SWEDEN - Despite only producing a 4% annual investment return after costs, the second AP fund (AP2) finished 2007 SEK10.7bn (US$1.6bn) up on 2006, with a value of SEK227.5bn.
Eva Halvarsson, CEO, AP2, said: "The past year is likely to go down in history as one of exceptional turbulence on financial markets.
"Even so, the second AP Fund is able to report a favourable return for the fifth year in succession."
Contributions accounted for SEK2bn of inflows with the fund making a further SEK8.7bn on its investment strategy.
The fund said during 2007 it had posted a negative, relative return of -0.4% on quoted assets, before commission and operating expenses.
AP2 said this was largely attributable to rebalancing effects resulting from high market volatility and stated a new rebalancing procedure had been initiated.
Alternatives investments produced a 13.4% return for the fund with emerging and Asian markets, excluding Japan, being quoted as the most profitable over 2007.
The fund's relatively low exposure to foreign currency at 11% was quoted to have avoided it feeling the weak US dollar's effect on absolute returns to a great extent.
In December, AP2's CIO, Poul Winslow, announced he would leave the role by April 2008 to join Nordea, where he would build a fund of hedge fund business.
Sir Philip Green's restructuring proposals for his retail giant Arcadia will not "adequately protect" its pension schemes' members, The Pensions Regulator (TPR) has said.
The Marks and Spencer Pension Scheme has completed buy-in deals worth £1.4bn with two insurers, mirroring similar transactions last year.
There have now been a total of 47 buy-in and buyout deals of over £500m announced since 2007. The full list, provided courtesy of LCP, is as follows...