AP3 Returns 10.3% in 2024, Assets Rise to $51.8B

The Swedish pension confirmed its return to investing in emerging markets last year.



The Third Swedish National Pension Fund, AP3,
announced Tuesday that it achieved a 10.3% return, net of expenses, in 2024, largely driven by equity returns. The fund’s assets rose to 549.1 billion Swedish kronor ($51.8 billion) at the end of the year.

In the past five- and 10-year periods, the fund has posted annualized returns of 8.2% and 8.4%, respectively. The fund allocates 36% of its portfolio to global equity, 29% to alternative investments, 22% to fixed income and 13% to domestic Swedish equities.

Before costs, the fund returned 10.4%, of which equities returned 17.4%, fixed income returned 2.2% and alternative investments returned 0.8%. Expenses and fees cost the fund one basis point from net returns. 

Additionally, the fund confirmed its return to investing in emerging markets in 2024, after a hiatus in 2022 and 2023, which the fund attributed to geopolitical uncertainties in emerging regions, including the war in Ukraine and the growing presence of authoritarian regimes. The fund plans to continue to invest in emerging markets in 2025.

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Approximately 38% of the fund is invested in North America, 33% in Sweden, 12.2% in the rest of Europe, 5.7% in the Asia-Pacific region and just 1.1% in emerging markets.

AP3, in its investment risk monitoring, began in 2024 to consider a country’s governance and factors such as democratic development, rule of law and corruption risk in its analysis.

AP3 is one of five buffer funds which manage assets on behalf of the Swedish state pension system. The Swedish government is in talks with the funds to consolidate AP1, AP3 and AP4 into a single fund by January 1, 2026.

“It is now up to AP3, in partnership with the other funds, to carry this out with the best outcome for the pension system,” said Staffan Hansén, AP3’s CEO, in a statement.

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Mercer to Acquire Investment Consultant SECOR Asset Management

The transaction is expected to close in the second quarter of 2025.



Financial services and consulting firm Mercer, a Marsh McLennan company,
announced Tuesday that it has entered into an agreement to acquire SECOR Asset Management L.P., an investment consulting firm which counts pension funds, insurance companies, endowments and family offices as clients.  

SECOR had $13.8 billion in assets under advisement and $21.5 billion in assets under management as of September 30, 2024, according to the announcement. The firm offers investment strategy, tactical asset allocation, manager selection, portfolio monitoring and implementation services for asset owners. 

“SECOR’s exceptional team is highly regarded in the industry for their extensive experience working with in-house investment teams and proven expertise in specialized investment implementation,” said Michael Dempsey, Mercer’s wealth president, in a statement. “We are thrilled at the opportunity to welcome this talented group and to continue developing a comprehensive and agile suite of solutions designed for the distinct needs of institutional investors.” 

The acquisition will add to Mercer’s existing investment consulting capabilities. SECOR will be integrated into the wider Mercer and Marsh McLennan businesses after the acquisition closes, a spokesperson for Mercer said. The two firms will operate as separate companies until then. Mercer also acquired Vanguard’s $60 billion AUM outsourced CIO business early last year.  

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“It’s terrific that our colleagues will have the opportunity to advance their careers at Mercer and that our clients will benefit from access to Mercer’s extensive global resources, valued insights and seasoned investment talent once the transaction is finalized,” said Tony Kao, founder, managing principal and CIO at SECOR, in a statement. “Having served as both an in-house Chief Investment Officer and a partner to clients, I believe that Mercer is the ideal steward for our business’s future.” 

SECOR’s 40 employees in New York and London will join Mercer when the transaction is completed, which is anticipated in this year’s second quarter, pending regulatory approval and client consents. 

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