SWEDEN - The Second Swedish National Pension Fund AP2 posted what it called a 1H "acceptable result, despite recording a SEK2bn drop (EUR211.8m) in assets.
AP2's return on invested assets for the first six months amounted to -2.7%. At the end of June the value the portfolio amounted to SEK132bn (EUR14bn), including net inflow of SEK2bn capital.
The fund acquired responsibility for the management of SEK134bn in pension fund assets in January.
Given the sharp decline of the Swedish stock market and the volatile state of the international economy, I consider this an acceptable result, said Lars Idermark, CEO of the Second Swedish National Pension Fund.
The fund operates with an investment horizon of more than ten years, and we should therefore avoid viewing the current result from a narrow quarterly perspective. Our investment strategy is more long term. Seen this way, the decline in the stock market has actually enabled us to build up a global share portfolio at attractive market rates.
He added: With a 10-15 year investment horizon, we are bound to witness both ups and downs on the stock market.
The fund also commented that since its inception in January, the fund’s activities have largely focused on establishing a “functional organisation and infrastructure.”
By combining the work of strategic asset allocation with the placement of asset management to external fund managers, we have been able to get [AP2] up and running in a very short time, said Idermark.
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