Swedish pension company Alecta’s Optimal Pension returned 3.9 per cent in the first quarter of 2023, its quarterly report has revealed.

This represents a 10.1 percentage point increase from the first quarter of 2022, when the pension company’s Optimal Pension returned -6.2 per cent.

Over the five-year period to the end of March 2023, the pension product's average annual return was 7.7 per cent, down from 8.7 per cent at the end of March 2022.

Alecta’s Optimal Pension is the pension company’s defined contribution pre-selection portfolio with 60 per cent invested in equities.

Managed capital in the total portfolio for Optimal Pension was SEK 239bn at the end of Q1, up from SEK 218bn at the end of Q1 2022.

The pension company’s managed capital in its defined benefit portfolio fell from SEK 960bn to SEK 952bn during the same period.

Alecta’s returns on equities was 5.6 per cent, up from -10.2 per cent the previous year, while its returns on bonds was 2.2 per cent, compared to -2.7 per cent in Q1 2022.

Meanwhile, the pension company’s return on alternative assets fell from 3.5 per cent in Q1 2022 to 0.4 per cent in Q1 2023.

Alecta’s solvency ratio fell slightly from 204 per cent to 203 per cent, while its total managed capital increased from SEK 1,178bn to SEK 1,192bn.

Earlier this month, Alecta CEO, Magnus Billing, left his position following losses of SEK 19.6bn due to the collapse of three American banks the pension company invested in.

Alecta also announced personnel and administrative changes after the losses, including temporary appointments to manage its assets.

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