Portfolio

A diversified portfolio

At year-end 2018, AP4's fund capital was SEK 391.4 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 perspective warrants substantial equities allocation

AP4’s long-term assignment and a higher expected return for equities compared to other asset classes warrants a higher equities allocation, despite the relatively higher risks. Substantial exposure to Swedish equities and fixed income investments is warranted by an anticipated higher return relative to many other markets as well as by favourable opportunities for AP4 to generate excess returns through active management and lower currency hedging costs.

Asset class Market value, SEK bn Exposure1, %
Global equities 156.6 40.0
Swedish equities 61.3 15.7
Global fixed income 82.4 21.0
Swedish fixed income 45.4 11.6
Real assets 45.3 11.6
Other assets 0.5 0.1
Currencies 0.0 0.0
Total investments 391.5 100.00