The Swedish AP funds continued to contribute positively to the long-term financing of the public pension system in 2023, the Swedish government has concluded.

In its annual evaluation of the AP funds to parliament, the government stated that all AP funds had fulfilled the statutory goal of managing their funds in an “exemplary manner”.

The First-Fourth and Sixth AP funds achieved a combined return of 8.1 per cent in 2023, corresponding to SEK 144bn after costs.

Since the current Swedish pension system was introduced in 2001, the AP funds have delivered an average annual return of 6.2 per cent.

This means that the accumulated financial result between 2001 and the end of 2023 amounted to SEK 1,642bn.

Furthermore, the AP funds’ capital totalled SEK 1,951bn at the end of 2023, representing a year-on-year increase of SEK 125bn.

Approximately SEK 20.5bn was transferred from the First-Fourth AP funds to the income pension system after administration costs.

Meanwhile, the Seventh AP Fund, which manages the default option within the premium pension system, achieved an average return of 18.4 per cent in 2023.

By comparison, private funds within the premium pension system had an average return of 16.7 per cent.

“During 2023, all AP funds have continued to work actively with sustainability issues,” the government stated.

“The government assesses that all AP funds have fulfilled the statutory goal of managing the fund funds in an exemplary manner.”

---