Management

With a positive net result of SEK 13.7 billion, total fund capital grew to SEK 366.9 billion during the first half of 2018. The return was 3.8 % after costs (3.9 % before costs). AP4 exceeded both its medium-term and its long-term return target. During the first half of 2018 a net total of SEK 3.3 billion was paid out to the pension system.

With a net result of SEK 13.7 billion, total fund capital grew to SEK 366.9 billion at the end of the first half of 2018. The return was 3.9 % before costs and 3.8 % after costs. The return exceeded AP4’s reference index by 1.4 percentage points. During the first half of the year a net total of SEK 3.3 billion was paid out to the pension system. Adjusted to a full-year basis, total costs amounted to 0.10 % of average fund capital. Costs are very low in an international comparison. Currency exposure was 17.7 %.

AP4 has taken additional steps to lower the carbon footprint of its portfolio. During the first half of 2018, shares in companies for which coal accounts for more than 20 % of sales were sold from the global equity portfolio. This has further lowered AP4’s carbon footprint and reduced climate risk in the portfolio.

AP4 has taken active ownership responsibility by voting at the Annual General Meetings of 81 Swedish and 821 foreign companies during the first half of the year. Ahead of the 2018 AGM season AP4 participated on 32 nomination committees.

 

Key ratios for AP4's operations June 30, 2018 June 30, 2017 December 31, 2017
Fund capital at end of period, SEK bn 366.9 347.6 356.6
Net result for the period, SEK bn 13.7 17.3 30.1
Net disbursements to pension system, SEK bn -3.3 -3.7 -7.4
Fund capital at beginning of period, SEK bn 356.6 333.9 333.9
       
Asset management costs, operating expenses, % 0.06 0.06 0.06
Asset management costs, commission expenses, % 0.04 0.04 0.04
Total asset management costs, % 0.10 0.10 0.10
       
Return on total portfolio, net of asset management costs, % 3.8 5.2 9.1
Real return on total portfolio, net of asset management costs, %1 2.9 4.5 7.4
Annualized total return after asset management costs, average 5 years, % 11.0 11.8 11.5
Annualized total return after asset management costs, average 10 years, % 8.7 6.5 7.3
Real annualized return after asset management costs, 10 years, %1 7.9 5.4 6.9

 

AP4's mission is to contribute to financial security for pensioners of today and tomorrow by managing part of the buffer capital of Sweden’s national pension system. AP4’s long-term perspective, responsibility as shareholder and strong commitment to sustainability creates the conditions for high returns at a low cost. In this way we contribute to more secure pensions.