AP4 is a long-term investor
The Swedish pension system’s need of payments from the AP Funds stretches over a very long period of time, entailing that AP4 can invest with a very long-term perspective. This provides unique opportunities to be resilient and manage volatility for the benefit of higher returns.
Climate & Environment part of sustainability focus
AP4 believes that a sustainability perspective is a prerequisite for long-term success in asset management. It is for this reason that AP4 always integrates sustainability, with focus on the climate and environment, in its investment processes. In this way we can achieve well balanced risks, capitalise on business opportunities, and achieve a high return over time. AP4 was early in reducing climate risk in its equity portfolio.
AP4 takes responsibility as an active owner
Being a major shareholder on the Stockholm Stock Exchange conveys both opportunities and responsibility. AP4 takes its responsibility as an active owner by engaging in close dialogue, taking a stance on important issues, and communicating clear expectations to boards and managements of the companies that AP4 invests in. During 2018, AP4 divested holdings in companies with substantial operations in thermal coal and oil sand. This helped reduce the carbon footprint of the equity portfolio, which is now approximately 37% lower than for a broad-based global market index. AP4 also sold holdings in companies active in nuclear weapons. AP4 took its active owner responsibility during the year through participation on the nomination committees of 32 companies for their 2019 AGMs and by voting at the AGMs of 90 Swedish and 971 foreign companies in 2018.