The return for the year was -0.1% before costs and -0.2% after costs. Active management contributed +2.3 percentage points to the return – a significant and important contribution during a year of weak market returns.

With a net result of SEK -0.5 billion and net payments of SEK 6.8 billion to the pension system during the year, total fund capital decreased to SEK 349.3 billion at year-end 2018, compared with SEK 356.6 billion at the start of the year. Currency exposure was 18.4% of assets.

Total costs amounted to 0.10% of average fund capital. AP4’s cost level was 49% lower than for a selection of pension funds in an international comparison.

During the year, 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.


Key ratios for AP4's operations December 31, 2018 December 31, 2017
Fund capital at end of period, SEK bn 349.3 356.6
Net result for the period, SEK bn -0.5 30.1
Net disbursements to pension system, SEK bn -6.8 -7.4
Fund capital at beginning of period, SEK bn 356.6 333.9
Asset management costs, operating expenses, % 0.06 0.06
Asset management costs, commission expenses, % 0.04 0.04
Total asset management costs, % 0.10 0.10
Return on total portfolio, net of asset management costs, % -0.2 9.1
Real return on total portfolio, net of asset management costs, %1 -2.2 7.4
Annualized total return after asset management costs, average 5 years, % 8.1 11.5
Annualized total return after asset management costs, average 10 years, % 9.9 7.3
Real annualized return after asset management costs, 10 years, %1 8.7 6.9