Returns at AP2, the second national Swedish pension fund, slumped last year as the credit crisis and its related market turbulence took its toll in the second half. The fund made 4% after costs, less than a third of the 13% return it posted in 2006.

AP2 is the first of the four buffer funds to report full-year 2007 results. It has also been the best-performing recently, scoring the highest return among its peers in the first half of last year and for the whole of 2006.