Portfolio

A diversified portfolio


At mid-year 2018, AP4's fund capital was SEK 366.9 billion. More than half of these assets were invested in Swedish and global equities. Fixed income investments corresponded to one-third of the capital, and real estate and alternative investments amounted to more than ten percent of the portfolio.

Long-term assignment justifies a high share of equities

Equities have a high expected long-term return compared with bonds as well as other asset classes. At the same time, equities have high expected volatility, and the return on equity investments can therefore be expected to fluctuate relatively sharply from year to year. In addition, over the long term equities are a real asset, which is beneficial since AP4’s obligations are also real. Therefore, over time a high portion of equities is expected to make a positive contribution to the pension system and its financial strength. This means that AP4’s return will, to a significant degree, be determined by the performance of the world’s stock markets.

Asset class Market value, SEK bn Exposure1, %
Global equities 148.4 40.4
Swedish equities 58.4 15.9
Global interest rates 78.4 21.4
Swedish interest rates 45.2 12.3
Real assets 37.1 10.1
Other investments -0.7 -0.2
Total investments 366.9 100.0

1Refers to exposure, underlying values of derivative instruments in the passive allocation are distributed among the respective asset classes.