SWEDEN - Forsta AP-fonden (AP1) has posted its best performance to date after net assets rose by SEK 30.5bn (e3.24bn) to SEK 187.3bn (e19.9bn) in 2005.
Sweden’s first buffer fund attributed the 17.5% return to a sustained high proportion of equities, rising stock prices and positive returns from active management. The fund’s total return exceeded its benchmark by 1.5%.
“Our excellent performance in the past three years has provided a valuable reinforcement to the Swedish pension system,” remarked William af Sandeberg, managing director of AP1.
“After five years in operation it is satisfying to note that the fund has achieved an annualised return of 4.4%.”
The news comes just a week after AP2 posted record net returns of 18.7% in 2005, ahead of sister fund AP4, which returned 16.9%, slightly below its benchmark.
AP2 saw its assets grow by SEK32.5bn and the fund’s net profit for the year was SEK29.6bn, while AP4’s net profit stood at SEK25.8bn taking total assets to SEK180.2bn.
By Daniel Flatt
This week's edition of Professional Pensions is out now.
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