The AP Funds strengthen the income pension system by SEK 182 billion

Press release
The First - Fourth AP Funds (AP1, AP2, AP3, AP4) performed well in 2024 and strengthened the financial position of the income pension system by a total of SEK 182 billion. The result corresponds to an average return of 9.6 per cent. At year-end, the four funds managed total assets of SEK 2,053 billion. The net payments of the AP Funds to the pension system totalled SEK 8 billion. This contributes strongly to the stability of the income pension system and its mission to maximise benefits for current and future pensioners.

The average return for the year was 9.6 per cent after costs. The average return of the AP Funds over the last five and ten years amounts to 7.0 and 7.6 per cent per year, respectively, compared with the income index’s performance of 3.4 and 3.0 per cent per year over the corresponding periods. The income index is used to calculate pensions and pension rights in the income pension system. When the returns of the AP Funds exceed the performance of the income index, the AP Funds contribute to the strength of the pension system.

At the end of 2024, the total fund assets of the AP Funds amounted to SEK 2,053 billion. During 2024, the AP Funds paid out SEK 8 billion to cover the pension system’s deficit. Since they were launched in 2001, the AP Funds have made net payments of SEK 280 billion to the pension system. At the same time, their returns have contributed to the financial strength of the pension system, and the AP Funds’ share of the pension system now accounts for more than 16* per cent of pension assets, compared with 10 per cent in 2001.

The AP Funds conduct cost-effective management that provides good returns after costs and also build confidence in the AP Funds as the authorities for and managers of public pension funds. In 2024, total management costs amounted to 0.07 per cent of assets under management. The AP Funds are cost-effective in international benchmarking.

During the year, The AP Funds have continued their work towards portfolios with net zero emissions. In 2024, greenhouse gas emissions in the portfolios (scope 1 and 2) declined by another 21 per cent.

Kristin Magnusson Bernard CEO AP1, Eva Halvarsson CEO AP2, Staffan Hansén CEO AP3 and Niklas Ekvall CEO AP4 make a joint statement:

“Our collective result for 2024 shows that all of us, with our different management strategies, navigated well in unsettled financial markets and can summarise a stable year. This means that the AP Funds have made a strong contribution to the stability of the pension system. From a 10-year perspective, the return has been high, averaging 7.6 per cent per year, compared with the average increase of 3.0 per cent per year for the income index. We are recognised internationally as a role model in sustainability and have continued to develop this important aspect via both responsible investment and responsible ownership.”

From left: Kristin Magnusson Bernard CEO AP1, Eva Halvarsson CEO AP2, Staffan Hansén CEO AP3, Niklas Ekvall CEO AP4

* According to Swedish Pensions Agency Annual report 2024 (total fund capital from AP1, AP2, AP3, AP4, AP6)

In October 2023, the Government initiated an investigation to propose measures to modernise and streamline the management of the AP Funds. On 6 February 2025, the Government submitted a legislative proposal that involves consolidating AP1 into AP3 and AP4 and transferring the assets. According to the proposal, AP6 will also be incorporated into AP2. The legislative changes are proposed to take effect on 1 January 2026. More information is available in the annual reports and sustainability reports published by the AP Funds at www.ap1.se, www.ap2.se, www.ap3.se and www.ap4.se.

For more information, contact:

Sara Christensen, Head of Communications, AP1, sara.christensen@ap1.se
Åsa Mossberg, Head of Communications and Sustainability, AP2, asa.mossberg@ap2.se
Lil Larås Lindgren, Head of Communications AP3, lil.lindgren@ap3.se
Karoline Hammar, Head of Communications, AP4, karoline.hammar@ap4.se

 

The AP Funds (AP1, AP2, AP3, AP4)

The AP Funds manage the buffer capital in the Swedish National Pension System on behalf of the Swedish Parliament and the Swedish people, for the benefit of current and future pensioners. The AP Funds are required to manage their assets in an exemplary way through responsible investments and ownership. Particular attention is paid to how sustainable development can be promoted without compromising the overall objective of maximising the benefits for the pension system. The AP Funds all have the same mission but different management strategies, and are governed by the National Pension Funds Act (2000:192).