SWEDEN - The Second Swedish National Pension Fund, known as AP2, announced an end of year net loss of SEK55.1bn (US$6.8bn).
AP2 chief executive Eva Halvarsson said the global economic environment was one undergoing one of the "most serious financial crises since the 1930s".
She added: "In spite of deciding to reduce risk in the equity portfolios under in-house management, to reduce the scale of our positions in fixed-income and exchange-market securities and to cancel a number of investment strategies completely, the decline in market worth was still substantial."
At the end of 2008, AP2's assets stood at SEK173.3bn, down from SEK227.5bn in 2007.
In terms of asset classes, the fund said unquoted holdings fell 1.9%, with a 9.1% decline in the values of private equity holdings.
Although the largest declines were attributed to across the board falls in equity values, the fund said the overall importance of AP2's equity holdings was limited, as the fund accounted for "only 3% of the Swedish pension system's total capital assets, of which equities comprise a mere 7%".
AP2 said its part purchase of real estate company Vasakronan alongside AP funds 1-4 in summer last year contributed to positive real estate returns of 0.7%.
The Vasakronan deal was agreed between the Swedish government and AP1-4, and saw AP2 take a 25% stake in the firm (Globalpensions.com ; 3 July 2008).
Standard Life has increased exposure to risk assets in three out of five funds in its Active Plus and Passive Plus workplace pension ranges.
Some 48% of employers are unaware of the services or help they offer to members of their defined contribution (DC) schemes, according to Aon.
Jupiter Asset Management's Abbie Llewellyn-Waters, manager of the Jupiter Global Sustainable Equity strategy, explains why firms need to integrate ESG into their business model