Our asset allocation

The management structure implemented in 2013 has three ínvestment horizons.

Different investment horizons enable AP4 to better capitalize on the opportunities and manage the limitations inherent in long-term (40 years), medium-term (3–5 years) and short-term analyses. For each investment horizon, AP4 determines an optimal asset portfolio.

Normal portfolio, 40 years

The Normal portfolio indicates the asset allocation that will yield the best anticipated return in the long run, in a 40-year perspective, based on AP4's analyses.

Read more about the Normal portfolio.

Strategic management, 3-15 years

Strategic management capitalizes on AP4's long-term mandate with active positions and investments in a number of business areas. The investment horizon is between 3 and 15 years, because shorter investment horizons than this risks creating restrictions in the management, which can lead to poorer earnings, in part due to lower liquidity.

The evalution is over a rolling five-year period and the outcome of individual years should be interpreted with caution since strategic positions are taken in the medium term. Strategic factor management consists of a number of mandates divided into the following positions and sub-portfolios:

  • Swedish equities
  •  Corporate bonds
  • Sustainability
  • Real estate
  • Other strategic positions

Read more about the Strategic management.

Tactical management, up to three years

Tactical managements remit is to create excess return by capitalizing on pricing disparities with a view to outperforming the earnings of passive index management.

Tactical management works with AP4's shortest investment horizon, up to three years. The outcome is evaluated over a rolling three-year period.

Read more about the Tactical management.

Long-term approach promotes sustainability

AP4's management structure promotes long-term investment and hence the sustainability of the investments. By explicitly extend AP4's investment horizon, sustainability in the investments decisions gets more weight and thus increased priority. AP4 believes that no company and no organization can stay successful if sustainability doesn't get a prominent place on the management's and the Board's agenda.