AP-Fonden 1

Sweden's parliament voted to restructure the management of the income pension system's buffer capital, determining that consolidating four buffer funds into three would improve efficiency. The decision dissolved AP1 effective December 31, 2025, with its portfolio transferred to AP3 and AP4 on January 1, 2026.

AP1's portfolio was divided between the Third Swedish National Pension Fund (AP3) and the Fourth Swedish National Pension Fund (AP4). Certain assets remain under a transitional arrangement overseen by AP4's board, which now signs AP1's annual reports and administers the legacy entity.

AP1 co-owned Vasakronan — Sweden's largest commercial property company — with sibling funds AP2, AP3, and AP4. It also held Polhem Infra jointly with AP3 and AP4, owned the residential platform Willhem AB, and maintained unlisted holdings in energy distribution through Ellevio.

AP1 employed a hybrid model, combining direct holdings in listed equities and fixed income with external manager relationships and joint venture co-investments alongside other AP funds. Its private-market investments in real estate, infrastructure, and private equity were typically structured through dedicated platforms and pooled vehicles.

AP1 was a founding signatory to the UN Principles for Responsible Investment in 2006 and helped build the Council on Ethics of the Swedish AP Funds, a collaborative body that coordinated active ownership and ethical engagement across the four buffer capital funds.

For calendar year 2025, AP1 posted a 5.6% return after costs, generating SEK 27.9 billion. Fund capital ended the year at SEK 520.2 billion after net payments of SEK 4.6 billion to the pension system, according to the fund's final annual report.