Alecta says significant currency hedging helped returns in 2025, with stock picking and allocation behind a 14.1% gain for equities – the strongest-performing asset class for Sweden’s biggest pension fund.
Reporting a summary of annual results today, Alecta said its defined contribution savings product Alecta Optimal Pension produced a 9.6% return for the full year, based on a profile with 60% equities, up from 6.8% in 2024.
Pablo Bernengo, chief investment officer, said 2025 had been a strong year for Alecta Optimal Pension with all asset classes having made gains.
Fixed income assets and alternative investments produced returns of 3.2% and 4.5%, respectively, he said.
Bernengo noted: “A high degree of currency hedging has also protected the value of our foreign assets as the krona strengthened last year.”
The Swedish krona surged by more than 20% against the US dollar over the course of 2025, almost double the euro’s gain against the US currency, according to Reuters market data.
Alecta said its equity portfolio “delivered a strong result both thanks to good stock selection and successful allocation between sectors and regions,” and that investments in the tech and financial sectors in particular had contributed to the return.
Even though bond yields rose in Continental Europe and Sweden in 2025, Alecta said, government bonds in its fixed income portfolio had delivered a positive return.
“Credit bonds had a good relative return in relation to government bonds, which contributed positively to the return for the fixed income securities,” it said, adding that the alternative credit portfolio had shown “very good returns”.
Alecta, which managed SEK1.38trn (€130bn) in total at the end of June, said its full financial results for 2025 would be published on 2 March.
