The Sixth Swedish National Pension Fund (AP6) made a positive return of 9 per cent in 2024, its annual results reveal.

The fund recorded a net profit of SEK 6.4bn after currency hedges, increasing its total assets under management to SEK 77.1bn.

Over the past five years, AP6 has achieved an average annual return of 15.5 per cent, surpassing its target of 7 per cent. The fund has reported a positive net profit every year since 2012.

Commenting on the results, AP6 CEO, Katarina Staaf, said: "In a gradually improving market climate, AP6 has generated a total net return of 9 per cent for 2024, with all sub-portfolios making a positive contribution with high returns. Capital employed, excluding liquidity and currency hedging effects, returned 15.2 per cent.”

Furthermore, AP6’s buyout portfolio, including co-investments, generated a return of 15.9 per cent, with co-investments returning as much as 21.1 per cent.

Meanwhile, the secondary portfolio delivered a “strong” return of 17.5 per cent, and the venture portfolio achieved a return of 10.6 per cent. The fund’s results also showed that approximately 42 per cent of its SEK 6.4bn net profit for the year was realised profit.

The overall five-year average net return stood at 15.5 per cent, while the employed portfolio returned 21.3 per cent. Among the sub-portfolios, buyouts returned 21.9 per cent (including 26 per cent from co-investments), venture capital 18.8 per cent, and secondary investments 17.3 per cent.

AP6's internal costs remained low at just under 0.14 per cent of fund capital.

While the impact of statutory currency hedges on liquidity was limited in 2024, the negative liquidity effect of almost SEK 10bn from 2022 and 2023 continued to affect the fund’s ability to make co-investments during the year.

However, AP6 worked to strengthen liquidity through selective secondary transactions, allowing it to divest assets at good returns.

Since mid-autumn 2024, the fund has cautiously resumed new co-investments, and year-end liquidity stood at SEK 3.7bn.

On 31 January 2025, the Swedish government offices announced that the Pensions Group had decided to merge funds in Stockholm and Gothenburg, with a legislative referral published on 6 February 2025.

Staaf welcomed the decision and said: "I am pleased that the government is recognising the successful activities that AP6 conducts in the area of venture capital.

“In order to provide scope for utilising the expertise acquired in the Sixth AP Fund, the Second AP Fund will have expanded opportunities to invest in unlisted assets until 2036 after the incorporation of the Sixth AP Fund.”

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