Management costs

Focus on costs is important for achieving the goal for maximum sustainable returns over time. High quality at a low cost — or cost efficiency — is therefore a guiding principle for AP4.

Total management cost 0.10 % in 2017

AP4’s total management cost was 0.10 % in 2017, measured as a percentage of average fund capital. The management cost consists of operating expenses and commission expenses.

Operating expenses consist mainly of personnel costs, IT costs and costs for premises. AP4’s operating expense ratio, measured as operating expenses as a percentage of average fund capital, was a low 0.06 %.

Commission expenses consist mainly of fees paid to external asset managers and custodian fees. AP4’s commission expense ratio, i.e., external asset management costs in relation to assets under management, was 0.04 % in 2017.

Graf over management costs


AP4’s cost level is 46 % lower than a selection of comparable international pension funds, according to an independent survey conducted by CEM Benchmarking. The comparison included 19 pension funds, where AP4 was one of two funds with the lowest costs.

Graf internal asset management