SWEDEN - AP1, Sweden's first national pension fund, blamed negative stockmarkets for its SEK 18.7bn (E2bn) loss last year.
Asset values amounted to SEK 117.1bn, a -13.8% drop on 2001 (SEK 130.8bn) and slightly lower than the fund's strategic benchmark.
“It is always regrettable when the fund capital decreases in value,” said William af Sandeberg, AP1’s managing director.
“In spite of the trends experienced during the year our belief that the fund shall have a high proportion of equities in order to ensure long-term yield has been strengthened, as confirmed in our new ALM (Asset Liability Modelling) study.”
AP1 will now invest 57% in equities, 3% in alternative investments, including hedge funds, private equity and real estate, and the remainder in fixed income instruments.
So far the fund’s equity exposure, including real estate, has amounted to 59%. Currency exposure was 15%.
Similar to the other four national pension funds, AP1 intends to externalise more of its assets later this year, although a greater portion of the fund's equities shall be actively managed internally. At present most of its externalised mandates are held on a passive basis.
AP1 also said that it intends to expand its shareholder activism.
Sweden has four national pension funds. AP6 invests only in Nordic private equity and AP7 is a state sponsored contributory fund.
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