AP3 is one of five funds that manage capital on behalf of the Swedish state pension system. The objective of this pension fund is to create a real annual return of 4% in the long term. AP3 has been able to establish a real return target by analyzing the pension system. This target strikes a healthy balance between stability in the pension system in the long term (for future pensioners) and the risk of a decline in the value of the Fund’s wealth in the short term (current pensioners).

The portfolio of the fund comprises of listed assests (equities and bonds), and alternative investments such as private equity, real estate, infrastructure, timberland and insurance risks. In addition, there is a portfolio comprising absolute return strategies that encompass internal and external hedge funds, as well as risk premium strategies.