Sweden’s Kapan Pension, for government employees, made a return of 9.8 per cent on its investments in 2024, up from 8.6 per cent in 2023, its annual results have revealed.

The fund said 2024 was characterised by conflicts and uncertainty. However, the threat of recession has subsided, and central banks have lowered interest rates, which has been positive for developments in the financial markets.

Kapan Pension said its fixed income, equity, and real estate investments rose in value in 2024, with its equity portfolio making a particularly “strong” contribution to the year's return.

The total equity return in 2024 was 16.4 per cent, real estate was 4.5 per cent and fixed income was 4.2 per cent. However, cash assets remained unchanged in 2024.

In addition to this, the global stock market performed “significantly” stronger than the Swedish market, while the appreciation of the dollar also contributed positively to returns.

The long-term value development of the Kapan Pension’s assets was good, and its balance sheet was strong with a solvency of 265 per cent. Meanwhile, the average five-year return on the fund’s assets was 6.9 per cent.

“The focus is to continue to develop and adapt the business to a changing world over time and to be able to offer long-term, responsible, and sustainable management of the members' paid premiums and accumulated pension capital,” the pension fund stated.

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