Portfolio

A diversified portfolio

At year-end 2018, AP4's fund capital was SEK 349.3 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 twelve 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 135.8 38.9
Swedish equities 51.0 14.6
Global fixed income 76.8 22.0
Swedish fixed income 42.6 12.2
Real assets 42.2 12.1
Other assets 1.0 0.3
Currencies -0.0 -0.0
Total investments 366.9 100.0