolidate the AP buffer funds.

As part of this, it is looking to transfer the assets from the First AP fund into the Third and Fourth AP funds. The aim is for the changes to have been implemented by 1 January 2026.

“It is now up to AP3, in partnership with the other funds, to carry this out with the best outcome for the pension system," Hansén said.

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