SWEDEN - Swedish pension fund AP2 returned 6.4% in the first half of the year as its heavy weighting in equities lifted returns, while AP4 reported returns of 7.9% in the same time period.
AP2 CEO Eva Halvarsson said: "Our strategy of maintaining the portfolio's high share of equities has been a key factor in its recovery. Our fundamental approach therefore remains unchanged. We believe a large share of equities is essential if we are to achieve the goal prescribed for us."
In a preview of the fund's half-year results, due to be made public this week, the SEK182.5bn (US$26bn) scheme said its positive return was mainly due to the active in-house management of Swedish equities, investments in international fixed income and foreign exchange.
AP2 also said it invested SEK700m in new share issues by Swedish companies.
AP2 invests 35% in international equity and fixed income each. The system also allocates 18% to Swedish equities, 5% to emerging markets equities and real estate each, and 1% each to emerging markets fixed income and private equity.
AP2's announcement comes as AP4 said its investments returned 7.9% for the first half of the year.
Total assets were SEK175.7bn, up SEK11bn from the end of last year.
AP4 invests 42% in global equities, 34% in bonds, 19% in Swedish equities, 4% in real estate and 1% in private equity.
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