AP3 more than doubles green bond allocation

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Stockholm (NordSIP) – In its latest annual report, AP3 highlights that it has more than doubled its allocation to green bonds. “During the year we also cemented our position as one of the largest Nordic investors in green bonds by doubling our holdings. At year-end, this portfolio was worth SEK 9.5 billion,” commented Kerstin Hessius, CEO of AP3.

In parallel, it reports that the fund recorded a decrease in the carbon footprint of its portfolio holdings, a trend that continued from previous year. These sustainable investment initiatives were accompanied by a strong net performance of 9.4% after expenses, which corresponded to an income of SEK 28 billion, up from SEK 20 billion last year. Hessius said: “A net result of SEK 28 billion is a strong performance, especially considering the weak performance of equity markets in the first six months of the year. We also made a substantial contribution to the pension system by delivering a return that exceeded the income index by 7.6 percentage points.”

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The coronavirus epidemic has further accelerated the rise of ESG into the investment mainstream. As deficits skyrocket, bond investors have an opportunity to engage with governments on climate change, argues Thomas Dillon, Senior Macro ESG Analyst at Aviva Investors.

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