SWEDEN - The seventh AP fund has reported a return of 9.6% for its main fund and 11.8% on its subsidiary portfolio, according to new figures revealed in its half yearly report.
Overall, both the main Premiesparfonden and the secondary Premievalsfonden funds held 20% in Swedish equities, and this produced a return of 13.3%.
Peter Norman, executive president at AP7, said: “We are pleased with the overall result. Our asset liability modelling sets a return target of seven to eight percent, which we have beaten.”
The value of the funds grew to SEK 80bn (US$11.67bn) and SEK 2.5bn (US$360m) respectively, in the first six months of the year.
Global and emerging market equities for both funds produced a 9.7% return, despite them only holding emerging market stocks for two months.
Meanwhile, AP7’s private equity allocation produced 13.9% and hedge funds returned 6.3% for both funds. However, bonds performed poorly, yielding a 0.9% return for AP7.
In May, AP7 revealed it would switch up to 40 % into pure alpha strategies within the next three to five years.
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